Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Shareholder Meeting (September 2009)
38 slides from Coromandel International's shareholder meeting presentation, Sep 25, 2009
Slide 1: Coromandel in a New AVATAR
Coromandel in a New AVATAR 1
Slide 2: Falling Food Availability
Falling Food Availability Per Capita Net Availabiity Of Food Grains- India 490 480 470 gms per day 460 450 440 430 420 410 1980-81 1985-86 1990-91 1995-96 1999-00 2004-05 Per capita food availability in India has slipped to sub -1980 levels. Growth in food production growth lags behind growth in pop
Slide 3: The challenge of malnourishment
The challenge of malnourishment Percentage of children who are underweight India Rest Of World 39% 33% Bangladesh China Pakistan 6% Indonesia 5% 5% 4% Ethopia 4% Nigeria 4% Mouths to feed have once again outnumbered stocks to feed.
Slide 4: Decline in crop response to fertilisers
Decline in crop response to fertilisers Plan Period Kg food grains per kg nutrients 5th Plan (1974-79) 1:15.0 8th Plan (1992-97) 1:7.5 9th Plan (1997-02) 1:7.0 10th Plan (2002-07) 1:6.5 11th Plan (2007-12) 1:6.0 Need to address Fertilizer Efficient use Ensuring Food Security
Slide 5: Fertilisers - The emerging scenario in India
Fertilisers - The emerging scenario in India • India’s food production for 2009-10 pegged at 235 MMTs and growing. • India becomes world’s second largest fertiliser consumer at 25.3 MMTs. • India’s imports of fertilisers for 2009-10 pegged at 18 MMTs. • Alternate sources of fertiliser being evaluate
Slide 6: Defining potential of the domestic market
Defining potential of the domestic market From To 2008-09 Million MT 2012-13 Million MT 2012-13 Lac MT Urea 26.6 Urea 30 Specialty Zinc Sulphates 3 DAP 9 DAP 10 Water Soluble Complex 7 Complex 10 Fertilisers 1 SSP 2.5 SSP 4 Sulphur 1 Potash 5 Potash 6 Other Micro Others 0.1 Others 0.1 Nutrient 1 Tot
Slide 7: Our journey so far
Our journey so far 7
Slide 8: Our journey so far
Our journey so far • In the last 48 years we have evolved to serve stakeholders. • We have been serving the Indian farmers by supplying quality agri inputs and timely advise. • Strong operational focus , and plant efficiency. • High Corporate governance. • Setting industry standards in performance.
Slide 9: The Journey of Growth
The Journey of Growth 2003 2003 2005 2006 2003 2006 2007 2007 2008 2009 GCT, FOSKO CFL GETAX- R Completton FOSKOR Pesticide Rock CFL TIFERT GFCL of BAA GFCL Expansion SND Prospecting Formulation Merger GFCL FOSKOR BAA with Brownfield GFCL Expansion BAA CFL of EID Acquisition. South FOSKOR JV with un
Slide 10: Coromandel's competitive edge
Coromandel’s competitive edge Plants are strategically located - in highly irrigated southern Indian states - AP, Tamil Nadu - in the heart of fertiliser consumption market – low freight cost. Plant Facilities – State-of-the-art with good infrastructure support and robust systems. Technological supe
Slide 11: Coromandel's competitive edge
Coromandel’s competitive edge Market Leader in the addressable market with strong marketing network. Products of wide range – Various crops , different soils and different stages of application. High brand equity – Gromor and Godavari brands – highest brand recall in AP market. High credit ratings –
Slide 12: Backward Integration (International)
Backward Integration (International) 12
Slide 13: Ammonia, rock phosphate, phosphoric acid, sulphur and potash sourcing
Ammonia 5.3 lac MT CANADA 9.0 lac MT Rock Phosphate CANPOTEX TUNISIA GCT Phosphoric Acid 6 lac MT TOGO GETAX Sulphur 3 lacAFRICA SOUTH MT FOSKOR Potash 4.5 lac MT MITSUI ISRAEL Urea
Slide 14: Technology
Technology 14
Slide 15: Relevant Technologies for Fertilisers Business
Relevant Technologies for Fertilisers Business Phosphoric Acid & By-products Beneficiation Complex fertiliser Manufacturing 1.Phosphoric acid 2.Complex fertiliser 3.By-products Mining Crop Rock to Crop Resources Products 1 Exploration & Geology 1. Application method 2 Mining 2. Soil requirements 3 B
Slide 16: Technologies for innovation
Technologies for innovation • New grades of WSF (24:24,28:28 and Sulpho Zinc). • Low grade of Potash from Molasses. • Customised Fertilisers. • Compost and its variants.
Slide 17: Key Addressable Markets
Key Addressable Markets 17
Slide 18: Key addressable markets
Key addressable markets Fertiliser Markets: AP, Karnataka, T.N, Maharashtra, WB, Chhattisgarh, MP,UP. Pesticides Markets- Pan India. SND Market: Pan India. Retail: AP (430 Stores), Karnataka,T.N. and Maharashtra - 100 Stores.
Slide 19: Where are we today?
Where are we today? Total Fertiliser Production 29 lac MT Fertiliser Turnover 5600 Crs. SND Turnover 250 Crs. Pesticides Turnover 400 Crs. Total no. of Dealers 10000 Total no. of Branches 24 Mana Gromor Centers 431 No. of Factories 7 Total no. of Employees 2712 No. of State serviced 25 International
Slide 20: Where we want to be...
Where we want to be...
Slide 21: Coromandel roadmap
Coromandel roadmap Diversify Backward One stop Consolidate Things in into value integrate- solution raw material the rear added Rock, Am for Indian supply nutrients view monia farmers mirror looks farther than they Wealth Peace Build Improve creation- from actually alternate efficiencies are. low co
Slide 22: Fertilisers
Fertilisers 22
Slide 23: Fertiliser production
Fertiliser production To 40 Lac MT From 29 lac MT
Slide 24: State-wise turnover - fertilisers
State-wise turnover - fertilisers Click to add Text Add Time Click to add Text Add Time Current Level 6300 Cr Next 4-5 yrs 10000 Cr Click to add Text
Slide 25: Key strategic shift
Key strategic shift • Ramp up volumes from 2.9 Million MTs to 4 Million MTs. • Strengthen supply chain and multiply value with new JV for Ammonia supplies. • Augmenting own Phosphoric Acid plants to achieve greater value. • Increased returns from overseas joint ventures in Acid and Urea. • Modificat
Slide 26: Plant Protection
Plant Protection 26
Slide 27: Plant Protection
Plant Protection To 1500 Cr. Through Organic and From 350 Cr. Inorganic Growth
Slide 28: Strategic shift – Plant Protection
Strategic shift – Plant Protection • Acquisitions to power growth – Cos. / Brands. • Network of global offices / registrations to improve scalability. • Increased R&D focus. • Contract manufacturing with MNC’s. • Marketing excellence / Retail to power domestic growth. • Presence in Household/ Animal
Slide 29: Specialty Nutrients
Specialty Nutrients 29
Slide 30: Specialty Nutrients
Specialty Nutrients To…… From 200 Cr. To scale up significantly in the following segment. • Granulated Sulphur • Water Soluble Fertilisers • Micronutrient • Organic Compost
Slide 31: Key strategic shift
Key strategic shift • Expanded Product offerings through JV with global major • New product introduction as per farmers needs • Value added products – Low grade potash • Manufacturing capability for Micro Nutrients • Organic Compost- Variants and Own Manufacturing 31
Slide 32: Retail
Retail 32
Slide 33: Retail
Retail To fulfilling urban aspirations of rural India From providing agri-inputs
Slide 34: Key strategic shift - retail
Key strategic shift - retail • Nutrition and Crop protection management. • Innovative life style products. • Farm mechanisation services. • Customised fertilisers. • Output marketing.
Slide 35: Looking ahead
Looking ahead Food Output Business • Procurement of Pulses , Spices and other food grains. from the farm gate level. • Value addition of the food gains (Food Processing). • Trading of Food Gains. Making the Business Model: “Seed to Harvest” And Taking Coromandel “India to International”
Slide 36: Need for change
Need for change We have ‘Grown Beyond’ ’Growing Beyond’ Fertilisers To Fertilisers Micro Nutrients Agrochemicals Plant growth Promoters Organic Compost Specialty Chemicals Animal Feed Seed Retail Life Style Products Consumer Durable Items
Slide 37: We bring International to India / take India to International
We bring International to India through • Raw Material Import • Intermediate Imports • New Products to improve farm productivity • Latest technology to the Indian Farmers • International Collaboration We take India to International through • Product Export • Technology Expertise • Project Management
Slide 38: Coromandel Fertilisers is getting transformed to Coromandel International
Coromandel Fertilisers is getting transformed to Coromandel International 38
Coromandel International — Shareholder Meeting (September 2009) on 6ix