74130861 ammonium sulphate detail

7/30/2019 74130861 Ammonium Sulphate Detail

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Cygnus Business Consulting & Research Pvt. Ltd., 2011 1

Vol. 1105 May 2011

CONTENTS

INDUSTRY AT A GLANCE ....................................................................................................2

KEY DEVELOPMENTS ..........................................................................................................3

Marketing................................................................................................................................3

Operations ..............................................................................................................................3

Investments ............................................................................................................................4

Mergers, Acquisitions & Joint Ventures ..................................................................................5

Others.....................................................................................................................................5

INDUSTRY STATISTICS .........................................................................................................7

PRODUCT FOCUS ...................................................................................................................8

Ammonium Sulphate (NH4)2 SO4 .........................................................................................8

Introduction........................................................................................................................8

Global Scenario...................................................................................................................8

Indian Scenario ...................................................................................................................9

Outlook..............................................................................................................................9

COMPANY FOCUS ................................................................................................................10

BASF India Ltd.....................................................................................................................10

Products & Segments ........................................................................................................10

Common-size Comparison................................................................................................12

Stock Market Performance................................................................................................12

Outlook............................................................................................................................13

STOCK SCAN .........................................................................................................................14

UPCOMING EVENTS ...........................................................................................................15

Agro-inputs

Industry Monitor


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Industry Monitor Agro-inputs May 2011


INDUSTRY AT A GLANCE

MARKETING

DPR launches Web-based special local needs pesticides database, IndiaOPERATIONS

New plant near Tees Valley, UK Italian fertilizer maker extends water treatment outsourcing agreement with GE, Italy Armenia to produce organic fertilizers, Armenia China Green Agriculture to Start Production at Gufeng's New 200000 MT, China Huntsman buys Laffans chemicals biz, India Sudarshan Chemical to set up China, S America subsidiaries, India Suzlon Energy bags 50.4MW order from GSFC, India

INVESTMENTS

Israel Chemicals buys fertilizer co Fuentes, Israel Tata Chem to buy stake in African fertilizer complex, India

MERGERS, ACQUISITIONS & JOINT VENTURES

United Phosphorous completes acquisition of 50% take in Sipcam Isagro Brazil, BrazilOTHERS

Some 200,000 Armenian Farms To Have Free Irrigation Water, Armenia Nabard okays Rs1020 million more for rural works, India Gas suspension likely to up fertilizer rate further, Pakistan Flower Pesticide Banned, Kenya


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KEY DEVELOPMENTS

Marketing

Asia Pacific:India: DPR launches Web-based special local needs pesticides database

The Department of Pesticide Regulation (DPR) has developed an easy-to-use, Web-based database toprovide access to special local needs (SLN) pesticides registrations. States have authority to registeradditional uses of a federally registered pesticide if there is a demonstrated local need. However,pesticides must first be registered by both the US Environmental Protection Agency (U.S. EPA) andDPR before they can be sold or used in California or registered as a SLN. Over the years, DPR has issuedhundreds of SLNs, some of which are registered for use in a specific county and others approved for usestatewide.

OperationsEurope:UK: New plant near Tees ValleyFertilizer and specialty chemicals producer Israel Chemicals (ICL) will begin mining vast reserves ofmineral salt polyhalite located at lower levels of its potash mines in the North Sea. CPL, the only potashmanufacturer in England, carries out mining activities below the North Sea under a concession from theBritish government. ICL is expects to be able to mine hundreds of thousands of tonnes of the mineralduring the first year at a relatively low cost. Polyhalite can be used as a specialty fertilizer. Polyhalite canbe used as a specialty fertilizer for organic and other applications, or as a raw material for the productionof specialty fertilizers. The British government has announced that it views this as a strategic initiative

with the potential to significantly enhance the local economy and intends to support the project with agrant of about US$25m.

Italy: Italian fertilizer maker extends water treatment outsourcing agreement with GE

Yara S.p.A., a unit of fertilizer manufacturer Yara International, has inked an agreement with GE foroutsourced industrial water treatment and a facility upgrade at its Ferara, Italy, plant. The plant in Ferrarasupplies ammonia and urea liquids fertilizers to agricultural markets. It relies on a brackish, low-quality

water source. Under the US$18m agreement, GE will continue to build, own and operate the watertreatment plant with onsite GE personnel through 2020. The facility currently produces up to 320 m/hrof demineralized water using two proprietary GE technologies: brackish water reverse osmosis filtration(BWRO) and electrodeionization (EDI). GE began working with Yara S.p.A. in 2002 under a supplyagreement for water treatment chemicals and related systems, which is ongoing. It has helped Yara avoidboiler shutdowns that occurred with a previous supplier, which were costing Yara a substantial amountper year in lost production.

Armenia: Armenia to produce organic fertilizers

Armenia will produce organic fertilizers, providing villagers with organic fertilizers are priority of theArmenian government. Every year the country import fertilizers from different countries. This year it hasdecided to launch production of organic fertilizers which will differ from niter usually used by the

villagers. Armenian fertilizer will not damage soil but will improve it. The government has already orderedcertain amount of fertilizers from the Armenian producers. Armenian fertilizer will be 30% cheaper thanthe imported one. This year local producers will meet 50% of domestic demand, while 100% in 2012.

Asia Pacific:China: China Green Agriculture to Start Production at Gufeng's New 200000MTChina Green Agriculture, Inc. a producer and distributor of humic acid based compound fertilizers,blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slowreleased fertilizers and highly- concentrated water soluble fertilizers through its wholly owned subsidiaries

in China, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. and Beijing Gufeng Chemical


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Products Co., Ltd. announced that Gufeng's new production line with an annual capacity of 200,000metric tons ("MT") of fertilizer will begin production on April 7, 2011. The new production line increasesGufeng's annual production capacity by 67% from 300,000 to 500,000 MT and the Company's totalannual production capacity by 56% from 355000 to 555000 MT. For the fiscal year ended June 30, 2010,

the Company sold 22,835 MT of highly-concentrated fertilizers. After acquiring Gufeng in July 2010, theCompany's annual production capacity increased by 545% from 55,000 MT to 355,000 MT and its salesvolume jumped by 1,926% to 150,655 MT in the first half of fiscal year 2011 from 7,435 MT for the sameperiod in fiscal 2010.

India: Huntsman buys Laffans chemicals bizHuntsman Corporation has completed its acquisition of Indian chemical producer LaffansPetrochemicals Ltd, and has taken ownership of the manufacturers 60kt ethylene oxide derivativesfacility in Ankleshwar, Gujarat. The purpose-built plant produces specialty intermediates for use inagrochemicals, household and personal care products, oil and gas applications and automotive lubricantsand brake fluids. However, the financial details were not disclosed. With immediate effect the chemicalsbusiness of Laffans becomes an integral part of Huntsman Performance Products giving the division its

first dedicated production plant in India. Acquiring Laffans chemicals business is a natural extension ofthe cooperation with the company.

India: Sudarshan Chemical to set up China, S America subsidiariesSudarshan Chemical Industries, producer of performance colorants and agrochemicals, is spreading itselfglobally. It is setting up two wholly-owned subsidiaries in China and South America this year to be amongthe top four world leaders in pigments. The company expanded into global markets with wholly-ownedsubsidiary in Europe in 2008 and North America in 2009. As part of the globalisation strategy, thecompany is upgrading its manufacturing facility at 89-acre Roha plant in Raigad district in Maharashtra

with an investment of Rs1 billion in the first phase. The money will be raised through 60:40 ratio of debtand internal accruals. It will have a ground, plus eight stacking levels with a total of 5,121 pallet positionsand storage capacity of 1,600 metric tonnes. The Pune-based company also has the second 35-acre

manufacturing plant at Mahad in Raigad district.

India: Suzlon Energy bags 50.4MW order from GSFCSuzlon Energy worlds leading and Indias largest wind turbine manufacturer announced the signing of anorder with Gujarat State Fertilizers & Chemicals (GSFC) to set up, operate and maintain wind energyprojects totaling to 50.4MW in Gujarat. The projects, utilising 24 units of Suzlons S882.1MW windturbine, will be set up in wind farms operated by Suzlon in the Rajkot and Surendranagar districts ofGujarat. This is GSFCs fifth order with Suzlon and is scheduled for completion and commissioning bySeptember 2011. GSFC is a leading state Public Sector Undertaking (PSU) in Gujarat in the field offertilizers and chemicals.

InvestmentsMiddle East:Israel: Israel Chemicals buys fertilizer co FuentesIsrael Chemicals Ltd. has acquired Spanish fertilizer company Antonio Fuentes Mendez SA. Thecompany did not disclose the size of the deal. The acquisition includes all four companies of the Fuentesgroup, its production line of liquid fertilizers, soluble fertilizers, and the production line of field fertilizercompounds. Fuentes has production plants in southern Spain, facilities at the Cartegena Port, offices, andother facilities. Israel Chemicals' specialty fertilizer sales total US$650m a year, and Fuentes had aturnover of US$163m in 2010. This acquisition will turn Israel Chemicals into the leading supplier ofspecialty fertilizers for agriculture in the Spanish market, which is growing rapidly. It is a furtherexpression of the strategy to invest and expand in the specialty fertilizer business, which Israel Chemicalshas identified as having high growth potential.


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Asia Pacific:India: Tata Chem to buy stake in African fertilizer complex

Tata Chemicals (TCL) has executed binding agreements to acquire a 25.1% stake for US$290m as astrategic investor in stream 1 of a greenfield port-based ammonia-urea fertilizer manufacturing complex

in the Republic of Gabon, Africa. According to a company statement, other shareholders in the projectare Singapore-based listed company, Olam International with 62.9% and Republic of Gabon with a 12%stake. The project comprises setting up of a 1.3MTPA of urea (stream 1) with an option to expand intoanother stream of 1.3MTPA of urea (stream 2). While the execution of stream 1 has already commenced,the stream 2 option will be evaluated and decision to implement the same is expected to be taken in 24months.

Mergers, Acquisitions & Joint VenturesAmericas:Brazil: United Phosphorous completes acquisition of 50% take in Sipcam Isagro BrazilUnited Phosphorus Ltd (UPL) has completed the acquisition of a 50% stake in Brazilian agrochemicals

maker Sipcam Isagro Brazil SA. UPL had entered into an agreement to acquire the 50% stake in SipcamIsagro Brazil (SlB) owned by Italian company Isagro. Sipcam Isagro Brazil is a 50:50 joint venturebetween Sipcam-Oxon group (Sipcam) and Isagro. The transaction was done through its Braziliansubsidiary. The stake sale will result in Isagro exiting the joint venture while Sipcam will continue to hold50% along with UPL holding 50%.

OthersEurope:

Armenia: Some 200,000 Armenian farms to have free irrigation waterSelf-flowing irrigation water will be free for some 200,000 Armenian farms from this spring. The move

was prompted by favorable weather conditions. The irrigation water pumped to the fields by electricalengines is made free as well. The farmers had been waiting for this decision for years, but the government

does not have sufficient financial resources to supply irrigation pumped by engines using electricity freetoo. If the government has the chance to deliver irrigation water through gravity conduits to farms freegovernment should do that but government have no finances to deliver water pumped by engines free as

well. On March 27, 2006 the Millennium Challenge Corporation signed a five-year, US$235.65m compactwith the Government of Armenia.

Asia Pacific:India: Nabard agrees Rs1020m more for rural worksRural infrastructure works in the state will receive a major boost as the Nabard has sanctioned anadditional Rs1024.40m for development of projects pertaining to minor irrigation, roads and bridges,participatory watershed development, fisheries jetty construction and khar land development. Thesanctions have come under Nabard's rural infrastructure development fund (RIDF). The total sanctions

under RIDF for the state have reached Rs11245.50m. The recent sanctions include Rs503.70m for fourprojects of minor irrigation, Rs44.30m for four projects of road and bridge projects, Rs434.60m for sixprojects of participatory watershed, Rs40.70m for fisheries jetty projects and Rs11m for three projectsunder khar land development.

Pakistan: Gas suspension likely to up fertilizer rate furtherSui Northern Gas Pipeline Limited (SNGPL) has suspended gas supply to fertilizer plants declaringForce Majeure due to fault in compressors recently installed at Qadirpur field that would resultantly jackup prices of fertilizers in the upcoming cotton-sowing season due to artificial shortage of the product.Gas demand in the domestic sector in the northern part of the country has again increased, followingsudden unexpected change in ambient temperature due to snow/ rain, leading to increase in the city loadsin northern Punjab and Khyber Pakhtunkhwa province. As per the sources SNGPL had also bypassed


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the concerned ministries at a time of taking decision to suspend gas supply to fertilizer sector. Qadirpurgas field, which has been supplying up to 460 MMCFD gas, suddenly reduced gas production by over 70MMCFD in the last 3 to 4 days due to reported fault in compressors recently installed and is currentlysupplying less than 390 MMCFD gas, resulting in severe depletion of transmission pack.

Africa:Kenya: Flower pesticide bannedCommercial farmers are yet to find an efficient alternative to a key pesticide that was banned last year.Methyl bromide, an odourless pesticide popular among large-scale horticultural farmers, was discontinuedglobally because it contributes to global warming. None of the alternatives has met the performance ofMB and yet it has the challenge of depleting the ozone layer. Since 1952 it has been a success because itkills all living things in the soil. So it eliminates pests completely. The pesticide is among chemicalsbanned under the 1987 Montreal Protocol because they destroy the ozone layer which protects humansfrom the sun's dangerous ultra-violet rays. Developed countries were required to phase it out by 2005 anddeveloping countries by 2015. UNEP favoured a complete ban on the chemical by 2015.


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INDUSTRY STATISTICS

Major Oilseeds: World Supply and Distribution (Country View)(Million Metric Tons)

2006/07 2007/08 2008/09 2009/10 Mar 2010/11China 65.28 68.47 73.12 81.38 89.84

United States 53.48 53.50 49.34 51.45 49.46

Argentina 36.98 39.31 35.01 37.27 42.42

EU-27 36.32 38.05 39.51 41.66 42.38

Brazil 33.49 34.70 34.09 35.93 38.13

India 24.49 27.79 26.13 25.44 28.64

Indonesia 5.74 6.20 6.70 7.57 7.82

Russia 7.16 6.71 8.30 8.69 7.75

Canada 5.10 5.53 5.57 6.06 7.20

Ukraine 5.39 4.69 6.96 6.86 7.19

Mexico 5.70 5.64 5.14 5.39 5.48Pakistan 5.16 4.65 4.84 5.23 5.23

Malaysia 4.40 4.97 4.92 4.97 5.05

Japan 5.17 5.17 4.73 4.79 4.70

Turkey 3.08 2.99 2.58 2.79 3.01

Other 31.77 31.46 31.43 32.04 33.61

Total 328.71 339.83 338.37 357.52 377.91Source: fas.usda.gov, Cygnus Research

Major Oilseeds: World Supply and Distribution (Country View)

0

40

80

China

U

S

Argentina

EU-27

Brazil

India

Indonesia

Russia

Canada

Ukraine

Mexico

Pakistan

Malaysia

Japan

Turkey

Other

Million

MetricTons

2007/08 2008/09 2009/10 Mar 2010/11

Source: fas.usda.gov, Cygnus Research


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PRODUCT FOCUS

Ammonium Sulphate (NH4)2 SO4

IntroductionAmmonium sulphate (NH4)2SO4 is an inorganic salt with a number ofcommercial uses. Ammonium sulphate contains two nutrition elements:nitrogen and sulphur. Ammonium sulphate (AS), known as Mohrs Salt, is achemical fertilizer that supplies both nitrogen and sulphur nutrients to crop. Itis largely used as artificial manure and also for the preparation of otherammonium salts. The most common use is as a soil fertilizer. It contains 21%nitrogen as ammonium cations, and 24% sulphur as sulphate anions. In fertilizer the purpose of thesulphate is to reduce the soil pH. Ammonium Sulphate is available as co-product from CaprolactamPlants. Meanwhile, it is also an important sulphur fertilizer applied widely in the world. As a kind ofammonium nitrogen fertilizer, ammonium sulphate can be absorbed by plants easily. It is an ideal topapplication fertilizer, seed fertilizer and base fertilizer.

Uses It is used largely as an artificial fertilizer

for alkaline soils. In the soil the sulphateion is released and forms bisulphate,lowering the pH balance of the soil,

while contributing essential nitrogen forplant growth.

It is also used as an agricultural sprayadjuvant for water soluble insecticides,herbicides, and fungicides. There itfunctions to bind iron and calcium

cations that are present in both wellwater and plant cells. It is particularly effective as an adjuvant for 2, 4-D (amine), glyphosate, andglufosinate herbicides.

It is also used in the preparation of other ammonium salts.Global ScenarioGlobal production of Ammonium Sulphate isdominated by Europe. Major producers ofammonium sulphate are Europe, Asia and

America. Japan is one of the world's leading ASexporters and its main export market is Southeast

Asia.

In November 2009, a ban on ammonium sulfate,ammonium nitrate and calcium ammoniumnitrate fertilizers was imposed in the MalakandDivision of the North West Frontier Province(NWFP) of Pakistan, by the NWFP government,following reports that those chemicals were usedby militants to make explosives. In January 2010,these substances were also banned in Afghanistanfor the same reason. Ammonium sulphate consumption has enjoyed a 1.7% year-on-year growth since2000 and global demand is expected to 24.2 million tonnes in 2020. In china 30% of domestic output ofammonium sulphate in 2009-10 was exported and the rest 70% was consumed by the domestic market,mainly the agricultural market and industrial market. More than 80% of domestic ammonium sulphate

consumption was in agricultural areas, and 15%-20% in industrial areas.

Properties

Molecular formula (NH4)2SO4

Molar mass 132.14 g/molAppearance White hygroscopic granules

Density 1.769 g/cm3 (20 C)70.6 g/100 mL (0 C)

74.4 g/100 mL (20 C)Solubility in water

103.8 g/100 mL (100 C)[1]

Solubility Insoluble in acetone, alcohol

Critical relative humidity 79.2% (30 C)

Note: Market Source; Cygnus Research

World Demand for Ammonia

Sulphate

90

96

102

108

2008 2009 2010 2011(till

dec.)

In

MT


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Indian ScenarioIn India, Ammonium Sulphate (AS) is manufactured both in public and private sectors. Major players inthe market are HFL, FACT PPL, Rashtriya Chemicals and Fertilisers, GSFC and HLL. The Indianfertilizer industry is also carrying out de-bottlenecking and energy saving schemes in their existing plants

to enhance the capacity and reduce the specific energy consumption per tonne of product. Companies arealso planning to convert their existing Naptha-based fertilizer plants to Liquefied Natural Gas (LNG).

The rapid build-up of fertilizer production capacity in the country has been achieved as a result of afavourable policy environment facilitating large investments in the public, co-operative and privatesectors.

OutlookThe ammonium sulphate (AS) industry is seeing a growth in demand. Indian agriculture is expected tokeep the growth momentum over the coming decade. Though the fertilizer demand is inelastic in India,

with the expected increase in demand for general fertilizers over the coming years, the demand for AS isalso likely to rise. Worldwide, the demand for the fertilizer will grow strongly in line with the strongpopulation growth in developing economies. This will translate to higher demand for food and fertilizers

in the coming years. Worldwide demand for Ammonium Sulphate is expected to cross 104 million tonnesby 2011; growing at the rate of about 2.3% annually from 2001.


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COMPANY FOCUS

BASF India Ltd.

BASF India (BASF), a subsidiary of Germany-based BASFAktiengesellschaft, manufactures and markets agrochemicals, industrialperformance products, plastics and fibers. The company operates in differentsegments - agricultural products and nutrition includes agrochemicals likepesticides and herbicides; performance products includes tanning agents,leather chemicals, textile chemicals, dispersions and specialty chemicals;plastics and fibers includes expandable polystyrene, engineering plastics andpolyurethane business; chemicals includes inorganic chemicals, intermediates and petrochemicals; othersinclude technical fees and research and development projects. The company has production sites inMangalore, Mumbai/Thane, Dadra and Dahej as well as R&D centers in Thane and Delhi.

Products & Segments

Companys Performance at a Glance

Key Financial Ratios

Segments ProductsChemicals Inorganics, Petrochemicals, Intermediates

Plastics Performance Polymers, Polyurethanes

Performance Products Dispersion Pigments, Care & Paper Chemicals, Performance chemicals

Functional Solutions Catalysts, Construction Chemicals, Coatings

Agricultural Solutions Crop Protection

Oil & Gas Oil & Gas

Performance at a GlanceItem(Rs in million) 2005-06 2006-07 2007-08 2008-09 2009-10Net Sales 7716.40 7685.30 9072.00 11241.50 13941.40OPM % 12.31 11.77 11.89 11.09 12.79NPM % 5.88 6.52 6.54 6.11 6.94Depreciation 220.50 108.70 136.00 151.60 260.80Interest 23.60 15.10 12.80 14.90 8.40PAT 454.10 500.90 593.70 686.40 968.10Source: BSE India; Cygnus Research

Key Ratios at a Glance2005-06 2006-07 2007-08 2008-09 2009-10

Debt-Equity Ratio 0.00 0.00 0.00 0.00 0.00Long Term Debt-Equity Ratio 0.00 0.00 0.00 0.00 0.00Current Ratio 2.66 2.18 2.09 1.84 2.46OPM (%) 12.31 11.77 11.89 11.09 12.79NPM (%) 5.88 6.52 6.54 6.11 6.94ROCE (%) 25.39 28.07 28.91 29.48 17.99RONW (%) 16.42 16.50 17.47 17.81 11.18Source: BSE India; Cygnus Research


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Performance Analysis

During the year 2009-10, the revenue of the company has increased by 24.02% to Rs13941.40mcompared to Rs11241.50m in 2008-09. The interest expenses of the company has declined by 43.62% butdepreciation increased by 72.03% and reach to Rs260.80m. Operating profit of the company alsoincreased by 43% to reach Rs1782.90m and net profit has increased by 41.04% to reach Rs968.20m aidedby higher capacity utilisation, improved operating results of the agricultural products, performanceproducts and chemicals businesses.

OND10, net sales of the company registered a slight increase of 140.39% to reach Rs7019.90m, whencompared to that of Rs2920.20m in OND09. Operating profit of the company registered a decline of18.47% where the net profit of the company has increased by 110.49% to reach Rs236.80m. During theQuarter interest income of the company has increased to Rs29.10m because the company has increasedits debt for expansion purpose.

The performance products of the company contributes 42% of the revenue of the company due to higherrealisations, marketing initiatives and rationalisation measures undertaken during the year and effective

working capital management. Agriculture segment of the company is second major contributor in revenuewith 21% amounting to Rs6308.90m. Revenue comes from Plastic sector is Rs5803m which is 19%contribution. Functional solution contributes 16% amounting to Rs5029.20m.

Performance AnalysisQuarterly Performance Financial Year Performance

OND10 OND09 Var (%) 2009-10 2008-09 Var (%)Sales 7,019.90 2,920.20 140.39 13,941.40 11,241.50 24.02Other Income 0.00 0.00 - 0.00 0.00 -PBIDT 192.40 236.00 -18.47 1,782.90 1,246.60 43.02Interest 29.10 2.10 1,285.71 8.40 14.90 -43.62PBDT 163.30 233.90 -30.18 1,774.50 1,231.70 44.07Depreciation 117.10 67.30 74.00 260.80 151.60 72.03PBT 46.20 166.60 -72.27 1,513.70 1,080.10 40.14TAX -190.60 54.10 -452.31 545.60 393.70 38.58PAT 236.80 112.50 110.49 968.10 686.40 41.04Source: BSE India; Cygnus Research

Source: BSE India; Cygnus Research

Sales Performance

5

10

15

2006-07 2007-08 2008-09 2009-10

Rsbn

Sectoral Performance

Performa

nce

Products42%

Agricultur

al

Solutions

21%

Plastics

19%

Functiona

l Solution

16%

Others2%


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Common-size ComparisonThe overall operating cost of the company isaround 82-87% of the sales of the company.For BASF it is 87%, while it is 84% for Aarti

Industries and Balaji Amines Ltd. The interestexpenditure of the company declined to 0.06%of the sales from which was 0.13% as apercentage of sales in 2008-09, while it is4.01% for Aarti Industries and 3.71% for Balaji

Amines. Major cost component of thecompany is raw material cost which is 45.14%of sales, for Aarti Industries it is 5064% andfor Balaji Amines Ltd. it is 55.91%. Otherexpenditure of the company is lowest amongstthe peer companies, it is 15.26% for BASF butfor Aarti industries it is 24.75% and for Balaji it

is 23.57%.Cost Structure Analysis

The companys overall cost including operating and non-operating cost stood at 87% in 2009-10, whichwas 96% in the year 2008-09. Compared to previous year the expenses of the company have declinedduring the year, the raw material cost of the company has reduced by 887 basis points. Other expenditurehas also declined by 27 basis points. Depreciation and Tax charges have increased by 52 and 41 basispoints respectively.

Stock Market Performance

Common Size Comparison for 2009-10 (% of sales)

BASF Aarti Balaji

Other Income 0.00 0.14 0.56

Raw Material 45.14 50.64 55.91Other Expenses 15.26 24.75 23.57

Staff Expenses 7.80 2.64 3.89

Traded goods 22.42 8.84 0.00

Interest 0.06 4.01 3.71

Depreciation 1.87 3.47 2.61

PBT 10.86 8.34 12.05

Tax 3.91 2.90 4.17

PAT 6.94 5.44 7.88Source: BSE India; Cygnus research

Cost Structure as Percentage of Net Sales2005-06 2006-07 2007-08 2008-09 2009-10

Raw Material Consumed 43.95 55.03 54.80 54.01 45.14Other Expenses 13.32 15.07 15.82 15.53 15.26Staff Expenses 7.41 8.90 9.01 7.89 7.80Purchase of Traded Goods 10.61 9.26 9.92 13.58 22.42Depreciation 2.86 1.41 1.50 1.35 1.87Interest 0.31 0.20 0.14 0.13 0.06

Tax Charges 3.26 3.64 3.71 3.50 3.91



Relative Stock Performance

70

95

120

145

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Sensex

BASF

Shareholding pattern

Promoter

73% DII

6%

Others

21%


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From April 2010 to Mar 2011, the BSE Sensex has seen a rise of 10.74% from the base of 17558.71 basispoints to 19445.22 basis points. The stock of the company has given a positive return of 43% over theyear. The share price of the company increased to Rs593 from Rs413.5. Good demand of fertilizers andChemicals has made a positive sentiment for the stock. In the month of Sept.10 and Oct. 10 the stock

prices touch to Rs667. From the month of July 10 to Oct.10 the stock of the company hasoutperformed the sensex.

OutlookAgriculture products are increasing the total revenues and profit contribution. The agrochem industry iswitnessing good growth following the thrust on agriculture by the government and greater emphasis onimproving agricultural productivity. Plastics segment is also picking up in contributing to the revenues ofthe company. The company, with an aim to cater the increasing demand form automobile industry has setup a plant for engineering plastics with a capacity of 9000 tonnes.


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STOCK SCAN

1st Week (16 - 23 March 2011) 2nd Week (24th - 30th Mar 2011)Index

Opening Closing Var(%) Opening Closing Var(%)BSE (Points) 18,358.69 18,206.16 -0.83 18,350.74 19,290.18 5.12Excel (Rs) 231.20 240.00 3.81 237.75 237.40 -0.15Rallis (Rs) 1257.10 1287.90 2.45 1297.85 1304.95 0.55Monsanto (Rs) 1575.70 1735.60 10.15 1754.10 1892.20 7.87

JK Agri Genet (Rs) 483.30 493.60 2.13 484.55 468.35 -3.34

3rd Week (31st Mar - 6th Apr 2011) 4th Week (7-15 April 2011)Index

Opening Closing Var(%) Opening Closing Var(%)BSE (Points) 19,445.22 19,612.20 0.86 19,591.18 19,386.82 -1.04Excel (Rs) 243.60 248.50 2.01 251.60 250.10 -0.60Rallis (Rs) 1320.50 1411.35 6.88 1417.85 1448.85 2.19Monsanto (Rs) 1927.85 1852.65 -3.90 1845.50 1848.55 0.17

JK Agri Genet (Rs) 486.60 489.50 0.60 491.00 487.05 -0.80

Relative Market Cap Performance

90

105

120

1

6/03/11

1

7/03/11

1

8/03/11

2

1/03/11

2

2/03/11

2

3/03/11

2

4/03/11

2

5/03/11

2

8/03/11

2

9/03/11

3

0/03/11

3

1/03/11

0

1/04/11

0

4/04/11

0

5/04/11

0

6/04/11

0

7/04/11

0

8/04/11

1

1/04/11

1

3/04/11

1

5/04/11

BSE SensexMonsanto

JKAGRI GENET

Relative Market Cap Performance

95

100

105

110

115

120

16/03/

11

17/03/

11

18/03/

11

21/03/

11

22/03/

11

23/03/

11

24/03/

11

25/03/

11

28/03/

11

29/03/

11

30/03/

11

31/03/

11

01/04/

11

04/04/

11

05/04/

11

06/04/

11

07/04/

11

08/04/

11

11/04/

11

13/04/

11

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UPCOMING EVENTS

1. Event Agrishow RibeiraoDate May 02-06, 2011

Venue Ribeirao Preto Ribeirao, BrazilHighlights It is a professionally organized exhibition of International standards that will

showcase all Agriculture products from around the world and will be instrumentalin procuring trade from all over the world. This is a unique opportunity to see whatthe industry has to offer and to check out the very latest products on the market.

ContactDetails

Reed Exhibitions, 383 Main Avenue, Norwalk, United States Of AmericaTel:+(1)-(203)-8404800; Fax:+(1)-(203)-8404801

2. Event AgritexDate Jun 06-08, 2011

Venue Damascus International Fairground Damascus, SyriaHighlights It is an International Fair specialized in the agri-industrial sector, considered the

business generator of agricultural in Syria. It will provide exposure to farmers aboutthe latest agri-input products, technologies, farming practices, government schemes,marketing and post harvest management.

ContactDetails

Atassi For Exhibitions & Marketing, P. O. Box 7904, Damascus, SyriaTel:+(963)-(11)-2721112

3. Event Agri TechDate Jun 10-12, 2011

Venue Dhaka Sheraton Hotel Dhaka, BangladeshHighlights It is an International exhibition on agriculture, horticulture diary sector in Dhaka.

The event provides an opportunity to interact with the exhibitors, who will includetechnology and input suppliers and machinery and equipment manufacturers andothers, who will be ever ready to provide all information.

ContactDetails

Expo Net Exhibition Private Limited House- 194, 5th Floor, Road 1, New D. O.H. S., Mohakhali, Dhaka, Bangladesh; Tel:+(88)-(2)-8814531

4. Event Rythu PragatiDate Jun 10-12, 2011

Venue Circus Ground Karimnagar, Karimnagar, Andhra Pradesh, IndiaHighlights It is conceptualised as a tradeshow to provide knowledge to farmers about latest

agri equipments, technologies and services. The event will showcase variousproducts and services such as farm equipments, schemes, inputs, technology, bestagri practices, post harvest, government/institutional assistance, various schemes,post harvest management and others. Rythu Pragati will be conducted at variouscentres in Andhra Pradesh to cover as much of the agri-community as possible.

Contact

Details

Blazon Exhibitions & Conferences, No. 305, Lake Melody, 6-3-1099/1/14 & 15

Somajiguda, Hyderabad, India. Tel:+(91)-(40)-233105945. Event Rice Tech Expo Patna

Date Jul 08-10, 2011Venue Gandhi Maidan Patna, Bihar, IndiaHighlights It will be a technology focused exhibition on Rice & Grain processing sector to

showcase various technological and commercial developments in Rice & Grainmilling machinery, equipments and other related segments. This Expo will provideunique business opportunity for suppliers of machinery and services to reach theirmost sought after target audience.

ContactDetails

Shiny Trade Expositions, 59 A-15-28, 2nd Floor, Near N. T. R Circle,Pantakaluva Road Patamata, Vijayawada - 520 010, India.

Tel: +(91)-(866)-2470879; Fax: +(91)-(866)-2490201


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6. Event Agritech AsiaDate Sep 06-08, 2011

Venue Bombay Exhibition Centre(BEC) Mumbai, Maharashtra, India

Highlights It will continue this tradition of uniting the worldwide agriculture community to seeat a single site the latest developments in agriculture and advanced agro-technologies, especially in the fields of irrigation, water management, arid zoneagriculture, intensive greenhouse cultivation, development of new seed varieties andorganic and ecologically-oriented agriculture.

ContactDetails

Radeecal Communications, C- 9 Ground Floor, Samuel Business Park, B/h, NewCloth Market Outside Raipur Gate, Ahmedabad - 380 022, India.

Tel: +(91)-(79)-221510807. Event GrainTech India

Date Sep 09-11, 2011Venue Palace Grounds Bengaluru, IndiaHighlights It is an International exhibition on Grain cereals, spices, oil seeds, products and

technology. The event will attract many visitors from India and abroad.ContactDetails

Media Today Pvt Ltd T-30, First Floor, Khirki Extention, Malviya Nagar,New Delhi, India. Tel:+(91)-(11)-26682045; Fax:+(91)-(11)-26680153

8. Event Agritech IndiaDate Sep 09-11, 2011

Venue Palace Grounds Bengaluru, IndiaHighlights It is a one of the leading trade fair for Agriculture sector in India. This is an

International Exhibition on Agriculture and Technology. The main focused areas ofthis exhibition are agriculture products, Agriculture Technology, Seeds, Fertilizerand Pesticides and much more.

ContactDetails

Media Today Pvt Ltd, T-30, First Floor, Khirki Extention, Malviya Nagar, NewDelhi, India; Tel:+(91)-(11)-26682045; Fax:+(91)-(11)-26680153

9. Event GrainTech IndiaDate Sep 09-11, 2011

Venue Palace Grounds Bengaluru, IndiaHighlights It is an International exhibition on Grain cereals, spices, oil seeds, products and

technology. It will be held concurrently with India Foodex-Bangalore, and it attractmany visitors from India and abroad.

ContactDetails

Media Today Pvt LtdT-30, First Floor, Khirki Extention, Malviya Nagar,New Delhi, India; Tel:+(91)-(11)-26682045; Fax:+(91)-(11)-26680153

10. Event International Livestock & Dairy ExpoDate Sep 15-17,2011

Venue Chennai Trade & Convention Centre Chennai, India

Highlights South Asia's biggest and most important international trade exhibition on animalproduction that any one can't miss. ILDEX India thus prioritizes on dairy, poultry,aquaculture, goattery and swine. For exhibitors, ILDEX India is ideal for regionaland international suppliers and distributors of all inputs for raising cows, chickens,sheep, goats, pig, fish and shrimp.

ContactDetails

Pixie Consulting Solutions Limited, 923, Sector 9, Urban Estate, Karnal, IndiaTel: +(91)-(184)-2242174; Fax: +(91)-(184)-2240050

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