aries agro ltd nov25 09 presentation
TRANSCRIPT
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1Energizing EarthEnergizing EarthEnergizing EarthEnergizing Earth NOVEMBER 2009
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Background
� Aries Agro Ltd was founded by Dr. T. B. Mirchandani and Mrs. Bala Mirchandani in 1969196919691969
� The Company started by manufacturing a small range of mineral feed additives for animals & birds
� Through in-house R&D efforts, the company branched out into Agrochemicals in 1975 with the introduction ofChelatedChelatedChelatedChelated MicronutrientsMicronutrientsMicronutrientsMicronutrients.
� Aries Agro Ltd is a pioneerpioneerpioneerpioneer ofofofof AgriculturalAgriculturalAgriculturalAgricultural ChelatesChelatesChelatesChelates in India, using indigenously developed technology forChelation and Complexing of Multi Micro Nutrients.
� In 2001, Aries expanded its product line to include secondarysecondarysecondarysecondary nutrientsnutrientsnutrientsnutrients – sulphur, magnesium and calcium.2004 saw the further addition of waterwaterwaterwater solublesolublesolublesoluble NPKNPKNPKNPK fertilizersfertilizersfertilizersfertilizers.
� The company manufactures a wide range of products under 65656565 BrandsBrandsBrandsBrands. Products include Plant nutrients, cropprotection chemicals and Veterinary products.
� SixSixSixSix manufacturing plants with capacity of 84,600 tpa.capacity of 84,600 tpa.capacity of 84,600 tpa.capacity of 84,600 tpa.
� Wide networkWide networkWide networkWide network of 25 branches, 4900 distributors and 70000 retailers across 22 states of India
� Investment in Golden Harvest, Sharjah - to set up unit to manufacture 10,800 tpa of Chelated Micronutrients10,800 tpa of Chelated Micronutrients10,800 tpa of Chelated Micronutrients10,800 tpa of Chelated Micronutrients.
� Through Golden Harvest, Aries has invested in Amarak Chamicals FZC for manufacture of 60,000 tpa of 60,000 tpa of 60,000 tpa of 60,000 tpa of Sulphur BentoniteSulphur BentoniteSulphur BentoniteSulphur Bentonite
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Industry: Specialty Plant Nutrition Solutions
Source: Development of Education in India – 1990-93
Crops require above nutrients for balanced and healthy growth All nutrients are important for the growth of crops in varying quantities
Provided
by Air
Primary
Nutrients
Secondary
Nutrients
Micro
Nutrients
Provided
by Air
Primary
Nutrients
(water solubles)
Secondary
Nutrients
Micro
HHydrogen
CCarbon
OOxygen
NNitrogen
PPhosphorous
KPotassium
MgMagnesium
SSulphur
CaCalcium
SiSilicon
ZnZinc
FeIron
CuCopper
MnManganese
BoBoron
MoMolybdenum
The Aries The Aries The Aries The Aries Range Range Range Range addresses addresses addresses addresses these crop these crop these crop these crop nutrient needsnutrient needsnutrient needsnutrient needs
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Industry : Aries’ Unique Niche
Commodity Commodity Commodity Commodity NPK FertilizersNPK FertilizersNPK FertilizersNPK Fertilizers
Water Soluble NPK Water Soluble NPK Water Soluble NPK Water Soluble NPK FertilizersFertilizersFertilizersFertilizers
Secondary Secondary Secondary Secondary nutrientsnutrientsnutrientsnutrients
Value added Value added Value added Value added MicronutrientsMicronutrientsMicronutrientsMicronutrients
Inorganic Inorganic Inorganic Inorganic MicronutrientsMicronutrientsMicronutrientsMicronutrients
Aries Presence XXXX √ √ √ √ √ √ √ √ √√√√ √√√√
Typical products Urea, DAP, SOP
20-20-20, 13-0-45, 0-52-34, 0-0-50
Ca, Mg, S Chelates Sulphates
Price Control √ √ √ √ XXXX XXXX XXXX XXXX
Subsidies √ √ √ √ XXXX XXXX XXXX XXXX
Volumes High Low Medium Low Medium
Profitability Very Low Medium Medium High Low
Aries Revenue share %Aries Revenue share %Aries Revenue share %Aries Revenue share % -------- 12%12%12%12% 10%10%10%10% 58%58%58%58% 9%9%9%9%
Gross Margins %Gross Margins %Gross Margins %Gross Margins % -------- 12%12%12%12% 30%30%30%30% 55%55%55%55% 15%15%15%15%
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Key Demand Drivers
Demand Demand Demand Demand ----Specialty NutrientsSpecialty NutrientsSpecialty NutrientsSpecialty Nutrients
Change in Change in Change in Change in Eating HabitsEating HabitsEating HabitsEating Habits
Shrinking Shrinking Shrinking Shrinking Agri Land AreaAgri Land AreaAgri Land AreaAgri Land Area
IncreasingIncreasingIncreasingIncreasingDeficienciesDeficienciesDeficienciesDeficiencies
Growing Growing Growing Growing PopulationPopulationPopulationPopulation
Micro Irrigation Micro Irrigation Micro Irrigation Micro Irrigation Systems Systems Systems Systems
Growing Growing Growing Growing AwarenessAwarenessAwarenessAwareness
Govt focus on Govt focus on Govt focus on Govt focus on enhancing enhancing enhancing enhancing
Agri productivityAgri productivityAgri productivityAgri productivity
Contract Contract Contract Contract FarmingFarmingFarmingFarming
Growing Growing Growing Growing AffluenceAffluenceAffluenceAffluence
Increase in Increase in Increase in Increase in ExportsExportsExportsExports
Hybrid/genetically Hybrid/genetically Hybrid/genetically Hybrid/genetically modified seedsmodified seedsmodified seedsmodified seeds
Change in Change in Change in Change in Cropping PatternCropping PatternCropping PatternCropping Pattern
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Strong Marketing network
� Aries has 309 trained marketing personnel
� 25 branches spread across 22 states
� First link of distribution channel has more than4900 distributors
� Direct access to 70000+ retail dealers
� Database of purchase records of 8mn+ farmerpopulation across 1,60,000 villages - oneoneoneone inininin sixsixsixsixvillagesvillagesvillagesvillages ofofofof IndiaIndiaIndiaIndia
� Present in 375 fertilizer consuming districts – twotwotwotwooutoutoutout ofofofof threethreethreethree fertilizerfertilizerfertilizerfertilizer consumingconsumingconsumingconsuming districtsdistrictsdistrictsdistricts ofofofof IndiaIndiaIndiaIndia
� Trained staff directly visit villages to educate thefarmer about the concept of Chelation andbenefits of micronutrients and balanced cropnutrition
AAL
4900+ distributors
70000+ retailers
8mn+ Farmers
309
Marketing personnel
providing technical support
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Product Portfolio
� ProductProductProductProduct linelinelineline includesincludesincludesincludes 9999 mainmainmainmain categoriescategoriescategoriescategories namely,� Multi-micro nutrient complexes
� Chelated micro nutrients
� Secondary nutrients
� Specialty water soluble NPK fertilizers
� Antibiotics and hormones for agricultural use
� Seeds
� Insecticides
� Agricultural Sprayers
� Animal Nutrition products
� FlagshipFlagshipFlagshipFlagship BrandsBrandsBrandsBrands� Agromin (Chelated multi micro nutrients) –
produced in 107 different crop, soil and geographyspecific variants
� Chelamin (Chelated zinc)
2009-10 : New Product launches
� Bio Degradable Chelates (First time in India)Bio Degradable Chelates (First time in India)Bio Degradable Chelates (First time in India)Bio Degradable Chelates (First time in India)
ECO-Zinc, ECO-Cop, ECO-Mn, ECO-Fer
� Natural Amino Acid ChelatesNatural Amino Acid ChelatesNatural Amino Acid ChelatesNatural Amino Acid Chelates
PRO-Zinc, PRO-Cop, PRO-Mn, PRO-Fer, Agri-PRO
� Sea Weed ExtractSea Weed ExtractSea Weed ExtractSea Weed Extract
MARINO
� Water Treatment FormulationWater Treatment FormulationWater Treatment FormulationWater Treatment Formulation
AQUARITE
� Calcium Nitrate DerivativesCalcium Nitrate DerivativesCalcium Nitrate DerivativesCalcium Nitrate Derivatives
AQUACAL, COMBICAL
� Aries Agricultural Sprayers Aries Agricultural Sprayers Aries Agricultural Sprayers Aries Agricultural Sprayers – Knapsack & Battery powered
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Product Portfolio : India’s Plant Nutrients Super Bazaar
NutrientNutrientNutrientNutrient Premium RangePremium RangePremium RangePremium Range Mid RangeMid RangeMid RangeMid Range Economy RangeEconomy RangeEconomy RangeEconomy Range
Multi micronutrients Agromin Max, Agromin Gold Agromin Liquid, Agri Pro Agromin Soil Application
Zinc Eco Zinc, Chelamin Gold Chelamin, Aquazin, Pro Zinc Zincomix, Zn Sulf
Iron Eco Fer Chelafer, Pro Fer Ferromix
Copper Eco Cop Chelacop, Pro Cop
Manganese Eco – Mn Mn – Chel, Pro – Mn
Boron Boron 20 Borosoil, Calbor Tetrabor
Sulphur Primasulf, Nitrosulf Sulfonite
Magnesium Chelamag Magmix
Calcium Chelacal, Combical, Aquacal Calcium Nitrate
Nitrogen Macrofert Fertimax – NP
Phosphorus Macrofert Fertimax – PK
Potassium Macrofert Fertimax - K
All Nutrients Aries Total
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Product Portfolio : Increasing Network Throughput
Seed Treatment Plantomycin Provides protection at germination stages
Antibiotics for Plants Plantomycin Broad spectrum Bactericide
Plant Hormones Agronaa Induces flowering and fruiting
Bio Fertilizers Aquaphos
Nitrofix
Phosphorus Solubilizing bacteria
Nitrogen fixing bacteria
Hybrid Seeds Ansh Seeds Sunflower (1 varieties), Paddy (3 varieties), Maize (3 varieties)
Farm & Farmer Equipment Sprayers Battery operated Sprayers
Knapsack Sprayers
Plant Protection Chemicals Haasil, Nirbhay Plus, Jahaan, Avashya, Anokhi, Ashray, Mohar
Fungicides, Miticides, Insecticides
Objective : Maximize Share of Wallet from Aries’ wide distribution networkObjective : Maximize Share of Wallet from Aries’ wide distribution networkObjective : Maximize Share of Wallet from Aries’ wide distribution networkObjective : Maximize Share of Wallet from Aries’ wide distribution network
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Typical Seasonality of Indian Operations
Q1 (Apr Q1 (Apr Q1 (Apr Q1 (Apr ---- Jun)Jun)Jun)Jun) Q2 (Jul Q2 (Jul Q2 (Jul Q2 (Jul –––– Sep)Sep)Sep)Sep) Q3 (Oct Q3 (Oct Q3 (Oct Q3 (Oct –––– Dec)Dec)Dec)Dec) Q4 (Jan Q4 (Jan Q4 (Jan Q4 (Jan –––– Mar)Mar)Mar)Mar) Annual Annual Annual Annual
Revenues Revenues Revenues Revenues –––– NutrientsNutrientsNutrientsNutrients 10%10%10%10% 30%30%30%30% 35%35%35%35% 25%25%25%25% 100%100%100%100%
Revenues - Seeds 55% -- 45% -- 100%
Revenues - Insecticides -- 35% 50% 15% 100%
Revenues - Sprayers 35% 35% 30% -- 100%
Inventory (across all Inventory (across all Inventory (across all Inventory (across all locations)locations)locations)locations)
High – to build up for Kharif
Highest High Reduces by year end
Ideal would be 90 days of sales
Receivables (from Receivables (from Receivables (from Receivables (from registered distributors)registered distributors)registered distributors)registered distributors)
Low High High Reduces by year end
Ideal would be 150 days of sales
ExpensesExpensesExpensesExpenses High as % to Q1 sales
Stable Stable Highest, includes year end discounts
Working Capital needsWorking Capital needsWorking Capital needsWorking Capital needs High Highest High Reduces by year end
Ideal would be 25% of sales
Challenges of Dealing with the Changing Seasons
� Deliberate focus on developing cash crop markets
� Reduced focus on cereals grown in Kharif season
� Campaigns during Rabi season for horticultural crops
� Water availability in reservoirs is known before commencement of the Rabi season, enabling strategy shifts into areas with adequate water
� Focus on crops where farm gate prices have increased farmer’s investment capacity
� Widen geographic spread into new markets
� Develop penetration in existing markets by entering unserviced areas using Rural Retail vehicles (KVVs)
Quantitative Sales (MT)
2008200820082008----09 09 09 09
First HalfFirst HalfFirst HalfFirst Half
Quantitative Sales (MT)
2009200920092009----10101010
First HalfFirst HalfFirst HalfFirst Half
Volume Growth %
11,778 MT11,778 MT11,778 MT11,778 MT11,778 MT11,778 MT11,778 MT11,778 MT 13,918 MT13,918 MT13,918 MT13,918 MT13,918 MT13,918 MT13,918 MT13,918 MT + 18.2 %+ 18.2 %+ 18.2 %+ 18.2 %
Revenue Share Revenue Share Revenue Share Revenue Share First Half % First Half % First Half % First Half %
(Kharif season)
Revenue Share Revenue Share Revenue Share Revenue Share Second Half % Second Half % Second Half % Second Half % (Rabi season)
2006-07 38% 62%
2007-08 44% 56%
2008-09 47% 53%
2009200920092009----10 E10 E10 E10 E 40%40%40%40% 60%60%60%60%
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7777
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Wide Distribution of Revenues
Statewise Share of Revenues
MP
3%CG
3%OR
2%RAJ
5%
HAR
3%
GUJ
3%
HP
1%
BIH
4%
NE
2%
UP
8%
WB
15%AP
23%
MAH
17%UK
1%
JHK
0.1%
PJB
6%
TN
3%
KER
0.1%KAR
2%
14
Bangalore
Kolkata
Mumbai
Hyderabad
Lucknow
Ahmedabad
Current Manufacturing Units
* Disclaimer: This map is for broad representational purposes only &
may not have accurate or exact national and international boundaries.
Nationwide Manufacturing Units
19,800 MT19,800 MT19,800 MT19,800 MT
10,800 MT10,800 MT10,800 MT10,800 MT
10,800 MT10,800 MT10,800 MT10,800 MT
1,650 MT1,650 MT1,650 MT1,650 MT
37,800 MT37,800 MT37,800 MT37,800 MT
3,750 MT3,750 MT3,750 MT3,750 MT
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8888
Golden Harvest Middle East FZC, Sharjah
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• First of Aries’ Chelates Manufacturing Unit overseasFirst of Aries’ Chelates Manufacturing Unit overseasFirst of Aries’ Chelates Manufacturing Unit overseasFirst of Aries’ Chelates Manufacturing Unit overseas
• Rationale :Rationale :Rationale :Rationale :• Duty saving on imports of Micronutrient fertilizer end product, instead of raw materials which are organic chemicals or minerals• Capturing overseas markets in the Middle East and in the SAARC Region as a cost effective source of Chelated Micronutrients• Serve as a supplier of ‘Technicals’ for flagship brands to Aries’ Indian manufacturing units
Amarak Chemicals FZC, Fujairah
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• Largest overseas investment of AriesLargest overseas investment of AriesLargest overseas investment of AriesLargest overseas investment of Aries• Expected Commercial Production : Q4 of 2009Expected Commercial Production : Q4 of 2009Expected Commercial Production : Q4 of 2009Expected Commercial Production : Q4 of 2009----10101010
Rationale :Rationale :Rationale :Rationale :• Proximity to UAE’s oil refineries for Sulphur by products which are the main raw materials• Proximity to Asian markets, especially India and China, which currently have the largest deficit of Sulphur based secondary crop nutrients• Captive market within Aries Agro’s wide distribution network
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9999
Amarak Chemicals FZC, Fujairah
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Growing Demand for Sulphur in Agriculture
18
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10101010
Markets for Amarak : Sulphur Deficit Regions of the World
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Amarak Chemicals : Competition
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Assuming an average of 2 belts per production unit, 14 manufacturers globally would be producing Assuming an average of 2 belts per production unit, 14 manufacturers globally would be producing Assuming an average of 2 belts per production unit, 14 manufacturers globally would be producing Assuming an average of 2 belts per production unit, 14 manufacturers globally would be producing 8,40,000 MT per year8,40,000 MT per year8,40,000 MT per year8,40,000 MT per year
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Aries Group : Our Growth Story
20052005200520052005200520052005--------0606060606060606 20062006200620062006200620062006--------0707070707070707 20072007200720072007200720072007--------0808080808080808 20082008200820082008200820082008--------0909090909090909 20092009200920092009200920092009--------10 10 10 10 10 10 10 10 EEEEEEEE
20102010201020102010201020102010--------11 11 11 11 11 11 11 11 EEEEEEEE
20112011201120112011201120112011--------12 12 12 12 12 12 12 12 EEEEEEEE
SalesSalesSalesSalesSalesSalesSalesSales 59.359.359.359.359.359.359.359.3 74.174.174.174.174.174.174.174.1 103.3103.3103.3103.3103.3103.3103.3103.3 113.1113.1113.1113.1113.1113.1113.1113.1 155155155155155155155155 235235235235235235235235 280280280280280280280280
PBTPBTPBTPBTPBTPBTPBTPBT 10.210.210.210.210.210.210.210.2 14.014.014.014.014.014.014.014.0 18.118.118.118.118.118.118.118.1 8.38.38.38.38.38.38.38.3 22.122.122.122.122.122.122.122.1 40.140.140.140.140.140.140.140.1 51.651.651.651.651.651.651.651.6
PATPATPATPATPATPATPATPAT 6.76.76.76.76.76.76.76.7 8.78.78.78.78.78.78.78.7 14.214.214.214.214.214.214.214.2 6.46.46.46.46.46.46.46.4 14.914.914.914.914.914.914.914.9 30.530.530.530.530.530.530.530.5 39.639.639.639.639.639.639.639.6
Rupees in CroresRupees in CroresRupees in CroresRupees in Crores
Aries Group – Consolidated Global Operations
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20092009200920092009200920092009--------10 E10 E10 E10 E10 E10 E10 E10 E 20102010201020102010201020102010--------11 E11 E11 E11 E11 E11 E11 E11 E 20112011201120112011201120112011--------12 E12 E12 E12 E12 E12 E12 E12 E
Sales Sales Sales Sales EBIDTA EBIDTA EBIDTA EBIDTA SalesSalesSalesSales EBIDTA EBIDTA EBIDTA EBIDTA SalesSalesSalesSales EBIDTAEBIDTAEBIDTAEBIDTA
Aries Agro 135135135135 28 165165165165 32 185185185185 37
Indian
Subsidiaries
4444 0.8 10101010 2 20202020 4
Golden Harvest 11111111 2.2 20202020 4 30303030 6
Amarak Chemicals 5555 -1 40404040 9 60606060 12
TOTALTOTALTOTALTOTAL ::::
AriesAriesAriesAries GroupGroupGroupGroup155155155155 30303030 235235235235 47474747 280280280280 70707070
PBTPBTPBTPBT PATPATPATPAT PBTPBTPBTPBT PATPATPATPAT PBTPBTPBTPBT PATPATPATPAT
Aries Agro 20.3 13.4 26.4 17.4 31.5 20.8
Indian
Subsidiaries
0.8 0.5 1.8 1.2 3.8 2.5
Golden Harvest 2 2 3.7 3.7 5.5 5.5
Amarak
Chemicals
-1 -1 8.2 8.2 10.8 10.8
TOTALTOTALTOTALTOTAL ::::
AriesAriesAriesAries GroupGroupGroupGroup22.122.122.122.1 14.914.914.914.9 40.140.140.140.1 30.530.530.530.5 51.651.651.651.6 39.639.639.639.6Rupees in CroresRupees in CroresRupees in CroresRupees in Crores
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12121212
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Competitive Strengths
� Widest range of specialty plant nutrition solutions available to the Indian farmer
� Customized variants based on ongoing research of soil, crop and geography specific nutrientneeds
� Highly skilled sales team geared up to promote concepts and branded agricultural inputs
� Unmatched distribution reach, with a proven capability to place a new product on 69000 retailshelves within 1 day of launch
� Specialized, cost effective, environmentally sensitive Chelation technology
� World class manufacturing systems for multi micronutrient complexes
� India’s only customer loyalty programme in agribusiness – market intelligence, data miningcapability, interest free working capital
� Strong relationships with research institutions and Agricultural universities, along with systematiclab to land knowledge dissemination programmes
� Unique industry-government-private partnership : CII-Aries Agro Young Indian Farmers Network
� Nationwide network of manufacturing facilities, with ISO certified Quality Management system
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Brand Strength
� AriesAriesAriesAries CorporateCorporateCorporateCorporate BrandBrandBrandBrand :
� Symbol of trust and quality
� Consistent delivery of quality products
� Premium pricing accepted by farmers due to high standards and credibility
� ProductProductProductProduct BrandingBrandingBrandingBranding ::::
� Synonymous with product category in agriculturally progressive states
� Brands built without high decibel advertising campaigns, using extension services and fielddemonstrations
� Knowledge, consistency and simplicity
� Nil sales of unbranded products since inception
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13131313
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Consumer Connect
� Increasing awareness is key to increasing mindshare and market shareIncreasing awareness is key to increasing mindshare and market shareIncreasing awareness is key to increasing mindshare and market shareIncreasing awareness is key to increasing mindshare and market share
� Unique Young Farmers Network engaging 6100 farmers, all 25 to 40 years of age
� Partnership with the Confederation of Indian Industry’s Young Indians
� UniconnectUniconnectUniconnectUniconnect - Lab to land awareness programmes with 100+ Agricultural Universities and Research Stations
� Bal Krishak Sambodhan Bal Krishak Sambodhan Bal Krishak Sambodhan Bal Krishak Sambodhan ---- Exposure to young students in rural schools on best practices in crop management
� Suryodaya Suryodaya Suryodaya Suryodaya ---- Continuous schedule of farmer study tours, farmer meetings, demos and field trials
� Train the trainersTrain the trainersTrain the trainersTrain the trainers sessions with Government extension officers
� Regular Rural Immersion programmes
� Mobile Soil Testing and issue of Soil health cards
� SMS based weather advisories, commodity prices, farmer query resolution
� MCX-Aries Agro Gramin Suvidha Kendra – Pilot with India Post offices in 768 villages across 5 states as booking agents and information channels; scale up opportunity immense
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A Fleet of 100 Krishi Vigyan Vahans
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14141414
27
Aries KVV Objectives
� Build awareness in remote, unserviced markets
� Conduct farmer meetings and audio visual shows on product applications
� Visit six villages every day on a pre determined route
� Book orders from farmers and collect token advances to confirm order bookings
� Work with local distributor to liquidate stocks based on orders booked
� Provide door step farmer advisory services, soil testing and query resolution
� Incentivize farmers by providing special schemes on booking through the KVVs
� Tracking of impact of extension work – farmers contacted v/s booked orders v/s actual sales
� Advances will ensure dealers cannot push other competing brands at point of sale
� Advances collected accrue to the company with credit given to respective distributors after the sale is completed
KVV Operations – Progress so far
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StateStateStateState # of KVVs# of KVVs# of KVVs# of KVVs Launch Launch Launch Launch datedatedatedate
No of kms No of kms No of kms No of kms coveredcoveredcoveredcovered
No of No of No of No of villages in villages in villages in villages in
routesroutesroutesroutes
Avg Avg Avg Avg distance distance distance distance per dayper dayper dayper day
Bookings Bookings Bookings Bookings generated generated generated generated (Rs. lakhs)(Rs. lakhs)(Rs. lakhs)(Rs. lakhs)
AP 17 13 July 1,61,007 700 77 km 124TN 11 13 July 1,13,346 450 73 km 91Rajasthan 10 1 Sept 73,200 300 100 km 13Punjab & Haryana
15 31 July 78,200 610 74 km 40
West UP 5 27 July 44,480 280 71 km 15Bihar 10 30 July 75,230 340 77 km 29Gujarat 3 30 Oct 7,455 54 70 km NANipani 4 16 July 36,972 280 63 km 11W.Bengal 12 13 Nov NA NA NA NATOTALTOTALTOTALTOTAL 87878787 5,89,8905,89,8905,89,8905,89,890 3,0143,0143,0143,014 323323323323
As on 20 Nov 2009As on 20 Nov 2009As on 20 Nov 2009As on 20 Nov 2009
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15151515
29
Environment Sensitivity
� All Aries products are based on the philosophy of “Use less chemicals and use safe chemicals” –low doses of chemically inert and cost effective nutrient complexes
� The entire range of Aries Chelates are environmentally safe
� Starting April 2008, Aries has launched water soluble sachets for its flagship brands, reducing the use of plastics and aluminum foil in packaging
� The company promotes “Balanced Nutrition as a National Imperative”, building resistance of crops to pests and diseases and hence lowering the usage of harmful and expensive pesticides
� All Aries factories have zero effluents and produce no harmful emissions
30
Global Reach
� Investment in Golden Harvest Middle East FZC, Sharjah – now an Aries subsidiary – firstInternational Chelated micronutrients manufacturing base for Aries in the Middle East
� Chelates manufacturing in Golden Harvest, UAE provides input cost savings for Aries’ Indianoperations due to concessional duties on imports of finished products versus raw materials
� Investments in manufacturing facilities of Amarak Chemicals FZC for Sulphur Bentonite
� Current international customers are global arms of Indian customers (tea, coffee plantations)
� Distributors appointed in the UAE, EU, Nepal & Bangladesh for accessing new markets
� Manufacture world class nutrition solutions in the Middle East with indigenous, cost effectivetechnologies to tap into the highly specialized farming requirements in water scarcity andtechnology intensive areas
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16161616
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Main Achievements - 1
� First company to market Agricultural Chelates in India
� First company to receive license to manufacture broad spectrum Antibiotics for crops
� Recipient of the Trans World Gold Medal by the International Labor Organization for model labour relations in India
� Not a single man hour lost since 1969 due to labour disputes
� Responsible for the establishment of Indian Micro-Fertilizer Manufacturers Association
� Recipient of the National Unity Award by the Government of India
� Recipient of the Distinguished Leadership Award by American Biographical Institute
� Listed amongst the Top 100 Best Employers of India
� ISO 9000 Quality Management system
� Launched a new product across 22 Indian states on a single day - 15 August 2006
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Main Achievements - 2
� Setup of completely automated manufacturing facilities at Bangalore & Hyderabad, using 100% Indigenous technology and components
� Successfully launching and running India’s only customer loyalty programme in Agribusiness
� Establishing a unique National Young Indian Farmer Network, along with the Confederation of Indian Industry
� First Plant Nutrition company in India to successfully go public and list on the premier stock exchanges of India, the BSE & NSE
� Strong global partnerships with companies in South America, China, the Middle East and Europe
� First Indian specialty plant nutrient manufacturer to set up an International manufacturing base in the UAE
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17171717
33
Global Recognition
� Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008– FMCG, Food & Agribusiness sector
34
Stakeholder Value Creation
� Value for CustomersValue for CustomersValue for CustomersValue for Customers
� Proven benefit : cost ratio
� Cost effective, environmentally safe technologies
� Branded, high quality agricultural inputs
� Value for EmployeesValue for EmployeesValue for EmployeesValue for Employees
� Performance based variable pay across all levels and in all departments
� Informal, disciplined, open work environment
� Focussed and structured training and development initiatives
� Cordial employee relations, with not a single man hour lost since 1969 due to labour unrests
� Highly experienced mentors, with more than 120 staff having been with Aries for more than 20 years each
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18181818
35
Stakeholder Value Creation
� Value for SocietyValue for SocietyValue for SocietyValue for Society
� Research and continuous knowledge creation in over 100 Agricultural Universities and Research institutions across India
� Lab to land programmes across 97000 villages in 22 states, including ‘train the trainers’ programmes
� Sessions in Rural Schools to expose students to the ‘balanced crop nutrition’ concept during science classes
� Advocating the use of environmentally safe technologies for crop nutrition, reducing the use of harmful chemical fertilizers
� Focussed extension efforts to increase awareness levels in farming communities, using knowledge as a catalyst to raise agricultural productivity and consequently improve the economics of farming
36
Competition | Challenges for new entrants
� Brand portfolio of 65 products, with 107 customized formulations
� Need to understand farmers at root levels, which requires not only capital investment but also lotof time and effort
� Business requires selling concepts and not just pushing products
� Not a commoditised price-point selling product
� Knowledge based service industry, which requires understanding problems of farmers andproviding them with solutions
� Huge crop diversity, which requires large variety of product range
� Given the size of our country, huge amount of time and effort is required to establish the requiredsales and support infrastructure
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Board of Directors
Name of the DirectorName of the DirectorName of the DirectorName of the Director DesignationDesignationDesignationDesignation
Dr. Jimmy Mirchandani Chairman and Managing Director
Dr. Rahul Mirchandani Executive Director
Mr Akshay Mirchandani Non-Executive Director
Dr. D.S. Jadhav Independent Director
Prof. R.S.S. Mani Independent Director
Mr Chakradhar Chhaya Independent Director
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Key Takeaways
� Vast experience of the Promoter Group
� Highly qualified and experienced management team
� Locational advantage of manufacturing units, branches and distribution network
� Unmatched distribution reach, including a fleet of 100 Rural Retail Vehicles
� International manufacturing base and global marketing partnerships
� In house research and development
� ISO certified Quality Management System
� Widest range of specialty plant nutrition solutions
� High brand recognition and brand strength in rural communities
� Capability to handle multiple customized formulations and varied SKUs to serve varied needs oflarge as well as small and marginal farmers
� Leadership position within a high growth, profitable, niche sector of agribusiness in India
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Energizing EarthEnergizing EarthEnergizing EarthEnergizing Earth
Aries House, Plot No.24, Deonar, Govandi (East), Mumbai 400 043, India.
www.ariesagro.com
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Industry | The Wonder of Chelation Technology
� Nutrients can be applied to crops in inorganic form or Chelate form
� 60% of inorganic compounds are wasted by leaching, fixation and due to its property of reactingeasily with air, water & soil
� Aries products, which are Chelated, are able to deliver the nutrient more effectively to the crops,ensuring 100% availability.
� Nutrients ion is held in a claw-like structure which makes it chemically inert
� Soluble in water and easily absorbed by plants