Presented By :Sarbashish Ghosh (PGDMF13331)Satinder Sangwan(PGDMF13332)Shikha Katare(PGDMF13334)

Qualitative Analysis

On

Aries Agro Limited

Indian Agro Industry

Aries Agro Ltd.

Founders

Company Overview

Management Structure

Manufacturing Units

Subsidiaries

Product Range

Awards & Certifications

Contents

Revenue Mix

Shareholding Pattern

Key Metrics

Competitors

Aries Agro Ltd. in News

What Next ??

CSR

Conclusion

Indian Agro Industry 20-25 Years back

Current scenario – Agro Industry vs Service Industry

- Size of the Industry- Geographical distribution- Output per annum- Market Capitalization

Investments in Agricultural Sector

Road ahead in Agricultural Sector

Indian Agro Industry

Mission & Vision

“From India’s Largest Plant Nutrition Super Bazaar to one of the India’s largest Agri-input companies”

“Our corporate goal is to create value for “Farmers” & “Stakeholders”

Aries Agro Ltd.

Snapshot

Date of Establishment 27th November, 1969

Current Market Cap Rs. 1189.8970185 Millions

Founders Dr. T. B. Mirchandani Mrs. Bala Mirchandani

Business Operation Fertilizers

Was in Animal Health division of Boots Pharmaceuticals Ltd.

Technical expertise

Was in the marketing department of Vick Products Inc.

Marketing savvy

Company Overview

Started by manufacturing a small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use

In 1975, it diversified into nutrients for plant

Introduction of "Agromin", a micronutrient fertilizer in the year 1975, followed by "Chelamin" in 1976

In 2001, Aries expanded its product line to include secondary nutrients - sulphur, magnesium and calcium

Converted into Public company in 30th Dec, 1994

“Made for India” Mantra

Management Structure

Dr. Jimmy Mirchandani (Chairman & MD)

Bachelor of Veterinary Science & Animal HusbandryAlmost 26 years Involved in development of new productsPresident of Indian Micro Fertilizers Manufacturers Association of India(2001-2005)

Management Structure (contd.)

Dr. Rahul Mirchandani (Ex. Director)

Doctorate in Management Studies, CFAMBA from University Of CanberraServed in CII’s Young Indians @75th National CouncilPresident of the Indian Delegation at the G20 Young Entrepreneur Summit, France

Mrs. Nitya Mirchandani (Director)

Bachelors of Arts in PsychologyDiploma in Human Resource ManagementDiploma in advertising from the British Council

Manufacturing Units

6 Manufacturing Facilities in India & 2 Overseas

Plant Locations• Bangalore, Mumbai, Hyderabad*, Kolkata, Chattral*, Lucknow*

Subsidiaries

Product Range

Chelated Micronutrient Fertilizers EDTA Group Amino Acid based Chelates

Farm equipment Sprayers

Major Fertilizers

Multi micro nutrient

Plant nutrition & Plant production

Veterinary products

Awards & Certification

Listed Amongst The Top 500 Indian Manufacturing Companies For 2011, 2012, 2013

Winner - Category FMCG Food & Agro-Business Year 2008

Among The 10 Agro-Business Companies Selected To Showcase Agro-innovations @ Indo-US Agro Expo

2012 – The Company and Institute of Technology and Management (ITM) Trust have entered into a Memorandum of Understanding (MoU) to work together towards the launch of a specialized ITM–Aries Agro PGDM Program in Agribusiness Management

2010 – Aries Agro has been awarded the ‘Trailblazers Brand Innovator Award 2010’ in the category of Agricultural Inputs

Awards & Certification (contd.)

TB Mirchandani was nominated for the International Award for Distinguished Leadership by the American Biographical Institute

Consistently represented on the Animal Feeds Committee of the Bureau of Indian Standards

First company to receive manufacturing permission for Agricultural Chelates

First company to receive manufacturing permission for Agricultural Bactericides

First company to indigenously manufacture Calcium Chelate

Recipient of Trans world Gold Medal

Revenue MixProduct Name Sales Value (Rs cr.)

Speciality fertilizers 163.4691

Insecticides, pesticides, herbicides, weedicides & fungicides

23.7101

Others 4.7965

Agricultural equipment & spares 2.1574

Animal feed 0.2513

Holder's Name # of Shares % Share HoldingPromoters 6857926 52.74%General Public 3273285 25.17%OtherCompanies 1555877 11.96%N Banks Mutual Funds 941564 7.24%Others 304353 2.34%Foreign NRI 71334 0.55%

Shareholding Pattern

Financial Statement Analysis… Operating Profit and OPM

Financial Statement Analysis… EBITDA, PBT and PAT

Financial Statement Analysis…

Total Asset & Asset Turnover Ratio

Financial Statement Analysis… Net Sales

Financial Statement Analysis…

Net Worth

Financial Statement Analysis… ROCE

Financial Statement Analysis… Gross Block

Financial Statement Analysis…

Dividend

Key Metrics

Market Cap (Rs Cr) 112.68 Industry P/E 23.51

*P/E 9.77 *Eps (Ttm) 8.87

*Book Value (Rs Cr) 110.51 *P/C 8.67

Div (%) 15.00 *Price/Book 0.78

Market Lot 1 Div Yield.(%) 1.73

Face Value (Rs) 10 Deliverables (%)  56.03 

Major Competitors

What Next ??

Focus on cash crops, horticulture and oil seed vegetables

Enter newer states like Kashmir, Manipur and Kerala

Set up a strong distributor’s network in countries like Sri Lanka, Pakistan, Bangladesh and Australia

Bring out newer products for crops such as cardamom and apple

Aries Agro Ltd. in NEWS

Aries Agro Ltd. Board recommends dividend (30th May,2014)

SBI Mutual Fund Sells 66,148 shares of Aries Agro Ltd.(11th April,2014)

Templeton Stock Growth Pvt. Ltd. bought 84,461 shares of Aries Agro Ltd. (10th April,2014)

Aries Agro Ltd. & ITM launched ITM-Aries Agro PGDM program in Agribusiness management

CSR (Corporate Social Responsibility)

“Through our people products and passion Aries continually demonstrates that we are a responsible corporate citizen working hard to retain the delicate

balance of nature and the development of communities where we work and grow"

Environment Sensitive Products

Philanthropy

Soil Testing Services

Providing Advisory Services

Why Invest ?

The sector experienced a faster growth rate and presently India is the third largest fertilizer producer in the world

AAL's wide product range matches the world's best and biggest plant nutrition companies

The demand for AAL's products in the South Asian region and the Middle East is growing

AAL's extensive distribution network, diversified product portfolio, reach to varied climatic areas and realignment of focus on crops and products that will realize better prices will definitely have a beneficial impact on AAL's growth and profitability

AAL has also set up a team to look into institutional sales in India covering major fertilizer manufacturers, State Governments and large seed producers. This opens up new opportunities to expand bulk business in India

Why Not Invest ?

Indian Monsoon Condition

Agriculture is a fragmented industry with lots of moving variables and varying growth conditions