insecticides (india) limited - wordpress.com fighter, aflatoon, bravo, titan, metacil hakama,...

28
STRICTLY PRIVATE AND CONFIDENTIAL Corporate Presentation Insecticides (India) Limited

Upload: lybao

Post on 22-Mar-2018

240 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

STRICTLY PRIVATE AND CONFIDENTIAL

Corporate Presentation

Insecticides (India) Limited

Page 2: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

1

Disclaimer

This presentation has been prepared by Insecticides (India) Limited (the “Company”) solely for your information and may not be taken away, distributed, reproduced, or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. By accessing this presentation, you agree to be bound by the following restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any persons of such change or changes. This presentation and its contents are confidential and may not be copied, published, reproduced or disseminated in any manner.

This presentation may contain certain forward looking statements based on the currently held beliefs and assumptions of the management of the Company which are expressed in good faith and in their opinion, reasonable. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from any future results, performances, or achievements. Significant factors that could make a difference to the Company’s operations include, but are not reasonable to, domestic and international economic conditions, changes in government regulations, tax regime and other statutes. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company.

This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP, and should not be considered an alternative to profit, operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Company.

In no event shall the Company be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising out of access or use or dissemination of information contained in this presentation, including, but not limited to, loss of profits.

No representation, warranty, guarantee or undertaking (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company, its advisors and representative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on behalf of such persons accepts any responsibility or liability whatsoever, in negligence or otherwise, arising directly or indirectly from this presentation or its contents or otherwise arising in connection therewith.

You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent analysis as you may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.

This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. This presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. The information contained herein does not constitute or form part of an offer, or solicitation of an offer to purchase or subscribe, for securities for sale. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration therefrom.

By accessing this presentation, you accept that this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Mumbai, and no other courts, shall have jurisdiction over the same.

Page 3: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

2

Table of Contents

Company Overview Section I. 03

Key Corporate Highlights Section II. 08

Growth Strategy and Key Value Creation Drivers Section III. 18

Financial Performance Section IV. 20

Annexure 22

Page 4: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

Section I.

Company Overview

Page 5: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

4

63.6% of revenue(2) 23.9% of

revenue(2)

10.2% of

revenue(2)

2.4% of

revenue(2) Thimet, Nuvan, Victor, Monocil, Xplode, Lethal, Nayak, Sharp, Indan 4g, Super fighter, Aflatoon, Bravo, Titan, Metacil

Hakama, Hijack, Selector, Strike, Flite 71

Pulsor, Force 11, Care, Himil, Prism

Milstim, Mycoraja, Prime gold, Olympic

Insecticides (India) Limited (IIL) is amongst the top 10 Indian agrochemical companies having almost 7% market share of the Indian domestic agrochemical market(1)

It has a pan-India presence, with integrated operations across R&D, manufacturing, marketing and distribution of a wide range of formulations, technicals & household pesticides

IIL caters to the insecticide, herbicide, fungicide & PGRs segment; has a varied portfolio of 99 formulations,18 technicals & 350+ SKUs

The company has a portfolio of strong & successful brands and believe to have a proven track record of turning around acquired off-shelf brands into market leaders

Navratnas (Top 9 brands) & Super 11 brands (next top 11 brands) contributed 53% and 14% respectively of the total branded formulation sales for Dec-14(2)

IIL has 5 Formulations & 2 Technicals facilities at Chopanki (Rajasthan), Samba (J&K), Udhampur (J&K) and Dahej (Gujarat)

It has International tie-ups with AMVAC and Nissan Chemicals (through Nagarjuna Agrichem Ltd.), for brand licensing and marketing rights

The company has an in-house R&D facility, accredited by NABL & recognised by DSIR with 14 scientists. Also, IIL has set up an R&D centre through a JV with OAT Agrio, Japan for a new R&D centre

IIL has a Pan-India distribution network of 5,000+ distributors and 29 depots and branches

Company Overview

Source: (1) CRISIL report dated 21 April, 2015; (2) Dec-14 refers to gross revenue numbers corresponding to nine months ended 31st Dec 2014. PGR – Plant Growth Regulator; SKU – Stock Keeping Units; AMVAC – American Vanguard Corporation NABL: National Accreditation Board for Testing and Calibration Laboratories; DSIR: Department of Science and Industrial Research

Branded formulations and Institutional sales accounted for 73% and 27% of the Dec-14 sales. Technicals, Bulk Formulations & Packaging accounted for 45.5%, 38.6% & 15.9% of the Institutional sales(2)

Insecticides Herbicides Fungicides PGR

Branded & Bulk Formulations

Manufacturing : 198

Import : NA

Manufacturing : 41

Import : 18

Export: 42 Export: 49

Technicals

Total Registrations: 348 (as at 31st Dec, 2014)

Additionally, 4 registrations for export, 12 registrations for formulations and 3 registrations for active ingredients are pending with the CIB

Page 6: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

5

Key Milestones

1996

Incorporated as a private limited company

2001

2002

2003

2004

2005

2006

2007 2011

Converted into a public limited company

Started operations by commissioning formulation plant in Chopanki (Rajasthan)

Acquired 21 leading brands of Montari Industries Ltd (Ranbaxy Group company)

Commissioned second formulation plant in Samba (Jammu)

Set up R&D Laboratory in Chopanki

Granted ISO 9001-2008 certification for Chopanki

IPO & listing at NSE/BSE Technical plant commenced operations

in Chopanki Expansion of Formulations completed in

Samba

2012

2014

2015

Acquired Monocil brand from NOCIL Ltd Two new formulation plants - Dahej and

Udhampur - commence operations Acquired the exclusive rights to sell

the Thimet brand in India from American Vanguard Corporation, USA

Started producing Diafenthiuron Commencement of Packaging &

Distribution of Hakama

Launched R&D centre with OAT Agrio, Japan

Launched Nuvan, Hakama and Pulsor in collaboration with AMVAC and Nissan

Entered into JV with OAT Agrio, Japan for research and invention of new agricultural chemicals

Technical plant in Dahej commences operations

2008

Granted OHSAS 18001 certification

Page 7: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

6

Pan-India Presence: Manufacturing Facilities at Strategic Locations & Wide Distribution Network

Note: Map not to scale

OAT JV

Dahej Formulation Plant Dahej Technical Plant

Page 8: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

7

Shareholding Pattern & Stock Price Performance

# Promoter and Promoter Group Shares % stake

1 Hari Chand Aggarwal 615,600 4.85

2 Hari Chand Aggarwal HUF 996,000 7.85

3 Kritika Aggarwal 75,000 0.59

4 Nikunj Aggarwal 750,000 5.91

5 Pushpa Aggarwal 1,434,600 11.31

6 Rajesh Aggarwal 3,528,600 27.82

7 Rajesh Aggarwal HUF 1,302,000 10.27

8 Sanskar Aggarwal 601,200 4.74

9 ISEC Organics Ltd 169,700 1.34

Total 9,472,700 74.69

# Institutional Investors Shares % stake

1 LIC 6,75,000 5.32

2 Fidelity Northstar Fund

3,75,000 2.96

3 HDFC Small & Midcap Fund

1,65,458 1.30

Total 12,15,458 9.58

Source: BSE India, Bloomberg; Shareholding pattern is as on 31st March, 2015; Stock price chart is ex-bonus. Bonus in the ratio of 1:2 * Revenue from operations; **Networth is adjusted for Unamortised Share issue expenses and Preliminary expenditure not w/off

125

200

275

350

425

500

575

650

Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15

52 week H/L: 612/174 Mcap: Rs.975 cr Enterprise Value: 1,391cr Equity shares : 1,90,24,449

IIL stock is up by 191% from 01st Jan, 2014 till 20th April, 2015

Rs.512.5

17 April record date for bonus issue

The company has announced a bonus of 1:2 shares for record date of 17th April, 2015

Particulars Dec-14 Mar-14 Mar-13 Mar-12

Revenue* 8,034 8,641 6,167 5,218

Operational EBITDA

975 818 693 564

PAT 487 399 353 330

EPS 38.37 31.49 27.85 26.03

EBITDA Margin

12.1% 9.5% 11.2% 10.8%

Networth** 2,429 2,086 1,785

Revenue CAGR: 29% EBITDA CAGR: 20% CAGR: FY12-FY14

Financials (In INR mn, except per share data)

Promoter, 74.69%

FII, 4.13%

DII, 6.63%

Bodies Corporate,

3.71%

Public, 10.84%

INR

Revenue y-o-y: 10% PAT y-o-y: 40% Y-O-Y: Dec 14 vs. Dec 13

Page 9: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

Section II.

Key Corporate Highlights

Page 10: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

9

IIL’s Integrated Platform Is Well Entrenched To Take Advantage of Long Term Opportunities

2. Strong Brand portfolio

Large kitty of generic brands - Tractor Brand as the Umbrella brand

99 branded formulations with Navratna brands featuring in the leading products of their respective categories

Strategic brand acquisition of “off the shelf brands” E.g. Lethal, Monocil, etc.

Vigorous Promotion campaigns

Training and Education to farmers

1. Favorable industry dynamics

Increasing population, reducing arable land

Under-penetration of crop protection products

Low agricultural productivity

Rising food demand due to rising income

3. R&D and New Product Development Capabilities

R&D centre established in 2005 for reverse engineering of off patented products

Developed 50 new processes, 1 process patent received, 7 process patent applications pending

JV with OAT Agrio Co, Japan for product discovery and IP through new invention R&D centre

MNC partnerships - Tie-ups with AMVAC, USA & Nissan Chemicals, Japan

4. Robust manufacturing facilities and distribution network

5 formulation and 2 technical manufacturing facilities in North and West India with advanced technology

Pan India Network of 5,000+ distributors and 29 branches & depots

5. Experienced Promoters and Management Team

2+ decades of promoter experience & track record

Successfully created strong brands in the space and have also marketed off-shelf acquired brands

6. Robust Financial performance and Balance Sheet Strength

Track record of sustained growth, Revenue CAGR of 29% between FY12-14

Low debt-equity level

Credit rating of CRISIL A/negative and CRISIL A2+ for fund and non-fund facilities

Integrated company providing solutions

to Indian agriculture

Industry Dynamics

Portfolio of established

agro- chemical brands

Experienced Management

Team

Strong R&D focus &

International Strategic Tie-

ups

Robust Financial

Performance

Robust Manufacturing Facilities & Pan-India

Distribution Network

Page 11: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

10

1. Industry Dynamics

India’s crop protection industry is estimated at USD 4.25bn in FY14 & is expected to reach USD 7.50bn by FY 19

India is the 4th largest producer of agrochemicals, after USA, Japan & China. It is a highly fragmented generics market with exports constituting almost 50% of the Indian crop protection industry

Insecticides is the largest sub-segment with almost 60% market share; Fungicides and Herbicides are the largest growing segments accounting for 18% and 16% respectively

Andhra Pradesh (erstwhile), Maharashtra & Punjab are major consumer states

Mancozab, Acephate and Chlorpyriphos are the mostly widely consumed technical products. Nearly 100% of the top 5 consumed products are domestically manufactured

Imports form about 31% of the total domestic consumption. China is the largest supplier, accounting for over 55% of the total imports

Key Growth Drivers

Exports to remain the key growth driver; expected to grow at ~16%

Low cost manufacturing, availability of technically trained manpower, seasonal domestic demand, available capacity, better price realization globally and strong presence in generic pesticide manufacturing

Growing food demand with limited land availability

Agrochemicals worth USD 6.3 billion are expected to be taken off-patent list by 2020

Low consumption of pesticides in India

Expensive labour to drive herbicide/weedicide consumption in India

Indian Crop Protection Market

Pesticide consumption (Kg/ha) global comparison

Source: FICCI & Tata Strategic Management report - Jan 2015; CRISIL report dated 21 April, 2015

2.00 4.20

2.25

3.30

FY-14 FY-19

8%

16%

USD 4.25 billion

USD 7.5 billion

Exports

Domestic

Total

12%

0.6

5 5

7 7

12 13

17

India UK France Korea USA Japan China Taiwan

Poised for strong growth Indian Crop Protection Market Poised for strong growth

Page 12: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

11

2. Portfolio of Established Agro-Chemical Brands

Track Record Of Turning Around Acquired Brands

IIL has successfully demonstrated the ability to acquire off-shelf brands and turn them around through marketing initiatives

Tractor Brand

– Has become the Umbrella brand for marketing & branding purposes, enjoys a strong brand recall and helps introduce new products, through brand extensions

Lethal

– Part of 21 brands acquired from Montari Industries in 2003

Monocil

– Acquired from Nocil in 2011, Monocil had been off the shelf prior to its acquisition

– Within the first year of acquisition, IIL managed to make Monocil one of its key products

IIL has 99 formulations with the Navratna range of branded formulations featuring in the leading products of their respective categories (1)

‘Pulsor’ is the market leader and sole product available in its specific product segment(1)

‘Navratna’ and Super 11 range of branded formulations contributed 53% and 14% respectively of the total branded formulation sales for December, 2014

Effective marketing and branding strategy and successful implementation has enabled IIL to develop a strong brand and is a key competitive strength to leverage in executing product portfolio expansion strategy

Brand Portfolio

Note: (1) CRISIL report dated 21 April, 2015; Revenue share numbers are for 9 months ending December, 2014 and are as a % of branded formulations.; * including brand extensions

Category Brand Name Revenue Share Technical Name Particulars

Insecticide Monocil 6.9% Monocrotophos 36% SL Protects cotton against bollworms and sucking pests

Insecticide Victor* 5.0% Imidacloprid 17.6 % SL Protects cotton and other crops against sucking pests

Insecticide Lethal* 6.8% Chlorpyriphos 20%EC Protects from stem borer in paddy and white grub in sugarcane

Insecticide Thimet 10.0% Phorate 10% CG Protects paddy and other crops against stem borers

Insecticide Nuvan 8.0% Dichlorovos 76% EC Protects paddy and wheat against brown planthoppers and caterpillars

Herbicide Hijack + Flite 5.5% Glyphosate 41% SL To remove primarily all weeds in non-crop areas

Herbicide Hakama 4.2% Quizalofop Etyl 5% EC To control grassy weeds in soybean, cotton, black and green gram

Fungicide Pulsor 4.1% Thiafluzamide 24% SC For control of sheath blight in paddy

Insecticide Pluto / Xplode 2.6% Emamectin Benzonate 5% SG Protects pulses against bollworms

Page 13: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

12

New Product Capabilities Initiative

3a. Strong R&D Focus

R&D centre located at Chopanki (Rajasthan) for developing processes for new environmentally friendly formulations - accredited with NABL and recognized by DSIR

Team includes 14 scientists, 6 engineers, 5 technicians and other staff as at March 31, 2015

Successfully developed 50 new processes, including making Thiamethoxam environmentally friendly by eliminating Methanol from its formulation and decreasing both time cycle and cost

In March 2014, IIL was granted the process patent for the process of preparing Acetamiprid, an active ingredient

1 process patent received, 7 process patent applications filed by IIL pending with the Indian Patent Office

Research and Development JV with OAT Agrio, Japan

Joint venture with OAT Agrio, Japan to set up a new R&D facility at Chopanki, Rajasthan. OAT plans to provide the technology and know-how

Engaged in the invention of new agricultural molecules for domestic and international markets besides managing intellectual property

Launch new patented products in India and 14 other countries in the Indian Sub-continent, Middle East and East–African countries for which IIL has the exclusive distribution rights

OAT Agrio Co. Ltd., Japan is engaged in the manufacture and sale of agricultural chemicals and fertilizers in Japan with USD 108mn in revenue (2014)(1)

Note: (1) Bloomberg - Dec 2014 annual revenue

Page 14: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

13

3b. International Strategic Tie-Ups

Focus On Specialty Molecules Through International Collaborations

Dec - 14 revenue

Brands Partner Since Nature of Agreement (INR mn)

Thimet AMVAC, USA 2006 IIL is responsible for manufacturing, marketing and distribution of Thimet in India Largest product for IIL in terms of sales

630

Nuvan AMVAC, USA 2011 IIL is responsible for manufacturing, marketing and distribution of Nuvan in India

508

Pulsor Nissan Chemical (Nagarjuna Agrichem)

2012 IIL has rights for marketing of Nissan’s product – Pulsor in India

257

Hakama Nissan Chemical, Japan (Nagarjuna Agrichem)

2012 Marketing of their popular weedicide product under the brand name HAKAMA in India

266

Note: Dec-14 numbers are for 9 months ending December, 2014

Page 15: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

14

Strategic Manufacturing location & infrastructure…Surplus land, Environmental clearance and Tax benefit available

4a. Robust Manufacturing Facilities

Location Unit Started in Plot Area Built Up

Area Installed Capacity Capacity Utilisation (FY 14) Lease

tenure (years) Sq Mt Sq Mt Liquid

(KLPA) Granules (MTPA)

WDP (MTPA)

Technical (MTPA)

Liquid (KLPA)

Granules (MTPA)

WDP (MTPA)

Technical (MTPA)

Chopanki, Rajasthan

Unit I – Formulations

FY02 8,000 3,314 6,000 7,500 4,500 2,500 6,475 1,023 90

Unit II – Technicals

FY08 3,958 1,657 - - - Tech:1,800 Tech: 395

Bulk: 498 90

Bulk: 2,000

Unit III – Formulations

FY15 7,094 4,077 - 20,000 - - - 680 - - 90

Samba, Jammu and Kashmir

Formulations FY05 9,358 6,210 5,450 6,100 1,880 - 2,230 2,289 777 - 90

Udhampur, Jammu and Kashmir

Formulations FY12 6,070 5,434 3,000 2,000 600 1,530 253 525 99

Dahej, Gujarat

Unit I – Formulations

FY12

1,67,631 11,830

3,000 12,000 2,500

3,021 2,409 (Bulk)

5,982 504

77

Unit II - Technicals

FY13 10,000 5,073

Total 2,02,111 32,522 17,450 47,600 9,480 13,800 11,690 15,679 2,829 5,966

Capacity Utilisation

67.0% 32.9% 29.8% 43.2%

•Note: KLPA – Kilo Litres per annum MTPA – Metric Tonnes per annum

Page 16: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

15

4b. Pan-India Distribution Network

Successfully leveraged the strong reputation and experience of the promoters to establish an extensive network of distributors and dealers across India

Distribution network comprising of over 5,000 distributors with pan-India presence

29 depots/branches (which are also warehouses)

Footprint across major crop producing regions including Punjab, Haryana, Andhra Pradesh (erstwhile), Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Bihar, Gujarat and Madhya Pradesh

Preferred partner for International innovators entry into India

Strong Grass-root distribution network

Brand licensing and marketing agreements with AMVAC, USA and Nissan Chemical, Japan

AMVAC, USA also granted the exclusive license and right to use know-how & information related to Phorate and its trademarks for promotion, marketing, distribution and sale in India

Distributor for Nissan Chemical products ‘Pulsor’ in India

American Vanguard Corporation (AMVAC) is a diversified specialty and agricultural products company focusing on crop protection, turf and ornamental markets, and public health applications

Nissan Chemical Industries, Ltd., is a chemical manufacturing company engaged in six business segments i.e Chemicals, Functional Materials, Agricultural Chemicals, Medicinal Drug, Wholesale and Others

Page 17: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

16

5. Experienced Management Team

2 DGMs

2 Project Managers

1 Unit Head

Chairman

Managing Director

Head International Marketing

Head Procurement and Institutional Business

Vice President CFO

Production Marketing R&D Admin & HR IT Finance

4 GMs 1 GM 1 GM

1 Sr. Manager

1 GM 1 Company Secretary

1 Sr. Manager

Page 18: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

17

6. Robust Financial Performance

PAT and PAT Margin (in INR million)

EBITDA and EBITDA Margin (in INR million)

Debt / Equity

Revenue and Revenue Growth (in INR million)

564 693

818

975

10.8% 11.2%

9.5%

12.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

200

400

600

800

1,000

1,200

FY12 FY13 FY14 Dec-14

0.89x

1.01x

1.06x

0.80x

0.85x

0.90x

0.95x

1.00x

1.05x

1.10x

FY12 FY13 FY14

Note: Dec-14 numbers are for nine months ending 31st Dec, 2014; Networth is adjusted for unamortised share issue expenses and preliminary expenditure not written-off; EBITDA refers to Operational EBITDA; Debt = Long term debt + Short term debt + Current maturities of long term debt

5,218

6,167

8,641

8,034

4,000

5,000

6,000

7,000

8,000

9,000

FY12 FY13 FY14 Dec-14

Healthy Growth in Income and Earnings with stable debt/equity

330 353 399

487

6.3% 5.7%

4.6%

6.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

100

200

300

400

500

600

FY12 FY13 FY14 Dec-14

Page 19: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

Section III.

Growth Strategy and Key Value Creation Drivers

Page 20: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

19

Growth Strategy

IIL has set a platform and a well laid down strategy in place for future growth

Per capita consumption of crop protection products in India is amongst the lowest in the world at 0.6 kg/hectare as compared to 5 kg per hectare in the UK and 7 kg per hectare in USA

Develop new and high margin products, including product extensions of established brands and expand the revenue share of Navratna and Super 11 ranges of branded formulations

Existing infrastructure, manufacturing capabilities, distribution network and access to R&D and know-how will be instrumental to enhance the product portfolio

Expansion of product portfolio, organically & inorganically

Agrochemicals worth USD 6.3 billion are expected to be off-patented by 2020, providing opportunity to introduce new products to the portfolio

Focus on developing processes for new environmentally friendly formulations, improving existing processes and production cost efficiency by leveraging advanced in-house R&D facility

New JV with OAT Agrio, Japan, will enable the launch of new patented products in India and 14 other countries in the Indian Sub-continent, Middle East and East–African countries for which IIL has the exclusive distribution rights

Innovation & product development

Increasing geographical penetration & addressable market

Focus on institutional sales

Exports currently constitute ~50% of the Indian crop protection industry; expected to grow at a 16% CAGR to reach US$ 4.2 billion by FY-19, resulting in a 60% share of the Indian crop protection industry

Pursuing registrations in Middle East and South East Asian regions

Experienced team in domestic and international sales and marketing

Technical synthesis plants have 11 streams which provides the flexibility to expand product range and change product mix to changes in the customer demands and industry trends

Leverage advanced R&D capabilities to expand contract manufacturing.

Preferred choice for global agrochemical companies operating in India due to capability in low cost manufacturing, availability of trained manpower along with R&D and manufacturing capabilities

Source: FICCI & Tata Strategic Management report – Jan 2015.

Page 21: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

Section IV.

Financial Performance

Page 22: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

21

Key Financials

Note: Figures have been regrouped wherever necessary; Networth is adjusted for Unamortised Share issue expenses and Preliminary expenditure not w/off

INR Mn

Particulars Mar-14 Mar-13 Mar-12

Period (months) 12 12 12

EQUITY AND LIABILITIES

Networth 2,429 2,086 1,785

Debt 2,580 2,113 1,585

Other liabilities 2,868 2,086 1,796

TOTAL 7,877 6,285 5,166

ASSETS

Fixed Assets 2,243 1,852 1,432

Current Assets 5,450 4,366 3,485

Other assets 185 67 249

TOTAL 7,877 6,285 5,166

Key Balance Sheet Items Key Profit & Loss Items

INR Mn

Particulars Dec-14 Mar-14 Mar-13 Mar-12

Period (months) 9 12 12 12

Revenue from operations (Net) 8,034 8,641 6,167 5,218

Total expenditure 7,058 7,823 5,474 4,654

(excl. depreciation & finance cost)

Operational EBITDA 975 818 693 564

Other Income 3

5 2 1

EBIT 875 756 638 541

EBT 599 487 464 429

PAT 487 399 353 330

Depreciation 103 67 58 24

Finance cost 276 269 174 111

Margins

EBITDA margin 12.1% 9.5% 11.2% 10.8%

EBIT margin 10.9% 8.7% 10.3% 10.4%

Net Profit margin 6.1% 4.6% 5.7% 6.3%

ROCE 16.4% 16.8% 20.6%

ROAE 17.7% 18.2% 20.0%

Page 23: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

Annexure

Page 24: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

23

47 50 52 44 47

13 19

22

19 22

2009-10 2010-11 2011-12 2012-13 2013-14

Domestic produce Imports

Indian Crop Protection Industry – Overview

Domestic consumption of pesticides (technicals) (in ‘000 MT)

Growth in pesticide (technicals) capacities and actual production (in ‘000MT)

Source: CRISIL report dated April 21, 2015; Ministry of Chemicals and Fertilisers, Department of Chemicals and Petrochemicals, Statistics and Monitoring Division, GoI.

58

15 10 8 7

3

Mancozab 2, 4-D Acephate Chlorpyriphos Cypermethrin Glyphosate

Key pesticides and insecticides (technicals) consumed in India (in ‘000MT for 2013-14)

184

230 245

273 289

134 143 155 154 178

0

50

100

150

200

250

300

350

2009-10 2010-11 2011-12 2012-13 2013-14

Capacity Production

Page 25: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

24

Distinct Characteristics Across the Industry Value Chain

Source: CRISIL report dated 21 April, 2015.

Value Chain Intermediate Technical Formulation Integrated

Manufacturing Process

Standardized Handles toxic inputs

Technical and Knowledge intensive

Handles toxic inputs Limited product flexibility

Higher productive flexibility

Technical + Formulations

Entry Barrier Low Commodity like product Highly competitive

High Closely held product

technology Patents and registrations Environmental approvals

Small Scale – Low Large Scale – High Patents & registration Brand equity/ loyalty Wide distribution

channel

High Patents, registrations

Environmental approvals

Competitive Strength

Process skills Cost efficiency

Scalability and innovation Products patent

registrations

Product mix Marketing research Brand strength

Scalability, product mix and marketing reach, innovation

Key Features

Profitability Relatively low Moderate to healthy Moderate to healthy Moderate to healthy

Working Capital Intensity

Low Moderate High High

Impact of Monsoon Low Trickle-down effect Direct Direct

Capital Intensity High High Low High

Page 26: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

25

CSR Initiatives

IIL’s inclusive growth policy

AGLA KADAM Realizing its social responsibility, the Company started a social welfare programme

“Agla Kadam” (English: “Next Step”) in Punjab and Rajasthan in 2008

Over the years IIL has adopted many schools and villages to offer people the basic needs of life including healthcare, education and women empowerment

It is undertaking various activities such as providing books and study material to children, giving scholarships and aid to schools, providing technical education to farmers about new and latest technologies, etc. to increase their yield and improve their income

The Company aims to adopt more villages in other parts of the country as well

JAGRUKTA ABHIYAN Identifying the need for information among farmers for their upliftment, IIL initiated a

farmer awareness initiative “JAGRUKTA ABHIYAN” (English : “Awareness campaign”) in 2007, where a team of agri experts is deputed to train and help the farmers for better agricultural practices in Punjab, Haryana, Andhra Pradesh and Rajasthan

Following the successful response, the nationwide campaign is conducted every year focusing on awareness towards the safe and judicious use of agro chemicals

This campaign was very well accepted by the farmers all across the country

About 5,000 meetings are conducted in every state including participation from government officials

Page 27: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

26

Promotion of Green Gram for Prosperity and Soil Health – An Awareness Initiative

This is a recent Initiative started by the

company to promote the inclusion of the

Green Gram in the Crop Rotation among

the farming community.

Inclusion of Green Gram in the crop rotation is very

useful to the farmers, they can get this short

duration crop between two major crops and get the

handsome income. Also being the leguminous crop

helps to increase the fertility of the soil resulting in

the better productivity of the next crop.

Page 28: Insecticides (India) Limited - WordPress.com fighter, Aflatoon, Bravo, Titan, Metacil Hakama, Hijack, Selector, Strike, Flite 71 Pulsor, Force 11, Care, Himil, Prism Milstim, Mycoraja,

27

For Any Queries, Contact

Sandeep Aggarwal

Chief Financial Officer

Insecticides (India) Limited

E: [email protected]

T: +91 11 27679700