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1Copyright © 2013 Mahindra Agri Business. All rights reserved.

AGRI BUSINESS

Mahindra Agri Business


AGRI BUSINESSContents

Micro Irrigation

Need for Micro Irrigation

Industry size & opportunity

EPC Industriè ltd.

EPC Product & Service Portfolio

Financial Performance F-14

Financial Performance for QII & YTD Sept 2014

Future Plans

The Mahindra Group


3

Micro Irrigation Industry

4

Need for Micro Irrigation

India a water stressed economy ; will be water scarce by

2050

70% of the water available used for agriculture

Need for water efficient methods of irrigation

Benefits of Micro Irrigation:

– Water saving: 30% - 40%;

– Labour saving: 30% - 50%;

– Power saving: 20% - 40%;

– Fertilizer & Nutrition saving: 30%

– Productivity improvement: 10% - 30%.

5

Industry Size & Opportunity

Strong potential for growth

– Almost 60% of cultivable land is still Rain fed in India.

– 70 million Hectare Irrigated; Only 6 Million is under MIS

10,789

6,3915,658

3,378 3,2782,714

2,3901,850

1,442 1,2321,117

0.2% 2.2%13%

0.7% 9%26% 22%

0%28% 12%

51%

0

2,000

4,000

6,000

8,000

10,000

12,000

Uttar

Pradesh

MP Rajasthan Punjab Gujarat Maharashtra Haryana Bihar Karnataka West Bengal Andhra

Pradesh

Are

a (x

10

00

Ha)

Potential

Penetration

Source: Raman 2010

6


The industry growing at 15% CAGR

Strong Customer Pull

0

1000

2000

3000

4000

5000

F '09 F '10 F '11 F '12 F '13 F '14 Revenue in Rs. Cr.

63

14

11

6

4

0 10 20 30 40 50 60 70

Higher Productivity

Long Term Cost Reduction

Access to Credit

Reduced Labour Dependency

Subsidy

Reasons for Micro Irrigation Purchase

Source: AlphaWise

7


Industry becoming more structured & streamlined

– Gujarat & AP Project markets; use Tripartite agreements

– Use of IT to streamline ‘application to subsidy disbursal’

cycle

Bank support

– Banks Financing MIS systems aggressively.

– SBI, DENA, ICICI & IDBI initiators

– Loan availability has increased business potential

8

EPC Industriè ltd.

Pioneered Micro-Irrigation Systems (MIS) in India in 1986

Registered in 15 states under subsidy program in India

More than 600 channel partners; 11 regional offices.

M & M Ltd. holds majority stake & Management Control

Revenue

87.7

127.17

164.17 177.29

0

50

100

150

200

F '11 F '12 F '13 F '14 Revenue in

Rs. Cr.

9

Open Markets

Project Markets*

Newly Opened

Markets

Strong All India Network

10

Product & Service Portfolio

11

Strong Presence in Various segments

Drip irrigation System: Targeted, intelligent application of

water, fertilizer, and chemicals directly to the plant roots

Sprinkler Irrigation System: Suitable for modern farming

as they offer quality, high yield and cost efficiency

12

Product Portfolio

Superior Product Quality

Good Brand Equity in Indian market.

All the products comply to Indian Standards.

13

Product Portfolio: Drip Irrigation

Online Drippers

Inline Drippers

– Round Inline drippers

– Flat Inline drippers

Irrigation laterals

14


Drip Fittings

Drip Filters

Filters

15


Fertigation Equipment

16

Product Portfolio: Sprinkler Irrigation

Sprinkler Irrigation pipes

Pipe fittings

Sprinkler Nozzles

17

Field Services

Survey: Surveys of individual farms to collect data on

crops to be irrigated, its water & fertilizer requirements and

agronomical practices to be followed

Design: Complete designing of drip / sprinkler Irrigation

layouts for individual farms as well as for large plantation

projects

Installation & Commissioning: Installation &

commissioning of micro-irrigation (drip & sprinkler)

systems by trained and experienced team

18

Field Services

Agronomy service

Demo Plots to explain & establish best practices

Soil and water testing

Crop Suitability recommendation

Fertigation & Irrigation schedules as per crop need

Farmer & Dealer training for

– Operation & maintenance of irrigation systems

– Fertigation

– Suitable chemical treatments

19

Field Services

Agronomy training Demo Plots

20

Sales & Marketing

21

Farmers Training Program Van Campaign

Rural Exhibition Participation Demo Plot

Sales & Marketing


AGRI BUSINESS

Financial Performance F-14

23

Performance at Glance F-14Figures in Rs. Cr.

Revenue

EBIDTA

Capital Employed

PAT

164.2

177.3

100.0

130.0

160.0

190.0

F-13 F-14

10.4

12.9

-

4.0

8.0

12.0

16.0

F-13 F-14

5.3

7.7

-

2.0

4.0

6.0

8.0

F-13 F-14

119.3

129.4

100.0

110.0

120.0

130.0

F-13 F-14


AGRI BUSINESS

Financial Performance for

Q-II & YTD Sep 2014

25

123.4

113.2

Q-II F-14 Q-II F-15

1.3

-2.5

Q-II F-14 Q-II F-15

41.4

33.0

Q-II F-14 Q-II F-15

Performance at Glance Q-II

Revenue

EBIDTA

Capital Employed

PAT

0.7

-2.4

Q-II F-14 Q-II F-15

Figures in Rs. Cr.

26

Performance at Glance YTD Sep F-15Figures in Cr.

Revenue

EBIDTA

Capital Employed

PAT

86.8 84.6

F-14 F-15

6.5

2.8

F-14 F-15

4.3

0.4

F-14 F-15

123.4

113.2

F-14 F-15

27

Q2 Industry Environment

Due to change from NMMI to NMSA there has been some

confusion at the state level

Few states have not announced their policy, as a result,

business has virtually come to a standstill in these states

As per industry estimates, H1 industry has dropped by 15

to 20% over last year

It is expected that in H2, the policies will be announced for

all the states and there will be a higher priority at the Sate

level to utilize the subsidy

28

Future Plans

29

Customer Centricity: Enabling increased

customer reach

Agri Helpline

30

New Allied Businesses

Greenhouse Pumps

31

Reducing Subsidy Dependence

Large Community Projects Landscaping

Exports

32

The Mahindra Group

33

The Mahindra Group

Founded in 1945 as a steel trading

company

Diversified into manufacturing Willy’s

jeeps

India’s 7th Largest Group - From

Automotive to Defense to Construction

to IT to Agriculture

Recognised as a global leader in Utility

Vehicles and Tractors

More than 120,000 people across 110

subsidiaries, 6 JVs and 11 Associates,

in more than 100 countries

K.C. MahindraJ.C. Mahindra

34

Mahindra Rise: House of Mahindra

Accepting No

LimitsAlternative

Thinking

Driving

Positive

Change

“We will challenge conventional thinking and innovatively use all our resources to

drive positive change in the lives of our stakeholders and communities across the

world, to enable them to Rise.”

CORE PURPOSE

CORE VALUES : Good Corporate Citizenship | Professionalism | Customer First | Quality Focus |

Dignity of the Individual

35


36

BHAG: Big Hairy Audacious Goal

37

Agri Business Performance: Revenue

0

100

200

300

400

500

F '11 F '12 F '13 F '14

In Rs. Cr

38

Disclaimer

EPC Industrié Limited. (A Mahindra Group Company), herein referred to as EPC provide a wide array of presentations and reports, with thecontributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do notconstitute an offer to buy or sell any securities mentioned therein. They do not purport to be a complete description of the markets conditionsor developments referred to in the material. While utmost care has been taken in preparing the above, we claim no responsibility for theiraccuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use theinformation contained herein at their own risk. These presentations and reports should not be reproduced, re-circulated, published in anymedia, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of EPC. Any unauthorized use,disclosure or public dissemination of information contained herein is prohibited. Unless specifically noted, EPC is not responsible for the contentof these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, so viewers andothers utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may notrepackage or sell the presentation. Products and names mentioned in materials or presentations are the property of their respective ownersand the mention of them does not constitute an endorsement by EPC. Information contained in a presentation hosted or promoted by EPC isprovided “as is” without warranty of any kind, either expressed or implied, including any warranty of merchantability or fitness for a particularpurpose. EPC assume no liability or responsibility for the contents of a presentation or the opinions expressed by the presenters. Allexpressions of opinion are subject to change without notice.

Copyright © 2012 Mahindra Agri Business. All rights reserved.

Thank you“Investors don't invest in businesses, they invest in People."

39

AGRI BUSINESS

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