Investor Presentation December 2018 aries agro limited
Executive Summary Business Mix Manufacturing & FY18 Financial Snapshot* Company Overview (Revenue Share %) (INR Mn) Distribution Networks • Primary Nutrients (13%) • 4 Manufacturing Units in India with Incorporated in the year 1969 Aries Agro Limited (Aries) is a leading a capacity of 95,400 Metric Tonnes Total Income 2,645 • Secondary Nutrients (17%) manufacturer of speciality plant and per annum. animal nutrient solutions. Aries has a • Micronutrients (61%) • Registered Distributors & Dealers diverse and complete portfolio of all EBITDA 487 nutrients required for plant nutrition, network of about 6,800+. • Other Nutrients (8.3%) plant protection, animal and fisheries • More than 86,000 Dealer counters nutrition. Aries is respected for the EBITDA Margins (%) 18% • Animal and Fisheries Nutrition high quality of its products, both serviced. Agricultural and Veterinary, and (0.4%) • 1,99,000 villages covered across enjoys tremendous amount of PAT 142 goodwill with dealers and India (assuming 2 to 3 villages / consumers. Aries has a vision to dealer). transform itself from India's Plant PAT Margins (%) Nutrition Super Bazaar to one of 5% India’s largest Agro-input companies . * Standalone
The Transformation Around the 2000s India witnessed a major change in Household incomes increased the cropping pattern The nutrition awareness increased. The food plates changed People started eating healthy Farmers started growing more fruits and vegetables Technological Innovation Government Initiatives Production of Horticulture V/s Food Grain 283 259 Grow more Growth of Hybrid Set up of the National Introduction of drip 213 horticulture crops per seeds, GMP seeds 209 257 257 Horticulture Mission irrigation and oil seeds hectare of land 183 146 Need for an integrated plant nutrition and plant protection 2001-02 2005-06 2011-12 2014-15 Foodgrains (Mn Tonnes) Horticulture (Mn Tonnes) Source: Ministry of Statistic and Programme Implementation Website (MOSPI)
The Nutrient Value Chain • Plants take up essential elements from the soil through their roots and from the air through their leaves. • They require 16 nutrients to boost growth and metabolism and to complete normal life cycle. • It gets oxygen , hydrogen and carbon from atmosphere. Nutrients are required throughout the growth cycle Germination and Establishment Vegetative Growth Flowering and Reproduction Maturity and Senescence Fe, Zn, Mn Fe, Zn, Mn, Cu, B Fe, B Cu, Mo, B
The Opportunity Global Market Share • The Indian Agro – inputs industry (10% of the global agro inputs industry) of 2016 2014 USD 16 Bn has seen a CAGR of 10 – 12% over the last 10 years. Others Others 17% • The crop protection segment grew the fastest with a CAGR of 15 – 17%, followed by fertilizers at UPL 23% 7 – 8%. 3% UPL 4% • India has the largest arable landholdings in the world at 154 – 156 Mn hectare and employs the Top 6 Top 6 largest agricultural workforce of about 240 Mn. With 35-40% of the total farmland under crop 73% 80% protection, there is a significant unserved market to tap into. • India loses 35 – 40% agro produce due to erratic monsoons, pests and inadequate nutrition. Product Wise Mix • Failing global agro-chem oligopoly is a strong opportunity for India Seeds & Plant Enhancements 5% • The Make in India initiative is encouraging the production of plant nutrient and fertilizer within the country. Crop Protection • GOI has initiated ‘awareness creation’ campaigns and education platforms for Indian Farmers, Products which have yielded value over the past 4 – 5 years, have created more inroads into the untapped 32% Fertilizers markets & accelerated the adoption of agrochemicals to protect harvest loss. 63% Source: Ministry of Statistic and Programme Implementation Website (MOSPI); Phillip Capital Institutional Research.
Aries Agro Limited
Company Overview Revenue From Operations* (INR Mn) • Aries Agro is India’s largest and the most respected manufacturer of speciality plant nutrition solutions 2,686 • Since 1969 Aries has provided Indian agriculturists with several innovative concepts for farming. 2,312 2,142 • Pioneering innovations include: 1,460 • Chelation Technology • Biodegradable Complexes of Plant nutrients • Water soluble NPK fertilizers • Value Added Secondary Nutrients FY16 FY17 FY18 H1-FY19 • Natural and Biological Products Segment Revenue* • Water Treatment Formulations Others 8.3% • They provide all the 13 plant nutrients required in agriculture, customized for the specific needs of Primary 107 different crops. 13.0% • They have 85 brands which are successfully tested at over 100 research institutions in India and abroad Micronutrients • Currently their products are trusted and used by over 8 Mn farmers across 1,99,000 Indian 61.2% Secondary 17.1% villages and 6 other regions in the Middle East and the SAARC Regions Animal Feed 0.4% * Standalone
Milestones 1994 2008 Converted into a public 2018 IPO and listing Winner limited company as 2006 of the most promising 1969 Clocked INR 3,000 Mn revenue Aries Agro – Vet and best performing milestone Industries Ltd. Name changed to Company was SME in the FMCG Food Aries Agro Limited incorporated and Agri Business Economic Times Champions of category Rural Markets winner Started with Mineral Feed Additives for animals and birds 2001 Expanded product 2007 line to include water soluble N-P- Expanded the 1975 2010 product line entire Ks & Secondary range of products for Recipient of the nutrients Ventured into “Trailblazers Brand plant nutrition and plant nutrition Innovator Award protection 2010” Launch of their ISO certificate flagship product Agromin
Board Of Directors And Key Management Personnel Dr. Jimmy Mirchandani Dr. Rahul Mirchandani • 23 years of experience as Director. • Bachelor of Veterinary Science & Animal • Holds a Doctorate in Management Studies from Husbandry from Konkan Krishi Vidyapeeth-Agri NMIMS University, Mumbai and is also a University. • With Aries for almost 26 years, more particularly Chartered Financial Analyst (CFA) and holds an MBA from the University of Canberra, Australia. involved with the development of new products. Chairman and • Ranked amongst the 30 Most Innovative CEOs in Director Managing Director India in 2014 and has pioneered several unique marketing processes and brand management tactics at Aries. Prof. R. S. S. Mani Mr. Chakradhar Bharat Chhaya • • More than 45 years of experience in the field of banking and HRD & Management Strategy expert, associated in value added interventions to many reputed Companies in the domains of HRM, finance. • Institution Building, T&D, OB, OD, and such. Completed his Bachelor of Commerce from University of Bombay • Associated in training & consultancy activities with a large number in the year 1963 and is a Fellow of Institute of Cost and Works of corporates such as Wockhardt, L&T, M&M, TATA Group, RIL, Accountants of India. Also a CAIIB (Certified Associate of Indian Independent Thomas Cook, Aditya Birla Group amongst many others in their Institute of Bankers. Independent Director strategic HRM projects. Director Mr. Bhumitra V. Dholakia Mrs. Nitya Mirchandani • • Bachelor of Arts in Psychology from Swami Vivekananda Bachelors degree in Arts (Economics) and Laws obtained from College of Commerce, Arts & Science, Mumbai and holds a Gujarat University and is a Certified Associate of Indian Institute of Diploma in Human Resource Management from Narsee Bankers. • Monjee Institute of Management Studies, Mumbai. More than 32 years of experience as a company secretary and has been in whole time practice for 28 years. Independent Director Director
Geographical Presence Manufacturing & Distribution Network Distribution Network Total Capacity (MTPA) Registered Distributors & Dealers Manufacturing Units 4 6,800+ Jammu & Kashmir Jalandhar Rudrapur Hissar Sri Ganganagar Dealer Counters Ghaziabad Manufacturing Capacity Jodhpur Lucknow 86,000+ Patna Jaipur 95,400 MT Indore Sanand Ranchi Kolkata Ahmedabad Serving States Nagpur Bhubaneshwar Raipur Nashik 20 Solapur Mumbai Hyderabad Vijaywada Nipani Bellary Serving Villages Head Office and Factory Bangalore 1,99,000 Branches and Factories Coimbatore Branches
Recommend
More recommend
