Insecticides (India) Limited CORPORATE PRESENTATION August 2012
INDIAN AGROCHEMICAL INDUSTRY OVERVIEW
Industry overview The size of Indian agrochemicals market is expected to be around Rs 15,000 crores by 2015 Structural enablers to catalyse strong growth Arable land stagnation Rise in MSP trajectory going forward 135 3,500 3,200 3,000 Current under penetration of agrochemicals ► 130 Rs / quintal 2,800 in India with pesticide consumption 2,300 m hectares 125 2,000 2,100 amongst the lowest globally 120 1,285 ► Rising pressure to increase food 1,400 1,080 1,100 1,120 115 productivity given land shortage and rise in 700 1,110 1,030 980 110 880 population - 105 Rising prices of crops on the back of ► FY09 FY10 FY11 FY12E FY80 FY83 FY86 FY89 FY92 FY95 FY98 FY01 FY04 FY07 FY10 Paddy Grade A Wheat Arhar Minimum Support Prices (MSP) Low pesticide consumption ► Use of costlier hybrid seeds Increased institutional credit flow 17.0 Increasing awareness of farmers 18.0 4,500 ► 4,000 15.0 Labour shortage for agricultural activities ► 3,500 12.0 on the back of NREGA 12.0 3,000 Kg / hectare RS bn 2,500 Continued financial support from ► 9.0 7.0 6.6 2,000 Government through subsidies and greater 6.0 1,500 flow of institutional credit 2.5 1,000 3.0 500 0.4 - - Japan Korea USA EU India Taiwan FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Source Department of Agriculture, research reports
COMPANY OVERVIEW
IIL’s goal Value For Money Help farmers to reduce input cost and better their yields Help to bring new generation products in reach of all farmers - big, small and marginal Help increase awareness and lead advancement in agricultural practices
Company overview ► Incorporated in 1996 and listed in 2007 Outperforming the index 800 624 700 Large and diversified product portfolio providing ► 600 500 complete solution for crop protection 400 300 119 Over 160 products, over 100 branded ► 200 100 formulations and over 750 SKUs 0 Jan-10 May-10 Jan-11 May-11 Jan-12 May-12 Jul-09 Sep-09 Nov-09 Mar-10 Jul-10 Sep-10 Nov-10 Mar-11 Jul-11 Sep-11 Nov-11 Mar-12 Jul-12 IIL Sensex Track record of new product launches ► Notes Figures have been rebased to 100 Judicious mix of in-house development, brand ► Large portfolio across multiple segments acquisitions, technical collaboration and marketing arrangements with global players PGRs 1 18 19 Fungicides 8 20 28 Wide sales and distribution network across India ► Herbicides 11 25 36 Over 230 sales representatives, over 3,000 ► distributors, c.50,000 retailers and 26 depots/ Insecticides 23 65 88 branches 0 20 40 60 80 100 Institutional Branded formulations An ISO 9001:2000, ISO 14001 and OHSAS 18001 ► certified company
Company overview (cont.) Udhampur, J&K ► State-of-the-art manufacturing facilities at Chopanki, Formulations Udhampur, Samba and Dahej Established manufacturing infrastructure for ► Sambha, J&K both technicals and formulations Formulations Recently commissioned new units with sufficient ► Chopanki, Rajasthan capacity to enable sustained long term growth Formulations and Technicals R&D centre New technicals manufacturing facility and R&D ► facility under construction ► Strong R&D capabilities Dahej, Gujarat R&D center recognized by DSIR and Ministry of ► Formulations Technicals to be commissioned Science & Technology Accredited with NABL ► Successfully registered 27 technicals of which 15 ► technicals have been commercialized Currently in advanced stages of registration of ► about 20 technical grade pesticides
Milestones 2012: Launched Nuvan, Hakama and Pulsor in collaboration with AMVAC and Nissan 2011: Bagged NABL accreditation; acquired Monocil, a popular brand ; commissioned manufacturing units at Dahej and Udhampur (J&K) 2010: Began construction for multi product technical plant with 10,000 TPA capacity at Dahej (Gujarat) 2009: Construction of new manufacturing facilities at Udhampur (J&K) 2008: New R&D unit (at Chopanki) bagged ISO 18001:1999 certification 2007: Successfully concluded IPO; Commissioned Technical plant at Chopanki 2006: Acquired exclusive rights to sell “Thimet “ brand in India from American Vanguard Corp, USA; Received ISO 14001-2004 certification 2005: Received ISO 9001-2000 certification, R & D Lab set up at Chopanki 2004: Commissioning of another plant at Samba (J&K) 2003: Acquired all brands of Montari Industries 2002: Commissioning of plant at Chopanki (Rajasthan) for manufacturing wide range of innovative end-to-end agrochemicals solutions
Management team H. C. Aggarwal (Chairman) Rajesh Aggarwal (MD) P.C. Pabbi Sandeep Aggarwal Vice President CFO Information Production Purchase Marketing R&D Admin & HR Finance Technology Sanjeev Aggarwal Pankaj Gupta B.P.S. Rana Abhai Shanker Sanjay Vats Venkat Rao GM CS DGM GM GM GM H.C. Sharma Dr. Mukesh M.K. Singhal DGM DGM GM Sanjay Vats GM Ashok Bangde V.K. Garg GM GM R. S. Verma Sr. Manager K.V. Patel V.K. Singhal Unit Head GM O.P. Karnani Unit Head S.K. Choudhary Project Manager Anand Banka Project Head
BUSINESS OVERVIEW Product and Brand Portfolio Management
Strong brand portfolio IIL’s portfolio consists of several market leading brands ► Thimet, Monocil, Lethal, Victor, Indan, Sharp, Arrow, Hijack, ► Care, Bravo and Avone are some of IIL’s key brands ► New products launched in current year include Nuvan, Pulsor and Hakama Sales of top 4 brands – Thimet, Lethal, Monocil and Victor - ► constitutes about Rs 144 crores (26% of FY12 turnover) Umbrella strategy applied for new product launches via brand ► extensions such as Lethal Super, Victor Plus, Victor Super etc. Established the “Tractor Brand” of insecticides for easy recognition of ► all IIL products “Tractor B rand” has high brand equity amongst farmers and is ► leveraged during all new product launches Continued focus on branding activities, promotion through brand ► ambassador and other marketing initiatives
Pan-India presence 26 depots across 24 locations Over 230 sales personnel and over 3,100 distributors J&K D: 18 Punjab S: 36 Uttarakhand Ludhiana D: 336 Bhatinda Haryana S: 3 Sriganganagar Karnal S: 15 D: 47 Hissar Gadarpur Ghaziabad D: 189 Rajasthan Siliguri Guwahati Jaipur U.P. Assam S: 8 Bihar Hazipur S: 21 S: 4 D: 155 Rewari S: 10 D: 203 D: 29 D: 44 Gujarat Jharkhand Ahmedabad Ranchi MP S: 6 Howrah S: 2 Indore S: 10 D: 172 D: 18 Raipur D: 180 Chhattisgarh Nagpur S: 5 Bhubneshwar Orissa D: 56 Maharashtra S: 5 S: 14 Pune D: 39 D: 94 Hyderabad AP Sindhanur S: 52 D: 992 Karnataka S: 14 Bangalore D: 344 Total Sales personnel (S) : 237 Coimbatore Tamil Nadu Total Distributors (D) : 3,107 S: 14 D: 187
“Re - launch” expertise IIL has a proven record of acquisitions of ‘high recall, but off - shelf’ brands and their successful re-launch into leading brands ► Lethal, acquired from Montari in 2002 is a shining example One of the most successful Brands of IIL with several brand extensions ► introduced Sales contribution of all Lethal variants in FY12 was Rs 37 crores (around 7% of ► turnover) Monocil, acquired from Nocil in 2011, is a more recent example ► One of the leading agrochemical products in India and highly accepted among ► the farming community Sales contribution in FY12 was Rs 33 crores (around 6% of turnover) ►
Proven partnership experience IIL has successfully partnered with several global players to market leading brands in India American Vanguard Corp (AMVAC) ► Thimet – Technical collaboration initiated in 2006 ► Nuvan – Technical collaboration started in 2012 ► Nissan Chemicals ► Hakama – New marketing collaboration started in 2012 ► Pulsar - New marketing collaboration started in 2012 ► Partnership arrangements with other companies such as BASF, ► UPL, Syngenta and Makhtesham Agan
Increasing institutional presence IIL is increasing its presence in the institutional segment via sales of bulk formulations and technicals ► IIL’s current portfolio includes several technicals Thiamethoxam, Thiophanate Methyl, Glyphosate, Metsulfuron Methyl, ► Butachlor, Acetamaprid, Lamda Cyhalothrin, DDVP and Bifenthrin are amongst the key technicals ► The new multi-purpose technicals manufacturing facility coming up at Dahej shall help in broadening the portfolio IIL’s recent investment and initiatives towards achieving greater backward ► integration is expected to be one of its major growth drivers going forward
BUSINESS OVERVIEW Manufacturing and R&D Excellence
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