Corporate Presentation November 2019
Safe Harbour Statement: Certain statements in this presentation concerning our future plans and strategies growth prospects, etc. are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations In earnings, our ability to manage growth, competitive intensity in our industry of operations including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, sufficient availability of raw materials, our ability to successfully complete and integrate potential acquisitions, liability for damages on our contracts to supply products, the success of the companies in which TWL has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. TWL may, from time to time, make additional written and oral forward-looking statements, including those in our reports to shareholders. The Company does not undertake to update any forward looking statement that may be made from time to time by or on behalf of the company 2
Contents 2 4 6 1 3 5 Growth Industry Trends Industry Strategy / Outlook Overview Company Industry Overview: Overview Sustained Growth Financial Overview Momentum 3
Company Overview
TWL – Niche Player in the Installed Manufacturing Yrs. In the capacity of Shrimp Feed Industry high growth Aquaculture Industry in Revenue Revenues CAGR FY14-19 In FY19 India Estimated size of Domestic Debt – Equity Shrimp feed Industry As of Mar 31, 2019 No. of #Dealers Employees Pan India Presence 5
Key Strengths • Robust manufacturing processes and step by step quality • Several popular brands which are favoured by shrimp control system farmers • Global best practices implemented • Enjoys high recall and is seen to be synonymous with quality and value Strong Quality Brands Control • Working with renowned companies and • 25 years of expertise in the business- research institutions in India and abroad for strong connect with suppliers and the benefit of industry 25 years of farmers Rich Legacy in-house • R&D initiatives have been meaningfully • Backed by the KCT Group – has converted into new products R&D inculcated ethical business practices • Have driven improvements in feed with long-term vision in mind manufacturing, farm practices, waste management, shrimp processing ` Technical Financial Expertise Position • TWL enjoys unparalleled technical expertise in the industry as the Pioneer • Comfortable debt levels with a debt equity ratio of 0.2x (Mar 2019) • Staffed by well-qualified personnel with rich industry experience • Demonstrated financial discipline through good and bad • Products, processes, practices are viewed as gold standard by industry 6 years for industry
Best local R&D Setup in the Industry Large repository of Track record data: of introducing nutrition, innovative diseases, soil shrimp feeds and marine conditions Proven competence in research 25 years of in-house and unparalleled technical Research & Development expertise in the industry (R&D) activities Continuous interaction with Farmer training and testing international experts on Shrimp of R&D initiatives under live feed nutrition, water quality Works closely conditions management and development of with reputed specialized feed ingredients institutes in the area of Aqua Feed Nutrition Research 7
Strategic Alliance with CIBA Indian Council of Agricultural Research (ICAR), New Delhi under the Ministry of Agriculture, Government of India established the Central Institute of Brackish water Aquaculture (CIBA) CIBA, serves as the nodal agency for the development of brackish water aquaculture in the country As part of the MoU, CIBA will collaborate for the testing growth performance and refinement of eco- friendly shrimp feed with Waterbase MoU will involve exchange of information on feed formulations and testing of identified feed ingredients, trial feeds and any other market feed for macro and micro nutritional parameters at CIBA‘s Quality Testing Laboratory Both CIBA and Waterbase will identify competent technical personnel namely Scientists / Technicians, Chemists, etc. for implementation of the programme. Waterbase will also be able to use CIBA‘s technology in its own facilities 8
Awards & Accolades SME – Empowering India Awards 2019 – Wins the award under the ‗Food, Agro & Horticulture Products (Mid – Corporate)‘ category at the SME – Emerging India Awards 2019 – ―SME - Empowering India Awards 2019 ‖ seeks to recognize the contribution of such SMEs who through their achievements and growth have empowered the nation – Hon‘ble Union Minster of Steel, Govt. of India. Shri Chaudhary Birender Singh presented the award to Mr. Ramakanth V Akula, CEO, The Waterbase Limited 9
Awards & Accolades ‗ Asia‘s Most Valuable Business Brand Award 2018 ‘ Asia‘s Most Valuable Business Brands is a concept developed by ibrands 360 in collaboration with WCRCINT (World Consulting and Research Corporation International) Awards are based on broad parameters of brand value proposition, brand persona, prestige, brand reinvention, social conscience, marketing connect and ‗Cult Premium‘ 2016 India Shrimp Feed Industry New Product Innovation Leadership Award ‖ Frost & Sullivan‘s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in new, innovative products or product lines within their industry 10
Locations Key markets served Delhi Andhra Tamil Nadu Pradesh Kolkata Nellore Corporate Office Chennai West Bengal Gujarat Odisha Factory Existing New 11 Group Offices
Shareholding Pattern Promoters Indian Public As on 30th September 2019 67.1% 27.3% 1.4% 1.0% 3.3% 0.02% 27.3% Corporate Others Bodies 67.1% 1.4% 3.3% NRI Institutions 1% 0.02% 12
Growth Strategy
Growth Strategy Vertical & Horizontal Integration to enhance business stability Leverage Increased Enhance visibility Capacities • Launched farm care & Market share in New products under the brand territories name ‗ Baylife ‘ Elevate • Launched packaged shrimp presence in core • New plant set up and crab meat in Retail • Increasing the farmer markets in 2015 resulted market under the brand base in capacity name ‗Prize Catch‘ • Adding new dealers & growth of 3x to • Commissioned Phase I of • Premiumisation of distributors 110000 MTPA Vannamei Hatchery to offering • Customer connect produce good quality • Deepening of through workshops, seeds for shrimp farming • Focused on distribution training camps & higher utilisation network farmer meets through • Addressing all • Leveraging after sales increased sales sizes of orders service volumes 14
Driving Premiumisation in the Feed Business Branding & After Sales Packaging service Enhancing Farming R&D inputs & Feed techniques for disease performance management 15
Vertical & Horizontal Integration Finished Product Hatchery Farming Processing (Shrimp) Segment KEY INPUTS • Shrimp Feed • Farm Care Products New Growth Areas Shrimp farming-Current 500 150,000 Ha 500 Processing Plants for Frozen shrimp exports in status (No. of hatcheries in India) Under Farming shrimp FY18 - 5,65,980 MT 1 2019 Industry Requirement Requires 10,00,000 MT 1,000,000 MT Frozen shrimp exports 80 Billion of Post Larvae (PL) / Potential of Shrimp Feed (Current Capacity) expected to grow further 1 Hatchery TWL Capacity 1,10,000 MT 4,000 MT# NA / 500 Mn PL # This capacity is currently being utilised for third party processing and exports 16
Diversifying Revenue Streams Farm Feed Care Diversifying Revenue Streams Exports Hatchery 17
Feed and Farm care range of products Shrimp Feed Farm care range 18
New Initiatives – Farm Care Products NutriSorb VC-9 Absorbs Ammonia Farm Probiotic for Vibrio control NutriPond NutriGut Promotes growth of Protects Gut good bacteria NutriFeast Builds Immunity Launched in FY17; received positive response from the customers Will expand extensively to all touch points in FY19 19
New Initiatives – Processed Seafood in the Domestic Market Phase - II Plan to scale up Phase - I Aiming for launch to other major cities in India differentiated offering Launched line of Plan to add other with a focus on frozen seafood under products to widen quality and freshness the brand ‗Prize product range Catch‘ – Initially will focus on Initially launched – institutional (HoReCa*) Raw Shrimps and sales Pasteurised Crab meat Soft - launch in – Chennai, Bangalore & Goa 20 * HORECA – Hotel, Restaurant & Caterers
Industry Overview 1 – Global Market
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