Regd. Ofgice: Sai Hira, Survey No. 93, Thanking you, Conference on 5 th September, 2019 in Mumbai. A copy of the presentation is enclosed in this regard. NOTE: Dates are subject to changes. Changes may happen due to exigencies on the part of Analyst/ Institutional Investor/ Company. No Unpublished Price Sensitive Information (UPSI) will be shared with the analyst /investor during the aforesaid meet. We request you to take the same on your record. Yours faithfully, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) For Deepak Fertilisers A µ::::; Corporation Limited K. Subharaman Executive Vice President (Legal) & Company Secretary Encl: as above Regulations, 2015, this is to inform you that the Company is participating in Elara Investor Dear Sir/ Madam, Mundhwa, Pune • 411 036, India. The Secretary Tel: +91 (20) 6645 8000 Listing Department ../ DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED 4 September 2019 BSE Limited Disclosure Requirements) Regulations,2015. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, National Stock Exchange of India Ltd. "Exchange Plaza", Mumbai - 400 001 Bandra - Kurla Complex, Bandra (E) Mumbai - 400 051 Subject: Intimation under Regulation 30 of the SEBI (Listing Obligations & CIN: L24121MH1979PLC021360 I www.dfpcl.com
Products to Solutions Commodities to Brands INDUSTRIAL CHEMICALS AGM Presentation Deepak Fertilisers And August 2019 Petrochemicals Corporation Ltd. Corporate Presentation MINING CHEMICALS (BSE: 500645; NSE: DEEPAKFERT) ` September 2019 CROP NUTRITION 1 A Journey of 40 Years
Table of Contents 1. Business Overview 2. Chemicals Segment 3. Fertilisers Segment 4. Consolidated Financial Performance 5. Looking Forward… 6. Annexure 2
Business Overview 3
Deepak Fertilisers And Petrochemicals: An Overview Diversified Business Installed Capacity • Strong knowledge base and experience in: Technical Industrial o Mining Chemicals 1,352 485 Ammonium Chemicals o Industrial Chemicals KTPA KTPA Nitrate o Crop Nutrition • Diversified ammonia downstream player Crop 957 • Nutrition ~ 40 years industry experience KTPA Business Revenue from Operations: ~Rs. 6,742 Crore* Strategic Plant Locations • Plants in Western, Northern and Eastern Contribution to Total Revenues (%) India • Well-established sourcing channels • Port and gas pipeline infrastructure for 33.71% 21.72% 44.13% 0.44% import of raw materials TAN IC CNB VARE & Other *FY2019 financials 4
Catering to Diverse End User Segments Segments Highlights End Market • Only manufacturer of solid TAN in India • Technical Explosives • Preferred partner of mining, infrastructure and explosives companies Ammonium Nitrate • Mining Mining • Strategically located plants on East and West coasts of India and 20 • Chemicals Infrastructure warehouses across India for just in time delivery • Healthcare • Products: High density & Low density Ammonium Nitrate and AN-Melt • • Second largest manufacturer of Nitric Acid in S.E. Asia and largest Pharma manufacturer of Nitric Acid in India • Consumer Care • Only producer of the merchant Iso Propyl Alcohol (IPA) in India • Industrial Inks • Strategic trading to provide basket of solvents to Pharma sector Chemicals • Coatings • Dedicated storage tanks at major ports of the country • Chemical • Products: Varieties of Nitric Acid, IPA, Methanol, LCO2 & Traded Solvents derivatives • ‘ Mahadhan ’ strong brand present in Maharashtra, Karnataka and Gujarat • NPK Variants • Only manufacturer of NP prill 24:24:0 fertiliser in India • Differentiated • Largest manufacturer of Bentonite Sulphur in India NPK Crop • Market leaders in Speciality and Water Soluble Fertilisers in India • Water Soluble Nutrition • Strong market reach across India Fertlisers • • Products: NPK Variants, differentiated NPK, Water Soluble fertlisers and Bentonite Sulphur Bentonite Sulphur 5
Leading Market Position through Four Decades of Sustained Growth Continuous expansion through adoption of global technology and additions of production capacity Started IPA facility and expanded TAN (LDAN) and industrial chemicals (ANP, nitric acid) capacity 1990- 2010- 1979 1999 2019 2003 : Acquired plant - Srikakulam, Andhra Pradesh 2008 : Started operation of 1989 : IPO Creaticity (Ishanya Mall) Expanded ammonium nitrate, 1979 : Inception of company Commenced TAN facility and IPA and fertilisers (NPK and with ammonia manufacturing expanded industrial chemicals Bentonite Sulphur) capacity plant (ANP, methanol and nitric acid) capacity 2017 : Commissioned new 1980- 2000- fertilisers plant at Panipat, 1992 : Started fertilisers business Haryana 1989 under brand name “ Mahadhan ” 2009 2019 : Commenced operations of new nitric acid plant at Dahej, Gujarat 6
Strategic Geographic Footprint 7
Key Clientele Mining Chemicals Industrial Chemicals Black Diamond Explosives Rajasthan State Mines & Minerals 8
Chemicals Segment 9
TAN Market Demand in India Driven by Coal Sector Expected to Outstrip Supply AN Demand-Supply Scenario in India ▪ Mining and infrastructure sectors are key demand drivers for TAN consumption – Coal alone accounts for about 67% of current TAN Mineral Production (in Million MT) in India demand and is expected to contribute to ~60% of 1090 the overall TAN demand in future years ▪ Domestic demand for TAN expected to grow at a CAGR 795 2018 (A) 2031 (P) of ~ 5% pa over next ten years, to 1,775 KTPA by 2031 688 – Driven by increase in coal demand, from 688 Million 506 478 MT in FY18 to 1,100 Million MT by 2031 – Growth due to demand from existing as well as 210 upcoming captive/commercial coal mines, mainly in Eastern and Central India ▪ TAN demand-supply gap likely to exceed 225 KT by Coal Limestone Iron Ore 2019-20 ▪ No growth in supply expected as no new likely capacity addition from other players Source: IBEC Data, MoI&C and CIL Vision Document 10
TAN: Key Products, Applications & Customers Low Density High Density Medical Grade Ammonium Ammonium Ammonium Ammonium Nitrate Solution Nitrate Nitrate Nitrate Products Optimex & Optiform Optispan Optimex+ AN Melt Vertex Vertex Vertex Super Norma Supreme To Manufacture To Manufacture To Manufacture To Manufacture Application ANFO & ANFO Emulsions & Slurry N 2 O Emulsions & Slurry Blends Mining Industry & Explosives Pharma Industry Explosives Customers Explosives Manufactures Manufactures Manufacturers As Explosives or As RM for As RM for N 2 O gas As RM for End-Usage Energy Dopant Explosives Explosives 11
Nitric Acid: DFPCL Market Position and Demand Strong Demand and strong market position to sustain profitability DNA, CNA & SNA – Demand Outlook Strong Market Position – Limited competition from PSUs 80% 400 71% 370 70% 350 327 DFPCL GNFC RCF NFL Others Peer 1 Peer 3 Peer 2 60% 300 264 49% 50% 240 250 204 40% 200 178 31% 28% 28% 30% 150 23% 21% 17% 100 20% 74 71 11% 46 10% 8% 50 10% 3% 0 0% DNA CNA SNA C'NA DNA SNA 2012-13 2018-19 2021-22-f *FY2018-19 * Source: Annual reports & DFPCL Marketing Insights 12
Nitric Acid Capacity Expansion Expanded Footprints in Dahej, Gujarat • Commissioning of Commercial Operations : April 2019 • DFPCL’s Market Positioning : • Production Capacities : ~92 KTPA (CNA); ~148 KTPA (DNA) • Second largest manufacturer of Nitric Acid in South East Asia and largest manufacturer of Nitric Acid in • Key Highlights : India • Strategically located in vicinity of large consumers of CNA • Largest integrated NA plants with a combined capacity • Caters to the growing demand for CNA and DNA in the of ~1.07 Million KTPA at Taloja, Maharashtra and Gujarat region along with customers in North and East Dahej, Gujarat India • Nitric Acid market share expected increase to ~54% • The Company has already entered into agreements for from ~45% 70% of the capacity and the project is expected to operate at full capacity in the near term Note: Pictures of Nitric Acid complex at Dahej, Gujarat 13
Leading IPA Player Strong Market Share, restricted RM availability and customer stickiness to drive profitability • DFPCL is the only producer of the merchant IPA in India; with ~80% market share o Primary customer is pharma sector (~80%), expected to grow at 12-15% CAGR through FY 2020 o Pharma industry contributed 76% of the total consumption in 2017-18, a trend which is likely to continue through 2024-25 o Pharma sector customer stickiness due to supply of basket of solvent including IPA and different pharmacopoeia certification o Exclusive distribution rights for two major overseas producers • Restricted availability of Propylene - significant entry barrier for competition • Manufacturing of segment specific grades to cater to specific industries like electronic, cosmetic, pharma etc under evaluation • Unique offerings (IPA in drums), which no importer of IPA can offer Demand-supply , KTPA 300 255 202 197 Units, KTPA 200 170 97 98 75 100 72 72 67 60 36 17 10 6 0 2010-11 2018-19 2024-25-f Capacity Domestic production Imports Exports Domestic demand Source: Industry data Import dependency 14
Fertilisers Segment 15
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