Dhanuka Agritech Limited Dhanuka Agritech Limited Unaudited Financial Results for the Half-Year and Quarter ended 30 th September, 2014 6th November, 2014
Dhanuka Agritech: An Overview Dhanuka is the second largest Indian agrochemicals formulation Company in domestic brand sales Three manufacturing facilities located in NCR, J&K and Gujarat Strong product portfolio of over 80 brands with 100% domestic sales Strong product portfolio of over 80 brands with 100% domestic sales Second largest rural distribution networks in India with over 8,000 direct dealers, selling to over 75,000 retailers Products are used by over 10 million farmers across India The legend of Indian cinema, Mr.Amitabh Bachchan is Brand Ambassador of Dhanuka 2
New Product Registrations: 9(3) In-house developed product “MORTAR” (Insecticide) received CIB Registration on 10 th June, 2014. June, 2014. Same has been launched on 8 th August, 2014. 3
Product Launches: 9(4) “Pager” launched in July, 2014 “Jackal” expected to be launched in September, 2014 in September, 2014 “Oxykill” was launched in September, 2014 4
Wide Range of Products Portfolio of over 80 brands, two third sales from ‘Specialty molecules’ 5
Key Product Portfolio • Targa Super, Barrier Craze, • Media, Dunet, Caldan, Qurin, Noweed, Omite, Aaattank, Adfyre, Weedmar, Super, Ozone Bombard, Dhanpreet, Hook, Nabood, Markar, Areva, Apple, D- Era, Oxykill Mortar, Pager Insecticides Herbicides Plant Fungicides Growth Nutrients • Lustre, Sixer, Vitavax Power, KasuB, HiDiceCursor, • Dhanuvit, Wetcit, Dhanteam, Dhanzyme Gold, HexadhanPlus, Sheathmar, Vitavax • Dhanzyme Granules, Ultra, Protocol Maxyld 6
Strategic Partnerships Nissan Chemical Mitsui Chemicals Inc. Sumitomo Chemical Hokko Chemical Japan Japan Japan Japan FMC Corporation DUPONT ORO AGRI Chemtura Agro Solutions USA USA USA USA The Company enjoys long lasting relationships with its global partners. Most of the relationships have been active for more than a decade. 7
Marketing Network > 8000 4,000 Total Distributors FY 2014 FY 2008 600 450 Reach – Districts covered through Reach – Districts covered through distributors FY 2014 FY 2008 1,500 750 Dhanuka Doctors - Dissemination of information to farmers on “Dhanuka Kheti ki Nayee takneek” FY 2014 FY 2008 Products are used by over 10 million farmers across India 8
Key Growth Drivers (1/2) Minimum Support Prices India Crop Marketing Season (Price in INR/quintal) • Government Price guaranteed 2007- 2008- 2009- 2010- 2011- 2012- 2013- Manifold Commodity Increase % 08 09 10 11 12 13 14 minimum prices for (08-14) increase the majority of crops Paddy 645 850 950 1,000 1,080 1,250 1,310 103.10 in rural have increased by Red Gram 1,550 2,000 2,300 3,000 3,200 3,850 4,300 177.42 30-110% in the past Green Gram 1,700 2,520 2,760 3,170 3,500 4,400 4,500 164.71 income four years giving Black Gram 1,700 2,520 2,520 2,900 3,300 4,300 4,300 152.94 thrust to rural Groundnut 1,550 2,100 2,100 2,300 2,700 3,700 4,000 158.06 incomes Soyabean 1,050 1,390 1,390 1,440 1,690 2,560 143.81 Cotton 1,800 2,500 2,500 2,500 2,800 3,600 3,700 105.56 Wheat Wheat 750 750 1,000 1,000 1,080 1,080 1,100 1,100 1,120 1,120 1,285 1,285 1,350 1,350 80.00 80.00 Consumption of Agrochemicals (Kg / Hectare) 12 Low 10 8 level of • One of the lowest 6 consumptio consumption levels 4 n of plant- in the world, at ~0.5 2 protection kg per hectare 0 chemicals in India Source : Reply to unstarred question no.3732 by the Union Minister in Loksabha, 10 Sept, 2007 and the report of Joint Parliamentary Committee, 14-2- 2004 9
Key Growth Drivers (2/2) World World • Insects, fungus and Area Ranking Production Ranking weeds destroy crops Category (Mn Ha) In Area (Mn tons) In Production worth billions of Paddy 44 #1 91 #2 dollars annually Wheat 28 #1 74 #2 Prevention • Despite large area Maize 8 #4 14 #6 of large crop under cultivation of Gram 8 #1 6 #1 wastages paddy and Red Gram 4 #1 3 #1 wheat, we lag Soybean 8 #5 9.0 #5 behind in total Cotton 9 #1 21 #2 production Sugarcane 5 #2 323 #2 • Herbicides share in Break-up of agrochemical consumption (2009) India quite low at 70% 20%, versus ~ 48% 60% globally 50% • Rising farm labor 40% Disruptive prices are lifting 30% growth in herbicide demand; 20% herbicides replacing manual weeding 10% 0% • Dhanuka is a Insecticide Fungicides Herbicides Others beneficiary with India 62% 16% 20% 2% strong herbicides Global 23% 26% 48% 3% portfolio Source : Varshney, 2009 10
Management Team Mr.R.G.Agarwal, Chairman; started Mr.Rahul Dhanuka, Director pesticides business more than 40 (Marketing); Masters in Business years ago; a philanthropist; a man Administration from S.P. of vision with utmost sincerity and Jain, Mumbai; oversees the entire devotion; mentors and provides marketing function of the strategic leadership; also served Company; leads the large for two terms as Chairman of marketing team from the fore-front “Crop Care Federation of India”. & maintains cordial relations with International collaborators. Mr.M.K.Dhanuka, Managing Mr.Mridul Dhanuka, Director Director; Director; co-founded co-founded the the (Operations); (Operations); MBA MBA (Operations) (Operations) Company; has 40 years of from NITIE, Mumbai; oversees the experience; re-elected as manufacturing and supply chain President of HPMA (Haryana functions across the Company’s Pesticide Manufacturers three production facilities; spear- Association) consecutively for the heads expansion projects; brought 5 th year; oversees the overall technological and managerial operations of the Company excellence in Company’s operations. Mr.A.K.Dhanuka, Director (Works), looks after manufacturing operations at Gurgaon factory. He joined the Company after completing his graduation and has been looking after production since then. 11
Management Team (1/2) Dr. O.P. Singh; President (R&D), vast Mr.V.K.Bansal; President & CFO, experience of over 20 years with experience in new product introductions and Dhanuka, controls entire financial strategic partnerships, liaisons with the agricultural universities division and has been one of the key contributors in the success of Dhanuka Mr.Y.K.Goel; V.P Mr. C S Shukla, V.P., MMSc– Marketing (Production), B.Tech, experience of from Pune University. He has a rich 37 years, played a key role in experience of nearly two decades of cross experience of nearly two decades of cross expansion and automation of expansion and automation of cultural experience in managing Profit production capacities at all the Centre operations, Supply locations of the company Chain, International marketing and sales. Mr. Vijay Kumar; VP (Quality Mr. Rajesh Sahni; Vice President Control), M. Tech from IIT (Legal), experience of over 25 years with Delhi, oversees quality of products Dhanuka
Management Team (2/2) Mr. Harish Mehta, SGM, MBA, has a long Mr. Harsh Dhanuka, SGM experience of 25 years and heads (Marketing), did his Masters in marketing of Agro Chemicals at national Business Administration from Monash level . Graduate Business School, Monash University. He looks after marketing function. Dr. P. C. Rai; SGM (Marketing), manages marketing operations of North Zone & marketing operations of North Zone & Madhya Pradesh 13
Historical Financial Performance (in Crores Rs.) Particulars FY 10 FY 11 FY 12 FY 13 FY 14 Revenue 589.25 408.72 493.59 529.81 743.20 EBIDTA 58.88 78.52 80.04 88.84 125.34 PAT 64.45 36.34 51.11 57.13 93.14 Revenue Growth (%) 11.2% 21.1% 20.8% 7.3% 26.1% As % to Sales EBIDTA 14.4% 15.9% 15.1% 16.97% 15.1% PAT PAT 8.9% 8.9% 10.4% 10.4% 10.8% 10.8% 10.9% 10.9% 12.61% 12.61% Financial Position of the Company Net Worth 262.77 97.12 170.48 214.60 344.19 Debt 33.01 57.70 60.20 39.41 39.41 Cash & Investment 2.03 4.95 24.01 13.59 2.28 Financial Ratios Long term Debt- Equity 0.6 0.3 0.03 0 0 Ratio RoCE 27.6% 24.2% 32% 34.3% 30.2% RoNW 37.4% 30.0% 26.6% 24.5% 28.01 14
Historical Financial Performance PAT (Rs. in Crores) Net Sales (Rs. in Crores) 93.14 100.00 738.41 800 582.31 64.45 529.18 80.00 57.13 491.00 600 51.11 407.53 60.00 36.34 336.63 400 23.20 40.00 200 20.00 0.00 0 0 08-09 08-09 09-10 09-10 10-11 10-11 11-12 11-12 12-13 12-13 13-14 13-14 08-09 09-10 10-11 11-12 12-13 13-14 Net Worth (Rs. in Crores) EPS (in Rs.) 344.2 18.62 350 20.00 262.77 300 16.00 12.88 214.6 250 10.61 11.42 170.47 12.00 200 7.92 150 97.12 5.06 8.00 68.26 100 4.00 50 0 0.00 08-09 09-10 10-11 11-12 12-13 13-14 08-09 09-10 10-11 11-12 12-13 13-14 15
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