Dhanuka Agritech Limited Dhanuka Agritech Limited Unaudited Financial Results for the Quarter ended 30 th June, 2014 30th July, 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, Shri Amitabh Bachchan is Brand Ambassador of Dhanuka 2
New Product Registrations: 9(3) SAKURA (Weedicide) approved CIB Registration in May, 2014. MORTAR (Insecticide) received CIB MORTAR (Insecticide) received CIB Registration on 10th June, 2014 will be launched on 8 th August, 2014. . 3
Product Launches: 9(4) “Pager” launched in July, 2014 “Jackal” expected to be launched in September, 2014 4
Wide Range of Products Portfolio of over 80 brands, two third sales from ‘Specialty molecules’ 5
Key Product Portfolio • Media, Dunet, Cald • Targa an, Omite, Aaatank, Super, Barrier, Craze, Q Adfyre, Brigade, Bo urin, Noweed, Weedmar mbard, Dhanpreet, Super, Ozone, Hook Dhawa WG, Nabood, D-Era… Gold, Markar… Insecticides Herbicides Plant Fungicides Growth Nutrients • Lustre, Sixer, Vitava x Power, Kasu-B, Hi- Dice, Cursor, Dhante • Dhanuvit, Wetcit, Dhanz am, Hexadhan yme Gold, Dhanzyme Plus, Sheathmar, Vit Granules… avax Ultra… 6
Strategic Partnerships Nissan Chemical Mitsui Chemicals Inc. Sumitomo Chemical Hokko Chemical Japan Japan Japan Japan Chemtura Agro Solutions FMC Corporation DUPONT 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 Chairman; started pesticides Director (Marketing); Masters in business more than 40 years ago; Business Administration from S.P. a philanthropist; a man of vision Jain, Mumbai; oversees the entire with utmost sincerity and devotion; marketing function of the mentors and provides strategic Company; leads the large leadership; also served for two marketing team from the fore-front terms as Chairman of “Crop Care & maintains cordial relations with Federation of India”. International collaborators. Managing Director; co-founded Director; Masters in Business the Company; has 40 years of the Company; has 40 years of Administration Administration (Operations) (Operations) from from experience; re-elected as NITIE, Mumbai; oversees the President of HPMA (Haryana manufacturing and supply chain Pesticide Manufacturers functions across the Company’s Association) consecutively for the three production facilities; spear- 4 th year; oversees the overall heads expansion projects; brought operations of the Company technological and managerial excellence in the 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, Chartered experience in new product introductions and Accountant, experience of over 20 strategic partnerships, liaisons with the agricultural universities years with Dhanuka, controls entire financial 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. did his MMSc– (Production), B.Tech, experience of Marketing from Pune University. He has a 37 years, played a key role in rich experience of nearly two decades of rich experience of nearly two decades of expansion expansion and and automation automation of of cross cultural experience in managing production capacities at all the Profit 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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