Insecticides (India) Ltd. Investor Presentation - JANUARY 2018 This - PowerPoint PPT Presentation

Insecticides (India) Ltd. Investor Presentation - JANUARY 2018

This is Insecticides (India) In line with the Focused on Indian PM focus of enhancing doubling farm farmer incomes incomes by 2022 2

Insecticides (India) Ltd. 1 2 3 4 Distribution Background Product mix and marketing Where we make Commenced operations in Insecticides, herbicides, Pan-India distribution: Rajasthan, Gujarat, 2001-02 (headquarters fungicides and plant Jammu & Kashmir and New Delhi); growth regulators Uttar Pradesh 60,000 Branded formulation 1000+ 107+ 5 employees retail outlets products + plants Technical technical 15+ 3,000 2 Distributors products synthesis plants biological depots/branch 375+ 31 1 SKUs manufacturing es unit sales team, dedicated 500+ 4 Prominent research ‘Tractor’ brand facilities 3

Vision & Mission Provide the highest quality product and services to the farmers within their reach, so that we feel ourself privileged to be able to contribute our efforts in the interest of the farmers of the nation. Committed to give our best in whatever we do, so as we are able to make a difference to the person who is responsible for providing the food to everybody- The Farmer 4

Business model Diversified revenues (Active Ingredients, Presence across Globally competitive: Bulk & branded value chain: Strong Any market viability Formulations): De- margins risking Investments in product Establishing footprint development, 100 global export Pipeline: 500+ export in MEA and Asian registration, partnerships: contracts on hand: markets: Quick capacities and Expanding clientele Substantial growth offtake, robust recall relationships: Prospective pipeline 5

Our Presence Corporate Office Branch / Depot 6

Milestones - 1 2001 2002 2003 2004 Chopanki (Rajasthan) Acquired 21 brands of Samba (J&K) plant Commenced Operation formulations plant Montari Industries commissioned commenced 2005 2006 2007 2008 Technical collaboration Listed on NSE and BSE; Chopanki plank got ISO with AMVAC, USA, to Chopanki Technical plant Received OHSAS 18001 9001: 2008 certification; set manufacture and market commenced; Samba certification up R&D Lab Thimet plant expansion 7

Milestones - 2 2011 2012 2016 Acquired MONOCIL from Launched NUVAN with Tie-up with MOMENTIVE NOCIL; commissioned two AMVAC; launched (USA) for AGRO SPRED* plants (Dahej and HAKAMA and PULSOR with MAX; tie-up with NIHON Udhampur) NISSAN (Japan) NOHYAKU (Japan) for SUZUKA and HAKKO; launched GREEN LABEL (Bispyribac Sodium 10% SC); manufactured in India for 2014 2015 the first time Commenced product invention R&D center in JV Launched bio-product with OAT Agiro Co. (Japan); MYCORAYA; bonus shares commenced new issued; followed by QIPs formulations unit in Chopanki 8

Insecticides (India) Ltd. “Ultra -modern Manufacturing plants R&D centre and and locations locations automated manufacturing facilities  Formulation plant,  Product invention R&D Chopanki, Rajasthan Centre in JV with OAT backed by process AGRIO, Chopanki,  Technical Plant, that are empowered Rajasthan Chopanki, Rajasthan by technology. This has  Formulations R&D Center,  Formulations plant, Dahej, Dahej, Gujarat allowed us to Gujarat  In-house R&D Centre, manufacture products  Formulations plant, Chopanki, Rajasthan Samba, J&K with consistent quality  Biological R&D Centre, and safety across all  Formulations plant, Shamli, UP Udhampur, J&K verticals. ”  Formulations plant 2, Chopanki, Rajasthan  Biological plant, Shamli, UP  Technical Plant, Dahej, Gujarat 9

Aggregate installed capacity 17,450 KLPA 75,600 MTPA 16,980 MTPA 13,800 MTPA Liquid Granules Powder Active Ingredient & Bulk 10

Facilities Technical synthesis facilities Two technical Variety of 11 streams of synthesis plants technicals technical synthesis 1 2 3 Formulation facilities 5 formulation One of the Capabilities for Automatic Capacities for plants largest the new packing lines toll formulation formulations with variety of manufacturing capacities in the pack size country 1 2 3 4 5 Technical synthesis facilities Sterile Latest ultra- Automatic filling Organic certified Biological QC facility environment modern lines products products equipped with production manufactured manufactured latest instruments facilites under the expert for detection supervision of and bio technologists quantification of and Micro microorganisms 1 2 3 4 5 6 biologists 11

Unmatched R&D Product Discovery Developed 4 Process 50+ new Patents processes received Market Reverse Development Engineering More than 18 Development patents and launch of pending soil transformatio n formula Biological New Production Formulations 12

In-house R&D Centre State of the Art In House facility established in 2005 Approved by DSIR, Ministry of Science and Technology Signed an agreement with DSIR for commercialization of MNIO, an import substitute Working on new formulations & new combination products as per trend Synthesis of new molecules in process Over 50 processes developed and 21 processes commercialized 13

Product Invention R&D Centre A unique initiative of product discovery in India by forming a JV with Japanese co., OAT Agrio Co. Ltd. Pioneer step to establish such facility in the field of agro chemicals Spread in 25000 Sq feet of working area Team of over 40 Scientists Equipped with the latest machines and equipment's like NMR, Lab set designed by Kewanee, USA Lead by the internationally renowned scientists with more than 25 years of experience Ultra-modern green houses to compliment the effective testing One of its kind Breeding centers, Bio Assay Rooms and Spray-Cabinets 14

Formulations R&D Centre Development of new generation formulations Focus on cost reduction, customer friendly and environment safe products 15

In house R&D Centre Equipped with bio assay and product development facilities such as Isolation, detection and multiplication of biological microorganisms Made a break through by developing and commercializing VAM (Vaslcular Arbuscular Mycorrhiaze) Looking forward to development of 3-4 new biological products 16

Our differentiated business structure 1 2 3 4 Development & Marketing Manufacturing R&D Training  Sales & Market  5 Formulation Plants  NABL QC Labs  Emphasis on field development activities  2 Technical Synthesis  IN-house R&D Centre  Branding Plants  Farmer Awareness  JV with OAT Agrio Co.  International Tie ups  1 Biological Japan for dedicated  Sales force Training and Collaborations Manufacturing Plant invention R&D centre 17

Biological Products – Game-changer First-mover advantage due to less number of players Co-existence of agro-chemicals and biological inputs to enhance synergic farmer benefits Dedicated R&D centre with latest infrastructure and researchers Developed & commercialized Vaslcular Arbuscular Mycorrhizae Upcoming products include “KayaKalp” (Soil Energizer) has launched NPK Consortia (Nitrogen, Potash & Phospherous) Zinc Solubilizing bio-fertilizer 18

Strength to strength Capitalizing Improved Increasing on tech operating capital transfer from margins expenditure Japan Strong Launching Increased proprietary new and farmer R&D to improved coverage develop new products molecules 19

Business strengths State-of-the-art manufacturing Company with Low attrition Strong marketing facilities (with indigenous among employees team; wide and capacity technical license and distribution deep distribution fungibility); largest to manufacture partners network formulations technicals facility Widening Strong brand Strong credit- international presence rating footprint 20

Targets Medium-term: To Short-term: Launch launch products Long-term: Launch new generics and through partners; proprietary products going off- launch new discovery products patent mixture products and formulations 21

Forward-looking strategy From a generic agrochemicals player, the company has developed a three-pronged growth strategy, which focuses on R&D, Manufacturing and Marketing. Strong product pipeline Likely to launch ~10 new products in FY19, mostly in the 9(3) category, which will drive margin improvement by 250-300bps over FY19-20 Negotiating with partners for launching new products in the Indian market Brand acquisition Backward integration to capitalize on Make in India initiative Management sees a huge opportunity in the Exports segment and aims to double the sales by FY19 22

Certification and Quality ISO 9001:2008 Occupational System Health and Safety Compliance Assessment Certification System (OHSAS) 18001:2007 1 2 Environmental NABL Accredited Management Q.C. Labs System (EMS) ISO 14001:2004 3 4 GLP Certified Lab (In Process) 5 23