Insecticides (India) Ltd. Investor Presentation AUGUST 2018 1 - PowerPoint PPT Presentation

Insecticides (India) Ltd. Investor Presentation AUGUST 2018 1

This is Insecticides (India) Ltd In line with the Indian PM focus of doubling farm incomes by 2022 Focused on enhancing farmer incomes and purchasing capacity by delivering the best-of-breed crop care solutions to the farmers. 2

Moving on the strategic path of Backward and Forward Integration Make inIndia; Launched Import New Products; Substitution 9(3) Registration Business Established Diversified Revenues footprint in MEA (Active Ingredients, Model and Asian markets; Bulk & branded Quick offtake, Formulations) robust recall ; De-risking Investment in upgrading its intellectual PresenceAcross capabilities, manufacturing processes Value Chain; to offer smart solutions Strong Margins to the emerging challenges of agriculture; Prospective Pipeline 125 global export partnerships; Expanding clientele 3

Revenue Rs 1,106.39Crs Net Profit 58% Insecticides Rs 83.97 Crs Sales by 28% Herbicides Product 10% Fungicides Export Category 4% PGR Rs 35 Crs Mkt Cap 70% B2C Sales by as on 31/3/18 Segement Rs 1,422.46 Crs 30% B2B Number of Farmers Impacted Sales vs 51% In House Consumption Internal 25 Lakhs+ Consumption 49% Sales (For Technical) No. of Brands with turnover of over Rs 25 Crs Breakdown 45% Navrathna Products of Top Seller 55% Other Products Range 4

Exports-How we have grown 66.02 70.72 06 Countries 2015-16 2016-17 12 Countries 282.71 17 Countries 2017-18 700 27 Countries 2018-19 Year Number of Countries Export Value(Inr – Mns) Growth(%) 2015-16 6 66.02 - 2016-17 12 116.00 75.70 2017-18 17 341.30 194.22 2018-19 27 700.00 105.09 (Targeted) 5

Insecticides (India) Ltd. 3 1 Background 2 Product mix 4 Where we make Distribution and marketing 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 1099+ 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 6

Our Differentiated Business Structure 1 Marketing 2 Manufacturing 3 R&D 4 Development & 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  International Tie ups  JV with OAT Agrio Co. and Collaborations  1 Biological Japan for dedicated  Sales force Training  Evolving Media Mix Manufacturing Plant invention R&D centre 7

Our Presence Corporate Office Branch / Depot 8

How we have grown Chopanki Plank Got Commenced 2001 2005 ISO 9001: 2008 Operation Certification; Set Up R&d Lab Listed on NSE and BSE; Acquired 21 Brands Chopanki Technical Plant 2003 2007 Of Montari Industries Commenced; Samba Plant Expansion Received OHSAS 18001 Samba (J&K) 2008 2004 Certification Plant Commissioned Chopanki (Rajasthan) Technical Collaboration 2002 2006 Formulations Plant With AMVAC, USA, To Commenced Manufacture And Market Thimet 9

How we have grown Tie-Up With MOMENTIVE (USA) For AGRO SPRED* MAX; Tie-Up Acquired MONOCIL from NOCIL; with NIHON NOHYAKU (Japan) 2011 2016 Commissioned Two Plants for SUZUKA and HAKKO; Launched (Dahej and Udhampur) GREEN LABEL (Bispyribac Sodium 10% SC); Manufactured in India for the First time Commenced Product Invention R&D Center in JV 2014 with OAT Agiro Co. (Japan); Commenced New Formulations unit in Chopanki Launched Bio-Product MYCORAYA; 2015 Bonus Shares Issued; Followed By QIPs Launched NUVAN With AMVAC; Product Launched Under 2012 2018 launched HAKAMA and PULSOR 9(3) Registration (Sopia, Encounter, With NISSAN (Japan) Hercules and Aikido) 10

Aggregate Installed Capacity 17,450 KLPA 75,600 MTPA 16,980 MTPA 13,800 MTPA Liquid Granules Powder Active Ingredient & Bulk 11

R & D Themes & Strategies More than Developed Reverse Targets: 18 patents 59+ New Engineering pending Processes Short Term: Launch new generics and products Product going off-patent (Innovation & Reverse Engineering) (Chopanki, Rajasthan) Developed 59+ New Combination Processes Medium Term : To launch products through partners; Product launch new mixture products and formulations (Dahej, (Formulation & Development) Gujarat) Development 4 Process and launch Patents Product of soil Biological Received transformation Discovery Long Term: Launch proprietary discovery Product formula (Chopanki, products (Biological & New Molecules) (Shamli,UP) Rajasthan) More than 80 + Scientists 12

Strong In-House & Product Invention R&D Center In-house R&D Center Established in 2005 Approved by DSIR, Ministry of Science and Technology Four process patents has been granted & over 18 process patents filed. 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 Product Invention R&D Center A unique initiative of product discovery in India by forming a JV with Japanese co., OAT Agrio Co. Ltd. Two different sections of Chemical & Biological Laboratories Spread in 25000 Sq feet of working area 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 13

Biological Theme - A Game Changer Biological R&D Center 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 Biological Solution First-mover advantage due to less number of players Co-existence of agro-chemicals and biological inputs to enhance synergic farmer benefits Developed and commercialized Kayakalp, Soil Energizer Biological Facilities Sterile environment Latest ultra modern production facilites Automatic filling lines Products manufactured are organic certified Biological products are manufactured under the expert supervision of bio technologists and Micro biologists. The QC facility are equipped with latest instruments for detection and quantification of micro organisms Products Kayakalp has been created to replenish the soil, increase its organic carbon and improve its physical properties Mycoraja equipped to promote healthy growth and greater nutrient absorption in a wide range of crops, oilseeds and cotton NPK Consortia (Nitrogen, Potash & Phosphorous) Zinc Solubilizing bio-fertilizer 14

New Development : Launch of New Products under 9(3) category The products launched under 9(3) registration - Encounter, Sofia, Aikido and Hercules have been launched after they were made at the Formulations R&D Centre. All these products have been launched for the first time in India and have been applied for the patent. All these four products are based on the combinations of two products that will provide synergistic effect in terms of better control and efficacy. All these products are based on the latest technology & safe formulations. Aikido is launched Hercules is an insecticide in technical collaboration Sofia is very useful broad with Nihon Nohyaku, Japan. Encounter helps fight that protects the all important This product gives complete cash crop- Cotton from sucking spectrum fungicide which gives lepidopteron and sucking pest protection from brown plant complete protection from pest like white fly, Jassids & together in important cropslike hoppers (BPH), white plant various diseases in different Thrips. It has unique 'Vapor tea, pulses, cotton, and Action' which help the product hoppers (WBPH) and leaf folder crops for farmers in the country. vegetables. It gives Broad Spectrum Control to reach the insect in high which destroy about 25-30% against diseases in crops. density crops for better and percent of paddy crop in the effective control. country every year. 15

Global Partners Technical Collaboration For Marketing tie-up for Manufacture And specialty productsPULSOR Tie-up for SUZUKA Marketing Of Thimet (Since fungicide and HAKAMA (Flubendiamide) and HAKKO 2006) And Nuvan (Since Selective Herbicide (Buprofezin) 2012) JV for dedicated R&D Centreto Tie-up with MOMENTIVE Tie-up with OAT Agrio to bring discover new agrochemical specialized seed treatment Performance Material Inc., molecules product (ROOTBEAD) USA for AGROSPRED 16