R5l8ZIxiUQQgeMjgWaYy.pdf - Dhanuka Agritech Limited

Dhanuka AgritechAgritechAgritechAgritech LimitedLimitedLimitedLimitedDhanuka AgritechAgritechAgritechAgritech LimitedLimitedLimitedLimited

Unaudited Financial Results for the

Quarter and Nine Months ended 31st December, 2013

February, 2014

This presentation and the accompanying slides (the “Presentation”), which have been preparedby Dhanuka Agritech Limited (the “Company”), have been prepared solely for informationpurposes and do not constitute any offer, recommendation or invitation to purchase or subscribe forany securities and shall not form the basis or be relied on in connection with any contract or bindingcommitment whatsoever. No offering of securities of the Company will be made except by meansof a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which theCompany considers reliable, but the Company makes no representation or warranty, express orimplied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness

Safe Harbor

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implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairnessand reasonableness of the contents of this Presentation. There may be forward looking statementswhich the Company has made based on available information at present. The Company does notassume responsibility for the same as the conditions may change in the future. This Presentationmay not be all inclusive and may not contain all of the information that you may consider material.Any liability in respect of the contents of, or any omission from, this Presentation is expresslyexcluded.

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

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Strong product portfolio of over 80 brands with 100% domestic sales

Second largest rural distribution networks in India with over 7,500 direct dealers, selling to over 70,000 retailers

Products are used by over 10 million farmers across India

The legend of Indian cinema, Shri Amitabh Bachchan is Brand Ambassador of Dhanuka

Wide Range of Products

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Portfolio of over 80 brands, two third sales from ‘Specialty molecules’

Key Product Portfolio

• Targa Super, Barrier, Craze, Qurin, Noweed, Weedmar Super, Ozone, Hook WG, Nabood, D-Era…

• Media, Dunet, Caldan, Omite, Aaatank, Adfyre, Brigade, Bombard, Dhanpreet, Dhawa Gold, Markar…

Insecticides Herbicides

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• Dhanuvit, Wetcit, Dhanzyme Gold, DhanzymeGranules…

• Lustre, Sixer, Vitavax Power, Kasu-B, Hi-Dice, Cursor, Dhanteam, Hexadhan Plus, Sheathmar, VitavaxUltra…

Plant Growth

NutrientsFungicides

Strategic Partnerships

Nissan ChemicalJapan

Sumitomo ChemicalJapan

Hokko ChemicalJapan

Mitsui Chemicals Inc. Japan

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Chemtura Agro SolutionsUSA

FMC CorporationUSA

DUPONT

USA

The Company enjoys long lasting relationships with its global partners.

Most of the relationships have been active for more than a decade.

Marketing Network

4,000

> 7,500

Total Distributors

Reach – Districts covered through

450550

FY 2008 FY 2013

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Products are used by over 10 million farmers across India

Reach – Districts covered through distributors

750

1,500

Dhanuka Doctors - Dissemination of information to farmers on “Dhanuka Kheti ki Nayee takneek”

FY 2008 FY 2013

FY 2008 FY 2013

Key Growth Drivers (1/2)

• Governmentguaranteedminimum prices forthe majority of cropshave increased by30-110% in the pastfour years givingthrust to ruralincomes

Manifold

increase

in rural

income

Minimum Support Prices, India FY

Crop Marketing Season (Price in INR/quintal)

Commodity 2008 2009 2010 2011 2012 2013 2014

Price

Increase %

(08-14)

Paddy 645 850 950 1,000 1,080 1,250 1,310 103.10

Red Gram 1,550 2,000 2,300 3,000 3,200 3,850 4,300 177.42

Green Gram 1,700 2,520 2,760 3,170 3,500 4,400 4,500 164.71

Black Gram 1,700 2,520 2,520 2,900 3,300 4,300 4,300 152.94

Groundnut 1,550 2,100 2,100 2,300 2,700 3,700 4,000 158.06

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

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• One of the lowestconsumption levelsin the world, at ~0.5kg per hectare

Low

level of consumption of plant-protection 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

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Consumption of Agrochemicals (Kg / Hectare)

Wheat 750 1,000 1,080 1,100 1,120 1,285 1,350 80.00

Key Growth Drivers (2/2)

• Insects, fungus andweeds destroy cropsworth billions ofdollars annually

• Despite large area under cultivation of paddy and wheat, we lag behind in total production

Prevention of large crop

wastages

Category

Area

(Mn Ha)

World

Ranking

In Area

Production

(Mn tons)

World

Ranking

In Production

Paddy 44 #1 91 #2

Wheat 28 #1 74 #2

Maize 8 #4 14 #6

Gram 8 #1 6 #1

Red Gram 4 #1 3 #1

Soybean 8 #5 9.0 #5

Cotton 9 #1 21 #2

Sugarcane 5 #2 323 #2

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• Herbicides share inIndia quite low at20%, versus ~ 48%globally

• Rising farm labor prices are lifting herbicide demand; replacing manual weeding

• Dhanuka is a beneficiary with strong herbicides portfolio (28% of revenue, FY13)

Disruptive growth in herbicides

Source: Varshney, 2009

Insecticide Fungicides Herbicides Others

India 62% 16% 20% 2%

Global 23% 26% 48% 3%

0%

10%

20%

30%

40%

50%

60%

70%

Break-up of agrochemical consumption (2009)

Management Team

Chairman; started pesticides

business more than 40 years ago;

a philanthropist; a man of vision

with utmost sincerity and devotion;

mentors and provides strategic

leadership; also served for two

terms as Chairman of “Crop Care

Federation of India”.

Managing Director; co-founded

the Company; has 40 years of

Director (Marketing); Masters in

Business Administration from S.P.

Jain, Mumbai; oversees the entire

marketing function of the

Company; leads the large

marketing team from the fore-front

& maintains cordial relations with

International collaborators.

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the Company; has 40 years of

experience; re-elected as

President of HPMA (Haryana

Pesticide Manufacturers

Association) consecutively for the

4th year; oversees the overall

operations of the Company.

Director; Masters in Business

Administration (Operations) from

NITIE, Mumbai; oversees the

manufacturing and supply chain

functions across the Company’s

three production facilities; spear-

heads expansion projects; brought

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.

Management Team

Dr. O.P. Singh; President (R&D), vastexperience in new productintroductions and strategicpartnerships, liaisons with theagricultural universities

Mr. V. K. Bansal; President & CFO,Chartered Accountant, experience ofover 20 years with Dhanuka, controlsentire financial division and has beenone of the key contributors in thesuccess of Dhanuka

Mr. Vijay Kumar; Senior GM (Quality Control), M. Tech from IIT Delhi, oversees quality of products

Dr. P. C. Rai; GM (Marketing), manages marketing operations of North Zone & Madhya Pradesh

Mr. Y. K. Goel; Senior GM(Production), B.Tech, experience of 37years, played a key role in expansionand automation of productioncapacities at all the locations of thecompany

Mr. Rajesh Sahni; Senior GM (Legal), experience of over 25 years with Dhanuka

Mr. Harsh Dhanuka, SGM (Marketing), did his Masters in Business Administration from Monash Graduate Business School, Monash University. He looks after marketing function.

Mr. Harish Mehta, MBA, has a long experience of 25 years and heads marketing of Agro Chemicals at national level .

Historical Financial Performance (in Crores Rs.)

Particulars FY 09 FY 10 FY 11 FY 12 FY 13

Revenue 337.42 408.72 493.59 529.81 589.25

EBIDTA 48.60 58.88 78.52 80.04 88.84

PAT 23.20 36.34 51.11 57.13 64.44

Revenue Growth (%) 35.3% 21.1% 20.8% 7.3% 11.2%

As % to Sales

EBIDTA 14.4% 14.4% 15.9% 15.1% 15.1%

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PAT 6.9% 8.9% 10.4% 10.8% 10.9%

Financial Position of the Company

Net Worth 68.28 97.12 170.48 214.60 262.77

Debt 51.54 57.70 60.20 39.41 33.01

Cash & Investment 3.38 2.03 4.95 24.01 13.59

Financial Ratios

LT Debt- Equity Ratio 0.7 0.6 0.3 0.03 0

RoCE 25.7% 27.6% 24.2% 32% 30.2%

RoE 34.0% 37.4% 30.0% 26.6% 24.5%

Historical Financial Performance

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Net Sales (Rs. in Crores)

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PAT (Rs. in Crores)

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Net Worth (Rs. in Crores)

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EPS (in Rs.)

Operational Highlights - Result Period (in Crores Rs.)

Particulars

Unaudited Quarter Unaudited 9MEAudited

FY

Dec-13 Dec-12 rise / fall Dec-13 Dec-12 rise / fall 12-13

Gross

Turnover185.81 150.41 23.54% 657.67 499.29 31.72% 646.40

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Net Turnover 167.00 139.56 19.66% 586.53 451.13 30.01% 582.31

EBIDTA 26.90 16.33 64.73% 97.24 63.65 52.77% 88.85

PBT 23.91 14.04 70.30% 90.49 57.64 56.99% 80.78

Tax Liability 2.64 2.36 11.86% 19.82 11.06 79.20% 16.33

PAT 21.27 11.68 82.11% 70.67 46.58 51.72% 64.45

Operational Highlights - Result Period (in Crores Rs.)

Particulars


FY


EBIDTA% to

Net Sales16.11% 11.70% 441 bps 16.58% 14.11% 247 bps 15.26%

PBT% to Net

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PBT% to Net

Sales14.32% 10.06% 426 bps 15.43% 12.78% 265 bps 13.87%

PAT% to Net

Sales12.74% 8.37% 437 bps 12.05% 10.33% 172 bps 11.07%

Tax% to PBT 11.04% 16.81% -576 bps 21.90% 19.19% 272 bps 20.22%

EPS (Rs.) 4.25 2.33 82.40% 14.13 9.31 51.77% 12.88

Category wise %Sales

Particulars


FY


Insecticides 45.01% 53.92% -891 bps 42.06% 50.56% -850 bps 49.31%

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Fungicides 20.37% 17.56% 281 bps 13.94% 12.50% 144 bps 13.15%

Herbicides 24.17% 16.64% 753 bps 34.09% 26.72% 737 bps 28.01%

Others 10.45% 11.88% -143 bps 9.92% 10.22% -30 bps 9.53%

Region wise % Sales

Zone


FY


North Zone 18.78% 14.64% 414 25.02% 26.28% -126 26.55%

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East Zone 11.92% 15.26% -334 bps 11.36% 13.92% -256 bps 14.40%

West Zone 22.47% 21.47% 100 bps 33.18% 27.30% 588 bps 27.67%

South Zone 46.83% 48.63% -180 bps 30.44% 32.50% -206 bps 31.38%

Dhanuka’s Top Products

Products Category

Targa Super Herbicide

Caldan Insecticide

Dhanzyme Granule PGR

Markar Insecticide

Dhanzyme Gold PGR

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New Product Launches

FY 12-13 FY 13-14

Fluid Danfuron

Fuzi Super Defend

Lustre Maxyld

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Lustre Maxyld

Dhanzyme Gold

granulesMedia Super

One- Star Protocol

Six new products are in pipeline, of which 2 are expected

to be launched every fiscal for the first time in India.

Brand Sales

Particulars Share

9ME Dec-13 40.24%

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9ME Dec-12 40.36%

HYE Sep-13 43.03%

HYE Sep-12 42.55%

% Sales with Foreign/MNC tie ups

Particulars Share

QE Dec-13 37.00%

QE Dec-12 33.33%

Rise/(Fall) 367 bpsRise/(Fall) 367 bps

NME Dec-13 47.44%

NME Dec-12 42.56%

Rise/(Fall) 488 bps

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Rewards & Recognition

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Dhanuka has bagged a coveted place in ‘Forbes Asia’ list in three out of last four years

Rewards & Recognition

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Dhanuka has been honoured

with the coveted Brand

Excellence Award in

Agrochemicals by ABP News

during 22nd World Brand

Congress

Mr. M. K. Dhanuka, Managing

Director, Dhanuka Agritech

Limited, receiving INC. INDIA

Innovative 100 Award: 2013 for

its smart, innovative product -

LUSTRE

Key Players in Indian Agro-Chemical Market

Technicals Formulations Balanced Portfolio

Meghmani Organics Insecticides India Rallis India

Sabero Organics Dhanuka Agritech Bayer India

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Sabero Organics Dhanuka Agritech Bayer India

Punjab Chemicals PI Industries BASF

UPL Syngenta

Gharda Chemicals

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Thank You!

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R5l8ZIxiUQQgeMjgWaYy.pdf - Dhanuka Agritech Limited