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PI Industries Ltd. Investor Presenta1on
June, 2012
2
Key Highlights
• Uniquely posi1oned with its non-‐compete and IP driven business model to leverage its strong reach and
brand with millions of Indian farmers on one side and chemical process research & manufacturing
capabili9es to partner global innovators on the other side.
• Market leaders in chosen products of Agri-‐Inputs business in India with a brand equity of over 5 decades,
vast marke9ng & distribu9on network in rural India. Benefi?ng from high-‐potenAal agri-‐opportunity and
expected to grow at a high rate given the robust pipeline of in-‐licensed products.
• Leaders in Custom Synthesis of agrochemicals and specialty products in India serving global customers.
Leveraging strong capabiliAes in process research, scale up and contract manufacturing supported with world
class research and manufacturing set up. Strong order book posiAon of ~US$ 315 mn and constantly
growing; giving high visibility of sustainable growth. Strong pipeline of products at R&D / kilo plant / pilot
plant stage.
• Upside expected from new opportuniAes emerging in niche chemicals areas; Tie up with Sony Corpora9on
for joint research in the area of organic chemicals having applicaAon in Electronics is one such success.
• Demonstrated robustness of business model over last several years: with Revenue growth of almost 2 Ames
and PAT growth of almost 3 Ames over last 3 years. Ramp-‐up in operaAonal efficiencies exhibited by
expansion in EBIDTA margin from ~ 13.5% in FY2009 to ~ 17% in FY2012.
3
Key Highlights
• Improved Balance Sheet; D/E improved from ~ 2.0 in FY2009 to ~0.65 in FY2012 paving way for expansion to
seize future growth opportuniAes.
• Strong visibility to grow topline by ~30% over next few years. Margin expansion is inevitable owing to
improving product mix, higher operaAng leverage and sale of the low margin polymer business.
• Business managed by dedicated team of professionals guided by strong Board of 10 Directors [3 execuAve,
6 independent, 1 Investor director] having experAse and vast experience in different business aspects. More
than 110 people at deployed in Company’s R&D cell including ~ 35 PhDs and Masters.
• Divestment of non-‐core low margin Polymer Compounding business to Rhodia helped unlock resources to
support growth momentum in core businesses.
• Current promoter holding is ~64%, MFs/banks/DII has 4.1%, FIIs have 3.3% and general public have ~28.6%.
Introduc)on To PI Industries
4
AGRI INPUTS – AGRO CHEMICALS, SPECIALTY FERTILIZERS & PLANT NUTRIENTS
• Among the top 5 Indian Agchem companies • Retailing, distribuAon & trading through 40,000+ strong retailer
base
• MarkeAng agro-‐chemicals now with added focus on bio plant nutrients, specialty ferAlizers and a pipeline of exclusive markeAng rights of 7-‐8 new products over the next 3-‐4 years
• Several company products leaders in their category
• Strong industry reputaAon for innova1ve marke1ng policies, pracAces and I T backbone as a last mile connect
CUSTOM SYNTHESIS – FINE CHEMICALS • Custom Synthesis for Global MNCs • Contracted with Japanese and European cos. and in select
segments in USA
• Wide end-‐use segment such as agrochemicals and intermediaries, imaging chemical, niche pharma intermediates, prinAng chemicals,etc
• Product focus on patented, high value, complex chemistry and early stage molecules
• Excellent reputaAon for reliability
We excel in what we do
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Net Sales EBITDA PAT
8750
1455
1005
7160
1135 641
FY2012 FY2011
Y-‐o-‐Y comparison (Rs. Million)
6
Sustained Evolu1on and growth
1947 1960s 1970s 1980s 1990s 2000s 2008 2011
Incorporation
Start of Agchem Formulation
Export of technical know how for setting up Agchem AI mfg. Plant
Installation of phorate technical plant
Diversified in Energy Metering business, later created a separate co. named Secure Meters Ltd
First export of Agchem Formulation R&D recognized by Min. of Sc. and Tech. Installed Agchem Technical Plant Diversified into mining, later hived
off into separate company named Wolkem
Name changed to PI Industries Ltd. Diversified into polymer
compounding Diversified into Custom Synthesis ISO 9002 and 14001 certifications
Accredited by OHSAS 18001 and ISO 17025
Established PI Life Sciences Research Ltd.
Migration to SAP Platform
New Formulations plant at Jammu
New multi product plants for Fine Chemicals
Expanded Capacity of Fine Chem by installing 2 Multiproduct Plants
Co-Marketing tie up with Bayer/BASF
Explosive growth in Agri-Inputs & Custom Synthesis
Divestiture of Polymer Compouding
Rs. Million 2011 2012
Net Sales 7,159.8 8,749.7
EBITDA 1,135.2 1,455.4
PAT 641.2 1,005.4
ROCE 24.9 24.8
Net Debt: Equity 1.1 0.7
Networth 2106 3192
7
Robust Enterprise Structure
PI Industries Ltd.
PI Life Science Ltd.
PI Japan K.K. Ltd.
Agri-Input Custom Synthesis
Main Business Entity Divided into 2 Business Units
100% subsidiary of PIIL Custom Research Division
100% subsidiary of PIIL Market Development Division
Subsidiaries
Strategic Business Units
PIIL Finance & Investment
100% subsidiary of PIIL Investment Division
8
Solid Infrastructure Set-‐up
Agri-Inputs
Custom Synthesis
• 5 mulA-‐product plants and 88,000 sq. m area in Panoli, R&D facility at Udaipur equipment Vaccum systems, fracAonaAng columns, filters &dryers
• Another manufacturing site spread on ~90000 sqm coming up in Gujarat. • Up to date waste treatment faciliAes for solid, liquid & gas, CapAve gas based power plant
• Integrated from process evaluaAon, bench scale trials, kilo lab, pilot plant to commercial producAon
• High quality plant & machinery like SS 316 reactors, vessels, heat exchange systems and support
• Global reach through own offices in Japan, Sourcing office in China • In-‐house engineering capabiliAes for flexibility and quick turnaround • Fully on ERP -‐ SAP
• 3 formulaAon and 2 manufacturing faciliAes based in north (Jammu) and west (Panoli, Gujarat)
• CapAve gas based power plant • Integrated process development team to handle scale up, safety and waste treatment aspects
• 40,000+ retail points, 10000+ distributors, 15 retails chains as partners • 29 stock points located across India. 300 employees located in 145 territories • LogisAcs handled centrally using the concept of hub & spokes in order to opAmize inventory in a dynamically driven demand
• Fully on ERP -‐ SAP
Salil Singhal, Chairman & Managing Director (Promoter Director)
Took charge of the family business in July ‘79. aser the demise of the founder. He headed PesAcide AssociaAon of India (now Crop Care FederaAon of India) as Chairman for 17 yrs and is now Chairman Emeritus. He was the Chairman of the Environment Commitee & FICCI for 5 years. He is currently on the Boards of Wolkem India, Historic Resorts Hotels, The Lake Palace Hotels and Motels, Secure Meters, Somani Ceramics, Usha MarAns, PILL Finance and Investments and EnAty Holding PTE, Singapore.
Mayank Singhal Managing Director & CEO (Promoter Director)
An Engineering Management Graduate from the UK, joined PI in 1988. Worked at the plant level for 2 years and was inducted to the Board of the Company in 2000 and appointed as Joint MD in 2004. He is also a Director on the boards of PI Life Science Research, PILL Finance and Investments and Samaya Investment and Trading.
Anurag Surana (Whole Time Director)
A B.Com (Hons) graduate, joined Company in 1995. IniAally, he handled the polymer compounding business and later he managed the enAre manufacturing operaAons of the Company at Panoli. His current responsibiliAes are in the operaAons, manufacturing, quality control, commercial, and general management areas. He is on the board of PILL Finance, PI Life Science Research and WILL Investments.
Narayan Sheshadri Independent Director
He is a Charted Accountant with specialized knowledge in areas of financial & consultancy services. He is a Director on the Board of PI since 2006. He started his career with Arthur Anderson in the business consultancy area. Then he was with KPMG and became the managing partner of the business advisory pracAce of the firm. He is also the founder chairman & CEO of Halcyon Group, an investment advisory & management services organizaAon.
Raj Kaul Independent Director
He began his career with NELCO, then he Joined Ciba India and later moved to Bayer India and became its ExecuAve Director/CEO for their crop protecAon business. He later moved to Bayer AG head office and assigned to their M&A divison, where he rose to become the Vice President reporAng to their Board. He has successfully concluded over 200 M&A transacAons in the areas of agro-‐chemicals, biotechnology etc. Currently, he is also on the Board of Gowan Company, Yuma in Arizona (USA)
9
Well regarded Board
P N Shah Independent Director
He is a Chartered Accountant and a partner of M/s Shah & Co., a CA firm. He is on the board of PI Industries since 1991. He was the President of the ICAI and has excepAonal knowledge and understanding of various corporate and taxaAon laws. Currently, he is also on the board of Indo Count, Secure Meters, Taparia Tools, Lipi Data Systems, Wolkem India, LIC Mutual Fund Trustee Company and Pranavaditya Spinning Mills.
P K Lahiri Independent Director
Mr. Pravin K. Laheri (IAS Retd.) Gujarat cadre studied at St. Xavier’s College and Government Law College, Mumbai. Mr. P.K. Laheri joined Indian Railways in 1967 and Indian AdministraAve Services in 1969. He served in Government of Gujarat in various capaciAes -‐ District Development Officer (Jamnagar), Collector (Banaskantha), Director -‐ Cotage Industries, Joint Secretary (EducaAon Department), Industries Commissioner, Principal Secretary to Five Chief Ministers of Gujarat, Principal Secretary (Rural Development, InformaAon etc.) and Chief Secretary. He also worked as ExecuAve Director of NaAonal InsAtute of Fashion Technology (NIFT) in Government of India.
Bimal Raizada Independent Director
Mr. Bimal K. Raizada is a Chartered Accountant and a member of Board of Governors, InsAtute of Internal Auditors, New Delhi, Treasurer of the AssociaAon of UK Chartered Accountants in India. He is also on the Board of Ranbaxy DiagnosAcs Ltd., BVI-‐HR PracAce Pvt. Ltd and Insta Power Ltd.
Ramni Narula Independent Director
Ms Nirula holds Bachelor’s Degree in Economics and Master’s Degree in Business AdministraAon from Delhi University. She has more than three decades of experience in the financial sector, beginning her career with the erstwhile ICICI Limited in the year 1976. Since then she has held various leadership posiAons in areas of Project Financing, Strategy, Planning, Resources and Corporate Banking
Rahul Raisurana Rahul Raisurana has a Masters degree in InternaAonal Management from Thunderbird School of Global Management, USA and a Masters degree in Business AdministraAon from Graduate School of Management, Clark University, USA. Mr. Rahul Raisurana is presently Managing Director at Standard Chartered Private Equity Advisory (India) Pvt. Limited wherein he founded and currently leads its Mid Market focused private equity business in India. He has over 20 years of wide ranging internaAonal professional experience in private equity, risk management and corporate and investment banking. 10
Well regarded Board
Model And Strategy
11
PI’s Business Model
Agri-‐business
• Launch of new generation product/formulations having substantial market share potential
• Continuing exclusive co-marketing agreements with global innovators for existing successful products
• Entry into new agri-product categories such as hybrid seeds
Custom Synthesis • Strong order book position in excess of US$ 315 mn • Good visibility of volume growth matched adequately with additional mfg. capacities • Focus on patented products with longer life cycles
AGRI INPUTS
CUSTOM SYNTHESIS PI
An integrated en1ty comprising of two Business models and sustained growth prospects
Domes1c Opportunity In Agri-‐business
Growing popula)on to sustain demand for food grains
1
Stagna)on in food grain produc)on
2 196.8 212.9
174.8
213.2 198.4 208.6
217.3 230.8 234.5
218.1
0
50
100
150
200
250
2000-‐01
2001-‐02
2002-‐03
2003-‐04
2004-‐05
2005-‐06
2006-‐07
2007-‐08
2008-‐09
2009-‐10
Agri Sta9s9cs 2010, CM
IE
Stagna1ng produc1on
million tons
14 33
64 81
192
43
93 76 30
102 95
156
355
110
180 182
0
50
100
150
200
250
300
350
400
Pulses
Cereals
Whe
at
Rice
Food
grains
Fruits
Vegetables
Milk
2000 2030
ICAR Vision 2030 docum
ent
Domes1c Demand for Food
million tons
6556
4762 5556
7672
3018
9658
4309 3086 5109
3370 2802 2324
0
2000
4000
6000
8000
10000
12000
Padd
y
Whe
at
Maize
China US World Avg India
Agri Sta9s9cs 2010, CM
IE Stagna1ng yields
million tons
Domes1c Opportunity In Agri-‐business
Higher MSPs transla)ng into higher rural income
3
Rising focus of Central Govt on
agriculture
4
17.9 16.8 20.5 26.6 38
48.6
70.5
95.3 108.7
172.5 171.2
0 20 40 60 80
100 120 140 160 180 200
2001-‐02
2002-‐03
2003-‐04
2004-‐05
2005-‐06
2006-‐07
2007-‐08
2008-‐09
2009-‐10
2010-‐11*
2011-‐12**
Agri Sta9s9cs 2010, CM
IE
Plan outlay on Govt schemes
Rs billion
*Revised EsAmates & **Budget EsAmates
4.0 4.3 4.3 2.7 2.7
3.9 2.5
4.7
1.6
13.8 13.0 13.0 14.9
16.0
10.5
8.4
15.6
12.9
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Padd
y
Jowar
Bajra
Groun
dnut
Soyabe
an
Whe
at
Barley
Sugarcane
Coton
FY03-‐08 FY08-‐12
Dept. of A
gri & Co-‐opera9on
Growth in MSPs
CAGR %
15
Low agchem consump1on indicates poten1al for higher usage
Crop Area
(Mn Ha) World
Ranking Production
(MT) World Rank
in Production
Rice 44 1 96.4 2
Wheat 28 1 78.4 2
Maize 8 5 19.3 5
Cotton 9 1 25.8 2
Soyabean 9 5 10.0 5
Sugarcane 5 2 323.0 2 Source: M
inistry of Agriculture and
FAO
Source: Industry Es9m
ates
Country-‐wise Pes1cide consump1on India’s ranking in the world
• Produce worth >Rs. 1 lakh crore is wasted each year and 20% of agricultural land is affected on account of poor or inadequate usage of agrochemicals; India’s consumpAon of pesAcides stands well below global standards
• India ranks top on crop area for rice, wheat and coton, but only 35-‐40% of area is treated with pesAcides
• Andhra Pradesh is the top consumer of pesAcides at 23% followed by Punjab & Maharashtra at 12% each
Country Pesticide Use (Kg/ha)
Taiwan 17.0
China 14.0
Japan 12.0
USA 7.0
Korea 7.0
France 5.0
UK 5.0
Pakistan 1.0
India 0.5
Andhra Pradesh; 23%
Punjab; 12%
Maharashtra; 12%
Karnataka; 7%
Gujarat; 7%
WB, 6%
Haryana; 7%
TN & Kerala; 6%
Others; 20%
Countrywide pes1cide consump1on in India
Ministry of A
griculture
16
Yield Improvement Key To Drive Growth
Producing more with less:
• Rising demand for food amid increased urbanisaAon and declining arable land per capita can have a significant impact on meeAng food needs
• Changing dietary paterns drive demand for resource-‐intensive foods which would further accelerate the need to do more with less
• A wealthier, growing populaAon amid declining land availability per capita would have to command greater per hectare producAvity
• Biofuels to also compete for arable land
Demand set to increase faster than yield increases
Historically, yield increases have kept pace with consumpAon
Downside in yield due to confluence of weather mishaps globally
Increase in arable land limited Source: FAO
, Rab
oban
k Source: Syngenta
Food consump1on vs. yield vs. arable land
CP contribu1on to yield and remaining poten1al
Agri-‐Input Spectrum
Seeds
INR50 Bn Mkt
Nutrients
INR3 Bn Mkt
PesAcides
INR40 Bn Mkt
Credit & Insurance MarkeAng
Water Management, Drip
IrrigaAon & Equipment
PI Industries’ strategic focus
PI’s Agri-‐Inputs Network
• 7 zonal offices
• 29 branches
• 145 territories
• 300 sales staff
• > 2000 Temp field staff
• 10,000+ distributors / dealer
• 40,000+ retailers
• Widen agri-‐input coverage to increase share of the farmer’s spend
• Expand opportunity by addressing nutrients & seeds • Cross-‐sell benefits assured by homogeneity of target group • New product launches in crops where PI has competency &
brand recall • InternaAonal reputaAon of a strong field presence offers
partnership opportuniAes for the future
Robust model in Agri-‐Inputs
18
Global opportunity in Custom Synthesis
• The industry supplies to virtually all sectors of the economy & produces more than 80,000 products
• Europe Union (~ 30%) is the largest chemical producing region followed by North America & Asia
By 2015, the industry is expected to have a turnover of USD 3,00 bn
• Led by demand growth in Asia-‐Pacific expected growth rate to be at 8% • Medium term demand composiAon is expected to shis in favor of Asia with growths expected in all three segments.
The Chemical Industry is expected to grow at about 5.6% CAGR
• Size of Contract Research opportunity in pharmaceuAcal sector growing at 16-‐18%p.a and esAmated at $ 14 billion in 2007
• Contract Mfg. opportunity in Pharma growing at 10-‐11% p.a. and esAmated to have reached $30 billion in 2010
Global Custom Synthesis es1mated at $ 75 billion in 2006 and expected to touch $125 billion in 2010
• Research including conducAng clinical trials, bioequivalence studies, drug library generaAon & screening etc on contract
• Process research on new chemical process for synthesis and producAon scale up
• Custom manufacture of special chemicals in small quanAAes • Contract manufacture of chemicals including fine chemicals, intermediates, cGMP intermediates, APIs, agrochemicals and specialty chemicals
Custom Synthesis includes the following
Fine Chemicals
Specialty Chemicals
Bulk Chemicals
PI lends real value to Custom Synthesis
An Example -‐ P I 011
• Enquiry recd Dec,06
• 1st sample sent to customer Feb, 07
• Sample approved by customer Mar, 07
• Scale up Study undertaken May,07
• 1st Commercial Order (5MT) Jun,07
• 2nd Commercial Order (57 MT) Aug,07 [Supply up to Mar,08]
• 3rd Commercial Order (200 MT) Nov, 07 [Supply up to Mar, 09]
• Signed Agreement of 1500 mt (USD 36 mn) for 3 yrs Apr,09
Customer Enquiry
Pre. Feasibility Study
Sign Secrecy Agreement
Process EvaluaAon
Bench Scale Trials
Desktop cosAng
Customer Approval
Pilot / Kilo Lab Scale up
SOP & Plant Design
Sample validaAon
Process & cost review
Customer approval / agreement
Detailed plant engg.
Plant errecAon & installaAon
Raw material procurement
Commercial ProducAon
A Promising Way Forward For Custom Synthesis
• Investment is starAng to pay-‐off
• PI has invested over Rs 2.5 billion in fixed assets for the Custom Synthesis division. This is excluding investment made in
research and development (both people & business development) which has been expensed annually
• At current investment, PI can deliver revenues with ligle incremental addi1on to overheads; this will drive profitability for
the Company
• Revenue visibility to precede capital expenditure • The Custom Synthesis business is now in a growth phase as a result all capital expenditure being planned is only against
assured revenues for which contracts are either signed or being nego1ated
• Contracts are negoAated to ensure minimum risk for PI on account of commercial, raw material & currency
• As a result, PI enjoys strong revenue visibility and predictability at lower investment risk
• Unique business model is atracAng more customers
• PI has invested in a non-‐compete business model – it does not compete with the innovator and hence is also agrac1ng
innovators from the pharmaceu1cal sector
• PI strictly focuses on IPR chemistry – as a result its involvement with client is from an early stage throughout the grant of a
patent on the molecule, client comfortable with sharing technology
• Agro-‐chemical sector has been a starAng point -‐ PI is working on pharmaceuAcals and performance chemicals
• PI is creaAng an diversified Custom Synthesis business across the Custom Synthesis delivery chain, addressed at the patent life
cycle
21
Business Developments: That Strengthen the Opera1ng Profile
Divestment of Polymer Compounding business to Rhodia SA
• Transfer includes all the assets , people employed at PI Polymer, R&D capabiliAes, customer base & logisAcs network
• TransacAon completed in April 2011 • Sharper focus on Agri-‐Inputs and Custom Synthesis operaAons
PI-‐Sony research centre inaugurated at Udaipur
• To remain part of the PI R&D faciliAes at Udaipur • To undertake collaboraAve research jointly with Sony CorporaAon & Hokkaido University of Japan • Focus to be on syntheAc organic chemicals for applicaAons in the electronic industry • First of its kind partnership with any Indian company
22
Corporate Developments CRISIL upgrades PI’s bank facili1es • The raAng upgrade reflects sustained improvement in business risk profile on the back of beter profitability and prudent
working capital management • The revised raAngs reflect PI’s high revenue visibility, healthy operaAng efficiencies, and adequate financial risk profile
PI’s R&D facility receives GLP Cer1fica1on • R&D facility at Udaipur has been accredited for ‘Good laboratory PracAces (GLP) and Norms on OECD Principles’ by
NaAonal GLP Monitoring Authority (NGCMA), Government of India’ in the field of Physical – Chemical TesAng
• Physical / chemistry related data generated in PI’s GLP accredited lab would now be acceptable by the registraAon authoriAes (agrochemicals/pharma etc.) in all the OECD countries such as USA, Europe, Japan etc
• GLP cerAficaAon meets PI’s strategy to provide comprehensive soluAons under one roof and broaden its por{olio of custom synthesis and manufacturing soluAons
Introduc1on of New Products • The Company has reached to the penulAmate stages of registraAon approval for two new broad spectrum insecAcides by
the RegistraAon Commitee of the Govt. Both these molecules are expected to be launched in the domesAc market in the year 2012-‐2013.
• Company conAnues its quest for new molecules and has signed 6 new agreements with their patent holders in insecAcide/ herbicide / fungicide segments to evaluate their potenAal in the domesAc market. These products further add to the Company’s product pipeline and strengthen our product por{olio for the coming years.
Conferred with PowerBrands status In the Indian Powerbrands Conclave held at the Mariot Grosvenor Square, in London on December 12, 2011, PI Industries was given `Power Brand’ status from amongst 81 large and really successful brands and companies featured in the book which is considered a brand bible comprising the country’s most inspiraAonal brands. Mr. Salil Singhal, Chairman and Managing Director was also honoured with the presAgious ‘Corporate Leader Of the Year – Agriculture’.
Financial Performance Discussion
23
24
Key Financial Highlights
(in Rs. million) Q4 FY2012 Q4 FY2011 FY2012 FY2011
Net Revenue 2,338.5 2,113.8 8.749.7 7,159.8
EBITDA 373.1 368.8 1,455.4 1,135.2
PAT 217.9 203.8 1,005.4 641.2
FY2012 analysis
Net Revenues Net Revenue stood at Rs. 8,771 million, up 22% YoY (~36% YoY growth without Polymer Compounding revenue); following 22% growth in domesAc Agri-‐-‐-‐Input sales and 61% growth in Custom Synthesis exports. PI conAnues to show top-‐-‐-‐quarAle growth owing to its por{olio of novel products and ramp-‐-‐-‐up In exports.
EBITDA EBITDA stood at Rs. 1,455 million, up by 28% YoY. Margins increased ~75 bps.
Pre-‐tax Earnings Profit Before Tax was at Rs. 1,394 million, giving an increase of 55%. It includes; a pre-‐-‐-‐tax gain of ~Rs. 303 million given the sale of the Polymer Compounding to Rhodia and Exchange FluctuaAon loss of Rs. 44.8 million (last year gain of Rs. 73.5 million)
Post-‐tax Earnings Including the excepAonal gains the Net Profit stood at ~Rs. 1 billion; a growth of 57%. The Basic EPS increased to Rs. 40.27 per share from Rs. 28.76 per share last year. Consolidated Net Profit at Rs.1,036 million, up by 59%.
Dividend The Board has recommended a final dividend of Rs. 3.00 per share (60%) to the equity shareholders of the Company. With this, the total dividend for the year (including interim dividend of Rs. 2.00 per share paid earlier in the year) is Rs. 5.00 per share (100%)
25
Profit & Loss Extract (In Rs. Millions)
PROFIT & LOSS Mar-‐08 Mar-‐09 Mar-‐10 Mar-‐11 Mar-‐12
Total Revenue 3,709 4,609 5,407 7,183 8,771
Total expenses 3,388 3,974 4,543 6,048 7,360
EBITDA 322 635 864 1,135 1,411
DepreciaAon & AmorAsaAon 97 115 131 156 171
Interest 177 223 183 186 201
Other income 50 9 11 105 52
ExcepAon Item 303
PBT 97 306 561 898 1,394
Tax 16 45 132
Def tax 18 31 19
PAT 63 230 409 641 1,005
26
Balance Sheet Extract (In Rs. Millions)
BALANCE SHEET Mar-‐08 Mar-‐09 Mar-‐10 Mar-‐11 Mar-‐12 Sources
Share capital 35 35 277 193 125 Reserves and surplus 668 890 1,247 1913 3067 Net worth 703 926 1,524 2106 3192 Long Term Loans 761 834 625 478 1298 Short Term Loans 882 1,058 429 1082 685 Unsecured loans 134 144 450 924 511 Total debt 1,778 2,036 1,504 2484 2494 Deferred tax liability 220 251 270 323 324 Total Liabili1es 2,701 3,213 3,297 4913 6010 Applica1on
Gross block inc CWIP 2,328 2,662 2,999 3912 4867 Accumulated depreciaAon 691 806 921 1073 1180 Net Fixed Asset 1,636 1,856 2,078 2839 3687 Investments 26 18 20 20 20 Net current assets 1,002 1,293 1,150 1972 2210 Cash & bank balance 30 42 49 82 93 Miscellaneous expenses 7 4 -‐ -‐ Total Assets 2,701 3,213 3,297 4913 6010
• Demand for both the exisAng por{olio of Agri Input products as well as newly launched products remains strong. AddiAonally the following factors will help the Company to meet with its aggressive growth plans: • Strong budgetary / policy support to agriculture by the central government will translate into focus on higher
agricultural producAvity
• The Commission for Agricultural Pricing and Costs has prescribed hike in MSPs between 16-‐53% across 14 crops to be planted in the Kharif season. These MSPs will ensure assured earnings for the farmers enabling them to invest in right inputs for higher output
• While the upside of the two recently launched molecules shall come about in the present year, addiAon of few more new products to the por{olio will serve as growth driver
• Our focus on innovaAve products for agri input and custom synthesis remains central to our growth plan
• Company has signed 6 new agreements with their patent holders in insecAcide / herbicide / fungicide segments to evaluate their potenAal in the domesAc market. These products further add to the Company’s product pipeline and strengthen our product por{olio for the coming years
• The Company has a strong order book posiAon for custom synthesis exports. In addiAon the Company conAnues to work on pipeline of new products at different stages at R&D. The outlook remains robust owing to: • Growing por{olio of patented molecules • Demand for higher than commited volumes by custom synthesis customers due to increasing
registraAons in different countries • ConAnuous build up of pipeline at R&D stage • Facility at Jambusar SEZ to get operaAonal during the year • The manufacturing unit has also taken up a special project with the support of a reputed Consultants
towards operaAonal excellence. These iniAaAves would result in substanAal operaAonal efficiencies and hence margin expansion going forward.
• The company is also working on certain niche fine chemical areas, which can further strengthen the core strength of custom synthesis and manufacturing.
27
Outlook
About PI Industries Ltd. (PI) Incorporated in 1947, PI Industries (BSE: 523642, ISIN ID: INE603J01022) focuses on Agri-‐Input and Custom Synthesis with strength of over 1,100 employees, PI Industries currently operates three formulaAon and two manufacturing faciliAes as well as four mulA product plants under its three business units across Jammu and Gujarat. These state-‐of-‐art faciliAes have integrated process development teams with in-‐house engineering capabiliAes.
Agri-‐Input PI is one of India’s leading players in the Agri-‐Input industry, primarily dealing in agro-‐chemicals, specialty ferAlizers, plant nutrients and seeds. This venture is the flagship business (unit) for which PI enjoys tremendous brand recogniAon across several industry leading products. The Company has exclusive rights with several global CorporaAons for distribuAon in India and is constantly evaluaAng prospects to further expand its product por{olio. Given the inevitable surge in demand for food grain producAon in the agriculture sector, the opportuniAes for Agro-‐Chem Companies are innumerable. PI Industries is favorably posiAoned to contribute to the growth in this space by leveraging its long-‐standing associaAon with business partners and intensive network of distributors across India.
Custom Synthesis
The Fine Chemicals business unit of PI focuses on Custom Synthesis which entails dealing in custom synthesis and contract manufacturing of chemicals including techno commercial evaluaAon of chemical processes, process development, lab & pilot scale up as well as commercial producAon. The Company has an impressive product por{olio as result of exclusive Ae-‐ups with leading agro-‐chemical, pharmaceuAcal and fine chemical companies around the world. PI has made substanAal investments in building state of art process research and manufacturing faciliAes of chemical intermediates and acAve ingredients with special focus on strong process R&D capabiliAes. This business unit is expected to be the primary growth driver with strong revenue visibility as India conAnues to be a preferred desAnaAon for outsourcing Custom Synthesis and contract manufacturing related projects. With excepAonal growth opportuniAes in the offing this business segment is poised for great success.
For further informaAon please visit: www.piindustries.com
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About PI Industries
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Contact Details
Disclaimer: Certain statements in this document may be forward-‐looking statements. Such forward-‐looking statements are subject to certain risks and uncertain9es like regulatory changes, local poli9cal or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-‐looking statements. PI Industries Limited will not be in any way responsible for any ac9on taken based on such statements and undertakes no obliga9on to publicly update these forward-‐looking statements to reflect subsequent events or circumstances.
Mayur Maniyar/Siddharth Rangnekar CiAgate Dewe Rogerson Tel: +9122 6645 1220/1209 Fax: +9122 6645 1213 Email: mayur@cdr-‐india.com siddharth@cdr-‐india.com
Rajnish Sarna PI Industries Limited Tel: +91 124 6790000 Fax: +91 124 4081247 Email: [email protected]
For further informaAon, please contact:
PI Industries Ltd. Regd. Off.: Udaisagar Road, Udaipur – 313001 (Raj), India, Tel: + 91 294 2492451, Fax: +91 2491946 Corporate Off.: 5th floor, Vipul Square,B Block, Sushant Lok,Phase -‐ 1, Gurgaon www.piindustries.com
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