E.I.D.-Parry (India) Limited · NSE:EIDPARRY
E.I.D.-Parry (India) — Investor Presentation (June 2010)
50 slides from E.I.D.-Parry (India)'s investor presentation, June 2010
Slide 1: E.I.D.-Parry (India) Limited Investor Presentation June 2010
Stronger… Greener… Bigger… E I D Parry (India) Limited E.I.D.- Investor Presentation June 2010 Making Sugar since 1846 0
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 3: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 2
Slide 4: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 3
Slide 5: E.I.D-Parry (India) Ltd - Overview
E.I.D- PARRY (INDIA) LTD - OVERVIEW Serving for more than 200 years…. Î Flagship company of Murugappa Group since 1981. Î Pioneers in: ► Sugar from 1842 ► Distillery from 1848 ► Sanitaryware from 1906 ► Fertilisers from 1906 ► Sugar Based confectionery from 1914 ► Biogas and Bio earth 1987 ► Bio-pes
Slide 6: Overview: Business under EID's fold
OVERVIEW BUSINESS UNDER EID’s FOLD Sugar Bio – Products Farm Inputs Sugar Cogeneration Distillery Refinery Phosphatic Bio – Pesticides Fertilisers & Nutraceuticals Tamil Nadu 32.5 LMT TCD - 19000 84.5 MW 135 KLPD & Puducherry Specialty Nutrients Andra 2000 TPD & Compost TCD - 5000 16 MW 45 KLPD Prad
Slide 7: Growing Facts
GROWING FACTS Capacity - Sugar Power Distillery Production (in LMT) -Phosphatic Fertilisers 250 35000 30.00 32500 230 26.26 30000 25.00 200 20.17 20.86 25000 21500 20.00 146 150 19000 135 20000 15.00 100 100 15000 100 85 10.00 10000 50 5000 5.00 0 0 - 2008 09 2008-09 2009 10 2009-10 2010 11 2010-11
Slide 8: Financial Facts
FINANCIAL FACTS Consolidated Gross Income Consolidated EBIT Rs crore Rs crore 12000 1800 909 1600 10000 1400 909 8000 8 1200 1000 8 6000 10424 800 4000 7748 23 118 600 4677 880 969 2000 400 118 2922 2802 23 391 200 256 225 0 0 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2005-06 2006-07 2007-08 2008-09 2
Slide 9: Segmental Revenue and EBIT
Segmental Revenue and EBIT FARM INPUTS SUGAR 12000 1000 Rs Crore 871 1400 168 200 10000 800 710 1200 150 8000 9613 1000 600 93 1148 100 6000 6429 800 47 394 400 31 50 4000 600 823 126 174 3835 200 642 759 0 2000 400 556 1899 2118 -50 50 0 0 200 -60 2005-06 2006-07 2007-08 2008-09 2009-10 0 -100 Note
Slide 10: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 9
Slide 11: Sugar – Demand & Supply
SUGAR – DEMAND & SUPPLY World Sugar (mln t) India’s Sugar Balance (mln t) Changes SS SS SS 2009/ 2008/ 2007- 2008- 2009- Particulars 10 09 in mln t in % Particulars 08 09 10 Production 158.2 151.8 6.4 4.2 Opening stock 10.9 10 4.4 Consumption 166.7 164.0 2.7 1.7 Production 26.3 14.6 18.5 S Surplus l
Slide 12: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 11
Slide 13: South India is good
South India is good…. Î Competitiveness in the Sugar Industry is driven by ► Mutual Inter-dependence between the Farmer & the Miller Combined Productivity (Farm Yields and Factory Recoveries) is the key Thus, Total Recovered Sugar as MT per Ha (ie Cane Yield in MT per Hectare times Recovery as T
Slide 14: South India is good: operating days and yield
South India is good…. Operating days & Off Season Yield and Recovery No. of . Off Season 120 14 State Operating Days Operation 11.44 12 100 10 35 10.35 Tamil Nadu 240 3 9.63 10 80 8.99 Karnataka 180 3 8 60 102.5 83.7 65.9 6 52.3 Maharastra 150 3 40 4 20 2 Uttar Pradhesh 140 8 0 0 * Off Season Operat
Slide 15: Long Duration Vs. High Recovery Mill areas
Long Duration Vs. High Recovery Mill areas TCD - 3500 No. of working days - 240 Long Recovery - 9.5% Only Colombia Duration Investments - Rs.210 Crs. Return on Investment - 20% TCD - 5000 No. of working days - 168 Short Recovery - 10.5% No Interest Duration Investments - Rs.326 Crs. Return on Invest
Slide 16: Why Tamil Nadu?
Why Tamil Nadu? Î Cane Productivity and Sugar recovery per unit area is highest Î Average farm size is less than a hectare and owned by highly progressive and hardworking farmers Î Geographically, Tamil Nadu has the advantage of good soil and abundant water Î Long o g crushing c us g season seaso of
Slide 17: Why Karnataka / AP?
Why Karnataka / AP? Location Advantage Recent Acquisitions Î High Recovery Zone of NW Karnataka I) SADASHIVA – Bagalkot (Karnataka) Bagalkot, Haliyal & Ramdurg Î 76% Shareholding Î Closer to major Indian sugar markets Î Capacity - 2500 TCD , 15.5 MW Î Less controls on Molasses and Alcohol than Î Deb
Slide 18: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 17
Slide 19: South India Presence
SOUTH INDIA PRESENCE Bagalkot TCD – 2500 Adllabad Cogen – 15.5 MW Karimnagar Vizianagaram Nizamabad Bidar Srikakulam Medak Sangareddi Warangal Khammam Vishakhapatnam Gulbarga Haliyal y Bij Bijapur Rangareddi East Godavari TCD – 3500 Nalgonda West Godavari Cogen – 24 MW Bagalkot Raichur Mahbubnagar G
Slide 20: Capacities and Operating Parameters
Capacities and Operating Parameters Sugar – 32500 TCD 2006-07 2007-08 2008-09 2009-10 2010-11 (Est) Nellikuppam 5000 5000 6000 6000 6000 Pugalur 4000 4000 4000 4000 4000 Pettavaithalai 2500 2500 3000 3000 3000 Pudukottai 3000 4000 4000 4000 4000 Puducherry 2000 2000 2000 2000 2000 Tamil Nadu & Puduc
Slide 21: Operating Parameters
Operating Parameters Particulars 2006-07 2007-08 2008-09 2009-10 2010-11(Est) Cane Registration(in acres) 107782 92261 97147 94553 173000 Yield % 39 39 36 33 36 Cane Crushed(in LMT) * 40.95 42.34 33.73 25.46 52 Recovery % 8.93 9.06 9.52 8.89 10.3 Sugar Production (LMT) 3.66 3.83 3.23 2.26 5.30 Proce
Slide 22: Cogeneration
Cogeneration Cogeneration - 146MW 2006-07 2007-08 2008-09 2009-10 2010-11* (Est) Nellikuppam 24.5 24.5 24.5 24.5 24.5 Pugalur 22.0 22.0 22.0 22.0 22.0 Pettavaithalai 20.0 20.0 20.0 Pudukottai 18.0 18.0 18.0 18.0 18.0 Tamil Nadu 64.5 64.5 84.5 84.5 84.5 Sankili 16.0 Andra Pradesh 16.0 Bagalkot 15.5 1
Slide 23: Distillery
Distillery Distillery – 230 KLPD 2006-07 2007-08 2008-09 2009-10 2010-11* (Est) Nellikuppam 40 40 40 75 75 Sivaganga 60 60 60 Tamil Nadu 40 40 100 135 135 Sankili 45 Andra Pradesh 45 H li l Haliyal 50 Karnataka 50 * Subject to completion of GMR acquisition, expected by August 2010 2010 -11 Inclusive
Slide 24: Level of Integration
Level of Integration Baggasse utilisation (%) towards integration 100% 92% 90% 89% 80% 79% 70% 72% 60% 52% 50% 40% 2006-07 2007-08 2008-09 2009-10 2010-11 E Molassess utilisation (%) towards integration 120% 100% 100% 80% 60% 69% 40% 22% 31% 20% 0% 2007-08 2008-09 2009-10 2010-11 E Making Sugar sinc
Slide 25: Recovery Improvement – Action Taken
Recovery Improvement – Action Taken Clean Cane Management– Trash % to be less than 3% Increasing the coverage of HSV by introducing of Parry and Govt. Logistics Variety through Parry's Parry s breeding Management program Optimum Utilization during Peak recovery by balancing the Cane supply pp y and
Slide 26: Higher Crushing & Higher Recovery
Higher Crushing & Higher Recovery 140,000 11.3 12 10.9 10.5 120,000 9.6 9.3 10 8.6 9.0 8.7 10 1 10.1 100,000 8.5 8 8.3 80,000 6 60,000 4 40,000 2 20,000 0 0 OCT DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Cane Crushed (MTs) Recovery (%) Higher Investments in Sugar will enable Crushing during peak period
Slide 27: Farmer Relations
Farmer Relations Integrated System from Cane Registration to Payment at Rural banks Cane weighment & Command Area payment alert Through SMS 100% Drawal Automated display In House ERP Cane weighment system On factory solution On time Payment – Cane C gate Management All the Time System, SAP wireless
Slide 28: Farm Labour Relations
Farm Labour Relations Î Parry Service Kiosks (PARRY MAYYAM) Timely Supply Î Harvesting / Transport Labourers of Cane Insurance Î Mechanisation of Cane harvesting Î Centralised cane payment by e-mode… Higher Yield payment lead time reduced by 3 days Making Sugar since 1846 27
Slide 29: Segment-wise – Last 6 years
Segment-wise – Last 6 years 100% 90% 80% 70% 56% 72% 69% 69% 60% 77% 86% 50% 40% 19% 30% 4% 2% 8% 20% 2% 0% 26% 27% 25% 10% 21% 23% 14% 0% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(Est) Institution Retail Others(Export, Levy, Trade, Rake) Making Sugar since 1846 28
Slide 30: Our Certifications
Our Certifications Halal ISO 9001-2008 Kosher I di Indian Pharmacopoeia Ph i US Pharmacopoeia Ph i B iti h Pharmacopoeia British Ph i Making Sugar since 1846 29
Slide 31: Working With
Working With Cane Growing Milling Marketing Î Mitr Phol – Thailand Î SPRI – USA Î Cargill Î CTC – Brazil Î SRI – Australia Î Sucden Î ICSB Î Mitr Phol – Thailand Î Czarnikow Î ISSCT Î TLPT – UK Î Honeywell Tech. Î IPRO – Germany Î ISSCT Making Sugar since 1846 30
Slide 32: Silkroad Sugar… An Innovative Business Model
Silkroad Sugar… An Innovative Business Model REACHING OUT BEYOND TRADITIONAL FRONTIERS……….. FRONTIERS Making Sugar since 1846 31
Slide 33: Silkroad Sugar Pvt Ltd
Silkroad Sugar Pvt Ltd Why Refinery in India? Capacity & Investments Î Destination Refinery concept Capacity levels ► Refined Sugar – 2000 TPD (Annual ► Logistical Advantage in transportation of Raws and refining at destination capacity p y of 0.60 mn MT)) ► Power – 35 Mwh Why Silkroad ? ► Exportabl
Slide 34: EID - Investment Trend in Sugar
EID - Investment Trend in Sugar Rs Crore Rs. Investment 05-06 06-07 07-08 08-09 09-10 10-11 (Est) Total g Facilities Existing 102 116 91 297 82 40 728 Puducherry Unit 56 56 Silkroad Sugar 4 46 36 14 99 Sadashiva 50 50 GMR 110 110 Total 102 176 137 333 146 150 1043 Note: Î B Benefits fit to t accrue
Slide 35: Consolidated Operation – Minimise Cyclicality
Consolidated Operation – Minimise Cyclicality 120 107 3 100 100 9 Rs Cr 23 80 36 63 60 14 40 80 55 49 20 0 Peak Mid Trough Sugar Cogen Distillery Î Low Cane Î High Cane Î High sugar price Î Low sugar price Î Mid - Base 100 Î Peak/Trough - Represented in terms of Mid 34 Making Sugar since 1846
Slide 36: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 35
Slide 37: Nutraceuticals
Nutraceuticals Global Nutraceutical Segments Parry Nutraceuticals “Product portfolio” Astaxanthin Beta carotene Herbal Lycopene formulations L t i Lutein Parry Nutraceuticals Nutraceuticals Fenugreek Organic Galactomanon Spirulina EPA /DHA Global Ingredient market size - $ 27 Billions Global Nutriti
Slide 38: Products and Opportunities
Products and Opportunities….. Organic Spirulina Current market - $ 7.5 Mi. Parry share - $ 3.35 Mi. CAGR - 2% Astaxanthin Current market - $ 35 Mi. Parry share - $ 2.46 Mi. CAGR - 7% Lutein Current market - $ 139 Mi. Parry share - $ 1.47 Mi. CAGR - 9% Lycopene Current market - $ 58 Mi. Parry share -
Slide 39: Life Sciences – Business Model
Life Sciences – Business Model Participation in this segment will multiply the Value of the business Valensa IP / Science based products Dietary Supplements Food & Beverage Brand / Formulations Cosmeceutical Retail Pre-Mixes Life Science Health condition products backed by Oleoresins IP / Science Bi
Slide 40: Nutraceuticals - Financials
Nutraceuticals - Financials Rs. Crore Description 06-07 07-08 08-09 09-10 SALES 11.20 17.19 29.14 37.47 PBIT 1.30 1.37 0.13 2.05 CAPITAL EMPLOYED 24.34 32.76 49.09 47.46 INVESTMENTS PHTYO REMEDIES (2007-2010) 2.13 VALENSA (2008-2011) 48.10 TOTAL 50.23 Making Sugar since 1846 39
Slide 41: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 40
Slide 42: Bio - Business
Bio - Business Multi discipline R&D 1994 Main a Plant a t Raw material – P d td Product development l t Neem Seed Registration India/Abroad Demonstration Market Test Marketing Concept selling Exports 28 countries Making Sugar since 1846 41
Slide 43: Market Est. for Bio pesticides
Market Est. for Bio pesticides Global Bio control & Synthetic pesticide market est. – Million $ * Particulars 2004 2010 AAGR% Bio control market est. (Mn $) 562 1075 9.9 % Synthetic pesticide. (Mn $) 26600 24205 -1.5 % Total 27162 25280 -1.1 % Biopesticide % of Total 2.07% 4.25% BT based Others, Mic
Slide 44: Bio biz…so far
Bio biz…so far Î Achieved maximum production of 5550 Kg (Name plate capacity 7000 kg) and sale of 5300 kg so far in a year. Î Obtained product p od ct registration egist ation in over o e 32 countries co nt ies with ith Brazil, B a il S Korea, Ko ea Australia and Japan developing into new high volum
Slide 45: Bio – Pesticides Financials
Bio – Pesticides Financials Description 06-07 07-08 08-09 09-10 Sales Quantities Total Technical(in Kgs) 3928 5129 4900 4319 Abda MT 30 147 509 Sales Value (Rs. Cr) 26.27 30.60 36.36 36.26 PBIT(Rs. Cr) 2.93 5.92 7.17 5.61 Capital Employed(Rs. Cr) 36.89 36.37 46.39 50.56 Making Sugar since 1846 44
Slide 46: Agenda
Agenda Î Company Overview Î Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar g in South India ► EID – Sugar Business Î Bi Products Bio P d t Business B i ► Nutraceuticals ► Bio Pesticides Î Consolidated Financials Making Sugar since 1846 45
Slide 47: Financials Snapshot: Consolidated
FINANCIALS SNAP SHOT: CONSOLIDATED Revenue Rs. Crore 12000 10000 8000 6000 10158 7551 4000 4409 2000 0 FY 07-08 FY 08-09 FY 09-10 Sales incl Govt. Subsidies EBT PAT 1675 954 2000 1000 1500 909 850 800 567 8 393 1000 289 600 7 500 766 842 400 289 105 387 200 386 0 105 FY07‐08 FY 08‐09 FY09‐10 0 FY07‐
Slide 48: Financials Snapshot: Consolidated
FINANCIALS SNAP SHOT: CONSOLIDATED Operating Margin % Return on Equity 09-10 12.51% 09-10 22% 08-09 8.45% 08-09 24% 07-08 8.37% 07-08 10% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 0% 5% 10% 15% 20% 25% 30% Long Term Debt : Equity Return on Capital Employed 09‐10 0.32 2009-10 17% 08‐09 0.27
Slide 49: Investor Co-ordinator
Investor Co-ordinator For further information, please contact: P Gopalakrishnan P. Gopalakrishnan, Vice-President (Finance) E.I.D. - Parry (India) Limited, Dare House, 234 NSC Bose Road, Chennai – 600 001. Tel: +44 – 2530-6789 Email: gopalakrishnan@parry.murugappa.com Website: www.eidparry.com Quart
Slide 50: Stronger… Greener… Bigger…
Stronger… Greener… Bigger… Making Sugar since 1846 49
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