Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Investor Presentation (May 2013)
31 slides from Coromandel International's investor presentation, May 2013
Slide 1: Investors Presentation
Investors Presentation May 2013 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words contains “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: Contents
Contents Coromandel Company Snapshot 4 Coromandel Fertilizer Business 7 Specialty Nutrients Business 17 Crop Protection Business 22 Retail Business 26 Financial Performance 29 3
Slide 4: Company Snapshot
Company Snapshot Coromandel Share in • Coromandel International Limited, Murugappa Group established in 1961 is the flagship Turnover company of the 4.13 Billion USD 59% 41% Murugappa group Coromandel Otheres • Coromandel is India‟s second largest producer of Phosphatic Fertilizers EBITDA • In FY201
Slide 5: Business Structure
Business Structure Sales EBITDA Phosphatic DAP Fertilisers Complex Fertilisers /SSP/MOP 90% 70% G-Sulphur Specialty Water Soluble Fertilisers Nutrients & Coromandel Compost Organic Manure Technicals 10% 30% Crop Protection Formulations Agri Inputs Retail Agri Services 5
Slide 6: Strategic Direction
Strategic Direction Farm Inputs Business Fertilisers Non Subsidy Businesses Sourcing Cost Marketing Leadership Strength • Specialty Nutrients/ Water Strategic Alliances in • Low cost • Wider reach and Soluble Sourcing – manufacturer of penetration Fertilisers/Micro • Long Term tie-up with Phos acid
Slide 7: Coromandel's Fertilisers Business
Coromandel‟s Fertilisers Business 7
Slide 8: Coromandel Fertiliser Business Growth Story
Coromandel Fertiliser Business Growth Story C Train Expansion LIBERTY SSP acquisition 50 Lac Mt 8
Slide 9: Global Strategic Alliances
Global Strategic Alliances Pact with QAFCO for supply of Urea and Ammonia 9
Slide 10: State of The Art Manufacturing Facilities
State of The Art Manufacturing Facilities • Plants are strategically located in highly • High capacity utilisation levels & irrigated southern Indian states and in continuous modernisation of facilities heart of fertilizer consumption market – • Backward integration into low freight cost manufacturi
Slide 11: Tie ups for Phosphoric Acid
Tie ups for Phosphoric Acid Million MT Captive Production 0.23 Supply contracts with FOSKOR, ICL , GCT and PhosChem 0.60 New JV TIFERT 0.20 Spot Buying 0.20 Total 1.23 Acid tie up of 1.2 million Mt can cater to 4 million Mt Production of fertilisers Coromandel has successfully concluded Business Ass
Slide 12: Cost Leadership
Cost Leadership Visak Production (Million Mt) Visak Plant Captive Phos Acid 1.05 1.00 • Continuous de-bottle necking to increase production levels 0.94 0.91 0.98 • Value gap - imported Vs own acid 0.70 0.74 0.70 • Increased Gypsum generation • Use of various sources /grades of rocks • New belt filte
Slide 13: Marketing Network
Marketing Network West Bengal (WB) Factory Orissa (OR) Andhra Pradesh (A.P) Karnataka (KN) Maharashtra (MH) Madhya Pradesh (MP) Wholesaler & Chattisgarh / Distributor Tamil Nadu (TN) PDO Semi Wholesaler / Dealer Visak Retailer Kakinada / Sub Dealer Ennore Ranipet Farmer 13
Slide 14: Acquisition of Liberty Phosphate Group
ACQUISITION OF LIBERTY PHOSPHATE GROUP
Slide 15: Transaction Structure
Transaction Structure • Entered into a Share Purchase agreement for acquisition of upto 56.28% of stake from Promoters of LPL at Rs.241 per share • Consequently propose to make open offer for 26%of share capital • Entered into a Share Purchase agreement for acquiring 100% promoter stake of LUL and e
Slide 16: Acquisition rationale
Acquisition rationale • Will expand geographic footprint and strengthen leadership of Coromandel with ~5.0 MMT Capacity • Plants strategically located close to consumption centers and raw material source • Enable Coromandel to provide a better value proposition to the farmer by expanding the product
Slide 17: Specialty Nutrient Business
Specialty Nutrient Business 17
Slide 18: Speciality Nutrients Division (SND)
SPECIALITY NUTRIENTS DIVISION (SND) G-SULPHUR Micronutrients Organic Compost WSF GROMOR SULPHUR GROMOR SPRAY Boron Zinc GROMOR POWER Sulphozinc 18
Slide 19: Basics of Water Soluble Fertilisers
Basics of Water Soluble Fertilisers What is Water soluble fertilizers? How to use Water soluble fertilizers? •100% water soluble •Available in double and multi nutrient •Foliar application combinations with or without secondary •Fertigation (with Drip) elements or micronutrients. •Available in the P
Slide 20: Sulphur and WSF Business
Sulphur and WSF Business SQM JV commissioned 2011 20
Slide 21: SND & Organic Fertiliser Business
SND & Organic Fertiliser Business Bentonite Sulfur Record turnover of Gromor Sulfur with y/y growth of 14%. Organic Compost Volumes (Mt) Continues to be the market leader despite adverse market conditions WSF 178,758 159,169 New WSF plant under JV with SQM commenced operations 119,276 Both W
Slide 22: Crop Protection Business
Crop Protection Business Coromandel (A
Slide 23: Pesticide consumption
Pesticide consumption Kg/ha Crop losses in India range from 10% to 30% each year depending upon the severity of pest attacks. India’s per hectare consumption of pesticide is 381g vs. the world average of 500g. Only 25-30% of total cultivated area in the country is under pesticide cover.
Slide 24: Crop Protection business
Crop Protection business • Wider range of Technicals 2011 • Increased Global presence and registration 2010 Sabero Acquisition • Strong distribution with own retail Acquired Pasura Bio outlets 2009 Tech – Jammu Unit II 2006 Expansion to Latin America Acquisition of FICOM and setting 1990’s up Jammu
Slide 25: Initiatives
Initiatives Operational Initiatives Jammu • Expansion of technical plant capacity at Ankleshwar • Export to more countries & increase the reach • Focusing on high margin super specialities • Leveraging on retail network in AP & Accelerated growth plan in all states Strategic Initiatives • Acquired S
Slide 26: Mana Gromor Centers (MGCs) - Retail
Mana Gromor Centers (MGCs) - Retail 26
Slide 27: Retail Business - Rationale
Retail Business - Rationale Viable Alternative • Develop Distribution Channel for Coromandel • Reduce Dependency on Distributors • Supply Products and Solutions to improve earning capabilities of farmers Earning Capabilities • Thereby improve their lifestyle • Provide Marketing Solutions for farm Ma
Slide 28: Retail Business Overview
Retail Business Overview • Over 508 centers in Andhra Pradesh and 102 centers in Karnataka- servicing close to 2 million farmers • Expanding to Maharashtra soon • Targeting 1000 centers Products & Service Offerings Veterinary Other Crop Fertilisers Seeds SND FMS Agri Protection Feed Services Providi
Slide 29: Financial Performance
Financial Performance Coromandel = t - \ AG \
Slide 30: Financial Performance
Financial Performance Turnover ( Mio $) EBIDTA (Mio $) & EBIDTA % Extra Ordinary Item PY Subsidy 2,051 2,048 EBITDA before PY Subsidy & EO Items EBITDA % 1,676 250 10.3% 14.0% 1,573 10.9% - 1,360 10 200 11.7% 50 12.0% 10.3% 941 35 - 10.0% 150 - - 7.3% 55 20 7.8% 8.0% 459 100 - 212 7.31% 182 150 6.0%
Slide 31: Thank You
THANK YOU 31
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