Jain Irrigation Systems Limited · NSE:JISLDVREQS
Jain Irrigation Systems — Investor Presentation (March 2011)
28 slides from Jain Irrigation Systems's investor presentation, March 2011
Slide 1: Corporate Presentation – More Crop Per Drop
CORPORATE PRESENTATION “More Crop p Per Drop” p March – 2011
Slide 2: Disclaimer
Disclaimer The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Jain Irrigation Systems Limited (the “Company”) to you solely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon by any ot
Slide 3: Founder: Dr. Bhavarlal Jain (Bhau)
Founder: Dr. Bhavarlal Jain (Bhau) Born in a farmer’s family in the tiny village (Wakod, Jalgaon) Founder Chairman began in 1963 as trader in agriculture inputs and equipments 3
Slide 4: Jain Irrigation – Snapshot
Jain Irrigation – Snapshot Introduction Financial Snapshot (Rs Mn) Shareholding 40,000 8,000 Others • One of India’s leading agriculture 34,397 11.4% Promoter & 35,000 7,000 MF Promoter solution providers with presence 28,707 7,002 30,000 6,000 2.6% Group across the agro agro‐business business value
Slide 5: Business Overview
Business Overview 5
Slide 6: Jain Integrated Model
Jain Integrated Model Hi‐tech Agri Inputs elopment ductivity • Enhanced Productivity eased • Conservation of Resources • Cost Savings duct • Sustainable Environment Drip & Sprinkler Irrigation Deve Incre Prod Prod Watershed Planning Tissue Culture Plants Water harvesting Fertilizers Soil/Water Savin
Slide 7: Local Presence – Difficult to Replicate
Local Presence – Difficult to Replicate State Plant Offices Depots Dealers Maharashtra 3 16 9 1,164 Andhra Pradesh 3 24 5 262 Karnataka ‐ 4 2 234 Gujarat 2 5 2 207 Madhya Pradesh ‐ 1 3 161 Tamil Nadu 1 6 3 78 Rajasthan ‐ 3 4 71 Other States ‐ 21 11 365 Total 9 80 39 2,542 7
Slide 8: Sales & Service – Global Network
Sales & Service – Global Network Region Plant Offices N hA North America i 6 3 Europe 3 4 Share of Revenue South America 2 1 FY2010 % Australia 1 ‐ India 22,188 65 Middle East 2 2 Europe 4,110 12 Africa ‐ 1 North America 3,934 11 Asia (excluding India) ‐ 2 Rest of World 3,968 12 Total 14 13 Total 34
Slide 9: Diverse Revenue Stream
Diverse Revenue Stream (Rs Million) FY 2008 FY 2009 FY 2010 CAGR ‐ 3YR Micro Irrigation 11,271 15,084 18,722 28.9% Piping Products 6 599 6,599 7 320 7,320 8 361 8,361 12 6% 12.6% Agri Products 3,037 3,701 5,015 28.5% Other Products 1,996 2,957 2,424 10.2% Total 22,903 29,062 34,522 22.8% India 56.4%
Slide 10: Human Resources.. Strong R&D focus
Human Resources.. Strong R&D focus As on January 2011 Distinctive Features Functional breakup for India No. of Associates % • High rural ethos Production 3,311 51 • Over 900 agriculture professionals Marketing & Sales 1,685 26 • U i i Unionism i absent is b t ((exceptt in i Naandan) N d ) General Ad
Slide 11: Supportive Government Policy Framework
Supportive Government Policy Framework Budget Support National Mission on Micro Irrigation • Four pronged strategy for agriculture development • Initial outlay of Rs 80 billion with focus on: • Subsidy by Central Govt. to the extent of o agriculture production, o reduction in wastage of produce, pro
Slide 12: Business Profiles
Business Profiles 12
Slide 13: Micro Irrigation – Global Opportunity
Micro Irrigation – Global Opportunity B Benefits fi off MIS P Potential i l iin IIndia di • MIS facilitates increase in land productivity, Feasible Irrigated Area improved soil conditions and savings on energy, 62 Mn Ha fertilizers and water. • Demand for agriculture equipments would have reached US
Slide 14: Micro Irrigation – Water Management Solution
Micro Irrigation – Water Management Solution Application of water to root zone through specially designed system to provide as much as crop needs A Average Lif Life off Micro Mi Irrigation I i ti System S t ‐ 3‐7 3 7YYears 14
Slide 15: Micro Irrigation
Micro Irrigation Products and Services Industry • Drip Irrigation systems • Globally of the total 276.2 mn ha irrigated area, only • Sprinklers Irrigation systems 14% is under MIS • Precision farming like Greenhouses and polyhouses • In India, of the total 62 mn ha irrigated area, only 5 mn • Adviso
Slide 16: Piping Systems
Piping Systems Products d and d Services i Industry • PVC Pipes and fittings • PVC pipes and fittings achieved a sales of 59,400 MT • PE Pipes and fittings sales in 2008 against a capacity of 59,800 MT • Turn Keyy Projects j • One of primary usage of PVC pipes is irrigation incl incl. MIS • India’s
Slide 17: Agro Processing
Agro Processing Prod cts Products Ind str Industry • Onion and vegetable dehydration • Agro processing has grown ~14% and contributes 10% • Fruit processing of India’s manufacturing GDP and 13% of India’s exports • FarmFresh, Chef William and Sleaford brands • India s total food market turnover is o
Slide 18: Other Businesses
Other Businesses • Renewable Energy 3‐Year Snapshot o Solar Thermal water heaters o Solar powered pumping systems o Solar Photo‐voltaic lighting 10.2% 2,957 • Tissue Culture 2,424 8.7% o Banana contributes to 37% of India’s total fruit production (Source: ICRA Management Consulting 7.0% S i Services
Slide 19: Key Strategies and Recent Developments
Key Strategies and Recent Developments 19
Slide 20: Key Business Strategies
Key Business Strategies 1 Continue our expansion of micro irrigation products in India Expanding into new growth products and markets and continue focus 2 on agricultural value chain Focus on financial management and synergies of creating an affiliated 3 financing entity 4 Maintaining our cost compe
Slide 21: Growth Drivers & New Initiatives
Growth Drivers & New Initiatives Growth Drivers New Initiatives • Micro Irrigation in India with focus on states like • Micro Irrigation on Pulses & Paddy Maharastra, Karnataka, Gujarat, Rajasthan, Him achal Pradesh and Haryana • M More focus f on Cotton C tt and d Oil seeds d application li ti • Mi
Slide 22: Key Decisions in Recent Board Meeting
Key Decisions in Recent Board Meeting 1 DVR Bonus Issue • 1 DVR shares for every 20 Equity Share held (with 10% Voting Rights) • To establish trading market for DVR shares • Facilitate future fund raising 2 Further Issues (approved by shareholders on Mar 9, 2011) • Equity Warrant Issue to Promoters
Slide 23: NBFC… Facilitate the MIS business
NBFC… Facilitate the MIS business Current Funding Structure Proposed Structure Cost for Farmer Cost for Farmer 30‐50% paid by 50‐70% Govt. 15‐50% paid by 50‐70% Loan Farmer Subsidy Farmer from NBFC Paid on Delivery Credit Period by Repaid from Govt. Paid on Delivery to JISL JISL/Dealer Subsidy in 6‐
Slide 24: Financial Overview
Financial Overview 24
Slide 25: Financial Snapshot - Consolidated
Financial Snapshot ‐ Consolidated Net Income Operating Profit 34,397 7,002 28,707 22,529 4,541 3,843 FY 2008 (Restated) FY 2009 FY 2010 FY 2008 (Restated) FY 2009 FY 2010 Profit for the Year Net Debt* 2,476 19,395 16,995 1,324 11,720 1,294 FY 2008 (Restated) FY 2009 FY 2010 FY 2008 (Restated) FY 200
Slide 26: Micro Irrigation – Subsidy Administration & Cash-To-Cash Cycle
Micro Irrigation – Subsidy Administration & Cash‐To‐Cash Cycle Collection Cycle Subsidy Administration Farmer submit the application to IA. IA scrutinize the application Avg. Cost A C t (Per Ha) ~US$1,000 Dealer assess the crop water requirement, design the system, prepare cost estimate Subsidy‐50%
Slide 27: Investment Highlights
Investment Highlights Strong Brand and Leadership Position in its businesses in India Total Solution Provider across the Agriculture Value Chain Diverse Revenue Streams Flexible and Scalable business model Wide dealer and distribution network Experienced Management Team and Pool of Agriculture profe
Slide 28: Thank You
Thank You 28
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