Best Agrolife Ltd. · NSE:BESTAGRO
Best Agrolife — Investor Presentation (October 2022)
46 slides from Best Agrolife's investor presentation, Oct 22, 2022
Slide 1: Investor Presentation Oct 2022
2022 Oct I N V E S TO R P R E S E N TAT I O N
Slide 2: Business & Financial Overview
BUSINESS & FINANCIAL OVERVIEW 03 COMPANY OVERVIEW 13 PRODUCTS & PROCESSES OVERVIEW 21 INDUSTRY OVERVIEW AND OUTLOOK 30 STRATEGIC ASSETS 33 BUSINESS STRATEGY B E S T A GR O L IF E L I MI T ED 42
Slide 3: Financial Overview: Ronfen, CTPR and Pyroxasulfone updates
FINANCIAL OVERVIEW 3 b e s t a g ro l i fe . c o m • RONFEN – Best’s Group first-of-its-kind proprietary ternary insecticidal combination got a very good response from all geographies . The response was better than expected & Ronfen’s success will give tremendous boost to Best Brand . It is a single
Slide 4: About Us
04 b e s t a g ro l i fe . c o m ABOUT US Q2FY23 FINANCIAL RESULTS HIGHLIGHTS Q2 & H1 FY23 – INCOME STATEMENT OUTLOOK PERFORMANCE OVER THE YEARS - HIGHLIGHTS PERFORMANCE OVER THE YEARS – P&L PERFORMANCE OVER THE YEARS – BALANCE SHEET
Slide 5: Financial Highlights and Credit Rating Upgrade
FINANCIAL OVERVIEW 5 b e s t a g ro l i fe . c o m Financial Highlights • Achieved highest ever REVENUE , EBITDA & PAT (RS . IN CRORE) Q2 FY23 Q2 FY22 Q1 FY23 H1 FY23 H2 FY22 REVENUE 700 324 464 1,164 669 Y-o-Y 116% 74% Growth Q-o-Q 51% EBITDA 183 35 66 248 71 Y-o-Y 418% 248% Growth Q-o-Q 177% EBITD
Slide 6: Net Revenue, EBITDA and PAT
FINANCIAL OVERVIEW 6 b e s t a g ro l i fe . c o m Net Revenue from EBITDA & PAT and Operations EBITDA Margin PAT Margin (RS . IN CRORE) (RS . IN CRORE AND %) (RS . IN CRORE AND %) PAT PAT Margin EBITDA EBITDA Margin 700 140 20.00% 19% 200 30.00% 18.00% 180 120 25.00% 160 26% 16.00% 20% 464 100 14.0
Slide 7: Q2FY23 Results
FINANCIAL OVERVIEW 7 b e s t a g ro l i fe . c o m (₹ IN CRORE) YoY QoQ PARTICULARS Q2 FY23 Q2FY22 Q1FY23 Growth Growth Q2FY23 • Revenue Growth of 51 % Q-O-Q & Revenue From Operation 700.03 324.4 115.9% 463.7 51% 115.9 % Y–O-Y • EBITDA Growth of 176.9 % Q-O-Q & EBITDA (₹) 182.5 35.23 418.1% 65.9 176
Slide 8: H1 FY23 Results
FINANCIAL OVERVIEW 8 b e s t a g ro l i fe . c o m (₹ IN CRORE) YoY PARTICULARS H1 FY23 H1 FY22 Growth H1 FY23 • Revenue Growth of 74 % Y–O-Y Revenue From Operation 1164.0 668.9 74.0% • EBITDA Growth of 248.4 % Y–O-Y EBITDA (₹) 248.4 71.2 248.9% • PAT Growth of 232.3 % Y–O-Y EBITDA (%) 21.3% 10.7% P
Slide 9: Revenue Growth 30%, EBITDA Margin 20%
9 b e s t a g ro l i fe . c o m Revenue Growth – 30% EBITDA Margin of 20% 1 2 3 4 Launch of new Ramping up Maximizing Building export & innovative distribution & backward business products with branded products integration to higher margins business improve efficiencies
Slide 10: Net Revenue, EBITDA, PAT and Net Debt
FINANCIAL OVERVIEW 10 b e s t a g ro l i fe . c o m Net Revenue from EBITDA & PAT and Net Debt and Operations EBITDA Margin PAT Margin Equity (RS . IN CRORE) (RS . IN CRORE AND %) (RS . IN CRORE AND %) (RS . IN CRORE) 200 16.00% 120 12.00% 350 330 1,316 180 14.00% 14.22% 300 8.64% 100 10.00% 160 12.
Slide 11: Performance Over the Years: P&L
FINANCIAL OVERVIEW 11 b e s t a g ro l i fe . c o m (₹ IN CRORE) H1 PARTICULARS FY20 FY21 FY 22 FY23 Revenue From Operation 758.14 990.75 1316.88 1164.0 • Revenue Growth of 32.91% in FY22 EBITDA (₹) 37.29 84.04 187.15 248.4 • EBITDA improved by 574 basic EBITDA (%) 4.92% 8.48% 14.22% 21.3% points in
Slide 12: Performance Over the Years: Balance Sheet
FINANCIAL OVERVIEW 12 b e s t a g ro l i fe . c o m (₹ IN CRORE) FY 20 FY 21 FY22 H1 FY 23 E Q UITY A ND LIA BILITIES Share Holders Fund 101.61 152.93 329.94 495.23 • Continued improvement in return N O N -CURRENT LIA BILITIES on capital and equity Long Term Borrowings 63.77 72.88 52.18 41.57 Other
Slide 13: About Us
013 b e s t a g ro l i fe . c o m ABOUT US WHAT IS BEST AGROLIFE BAL AT A GLANCE JOURNEY OF THE COMPANY TOP CLIENTELE DISTRIBUTION NETWORK AND BRANDS EXPERIENCED MANAGEMENT WITH DOMAIN KNOWLEDGE MANAGEMENT EXPERTISE
Slide 14: Ranked among top 15 agrochemical companies in India
COMPANY OVERVIEW 014 b e s t a g ro l i fe . c o m (Wholly Owned Subsidiary) B E S T A GR O GR O UP Ranked among top 15 agrochemical companies in India (Wholly Owned Subsidiary) A BSE-listed company, Best By keeping a farmer-centric BAL is technologically Agrolife (BAL) is among the top 15 approach
Slide 15: Best Agrolife at a Glance
COMPANY OVERVIEW 015 b e s t a g ro l i fe . c o m Best Agrolife Limited is among the Top 15 Agrochemical companies in India Best Agrolife happens to be 03 5,200+ 600+ Manufacturing Facilities Distribution Network across India Employees amongst one of the fastest Facilities Agrochemical companies in
Slide 16: Journey of the Company
COMPANY OVERVIEW 016 2010 2016 b e s t a g ro l i fe . c o m Formulations Technicals Acquisition • Setting of 1st Formulation Unit • Acquired state-of-the-art Technical manufacturing plant from “Arysta Life Science” a subsidiary of Platform Subsidiary (NYSE: PAH) 2017 2018 Best Brand New Products •
Slide 17: Company Overview
017 b e s t a g ro l i fe . c o m COMPANY OVERVIEW
Slide 18: BAL products coverage across India
COMPANY OVERVIEW 018 b e s t a g ro l i fe . c o m Management having a A large network of 5,200+ dealers cumulative experience of in India ensures adequate supply more than four decades J&K of the BAL products across states HP PB BAL products HR UT 12% Haryana DL coverage across India UP RJ 9% U.P 5
Slide 19: Management with cumulative experience of more than four decades
COMPANY OVERVIEW 019 b e s t a g ro l i fe . c o m Mr. P . N. Karlerkar Mr. Vimal Alawadhi Mr. Raajan Ailawadhi MANAGING DIRECTOR( Best MANAGING DIRECTOR EXECUTIVE DIRECTOR Crop Science Pvt Ltd ) A true visionary and a A Chemical Engineer from passionate entrepreneur, Mr Vimal Having a Degree of Bac
Slide 20: Management team of skilled professionals
COMPANY OVERVIEW 20 CA Atul Garg Ajit Gujral Davinder Dogra Mr. Sara Narsaiah CHIEF FINANCIAL HEAD – INSTITUTI ONAL PRESIDEN T – NATIONAL MARKETING b e s t a g ro l i fe . c o m OFFICER BUSINESS FINANCE & ACCOUNTS HEAD • Qualified CA with 15 years • Having rich and • A qualified Chartered • Mr Narsai
Slide 21: About Us
021 b e s t a g ro l i fe . c o m ABOUT US OUR BEST - SELLING PRODUCTS 12 UPCOMING PRODUCT 13 VALUE CHAIN AND DIVERSE RANGE OF PRODUCTS 14 PRODUCT REGISTRATIONS 17
Slide 22: Best-Selling Products: Insecticides
PRODUCTS AND PROCESSES OVERVIEW 22 b e s t a g ro l i fe . c o m DIRON PYMAX PYDON D I N O TEF URAN 2 0 % S G P YM E TR OZI NE 5 0 % W G P YR I P R OXYEN 5 % + D I A F ENTH IURON 2 5 % S E INSECTICIDE INSECTICIDE INSECTICIDE M ODE OF AC TION M ODE OF AC TION M ODE OF AC TION • It is a new • It is a
Slide 23: Best-Selling Products: Fungicides, PGR and Herbicides
PRODUCTS AND PROCESSES OVERVIEW 23 b e s t a g ro l i fe . c o m BESTLINE ZOXIT TUZO DONGLE P YR A C LOS TROB IN 2 0 % W G A Z O X YSTR OBI N 1 1 % + TI F LUZ A M IDE 2 4 % P A C LO B UTR AZ OL 4 0 % S C TE B UC O NAZ OLE 1 8 . 3 %SC FUNGICIDE FUNGICIDE FUNGICIDE PGR M ODE OF AC TION M ODE OF AC TIO
Slide 24: Upcoming Product: Tombo and Ronfen
PRODUCTS AND PROCESSES OVERVIEW 24 b e s t a g ro l i fe . c o m A n ew gen eration corn h erbicide Tembotrion e sh ows a fast efficacy in con trol of weeds .It is a post emergen ce h erbicide th at dissipates TOMBO rapidly in thAe first en viron ment kin dthtern at cau aryses an y crop combin ph yt
Slide 25: New CTPR Formulations and Pyroxasulfone technical
25 b e s t a g ro l i fe . c o m Two New Significant CTPR Formulations - Citigen TOMBO& Pyroxasulfone technical- Vistara LAUNCHED There is extensive usage of CTPR based products with a market size of + Rs 2000 cr Granted registration for the indigenous manufacturing of Pyroxasulfone technical u/s 9(
Slide 26: Manufacturing Process and Value Chain
COMPANY OVERVIEW 26 Manufacturing Process b e s t a g ro l i fe . c o m • BAL manufactures a wide range of products and each product has its own unique manufacturing process • The Company specialises in the manufacturing processes that mainly include chemical reactions of: (1/3) Hydrogenation Chlori
Slide 27: Technicals
COMPANY OVERVIEW 27 b e s t a g ro l i fe . c o m I N S E CT ICID ES Thiamethoxam Emamectin Lambda Bifenthirin Dinotefuron Diafenthuron Pymetrozine Imidacloprid P GR s Paclobutrazol Technicals Difenoconazole Thiophanate F U N GI C IDE S HE R B IC IDE S Metribuzin Penoxsulam Imazethapyr Pretilachlor
Slide 28: Formulations
COMPANY OVERVIEW 28 b e s t a g ro l i fe . c o m Key Insecticides: • Dinotefuran 20% SG New Patent Products • Pymetrozine 50% Development: • Imidacloprid 70% WG • Ronfen (Pyriproxyfen 8% • Thiamethoxam 12.6% + +Diafenthiuron 18%+ Lambda 9.5% ZC Dinoteforun 5% ) • Spiromesifen 22.9% SC • Tembotrione
Slide 29: Product Registrations
PRODUCTS AND PROCESSES OVERVIEW 29 b e s t a g ro l i fe . c o m Number of registration held Number of registration by BAL Group through International Distribution Partners for exports +396 67 13 Formulations registered Formulations registered Formulations registered for manufacture and for manufact
Slide 30: About Us: Industry Overview
30 b e s t a g ro l i fe . c o m ABOUT US INDUSTRY OVERVIEW AGROCHEMICALS – STRUCTURAL GROWTH DRIVERS
Slide 31: Agrochemical Industry Trends
INDUSTRY OVERVIEW AND OUTLOOK 31 Agrochemical Industry - b e s t a g ro l i fe . c o m Trends S E G M E N TAT I O N B Y P E S T I C I D E S 18% Fungicides Agrochemical Growing 16% 60% Sector Demand Herbicides Insecticides US$ 4.5 Billion in 2019 to Food security is compelling US$ 6.9 Billion in 2025
Slide 32: Structural Growth Drivers
INDUSTRY OVERVIEW AND OUTLOOK 32 Domestic industry expected to post 8-10% b e s t a g ro l i fe . c o m CAGR in the next few years I MP R O VING F A R M E C O N O MI CS Govt.’s thrust on doubling farmer’s income by 2022 via (a) higher MSPs for crops (average increase of 35% across crops in the last
Slide 33: About Us
33 b e s t a g ro l i fe . c o m ABOUT US STRONG MANUFACTURING CAPABILITIES GAJRAULA – UNIT GREATER NOIDA NEW LOCATION – J&K RESEARCH & DEVELOPMENT ENVIRONMENT HEALTH AND SAFETY/ EFFLUENT TREATMENT COMPETITIVE STRENGTHS ACHIEVEMENTS | NEWS UPDATE
Slide 34: Gajraula Unit: Manufacturing Facilities
STRATEGIC ASSETS 34 b e s t a g ro l i fe . c o m Manufacturing Facilities Quality Control and Assurance 03 50,000 Sq. M. • Quality Compliance - As per ISO 9001:2017,NABL Manufacturing Facilities Total Area in use Accredited labs with 100% quality compliance. • State of the art laboratory with fully
Slide 35: Gajraula Facility
STRATEGIC ASSETS 35 b e s t a g ro l i fe . c o m Gajraula location has both Technical & Formulation units but now focused more towards Technicals manufacturing with coming up new formulation unit at Greater Noida. GAJ R AULA 5,400 Sq. ft. 35,000 Sq. M. 20,000 Sq. M. 4.65 Mn KWH Advanced Formulation
Slide 36: Greater Noida Facility
STRATEGIC ASSETS 36 b e s t a g ro l i fe . c o m • Fully Automated formulation plants for – SC, SG, SE, ZC & GR with Integrated unit for new developments • Further increase in capacities by adding another formulation unit for Herbicides NOIDA 9,060 Sq. ft. 14,200 Sq. M. 5,000 Sq. M. Advanced Formul
Slide 37: New Location: Jammu and Kashmir (Agrico Chemicals)
STRATEGIC ASSETS 37 b e s t a g ro l i fe . c o m (Agrico Chemicals) J AM M U AND KAS HM IR • BAL has acquired Agrico Chemicals through a cash deal . Agrico Chemicals is situated at Phase-1, SIDCO Industry Complex, IGC Samba, Jammu & Kashmir. This acquisition of Agrico Chemicals will be beneficial f
Slide 38: Research & Development Overview
STRATEGIC ASSETS 38 b e s t a g ro l i fe . c o m Research & Development Overview • R&D Center Synthesis at Gajraula leading to development of quality and sustainable molecules. • Backward integration • Process improvement Pramod N. Karlekar • Make in India 45+ • R&D Center at Noida for new Dedicate
Slide 39: Regulatory compliance
STRATEGIC ASSETS 39 b e s t a g ro l i fe . c o m BAL is regulated by and is in compliant with: 1986 1981 1974 Environmental Air Act Water Act Protection Act (Prevention and (Prevention and Control of Pollution) Control of Pollution) 2008 1948 Hazardous Factories Act Other regulations Waste Rules by
Slide 40: Competitive Strengths
STRATEGIC ASSETS 40 b e s t a g ro l i fe . c o m Experienced Relationship with Novel Chemistry 360+ Formulation Promoters and Esteemed Clients Products & Patents & 80+Technical Management Team & Vendors Licenses Integrated In House NABL Wide Distribution Manufacturing Units Accredited QC Labs Netwo
Slide 41: PMFAI-SML Annual Awards
STRATEGIC ASSETS 41 b e s t a g ro l i fe . c o m PMFAI-SML Annual Awards Fastest Growing Company Best Agrolife Limited
Slide 42: About Us: Business Strategy
42 b e s t a g ro l i fe . c o m ABOUT US BUSINESS STRATEGY/PLAN TARGETING EXPORTS MARKETS
Slide 43: Business Strategy
BUSINESS STRATEGY 43 b e s t a g ro l i fe . c o m 01 02 03 04 05 Farmers First Further Brand R & D focus & Driving Expand Export Development Robust Product operational Business Pipeline efficiencies • Always focusing • Investments in • Focusing on • Maintaining • Establishing export to provide best
Slide 44: Targeting Export Markets
BUSINESS STRATEGY 44 b e s t a g ro l i fe . c o m Market Research Off Patent R&D, and Analysis Molecules IP-Creation Key initiatives taken by the Company to enter the exports markets Customer Registration Product Execution Selection Process in Market
Slide 45: Disclaimer: Safe Harbor Statement
45 Safe Harbor Statement b e s t a g ro l i fe . c o m Disclaimer This presentation includes certain forward-looking statements and information including statements concerning the outlook for the business. The statements are based on certain expectations, assumptions, anticipated developments and ot
Slide 46: For queries please contact
For queries please contact: EY IR PRACTICE Rahul Thakur T: +91 9833319957 | rahul.thakur@in.ey.com Vikash Verma T: +91 9664009029 |vikash.verma1@in.ey.com DISCLAIMER This presentation includes certain forward looking statements and information including statements concerning the outlook for business