Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Investor Presentation (January 2020)
30 slides from Sumitomo Chemical India's investor presentation, January 2020
Slide 1: Sumitomo Chemical India Limited Investor Presentation
Sumitomo Chemical India Limited Investor Presentation January 2020
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Leading Agrochemicals Player in India
Leading Agrochemicals Player in India Overview Diversified Product Portfolio & Segment Mix (FY19) 6% Incorporated in 2000 as a wholly owned subsidiary of SCC, Japan to drive ASD expansion of its Health & Crop Sciences business in India AND & EHD Primarily engaged in manufacture and sale of specialit
Slide 4: Stronger Together
Stronger Together Formidable Player in the Journey to 10x Growth Merger of Excel Crop Care Indian Agrochemicals Space in India Unlocking Value Autonomous Board with Vast To Benefit from Strong Industry Experience Parentage of SCC Japan
Slide 5: Formidable Player in the Indian Agrochemicals Space
Formidable Player in the Indian Agrochemicals Space Grown 10X* over FY11-19 Rs. Bn 5 190+ 10X Manufacturing Brands 22 Facilities 10+ 25+ / 200+ Technical Actives Patents / Registrations 2 13,000+ 1,500+ FY11 FY19 Distributors Employees *On an organic basis, grown 6X 5
Slide 6: Journey to 10x Growth in India
Journey to 10x Growth in India Exploration Phase: 2000 – 2009 Manufacturing JV with New Acquired product - 2000 Chemi 2002 Started EHD (Public Health) 2005 ‘Sulfosulfuron’ Leader 2010 business rights from Monsanto Started Animal Nutrition SCIL incorporated in India as 2001 Started ASD business 2003
Slide 7: Merger of Excel Crop Care to Unlock Value
Merger of Excel Crop Care to Unlock Value Pre-Merger Structure Post-Merger Structure SCC and its affiliates Public Shareholders (Japan) 44.98% SCC and its affiliates Public & Others (Japan) 35.03% Excel Crop Care (ECC) 100.00% 19.98% 80.3% 19.7% Sumitomo Chemical India Limited • SCIL issued shares t
Slide 8: Well-diversified Platform of Scale (1/2)
Well-diversified Platform of Scale (1/2) Parameter ECCL SCIL (Pre-Merger) SCIL (Post-Merger) Manufacturing Facilities Plants in Gujarat (2) and Plant in Maharashtra (1) and Dadar & Nagar Haveli (1) Gujarat (1) 5 plants in West India Predominantly a formulation Manufacturing Capability Presence in bo
Slide 9: Well-diversified Platform of Scale (2/2)
Well-diversified Platform of Scale (2/2) Parameter ECCL SCIL (Pre-Merger) SCIL (Post-Merger) Product Capability Major focus on Generics; nascent Major focus on Speciality Presence across complete presence in Biopesticides Products range of products Business Segments Presence only in agrochemical Pre
Slide 10: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Chetan Shantilal Shah Chairman and Independent Director Managing Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ Commerce graduate from the University of Mumbai and the National University of Singapor
Slide 11: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Bhupendranath Bhargava Preeti Gautam Mehta Independent Non-executive Director Independent Non-executive Director ▪ Experience of over 50 years in areas including banking, ▪ 30 years of experience in corporate laws, foreign investment project financing a
Slide 12: To Benefit from Strong Parentage of SCC Japan
To Benefit from Strong Parentage of SCC Japan About SCC, Japan ✓ SCC is a leading Japanese research driven diversified chemical company listed on the Tokyo Stock Exchange with consolidated sales revenue for FY19 of US$ 20.8 bn and Health & Crop Sciences Sector of US$ 3.4 bn ✓ Offers diverse range of
Slide 13: Sustainable Drivers for Growth
Sustainable Drivers for Growth Diversified & De-risked Strategically Located Strong Focus on R&D and Portfolio Across the Agro- Manufacturing Facilities Process Innovation Chem Value Chain Strong Brand and Well- Expanding Brand Visibility Well placed to benefit from Entrenched Distribution and Conne
Slide 14: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Balanced Presence Across Key Sub-Segments Geographic Diversification with Exports to over 60 countries of the Agro-Chem Value Chain Insecticides 6% 4% North America 8% 8% Herbicides South America Domestic 16% PGR 8% 78% Europe Metal
Slide 15: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs - Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Bhavnagar ~76 and Formulation Development Pr
Slide 16: Strong Focus on R&D and Process Innovation
Strong Focus on R&D and Process Innovation End-to-End Product Development Capabilities ✓ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development ✓ R&D Team comprises of 75+ qualified and dedicated engineers &
Slide 17: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories 23 States 68 Depots ✓ Dual brand portfolio can offer products at all price points serving multiple customer sub-segments 13,000+ ~40,000 ✓ In-depth knowledge of own res
Slide 18: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,400+ Relationship managers connecting to 1 million+ farmers throughout crop cycle ✓ Over 100 brands covering maximum of crops and
Slide 19: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. ✓ Our Digital Assets : 17 websites, currently driving about 6,342 visitors everyday. YouTube - Advantage http://www.danitolindia.com/ http://www.naturedeep.in/ I
Slide 20: Well Placed to Benefit from Sector Tailwinds
Well Placed to Benefit from Sector Tailwinds Pesticides: Market Share by Segment Highly Underpenetrated Market Significant growth opportunity for Indian Players 5% Pesticide Consumption (Kg/ha) Agrochemical Market Size (US$ bn) 1% 22% 13 12 +8% 8.1 47% FY18 7 4.1 5 5 25% <1 Insecticides PGR Fungicid
Slide 21: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Abiding by SCC Japan’s EHS Policies ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapu
Slide 22: Growth Strategies & Financial Performance
Growth Strategies Performance Highlights Growth Strategies & Financial Performance Profit & Loss Account Balance Sheet Cash Flow
Slide 23: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining highest safety stan
Slide 24: Performance Highlights
Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) 11.3% 11.9% +16% 300 264 12 +14% 2,212 166 1,913 250 217 10 145 200 8 150 6 100 4 50 2 ✓ Combined entity ~2x in size 0 0 FY18* FY19 FY18 FY19 FY18 FY19 ✓ Net debt free balance sheet ✓ Strong margin profile main
Slide 25: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) H1 FY20 H1 FY19* YoY FY19 FY18 YoY Net Revenue from Operations 1,454.5 1,369.0 6.2% 2,211.7 1,912.9** 15.6% COGS 961.5 883.9 1,458.9 1,238.7 Gross Profit 493.0 485.1 1.6% 752.8 674.2 11.7% Gross Profit % 33.9% 35.4% 34.0% 35.2% Emplo
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Sep-19 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Sep-19 Mar-19 Mar-18 Non-Current Assets 359.1 318.6 312.7 EQUITY 1,214.8 1,048.4 954.0 Property, Plant and Equipment 283.7 277.2 264.8 Equity Share Capital 274.6 274.6 274.6 Capital work-in-progress 4.5 3
Slide 27: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (Rs. Cr) Sep-19 Mar-19 Mar-18 Net Profit Before Tax 224.2 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 21.0 18.6 9.6 Operating profit before working capital changes 245.2 278.5 230.6 Changes in working capital
Slide 28: Awards & Accolades
Awards & Accolades Jamnalal Bajaj Award for “Fair Business and Practices” Shramveer award for improvement of product efficiency received from national level Delhi First ever president’s gold shield for import substitution Vishwakarma Rashtriya Puraskar received for process development First award fo
Slide 29: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 30: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN : U24110MH2000PLC124224 CIN : U74140MH2010PTC204285 Mr. Sushil Marfatia Mr. Varun Divadkar / Ms. Payal Dave Executive Director 97637 02204 / 98199
Sumitomo Chemical India — Investor Presentation (January 2020) on 6ix