Best Agrolife Ltd. · NSE:BESTAGRO
Best Agrolife — Investor Presentation (May 2022)
42 slides from Best Agrolife's investor presentation, May 28, 2022
Slide 1: Intimation under Regulation 30 - submission of corporate presentation
A S aun Date: 28" May, 2022 To, The Manager Compliance Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai-400001 Scrip Code: 539660 Scrip ID: BESTAGRO Sub: INTIMATION UNDER REGULATION 30 (LODR)2015-SUBMISSION OF CORPORATE PRESENTATION Dear Sir/Madam, Pursuant to Regulation 3
Slide 2: Investor Presentation May 2022
2022 May INVESTOR PRESENTATION
Slide 3: Safe Harbor Statement
2 Safe Harbor Statement b e s ta g rol i f e .c om Disclaimer This presentation includes certain forward looking statements and information including statements concerning the outlook for business. The statements are based on certain expectations, assumptions, anticipated developments and other fact
Slide 4: Contents
COMPANY OVERVIEW 04 PRODUCTS & PROCESSES OVERVIEW 12 INDUSTRY OVERVIEW AND OUTLOOK 20 STRATEGIC ASSETS 23 BUSINESS STRATEGY 30 FINANCIAL OVERVIEW 35 BES T A GROLIFE LIMIT ED FY -23 GUIDANCE 40
Slide 5: About Us
ABOUT US WHAT IS BEST AGROLIFE 05 BAL AT A GLANCE 06 JOURNEY OF THE COMPANY 07 TOP CLIENTELE 08 DISTRIBUTION NETWORK AND BRANDS 09 EXPERIENCED MANAGEMENT WITH DOMAIN KNOWLEDGE 10 MANAGEMENT EXPERTISE 11
Slide 6: Company Overview
COMPANY OVERVIEW 05 b e s ta g rol i f e .c om (Wholly Owned Subsidiary) In 2019, BEST AGRO GRO UP Ranked among (Wholly Owned Subsidiary) top 15 agrochemical companies in India A BSE-listed company, Best By keeping a farmer-centric BAL is technologically Agrolife (BAL) is among the top 15 approach a
Slide 7: Top 15 Agrochemical companies in India
COMPANY OVERVIEW 06 b e s ta g rol i f e .c om Best Agrolife Limited is among the Top 15 Agrochemical companies in India Best Agrolife happens to be 03 3,200+ 600+ Manufacturing Facilities Distribution Network across India Employees amongst one of the fastest Facilities Agrochemical companies in Ind
Slide 8: Journey of the Company
COMPANY OVERVIEW 07 2010 2016 b e s ta g rol i f e .c om 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 • Laun
Slide 9: Company Overview
b e s ta g rol i f e .c om 08 COMPANY OVERVIEW
Slide 10: Distribution network and top states by sales
COMPANY OVERVIEW 09 b e s ta g rol i f e .c om Management having a Top 5 states by sales A large network of 3,200+ dealers cumulative experience of of formulations in 9MFY22 in India ensures adequate supply more than four decades J&K of the BAL products across states HP PB BAL products HR 11.1% Hary
Slide 11: Management having cumulative experience of more than four decades
COMPANY OVERVIEW 010 b e s ta g rol i f e .c om Mr. Vimal Alawadhi Mr. Raajan Ailawadhi MANAGING DIRECTOR EXECUTIVE DIRECTOR A true visionary and a Having a Degree of Bachelor passionate entrepreneur, Mr Vimal of Agricultural (Hons.) from CCS HAU, Alawadhi is an eminent personality Hisar, and a Mast
Slide 12: Management team of skilled and capable professionals
COMPANY OVERVIEW 11 CA Atul Garg Ajit Gujral Davinder Dogra b e s ta g rol i f e .c om CHIEF FINANCIAL OFFICER HEAD – INSTITUTIONAL PRESIDENT – BUSINESS & R&D FINANCE & ACCOUNTS • Qualified CA with 15 years • Having rich and multifaceted • A qualified Chartered of experience in Finance & experience o
Slide 13: About Us - Products
ABOUT US OUR BEST - SELLING PRODUCTS 12 UPCOMING PRODUCT 13 VALUE CHAIN AND DIVERSE RANGE OF PRODUCTS 14 PRODUCT REGISTRATIONS 17
Slide 14: Best-selling insecticide products
PRODUCTS AND PROCESSES OVERVIEW 13 b e s ta g rol i f e .c om DIRON PYMAX PYDON DINO TEF URAN 2 0 % SG P YM ETRO ZINE 5 0 % WG P YRIP RO XYEN 5 % + DIAF ENTHIURO N 2 5 % SE INSECTICIDE INSECTICIDE INSECTICIDE MODE OF ACTION MODE OF ACTION MODE OF ACTION • It is a new • It is a systematic • It is a n
Slide 15: Fungicides, PGR and herbicide products
PRODUCTS AND PROCESSES OVERVIEW 14 b e s ta g rol i f e .c om BESTLINE ZOXIT TUZO DONGLE P YRACLO STRO BIN 2 0 % WG AZO XYSTRO BIN 1 1 % + TIF LUZAM IDE 2 4 % P ACLO BUTRAZO L 4 0 % SC TEBUCO NAZO LE 1 8 .3 %SC FUNGICIDE FUNGICIDE FUNGICIDE PGR MODE OF ACTION MODE OF ACTION MODE OF ACTION MODE OF AC
Slide 16: Upcoming products and Ronfen launch
PRODUCTS AND PROCESSES OVERVIEW 15 b e s ta g rol i f e .c om We A new generation corn herbicide Tembotrione shows a fast efficacy in control of weeds .It is a post emergence herbicide that dissipates TOMBO rapidly in the environment A first of its kindthat causes ternary any crop phytotoxicity. ins
Slide 17: Manufacturing process and value chain
COMPANY OVERVIEW 16 Manufacturing Process b e s ta g rol i f e .c om • 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 Chlorinat
Slide 18: Technicals
COMPANY OVERVIEW 17 b e s ta g rol i f e .c om INS ECT ICIDES Thiamethoxam Emamectin Lambda Bifenthirin Dinotefuron Diafenthuron Pymetrozine Imidacloprid PGRs Paclobutrazol Technicals Difenoconazole Thiophanate FUNGICIDES HERBICIDES Metribuzin Penoxsulam Imazethapyr Pretilachlor Clodinafop Quizalofo
Slide 19: Formulations
COMPANY OVERVIEW 18 Key Insecticides: b e s ta g rol i f e .c om • 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 34
Slide 20: Product registrations
PRODUCTS AND PROCESSES OVERVIEW 19 b e s ta g rol i f e .c om Number of registration held Number of registration by BAL Group through International Distribution Partners for exports +396 67 14 Formulations registered Formulations registered Formulations registered for manufacture and for manufacture
Slide 21: About Us - Industry Overview
20 b e s ta g rol i f e .c om ABOUT US INDUSTRY OVERVIEW 19 AGROCHEMICALS – STRUCTURAL GROWTH DRIVERS 20
Slide 22: Agrochemical Industry Trends
INDUSTRY OVERVIEW AND OUTLOOK 21 Agrochemical Industry - Trends b e s ta g rol i f e .c om 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 wi
Slide 23: Structural Drivers
INDUSTRY OVERVIEW AND OUTLOOK 22 Domestic industry expected to post 8-10% CAGR in the next few years b e s ta g rol i f e .c om IMPROVING FA RM ECONOMICS 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 5 years); (b) i
Slide 24: About Us - Strategic Assets
23 b e s ta g rol i f e .c om ABOUT US STRONG MANUFACTURING CAPABILITIES 24 GAJRAULA – UNIT 25 GREATER NOIDA 26 NEW LOCATION – J&K 27 RESEARCH & DEVELOPMENT 28 ENVIRONMENT HEALTH AND SAFETY/ EFFLUENT TREATMENT 29 COMPETITIVE STRENGTHS 30 ACHIEVEMENTS | NEWS UPDATE 31
Slide 25: Strategic Assets - Manufacturing Facilities
STRATEGIC ASSETS 24 b e s ta g rol i f e .c om 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 37,000 MTPA 2
Slide 26: Gajraula Unit
STRATEGIC ASSETS 25 b e s ta g rol i f e .c om Gajraula location has both Technical & Formulation units but now focused more towards Technicals manufacturing with coming up new formulation unit at Greater Noida. GAJRAULA 5,400 Sq. ft. 35,000 Sq. M. 20,000 Sq. M. 4.65 Mn KWH Advanced Formulation Area
Slide 27: Greater Noida Unit
STRATEGIC ASSETS 26 b e s ta g rol i f e .c om • This location has started commercial production in Dec-21 • Fully Automated formulation plants for – SC, SG, SE, ZC & GR with Integrated unit for new developments • With R&D and IP efforts received a patent for RONFEN - a unique 3-way insecticidal com
Slide 28: Jammu and Kashmir Unit (Agrico Chemicals)
STRATEGIC ASSETS 27 b e s ta g rol i f e .c om (Agrico Chemicals) JAMMU AND KASHMIR • 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 for BAL a
Slide 29: Research & Development
STRATEGIC ASSETS 28 b e s ta g rol i f e .c om Research & Development Overview • R&D Center Synthesis at Gajraula leading to development of quality and sustainable molecules. • Backward integration • Process improvement • Make in India 45+ Ajit Gujral • R&D Center at Noida for new Dedicated R&D Team
Slide 30: Regulatory compliance
STRATEGIC ASSETS 29 b e s ta g rol i f e .c om 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 th
Slide 31: Competitive Strengths
STRATEGIC ASSETS 30 b e s ta g rol i f e .c om 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 Network
Slide 32: Achievements - PMFAI-SML Annual Awards
STRATEGIC ASSETS 31 b e s ta g rol i f e .c om PMFAI-SML Annual Awards Fastest Growing Company Best Agrolife Limited
Slide 33: About Us - Business Strategy
32 b e s ta g rol i f e .c om ABOUT US BUSINESS STRATEGY/PLAN 33 TARGETING EXPORTS MARKETS 34
Slide 34: Business Strategy
BUSINESS STRATEGY 33 b e s ta g rol i f e .c om 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 ma
Slide 35: Targeting Export Markets
BUSINESS STRATEGY 34 b e s ta g rol i f e .c om 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 36: Financial Overview - Revenue, EBITDA and PAT
FINANCIAL OVERVIEW 35 b e s ta g rol i f e .c om Net Revenue from EBITDA & PAT and (Consolidated published results*) Operations EBITDA Margin PAT Margin (RS . IN CRORE) (RS . IN CRORE AND %) (RS . IN CRORE AND %) 120 14.00% 12.11% 180 25.00% 12.00% 20.07% 12.30% 160 100 17.75% 20.00% 140 8.64% 10.00
Slide 37: Consolidated results Q4 FY22
FINANCIAL OVERVIEW 36 b e s ta g rol i f e .c om (₹ IN CRORE) (Consolidated*) FY21 FY22 PARTICULARS FY20 FY21 FY 22 Q4 Q4 Revenue From Operation 689.91 905.45 1210.79 208.13 309.35 Q4 FY -22 • Revenue Growth of 33.1% Q-O-Q & EBITDA (₹) 14.19 51.18 165.81 36.95 62.10 48.6% Y–O-Y • EBITDA Growth of 91
Slide 38: Consolidated full year and previous years
FINANCIAL OVERVIEW 37 b e s ta g rol i f e .c om (Consolidated full year & previous years*) 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% 350 329.94 1,316.88
Slide 39: Consolidated financials for full period
FINANCIAL OVERVIEW 38 b e s ta g rol i f e .c om (Consolidated for full period *) (₹ IN CRORE) FY22 PARTICULARS FY20 FY21 FY 22 Q4 Revenue From Operation 758.14 990.75 1316.88 309.35 • Revenue Growth of 32.91% in FY22 EBITDA (₹) 37.29 84.04 187.15 62.1 EBITDA (%) 4.92% 8.48% 14.22% 20.07% • EBITDA i
Slide 40: Consolidated balance sheet and key ratios
FINANCIAL OVERVIEW 39 b e s ta g rol i f e .c om (Consolidated*) (₹ IN CRORE) FY 20 FY 21 FY22 EQUITY AND LIABILITIES Share Holders Fund 101.61 152.93 329.94 • Continued improvement in return NON-CURRENT LIABILITIES on capital and equity Long Term Borrowings 63.77 72.88 52.18 Other Financial Liabili
Slide 41: FY23 Guidance
40 b e s ta g rol i f e .c om Targeted Revenue Growth EBITDA Target of 20% of 30% Healthy & Profitable growth driven by - • Launch of new & innovative products with higher margins • Ramping up distribution & branded products business • Maximizing backward integration to improve efficiencies • Buildi
Slide 42: For queries please contact
For queries please contact: EY IR PRACTICE Kanav Khanna T: +91 9910036240 | Kanav.Khanna@in.ey.com Diwakar Pingle T: +91 9833904971 |diwakar.pingle@in.ey.com Vikash Verma T: +91 9664009029 |vikash.verma1@in.ey.com DISCLAIMER This presentation includes certain forward looking statements and informati