Insecticides (india) Limited · NSE:INSECTICID
Insecticides (india) — Investor Presentation (October 2021)
38 slides from Insecticides (india)'s investor presentation, Oct 5, 2021
Slide 1: Investor Presentation cover letter to stock exchanges
Ref: IIL/SE/2021/0510/01 October 05, 2021 The Manager Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited (Through BSE Listing Centre) (Through NEAPS) Scrip Code: 532851 Symbol: INSECTICID Dear Sir/Madam, Sub: Investor Presentation Please
Slide 2: Investor Presentation, October 2021
An Initiative in line with PM’s Vision of “Aatma Nirbhar Bharat” Insecticides (India) Limited Investor Presentation, October 2021
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actu
Slide 4: IIL's Dashboard
DISTRIBUTION AND MARKETING IIL’s Dashboard 5,000+ DISTRIBUTORS 375+ SKUS BACKGROUND One of India’s Leading 10,00,000+ FARMERS IN TOUCH Agrochemicals Manufacturers 1,250+ Employees 60,000+ DEALERS Owner of prestigious Tractor Brand PRODUCTS 2 FACILITIES 22 TECHNICAL TECHNICAL SYNTHESIS PLANTS 6 PRODU
Slide 5: Our journey so far
Our journey 2020 Started 2016 with Export Tie-Up with 2021 so far Oriented Launched MOMENTIVE Unit (EOU) at (USA) For AGRO new patented 2014 SPRED* MAX; Tie- SEZ, Dahej, product Commenced Gujarat and Hachiman Up with NIHON launched Product NOHYAKU(Japan) for 2019 7 new Invention SUZUKA and HAKKO; La
Slide 6: Update on Capex
Update on Capex Company had The expansions were guided last year aimed to increase about its expansion capabilities at both plans at 5 locations, technical and (including 3 major formulation units in and 2 minor Chopanki (Rajasthan) expansions) in a span and Dahej (Gujarat). of 2 years (FY21 and The
Slide 7: Aggregate Installed Capacity
Aggregate Installed Capacity 30,900KLPA 80,750MTPA Liquid Granules 24,770MTPA 13,800MTPA Powder Active Ingredient and Bulk. *Under toll arangement Investor Presentation September 2021 6
Slide 8: Products Launched in FY21
Products Launched in FY21 INSECTICIDE HERBICIDE BIOLOGICAL Aggregate Revenue Dominant Avval Milstim Max in FY21 from these Tadaaki Master Stroke New Launches: Mahir Hakama Super `321.58mn Investor Presentation September 2021 7
Slide 9: IIL Heading Towards Premiumization
54% Revenues 46% IIL Heading Towards Premiumization Contribution FY21 n Maharatna Products n Other Products 56% Revenues Contribution 44% FY20 n Maharatna Products n Other Products Investor Presentation September 2021 8
Slide 10: Product Freshness Index
Product Freshness Index IIL’s consistent success in adding new products every year led by its strong In-House R&D Capabilities and its endeavours to deliver effective and cost-efficient products every year. 571 Gross Revenue from New Product Launches (`Cr) 535 30 507 478 70 90 32 420 66 43 89 59 76
Slide 11: Unmatched R&D
Unmatched R&D Product Discovery in JV with OAT Agrio Co. Ltd. (Chopanki, Rajasthan) Reverse Engineering Products (Chopanki, Rajasthan) Biological Products (Shamli, UP) 13 Combination & PATENTS Formulations Products RECEIVED (Dahej Gujarat) Market Development 17 PATENTS PENDING 60+ SCIENTISTS IN R&D
Slide 12: In-house R&D Centres
In-house R&D Centres State-of-the-art R&D centre Product invention R&D centre: IIL’s in-house R&D centre was A unique initiative of product established in 2005, augmented discovery in India by forming a JV by product innovation R&D a with Japanese company, OAT centre, formulation R&D centre Agrio Co
Slide 13: Our Differentiating Business Structure
Our Differentiating Business Structure SALES AND MARKETING MANUFACTURING Sales & Market development 6 Formulation Plants Branding 2 Technical Synthesis Plants International Tie ups and 1 Toll Manufacturing Biological Plant Collaborations RESEARCH &DEVELOPMENT DEVELOPMENT & TRAINING NABL QC Labs Emph
Slide 14: Biological Products - Game Changer
Biological Products - Game Changer BIOLOGICAL R&D CENTRE BIOLOGICAL SOLUTION Equipped with bio assay and product Competitive Advantage due to lesser development facilities such as Isolation, no. of players. detection and multiplication of One-stop solution for farmers for availing biological microor
Slide 15: Maharatna Brands
Insecticides Maharatna Brands Bheema, Dominant, Encounter, Hercules, Kunoichi, Lethal Gold, Lethal 10G, Lethal Super 505, Victor Gold, Xplode Herbicides Flite 71, Green Label, Green Mix, Hakama, Hijack Super Fungicides Pulsor, Sofia PGRs/Biologicals Mycoraja, AgroSpred Max, Prime Gold Investor Prese
Slide 16: Substitutes for Nuvan and Thimet
Substitutes for Nuvan and Thimet Nuvan Thimet Revenue in FY21 Revenue in FY20 `1,010 mn `770 mn SUBSTITUTE SUBSTITUTE Lethal Gold Lethal Granules & Tadaaki Revenue in FY21 `120.10 mn Aggregate Revenue in FY21 `564.97 mn Investor Presentation September 2021 15
Slide 17: Business Strength
Business Strength STRONG INTEGRATION STRONG MARKETING STATE-OF-THE-ART AMONG EMPLOYEES TEAM; WIDE AND MANUFACTURING FACILITIES; AND CHANNEL DEEP DISTRIBUTION ONE OF THE LARGEST PARTNERS NETWORK FORMULATIONS FACILITY BACKWARD STRONG IN-HOUSE R&D TEAM; INTEGRATION; COLLABORATIONS DEVELOPMENT OF PROCES
Slide 18: Knowledge Pool
Knowledge Pool Inherent resilience and the unparalleled dedication of our team will help us Ensuring farmers’ holistic navigate through the welfare is the foundation exciting times ahead of our alliance with the and continue to create them.” unmatched value for all.” Mr. H. C. Aggarwal Mr. Rajesh Ag
Slide 19: Board of Directors and Management
Board of Directors and Management BOARD OF DIRECTORS KEY MANAGEMENT • Mr. H.C. Aggarwal, Chairman • Mr. Rajesh Aggarwal, Managing Director • Mrs. Nikunj Aggarwal, Whole Time Director • Mr. Virjesh Kumar Gupta, Independent Director • Mr. Navin Shah, Independent Director • Mr. Jayaraman Swaminathan, I
Slide 20: Exports - How We Have Grown?
Exports - How We Have Grown? 674 645 602 18 24 21 2018-19 2019-20 2020-21 n No. of Countries n Export Value (`in Million) Investor Presentation September 2021 19
Slide 21: Industry Overview
Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China Government Initiatives to incentivize the Chemical and Agro-Chemical space: Industry •U nder the Union Budget 2021-22, the government allocated `233.14 crore (US$ 32.2 million) to the Department
Slide 22: Growth Drivers
BACKWARD AND TAIL-CUTTING POLICY: FORWARD INTEGRATION: Strategy to phase out Moving on the strategic Generic Products (high path of backward and FOCUSSED APPROACH volume-low margin STRENGTHENING BALANCE forward integration ON BIOLOGICALS: products). SHEET AND IMPROVING Capitalize on the “Make in Con
Slide 23: IIL's Robust Strategy on: Exports, China and Covid
IIL’s Robust Strategy on: Exports, China and Covid IMPACT OF COVID-19 ON BUSINESS: KEY CHALLENGES EXPORTS RAW MATERIAL Due to outbreak of the pandemic, IIL had PROCUREMENT FROM CHINA been witnessing the following issues: KEY CHALLENGES Increase in credit terms required by its dealer/distributor netw
Slide 24: Our Goals
Our Goals SHORT TERM LAUNCH NEW GENERICS AND PRODUCTS GOING OFF-PATENT MEDIUM TERM TO LAUNCH LATEST TECHNOLOGY PRODUCTS THROUGH INTERNATIONAL PARTNERS; LAUNCH NEW COMBINATIONS AND FORMULATIONS LONG TERM LAUNCH PROPRIETARY DISCOVERY PRODUCTS Investor Presentation September 2021 23
Slide 25: IIL's Forward-Looking Strategy and Guidance
GUIDANCE IIL’s Forward-Looking • The management expects the top line to grow by ~10-15% for FY22, mainly driven by expansion Strategy and Guidance of facilities, addition of new generation products, and a high number of product registrations expected in the current fiscal. The new generation product
Slide 26: Global Partners
Global Partners Collaborations with International Players for Manufacturing and Marketing of Innovative Products: Investor Presentation September 2021 25
Slide 27: Segmental Reporting - Q1FY22
Segmental Reporting - Q1FY22 5% 4% 8% 45% 65% 42% n Insecticides 58% NET SALES BY n Herbicides 27% n B2C BREAKDOWN NET SALES BY B2B n Maharatna Products PRODUCT n Fungicides n OF TOP SELLER CATEGORY SEGMENT n Exports RANGE IN n Other Products n PGR 46% B2C 8.2% 23% 22% n East DOMESTIC REGION-WISE n
Slide 28: Key Performance Highlights
Key Performance Highlights REVENUE FROM R&D SALES EBITDA* & EBITDA OPERATIONS* EXPENSE* GROWTH (%) MARGIN (%) 14,202 13,632 14.2% 15.7% 89.3 11.4% 11,935 10.7% 11.2% 60.6 61.9 4.18% 1,559 1,523 1,872 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 * Figures in `in Million PAT* & PAT DIL.
Slide 29: WC Cycle
WC Cycle Declining trend of Working Capital Cycle (`in Mn) (`in Mn) (`in Mn) (`in Mn) NET WORKING PAYABLES RECEIVABLES INVENTORY CAPITAL 124 124 86 313 263 75 89 65 226 184 168 188 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Net Working Capital Cycle has been declining over the years
Slide 30: Cash Flow from Operations v/s Free Cash Flow
Cash Flow from Operations v/s Free Cash Flow (`in Mn) Generation of positive Free Cash Flows for Capex and Repayment of Debt 2,419 2,134 1,554 1,077 FY19 FY20 FY21 Cash Flow from Operations Free Cash Flow (1,331) (1,706) Investor Presentation September 2021 29
Slide 31: Leverage Profile
Leverage Profile Strengthening Company’s B/S and Cash Position Particulars (`in Mn) FY19 FY20 FY21 LT Debt 68 19 23* ST Debt 2,952 1,835 916 Total Debt 3,020 1,854 939 C&CE 92 742 833 Net Debt 2,928 1112 106 Total Equity 6,613 7,302 8,184 Net D/E 0.44 0.15 0.01 • Company continues to strengthen Bala
Slide 32: Financial Performance
Financial Performance Quarterly Performance Q1FY22 v/s Q1FY21: Quarterly Highlights: Particulars (INR MN) Q1FY22 Q1FY21 Revenue from Operations 4682.61 4095.99 • Strong growth in Sales in Q1 FY2022 on both sequential and on y-o-y Other Income 16.30 11.24 basis. Total Revenue 4698.91 4107.23 • Revenu
Slide 33: Financial Performance: Consolidated P&L
Financial Performance: Consolidated P&L Particulars (INR MN) FY19 FY20 FY21 Revenue from Operations 11935.09 13632.20 14202.26 Other Income 7.44 25.66 77.28 Total Revenue 11942.53 13657.85 14279.54 Total Expenses 10412.47 12553.24 12992.18 EBITDA 1871.66 1558.57 1523.31 EBITDA Margin (%) 15.67% 11.4
Slide 34: Financial Performance: Consolidated Balance Sheet
Financial Performance Consolidated Balance Sheet: Particulars (INR MN) FY19 FY20 FY21 Non-Current Assets Property, plant and equipment 2371.50 2089.31 2085.35 Capital work-in-progress 127.14 328.84 518.72 Right of Use Assets 251.47 258.46 Intangible Assets 30.50 50.19 44.18 Intangible Assets under D
Slide 35: Financial Performance: Consolidated Balance Sheet (Continues)
Financial Performance Consolidated Balance Sheet (Continues) Particulars (INR MN) FY19 FY20 FY21 Equity Equity Share capital 206.68 206.68 206.68 Other Equity 6413.36 7110.61 7997.07 Total Equity 6620.04 7317.29 8203.75 Non-current Liabilities Financial Liabilities Borrowings 13.16 19.05 23.95 Lease
Slide 36: Capital Market Information
Capital Market Information MARKET INDICATORS: 180 160 CMP 52 Week H/L: 140 (as on 25th Aug, 2021): 846/399 120 100 `705.55 2W Avg Vol: 80 60 3298 40 BSE Scrip Code: 20 532851 0 Market Cap SEP -2 0 CT- 20 V- 20 EC- 20 AN- 21 FEB- 21 AR- 21 PR- 21 AY- 21 UN- 21 JUL- 21 UG -2 1 - -O O -D -J - -M 01-A 1
Slide 37: CSR
CSR Over the last couple of years, • On the occasion of World it has been working on the Environment Day, IIL following projects: Foundation planted Trees • Spreading awareness for a better tomorrow. about the judicious use of The plantation drive was agrochemicals in rural as well conducted, near o
Slide 38: Thank You
Thank You For further information on the Company, please visit www.insecticidesindia.com SANDEEP AGARWAL, CFO KRUNAL SHAH/ VINAYAK SHIRODKAR Insecticides (India) Limited Captive IR Strategic Advisors Pvt. Ltd Contact: +91 11 2767 9700 Contact: +91 98922 88895 Email: sandeep@insecticidesindia.com Ema
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