Aries Agro Ltd. · NSE:ARIES
Aries Agro — Investor Presentation (October 2014)
21 slides from Aries Agro's investor presentation, October 2014
Slide 1: Energizing Earth October 2014
Energizing Earth October 2014 1
Slide 2: Safe Harbor
Safe Harbor The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forward looking information i
Slide 3: Aries Agro - Key Facts
ARIES AGRO- KEY FACTS Promoted by Dr. T.B. Mirchandani and Mrs. Bala Mirchandani in 1969, Aries is India’s KEY DATA leading micro-nutrient player with sales of INR 2.9bn (FY14) and Exports to around BLOOMBERG TICKER ARIE:IN 12 countries FACE VALUE (RS) 10 Started with manufacturing of mineral fe
Slide 4: Summary Consolidated Financials
SUMMARY CONSOLIDATED FINANCIALS 350.00 40.00 70.00 25.00 62.30 32.90 297.80 300.00 34.10 35.00 60.00 21.14 51.20 52.30 20.00 251.80 19.24 17.55 236.30 30.00 50.00 250.00 43.60 25.00 16.72 16.90 15.00 200.00 177.80 40.00 34.30 INR Cr. INR Cr. 150.90 20.00 150.00 18.27 30.00 10.00 15.00 17.83 20.00 10
Slide 5: India Needs More Food With Less Land
INDIA NEEDS MORE FOOD WITH LESS LAND Higher food inflation, through constrained monetary policy and decreased savings, impacts economic growth Food inflation at 6.7% CAGR despite food production rising from 169.9 mn te (FY89) to 234.5 mn te (FY09) Rising food prices due to growing global and d
Slide 6: Micro-nutrients - Playing a Critical Role in Raising Yield
MICRO-NUTRIENTS- PLAYING A CRITICAL ROLE IN RAISING YIELD Crop nutrition and protection critical to improving yields and thus total food production Yields typically 20-50 percent of those on equivalent US cropland India’s fertiliser consumption has grown at 4.8% p.a. over the last decade, howe
Slide 7: Micro-nutrients - Growth Drivers and Industry Dynamics
MICRO-NUTRIENTS- GROWTH DRIVERS AND INDUSTRY DYNAMICS Industry estimates the micro-nutrient market at INR 12bn or 0.4 mn tonnes p.a. For every 100 kg of major nutrients, 4-5 kg of micro-nutrients ideal. Currently, this is just around 800gms in India, or 1/6th of potential size Chelated micro
Slide 8: Industry: Specialty Plant Nutrition Solutions
INDUSTRY: SPECIALTY PLANT NUTRITION SOLUTIONS 8
Slide 9: The Wonder of Chelation Technology
THE WONDER OF CHELATION TECHNOLOGY Nutrients can be applied to crops in inorganic form or Chelate form 60% of inorganic compounds are wasted by leaching, fixation and due to its property of reacting easily with air, water & soil Key advantages of chelated (derived from Greek word “chel” meanin
Slide 10: Aries - Diversified Portfolio, Pan-India Presence
ARIES-DIVERSIFIED PORTFOLIO, PAN-INDIA PRESENCE Leading chelated micro-nutrients player and exposure to secondary nutrients and Soluble NPK Product-wise Manufactured Sales break-up 150.00 Manufactured Sales as % of Total Sales 100.00 Animal Feed 72.32 (in Rs. Cr.) 73.00 Insecticides Micronutrients
Slide 11: Pan India Sales - Statewise Sales Breakup 2013-14
PAN INDIA SALES – STATEWISE SALES BREAKUP FOR THE YEAR 2013 - 14 MUMBAI, 6 MADHYAPRADESH, 5 WEST BENGAL, 11 KARNATAKA, 5 JHARKHAND, 1 HARYANA, 3 UTTARANCHAL, 2 MAHARASHTRA, 15 GUJARAT, 4 ORISSA, 2 BIHAR, 4 ASSAM, 2 TAMIL NADU, 3 ANDHRA PRADESH, 18 UTTRAPRADESH, 5 PUNJAB, 11 RAJASTHAN, 4 11
Slide 12: Strong Product Portfolio, Continuous Innovation
STRONG PRODUCT PORTFOLIO, CONTINUOUS INNOVATION Aries caters to a wide variety of agri-produce including Rice, Wheat, Pulses, etc. Product portfolio consists of market-leading products including Agromin, Chelamin, etc. Agromin and Chelamin contributed 35% of revenue in FY14 New product launc
Slide 13: Some Pictures of Manufactured and Traded Product Packs
SOME PICTURES OF MANUFACTURED AND TRADED PRODUCT PACKS 13
Slide 14: Operational Capabilities - Strong Manufacturing and Distribution
OPERATIONAL CAPABILITIES- STRONG MANUFACTURING AND DISTRIBUTION Sufficient Production Capacity; rising utilization Aries has strong, distributed manufacturing network to meet its pan-India 90000 50 marketing presence 80000 With 6 factories, domestic production capacity of 84,600tpa. 70000 45 600
Slide 15: International Businesses - Sourcing Strength, New Export Markets
INTERNATIONAL BUSINESSES- SOURCING STRENGTH, NEW EXPORT MARKETS • Aries’ International Business increased by 2% as compared to 17% in FY2012-13 and now constitutes to 27% of the total revenue of the Aries Group. • Golden Harvest Middle East FZC (Sharjah) and Amarak Chemicals FZC (Fujairah) (75% step
Slide 16: Aries - Uniquely Positioned
ARIES- UNIQUELY POSITIONED Commodity NPK Water Soluble NPK Value added Fertilizers Fertilizers Secondary nutrients Micronutrients Inorganic Micronutrients Aries Presence ✗ ✔ ✔ ✔ ✔ 20-20-20, 13-0-45, 0-52- Typical products Urea, DAP, SOP Ca, Mg, S Chelates Sulphates 34, 0-0-50 Price Control ✔ ✗ ✗ ✗ ✗
Slide 17: Risks and Challenges
RISKS AND CHALLENGES Poor monsoon Company’s past performance demonstrates that only less than half of Aries’ performance can be explained by rainfall. Stronger focus on developing cash crop markets and horticulture crops during Rabi, since water availability is known before Rabi season. Powe
Slide 18: Key Takeaways
KEY TAKEAWAYS Favorable Industry dynamics for the medium to long-term given the food security issues, rising population and changing government policies. Aries- India’s largest chelated micronutrient player. Pan-India presence with a strong product portfolio catering to both Kharif and Rabi cr
Slide 19: For Queries and Further Information
FOR QUERIES AND FURTHER INFORMATION For further information, contact: Mr. S. Ramamurthy Mr. Qaiser Ansari Chief Financial Officer Company Secretary Aries Agro Limited Aries Agro Limited Email: sramamurthy@ariesagro.com Email: qpansari@ariesagro.com Phone: +91-22-25564052| Fax: +91-22-25564054 Phone:
Slide 20: Annexure I: Key Micro-nutrients and Their Role
ANNEXURE I: KEY MICRO-NUTRIENTS AND THEIR ROLE • Carbohydrate transport in plants; assists in metabolic regulation Boron (B) • Deficiency often results in bud dieback • Component of some enzymes and of vitamin A Copper (Cu) • Symptoms of deficiency include browning of leaf tips and chlorosis • Essen
Slide 21: Annexure II: Typical Seasonality of Indian Operations
ANNEXURE II: TYPICAL SEASONALITY OF INDIAN OPERATIONS Q1 (APR - JUN) Q2 (JUL – SEP) Q3 (OCT – DEC) Q4 (JAN – MAR) Revenues – Nutrients 10% 35% 35% 20% Revenues - Sprayers 35% 35% 30% -- Inventory (across all locations) High – to build up Highest High Reduces by year end for Kharif Receivables (from