Pi Industries Limited · NSE:PIIND
Pi Industries — Investor Presentation (May 2015)
40 slides from Pi Industries's investor presentation, May 2015
Slide 1: PI Industries Ltd. Investor Presentation May 2015
PI Industries Ltd. Investor Presenta1on May, 2015
Slide 2: Disclaimer
Disclaimer Certain statements made in this presenta9on may not be based on historical informa9on or facts and may be “forward looking statements,” including those rela9ng to general business plans and strategy of PI Industries Limited (“PIIL"), its future outlook and growth prospects, and future dev
Slide 3: Table of Contents
Table of Contents 1. Introduc1on to PI Industries 2. Key Strengths of the Company 3. Business Strategy 4. Financial Overview 5. Annexure: Industry 6. Annexure: Custom Synthesis Manufacturing Processes 3
Slide 4: Introduction To PI Industries
Introduc)on To PI Industries 4
Slide 5: PI Industries: Overview
PI Industries: Overview Overview • Incorporated in 1947, PI Industries Limited is an Agri Input and Custom Synthesis & Manufacturing company in India • Mul9-‐loca9onal manufacturing facili9es, including Jambusar SEZ • Equipped with R&D facili9es, accredited for GLP and ‘Norms on OECD Principles’ by
Slide 6: Key Milestones
Key Milestones 1947 1960s 1970s 1980s 1990s 2000s 2008 2010 2011 2013 § Commenced commercial § Accredited by OHSAS 18001 Incorporation § Accredited with GLP production at newly and ISO 17025 § Inauguration of PI-Sony commissioned unit at § Diversified in Energy § Established PI Life Sciences R
Slide 7: Domestic Agri-inputs
Domes1c Agri-‐inputs AGRI INPUTS – AGRO CHEMICALS, SPECIALTY FERTILIZERS & Ac1vi1es under Agri input PLANT NUTRIENTS • In-‐licensing of newly launched or patented molecules • Developed brand recogni1on and a pan-‐India from mul9na9onal innovators to register, formulate and distribu9on network mar
Slide 8: Custom Synthesis Exports
Custom Synthesis Exports CUSTOM SYNTHESIS AND CONTRACT MANUFACTURING: Scope of Services • Contract research, process development, analy9cal • Provides contract research and contract method development manufacturing services • Synthesis of high purity product and impuri9es for • Wide end use segments
Slide 9: Solid Infrastructure Setup
Solid Infrastructure Setup • Mul9-‐loca9onal manufacturing facili9es – 5 Mul9-‐product plants and 2 Formula9on units in Panoli spread over 79,000 sq. mtr. – 2 Formula9on units in Jammu spread over 10,000 sq. mtr. – 1 Mul9-‐product plant in Jambhusar with ample scope for expansion 88,000 sq. mtr.
Slide 10: Key Strengths
Key Strengths 10
Slide 11: Key Strengths
Key Strengths Long-‐term Rela9onship & reputa9on of trust and reliability with global innovators Brand building Experienced capabili9es and brand management team recogni9on Differen9ated business model Wide distribu9on Entry / exit network and clear barriers in our distribu9on policies business End-
Slide 12: Key Strengths (1/7)
Key Strengths (1/7) 1 Differen9ated business model 03/06/15 Project name 12
Slide 13: Key Strengths (2-3/7)
Key Strengths (2-‐3/7) 2 Long-‐term Rela9onship and reputa9on of trust and reliability with global innovators 3 Brand building capabili9es and brand recogni9on • Bayer Group of Companies awarded Cer1ficate of Excellence to PI Industries As “Winner – Global Sourcing India 2013 • PI Industries receiv
Slide 14: Key Strengths (4/7)
Key Strengths (4/7) 4 Wide distribu9on network and clear distribu9on policies Distribu1on Network • 29 branches • 10,000+ distributors / dealer • Centralized SAP based ERP system which gives us efficient last-‐mile connec9vity Clear Distribu1on Policies that minimize dispute • Provide delivery of pro
Slide 15: Key Strengths (5/7)
Key Strengths (5/7) 5 End-‐to-‐end Capabili9es in custom synthesis Custom Synthesis is a key growth driver: Gives visibility 03/06/15 for top Project line growth & assures long term sustainability for name 15 margins
Slide 16: Key Strengths (6/7)
Key Strengths (6/7) 6 Entry / Exit barriers in our business Entry barriers for Domes1c Agri input ac1vity Exit barriers for Export Custom synthesis ac1vity • Early and close working rela9onship with • Registra9on process in India requires global innovators which allow us to generate substan9al 9me e
Slide 17: Key Strengths (7/7)
Key Strengths (7/7) 7 Experienced Board & Management Team • Professionally managed Company with a board of directors consis9ng of individuals with backgrounds across various industries & disciplines like agro-‐chemicals industry, pharmaceu9cals industry and financial services and accoun9ng disciplin
Slide 18: Key Strengths (7/7)
Key Strengths (7/7) P K Lahiri Mr. Pravin K. Laheri (IAS Retd.) Gujarat cadre studied at St. Xavier’s College and Government Law College, Independent Director Mumbai. Mr. P.K. Laheri joined Indian Railways in 1967 and Indian Administra9ve Services in 1969. He served in Government of Gujarat in vario
Slide 19: Business Strategy
Business Strategy 19
Slide 20: Business Strategy
Business Strategy Focus on expanding • Expand product porvolio of agri input products, with primary focus on in-‐ licensing arrangements and co-‐marketed products our product porholio • Expand exis9ng chemistries to all exis9ng customers for export custom and service offerings synthesis segment • I
Slide 21: Financial Overview
CO oan 5. Financial Overview oO?
Slide 22: Growth Profile
Growth Profile Gross Revenues Rs. Cr 3000 2175 1837 2000 1310 Improved business mix drives 1000 834 999 27% CAGR topline growth 0 FY11 FY12 FY13 FY14 FY15 EBITDA Rs. Cr. 370 400 286 300 Focus on in-‐licensed products in 179 domes9c business and high-‐ 200 114 141 34% CAGR poten9al molecules in expo
Slide 23: Margin Profile
Margin Profile EBITDA in Rs. Cr. & Margins 25.0% 19.1% 400 18.0% 17.9% 350 20.0% 17.2% 15.6% 300 EBITDA margins driven by 15.0% 250 enhancement to business mix and 200 10.0% opera9ng leverage 150 100 5.0% 114 141 179 286 370 50 0.0% 0 FY11 FY12 FY13 FY14 FY15 EBITDA in Rs. Cr. & Margins (season-‐wis
Slide 24: Enhancing Shareholder Value
Enhancing Shareholder Value ROCE in % RONW in % Div. Payout Ra1o in % 40.0 37.9 35.0 20.0 35.0 17.0 35.0 30.0 16.2 16.0 32.0 31.8 16.0 28.7 14.1 30.0 25.0 27.1 12.0 25.0 23.6 23.2 20.0 22.7 9.0 18.3 20.0 15.0 8.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 ROBUST TREND
Slide 25: Driving Quality Operations
Driving Quality Opera1ons Long Term Debt Equity Ra1o Asset Turnover Ra1o No. of WC days 0.50 0.45 95.0 90.9 2.40 0.37 85.3 0.40 2.11 2.13 2.10 85.0 0.30 2.10 1.96 75.0 68.0 0.20 0.16 1.74 65.0 1.80 56.0 0.07 52.0 0.10 55.0 0.02 0.00 1.50 45.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY
Slide 26: Key Financial Highlights
Key Financial Highlights Q4 FY15 Growth (%) FY15 Growth (%) (Rs. in Crore) (Y-‐o-‐Y) (Rs. in Crore) (Y-‐o-‐Y) Revenues 537 48% 1,940 22% EBIDTA 95 84% 370 30% PAT 60 34% 243 32% Results analysis Net Revenues Con9nued momentum from custom synthesis exports (23.5% growth) together with 19.1% impro
Slide 27: Outlook
Outlook • The overall industry environment is expected to remain subdued in FY16 both in domes9c and global market place. However, PI’s FY16 performance to reflect con9nued growth momentum although at a moderated pace on the back of a larger base now: • The driving factors in the domes9c opera9on wil
Slide 28: Annexure: Abr. Statements
Annexure: Abr. Statements 28
Slide 29: Profit & Loss Extract (In Rs. Cr.)
Profit & Loss Extract (In Rs. Cr.) FY13 FY14 FY15 Net Sales 1,147.6 1,585.6 1,936.4 Expenditure 971.2 1,309.3 1,569.7 EBITDA 179.3 285.6 370 Deprecia7on 21.8 31.4 49.2 EBIT 157.5 254.2 320.8 Interest 22.1 11.8 9.7 PBT 143.7 258.0 334.2 Tax 47.4 74.3 109.4 PAT 96.3 183.7 243.3 EPS 7.1 13.5 16.5 29 29
Slide 30: Balance Sheet Extract (In Rs. Cr.)
Balance Sheet Extract (In Rs. Cr.) FY13 FY14 FY15 Sources Of Funds Equity Share Capital 13.5 13.6 13.7 Reserves 511.0 669.5 868.9 Networth 524.9 683.1 882.5 Loan Funds 187.3 86.0 81.5 Total Liabili7es 759.7 812.3 1,000.5 Applica1on Of Funds Net Block 474.9 523.6 512.9 Net Current Assets 222.4 244.3
Slide 31: Annexure: Industry
Annexure: Industry 31
Slide 32: Global Agrochemical Industry - Overview
Global Agrochemical Industry -‐ Overview Global Agrochemical Industry growing at a steady pace (USD billion) 25.80 48.00 71.30 FY06 FY12 FY18 Source: Industry Reports, Analysis by Tata Strategic Management Group Geographical Share of Global Crop Protec1on Industry – FY2012 Global Crop Protec1on Mar
Slide 33: Domestic Opportunity in Agri business
Domes1c Opportunity in Agri business 33
Slide 34: Indian Agrochemicals – Demand led Growth
Indian Agrochemicals – Demand led Growth To cater increasing food demand, only op1on len is to improve Yield… Low per capita consump1on of Agrochemicals indicates poten1al for improvement – FY12 (kg/ha) Yield Improvement Poten1al (%) 30% further losses 17 Due to drought, 42% prevented losses heat, c
Slide 35: Supply Side Drivers - Policy Initiatives will increase affordability
Supply Side Drivers -‐ Policy Ini1a1ves will increase affordability Ins1tu1onal Credit to Agriculture (USD billion) Source: Ministry of Agriculture, Aranca Research Note: -‐ Figures for FY12 are provisional 35
Slide 36: Annexure: Custom Synthesis Manufacturing Processes
Annexure: Custom Synthesis Manufacturing Processes 36
Slide 37: Custom Synthesis – Production Technologies
Custom Synthesis – Produc1on Technologies What is Custom Synthesis • Contract Research (CR) and Contract Manufacturing (CM) services • Involves custom synthesis and contract manufacturing of chemicals including techno commercial evalua9on of chemical processes, process development, lab & pilot scale
Slide 38: Custom Synthesis – Sample Process
Custom Synthesis – Sample Process An Example -‐ PI 011 Customer Enquiry Process & cost review •Enquiry recd Dec, 11 Pre. Feasibility Study Sample valida9on •1st sample sent to customer Feb, 12 Sign Secrecy Agreement SOP & Plant Design •Sample approved by customer Mar, 12 Customer approval / Process
Slide 39: Contact Details
Contact Details For further informa9on, please contact: Nishid Solanki / Siddharth Rangnekar Rajnish Sarna CDR India PI Industries Limited Tel: +9122 6645 1221/1209 Tel: +91 124 6790000 Fax: +9122 6645 1213 Fax: +91 124 4081247 Email: nishid@cdr-‐india.com Email: r.sarna@piind.com siddharth@cdr-‐i
Slide 40: THANK YOU
THANK YOU CIN: L24211RJ1946PLC000469 PI Industries Ltd. Regd. Off.: Udaisagar Road, Udaipur – 313001 (Raj), India, Tel: + 91 294 2492451, Fax: +91 2491946 Corporate Off.: 5th floor, Vipul Square,B Block, Sushant Lok,Phase -‐ 1, Gurgaon 40 www.piindustries.com