Insecticides (india) Limited · NSE:INSECTICID
Insecticides (india) — Investor Day (2019)
117 slides from Insecticides (india)'s investor day presentation, 2019
Slide 1: Capital Markets Day Presentation 2019
BRINGING WORLD CLASS TECHNOLOGY TO INDIAN FARMERS Capital Markets Day Presentation 2019 www.insecticidesindia.com
Slide 2: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Insecticides (India) Limited (“Insecticides India” or the Company) future
Slide 3: Agenda
Agenda Agenda Page No Business Overview 4 Research and Development 13 Regulatory, Market Development and Manufacturing 42 Sales and Marketing 68 Procurement 89 Financial Performance 95 Corporate Social Responsibility 105 Growth Strategy and Outlook 111 Capital Market Presentation 2019 3
Slide 4: 1. Business Overview
1. Business Overview Mr. Rajesh Aggarwal Managing Director
Slide 5: IIL Mission and Vision
IIL Mission and Vision Mission Our purpose, what we are We work to make agriculture sustainable and profitable for our farmers, ensuring food security for all living beings on earth, using simple and effective technologies Vision Our dream, our big contribution to this planet earth We will make this
Slide 6: Business Overview
Business Overview Four product categories: State-of-the-art manufacturing Engaged in the manufacturing Insecticides, Herbicides, 5 R&D centers – Developing a facilities in Chopanki and marketing of crop- Fungicides, comprehensive range of (Rajasthan), Samba & protection products Biologicals and Plan
Slide 7: IIL Business Segments
IIL Business Segments Our Business Domestic International Brand Institutional Formulations Other Maharatna Brand Technicals Agrochemicals Biological Products Household Products Capital Market Presentation 2019 7
Slide 8: Agriculture Sector in India
Agriculture Sector in India ❖ With a population of 1.27 billion India is the world's second most populous country ❖ India is the world's largest producer of milk, pulses and jute, and ranks as the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit and cotton Post Indepen
Slide 9: IIL Brand Principle
IIL Brand Principle “To bring synergetic benefits to farmers by providing a comprehensive range of agro chemical product mix.” Continuously adopting Advancing towards innovative measures sustainable agricultural practices Always evolving in best Eco-friendly Ultra-modern automated interest of farmer
Slide 10: IIL Evolution
IIL Evolution 2002 2007 2011 2004 2005 2008 2001 Chopanki Listed on NSE & BSE Acquired MONOCIL (Rajasthan) from NOCIL Ltd. Samba (J&K) Chopanki Technical Received formulation Plant at Chopanki Commenced plant plant commenced OHSAS 18001 2 new plants at plant got ISO 9001: 2008 operations commissione
Slide 11: IIL Evolving in All Directions
IIL Evolving in All Directions Development & R&D Training NABL QC Labs Emphasis on field activities In-house R&D Centre JV with OAT Agrio Co.,Japan Farmer awareness for dedicated invention R&D center Salesforce training Innovate, Integrate and Lead Marketing Manufacturing Sales & Market development
Slide 12: R&D Overview
R&D Overview R&D Centre, Samba, J&K ▪ There is definite need to innovate and focus on new In House R&D Centre, Chopanki, Rajasthan products / molecules to stay relevant in the competitive Product Invention R&D and dynamic landscape Centre in JV with OAT AGRIO, Chopanki, Rajasthan ▪ Chopanki was the
Slide 13: 2. Research and Development
2. Research and Development Dr. Mukesh Kumar Mr. Shailesh Patel Dr. LC Rohela Mr. Kazuya Kishimoto Dr. Kallolmay Biswas GM – R&D DGM –R&D Sr. GM - QA MD & CEO GM – R&D OAT & IIL India Laboratories OAT & IIL India Laboratories
Slide 14: 2.1 R&D - Chopanki
2.1 R&D - Chopanki Dr. Mukesh Kumar GM – R&D
Slide 15: Vision of R&D Centre - Chopanki
Vision of R&D Centre - Chopanki ▪ Chopanki was the IIL’s first R&D centre and was established in 2004 ▪ Focus on reverse engineering of off patented products 2004 ▪ Development of New Formulations; ecofriendly & ready-mix solutions for Established farmers ▪ Development of New Technicals (Active Ingr
Slide 16: R&D Infrastructure and Team – Chopanki
R&D Infrastructure and Team – Chopanki R&D Equivalent to International Standards ▪ Well-designed instrument and process lab Team ▪ International exposure to R&D scientists • Experienced and dedicated scientist in R&D ▪ Participation in National and International conference • Team of 12 employees at
Slide 17: Certifications and Recognitions – Chopanki
Certifications and Recognitions – Chopanki Certification Framework Recognitions • Recognized by DSIR: Since2005 Quality Management ISO 9001:2015 • IIL In-House R&D Centre System recognized by DSIR, Ministry of Science and Technology, New Delhi ISO 14001:2015 Environment • NABL Accreditation of QC La
Slide 18: Process of Scaling Up from Lab to Commercial
Process of Scaling Up from Lab to Commercial In House R&D Labs for Testing and Commercializing Potential Products at a Low Cost and Shorter Turnaround Time Lab Scale Pilot Plant Commercial Kilo Lab • Gram level Scale Scale Capital Market Presentation 2019 18
Slide 19: Achievements – Chopanki
Achievements – Chopanki Achievements Strategy for Process Improvement Products Developed Commercialized Insecticides 26 17 1. Quality Improvement Herbicides 16 11 2. Remove Cumbersome Process Fungicides 9 3 3. Removal of Multiple Solvents Total 51 31 4. Make Processes - Simple, Shorter and Cost- Eff
Slide 20: 2.2 R&D - Dahej
2.2 R&D - Dahej Mr. Shailesh Patel DGM –R&D
Slide 21: R&D Objectives and Capabilities – Dahej
R&D Objectives and Capabilities – Dahej Key Objectives Capabilities ▪ Process improvement of existing products with ▪ Design and Development respect to cost ▪ Project approval to commercialization ▪ To develop the process for new products ▪ Product registration (CIB/Export) /intermediates in terms o
Slide 22: R&D Infrastructure and Team – Dahej
R&D Infrastructure and Team – Dahej Dahej R&D Overview ▪ Established in 2014 ▪ Well equipped with latest technology and facility ▪ New molecules development, process scale up and R&D Equipment technology transfer to plant • 2 Labs with fume hoods and all required facilities. ▪ Impurities synthesis a
Slide 23: Backward Integration – Dahej
Backward Integration – Dahej Objectives: 1. Independency of the key raw materials procurement 2. Cost benefits: Reduce the cost of purchasing the raw materials. Will also result in reduction of wastages, transport costs and other costs 3. Increased control: Control the supply chain process in a more
Slide 24: Achievements – Dahej
Achievements – Dahej Technicals Formulations for Exports Products Developed Commercialized Products Developed Commercialized Insecticides 4 2 Insecticides 11 8 Herbicides 7 4 Herbicides 5 4 Fungicides 2 2 Total 16 12 Total 13 8 Key Products Developed Contributing to Maharatna Technicals Imazethapyr
Slide 25: 2.3 R&D - Biological and Patents
2.3 R&D - Biological and Patents Dr. LC Rohela Sr. GM - QA
Slide 26: Why Biologicals?
Why Biologicals? ▪ Modern science is 200 years old while nature science is 3 billion years old ▪ Nature science wonders- Sequoia tree 100ft wide, 100ft tall withstand 100 tons of load in structure made of cellulose - strength is more than steel ▪ Integrated Crop Management (ICM) and Soil health - Lo
Slide 27: Global Bio-Control Market
Global Bio-Control Market Global Market Potential – USD millions 100 500 1,500 3,000 1993 1999 2005 2009 2012 2014 2015 2020 250 1,000 2,000 4,000 Future Market Drivers • Fewer new synthetic crop protection active ingredients will emerge - too expensive • Improved market access for bio pesticides an
Slide 28: Biological Facility Overview
Biological Facility Overview Lab Facility: Aseptic lab, autoclaves , microscopes, laminar air flow, incubator, cryo centrifuge Location: Shamli, Uttar Pradesh Biological Team: Doctorate – 4 , Post Graduate - 1 , Graduate - 3 33 Cr Biological Revenue FY2019 Total Product range • Biofertilizer, Organi
Slide 29: IIL Biological Journey… Long Way to Go…
IIL Biological Journey… Long Way to Go… Products Commercialized Products in Pipeline MYCORAJA 1. Kayakalp PRO: Kayakalp application was on farm • Vascular Arbuscular Mycorrhizae based fungal formulation fermentation for 6 days. Kayakalp Pro designed to 12 hrs on farm fermentation. Capacity for soil
Slide 30: IIL Formulation Products- Agrochemicals
IIL Formulation Products- Agrochemicals • Design Of Formulation • Activity by contact, systemic or stomach No. Of Formulations • Single or multiple activities • Threats Under • Hydrophobic agrochemical, 50-250g to spread over 1 acre in Commercialized Development terms of land and 20-30 acres when ca
Slide 31: Patents
Patents Intellectual property of developed innovative products / process preserved through patents Patentability Search : Freedom to Operate (FTO) Patent Validity Search : Patent • Novelty, inventive (Infringement search) : • To gauge the validity Application step • To assess any possible of the cla
Slide 32: Quality Assurance
Quality Assurance Aim – Evaluation Criteria ✓Standard operating procedure ✓QC-RM/PM/FG Target – Adherence to quality policy ✓Market complaints ✓Corrective Action Preventive Action (CAPA) Advantage – Farmer’s satisfaction and brand development Well Defined Process Specs of inputs - Plant Commercial &
Slide 33: 2.4 R&D - OAT & IIL India
2.4 R&D - OAT & IIL India Mr. Kazuya Kishimoto MD & CEO OAT & IIL India Laboratories
Slide 34: Indian Experience
Indian Experience Indian Experience on R&D Relationship with IIL and Experience ❖ India is suitable for R&D with nearly all crops and seasons ❖ IIL’s long term vision for Research is a major ❖ Man-power is good and available reasonably reason for association ❖ Efficacy testing is possible round the
Slide 35: OAT & IIL India
OAT & IIL India Vision ❖ Becoming a first-class research & development centre, which continuously invent/develop new molecules to contribute to the world crop protection markets (including India & Japan) ❖ Will target to be a first company to invent an "Invent in India“ first pesticide History ❖ Est
Slide 36: 2.5 R&D - OAT & IIL India
2.5 R&D - OAT & IIL India Dr. Kallolmay Biswas GM – R&D OAT & IIL India Laboratories
Slide 37: OAT & IIL Journey
OAT & IIL Journey India Japan Joint Venture Company 2013 2014 2016 2018 2019 •Establishment •Inauguration •Start-up CRO •Expansion of •Opening of a of OIL (OAT& of R&D centre Business existing green new synthesis IIL Joint house laboratory Venture) facilities •Start-up of a new formulation plant Cap
Slide 38: Mission
Mission Mission Invention at R&D Centre ❖ Contribute to sound crop production through novel ❖ First time, a Japanese company established such sophisticated crop protection agents and support the rich facility in the field of agro-chemicals in India diet and health of people ❖ Approved by DSIR, Minis
Slide 39: Synthesis and Biology Lab
Synthesis and Biology Lab West Building - Synthesis Lab East Building - Biology Lab Capital Market Presentation 2019 39
Slide 40: Invention at R&D Centre
Invention at R&D Centre Laboratories Synthesis Analytical Biological Equipped with latest machines and Ultra modern green houses to conduct equipment like NMR and UPLC-MS to effective in-house testing 4 synthesis laboratories analyze and characterize new Breeding rooms, bio-assay rooms and molecules
Slide 41: New Formulation Facility - Chopanki, Rajasthan
New Formulation Facility - Chopanki, Rajasthan Chaperone Formulation Plant Sodium Para - Nitrophenolate 0.3% SL • Plant Growth Regulator (PGR) which effects various stages of development of plants • Stimulation of activity of enzymes resulting in faster cytoplasmic streaming, more efficient photosyn
Slide 42: 3. Regulatory, Market Development and Manufacturing
3. Regulatory, Market Development and Manufacturing Mr. Sanjay Vats Mr. Sanjay Singh Mr. Bhupendra Tiwari Vice President GM – Market Development Head Manufacturing
Slide 43: 3.1 Regulatory
3.1 Regulatory Mr. Sanjay Vats Vice President
Slide 44: Regulatory Environment in India
Regulatory Environment in India Regulatory Environment in India Registration Process ❖ India is one of the most dynamic generic pesticide manufacturers in world and is fourth largest pesticide manufacturer after China, USA and Japan 1 Registration is done under various sections of Insecticides Act,
Slide 45: Registration Categories and Challenges
Registration Categories and Challenges Registration Categories and Timeframe First-time Original 5-6 Data generation: 2.5 - 3 Years 9 (3) manufactured/imported in India Registration Years CIB & RC: 2-3 Years Me-too 2.5-3 Technical: 2.5 – 3 Years 9 (4) Already registered pesticides Registration Years
Slide 46: IIL 9(3) Registrations
IIL 9(3) Registrations IIL 9(3) Registrations Technicals Formulations 2 10 Name of the Product Product Category Brand Name Bispyribac Sodium Technical 95% Min. Technical - Bispyribac Sodium 10% SC Formulation Green Label Imazethapyr Technical 93% Min Technical - Bifenthrin 8%SC Formulation To be lau
Slide 47: IIL Number of Registrations
IIL Number of Registrations ❖ Category 9(3) : 12 registration certificates approved by CIB & RC ❖ Category 9(4) : 47 technical and 225 of formulation registration certificates approved by CIB & RC Year-wise Registration Registration Pipeline Year 9(3) Registrations 9(4) Registrations 9(3) Registrati
Slide 48: 3.2 Market Development
3.2 Market Development Mr. Sanjay Singh GM – Market Development
Slide 49: Tractor Brand – Farmer's Choice
Tractor Brand – Farmer’s Choice A trust of decades Umbrella Brand for end to end solutions Farmers’ first choice pan India Symbol of Confidence Capital Market Presentation 2019 49
Slide 50: Product Selection & Offering
Product Selection & Offering Continuous process from product identification to commercialization and offer complete solution to farmers Market Registration •Launch product •Identification of Research •Look forward to in the Market crop specific International farmers •Market research tie-up •Official
Slide 51: Global Partners and Achievements
Global Partners and Achievements Nissan, Japan Marketing Tie up for specialty products Fungicide PULSOR (2012), Selective Herbicide HAKAMA (2012) and Miticide KUNOICHI (Oct 2019) (All figures in Rs. Crore) Pulsor Hakama Kunoichi 100.0 100.0 60.0 44.4 26.0 14.0 5.0 7.8 FY13 H1FY20 FY23E FY13 H1FY20 F
Slide 52: Global Partners and Achievements
Global Partners and Achievements OAT Agrio, Japan Nihon, Japan JV to set up a dedicated R&D Centre in India to invent new Tie up for SUZUKA agrochemical molecules. (Flubendiamide) (2016) AIKIDO PGR ROOT BEAD (2017) (2018) & HAKKO (Buprofezin) PGR CHAPERONE (Dec 2019) (2016) Momentive, USA AMVAC, USA
Slide 53: International Tie-ups and Timeline
International Tie-ups and Timeline 2006 2012 2012 2012 2016 •THIMET •NUVAN •HAKAMA •PULSOR •AGRO SPRED MAX (Insecticide) (Insecticide) (Herbicide) (Fungicide) (Super Spreader) Momentive, AMVAC, AMVAC, Nissan, Nissan, USA USA USA Japan Japan 2016 2016 2017 2018 2019 2019 •AIKIDO •SUZUKA •HAKKO •ROOT
Slide 54: Innovative Technology – Select Success Stories
Innovative Technology – Select Success Stories Root bead : Nodule enhancer in pulse crops A unique product for rice sheath blight-Best solution Pulsor : available in India Hakama : Strong graminicide Agrospred Max : A silicon based spreading agent- need for the farmers A strongest miticide from Niss
Slide 55: Key Products – Sales and Forecasts
Key Products – Sales and Forecasts (All figures in Rs. Crore) Sofia Hercules 100.0 50.0 32.2 13.8 14.7 11.3 FY19 H1FY20 FY23E FY19 H1FY20 FY23E Encounter Lethal Gold 50.0 50.0 15.6 6.2 6.0 FY19 H1FY20 FY23E FY20E FY23E * Projections are based on company internal estimates Capital Market Presentation
Slide 56: Market Development – Structure and Manpower
Market Development – Structure and Manpower North Zone Pay Roll : 18 TPR : 100-150 Team • Head Office - Delhi • H.O. Market Development Team - 5 • Network Distributed in Zones: • North, East, South, West West Zone • Market Development Team: Pay Roll : 21 TPR : 150-200 • Pay Roll: 72 East Zone • Thir
Slide 57: Market Development Activities
Market Development Activities Demonstrations: Crops vs Pest Specific Field Days : Seeing & Believing Farmer Meetings: Solution for specific problems Mega Farmer Meetings: Crop solution Capital Market Presentation 2019 57
Slide 58: Market Development Activities
Market Development Activities Intensive Consumer Awareness Program Dealers Training Program Market Development Activities & Large Farmer Contact Mega Farmer Group A V Van Balloon Total Farmers Demo Field Days Meeting Meetings Meetings Campaign Show contact Total 750+ 1,000+ 20,000+ 6,500+ 5,000+ 2,5
Slide 59: Market Development Activities
Market Development Activities Mass Media Campaign: News Paper, Radio and TV campaign Social Media: WhatsApp groups of Farmers across country Android App and WhatsApp Group for Farmers and Dealers for product information Capital Market Presentation 2019 59
Slide 60: 3.3 Manufacturing
3.3 Manufacturing Mr. Bhupendra Tiwari Head Manufacturing
Slide 61: Manufacturing Sites – Formulations
Manufacturing Sites – Formulations Unit 1: Chopanki, Rajasthan Unit 4: Samba, J&K Unit 2: Chopanki, Rajasthan Unit 5: Udhampur, J&K Unit 3: Dahej, Gujarat Capital Market Presentation 2019 61
Slide 62: Manufacturing Capacity and Formulations
Manufacturing Capacity and Formulations Aggregate Installed Capacity New Generation Formulations ❖ New generation formulations are effective, safer, 19,400 KLPA easier to handle and environment friendly Liquid Formulation Water Dispersible Granules Suspension Concentrate 75,750 MTPA (WG) (SC) Granul
Slide 63: Manufacturing Capabilities – Formulations
Manufacturing Capabilities – Formulations Automation Quality Check Laboratory ❖ Most of the plants are having automation in ❖ All factory sites are having well established test lab with ultra modern facilities and experienced chemists formulation and packaging to check ❖ Raw materials Automatic form
Slide 64: Manufacturing Sites – Technicals
Manufacturing Sites – Technicals Unit 1: Chopanki, Rajasthan Unit 2: (Technical Production started in 2007) Dahej, Gujarat (Technical Production started in 2011) Aggregate Installed Capacity 13,800 MTPA Technical Garde Capital Market Presentation 2019 64
Slide 65: Manufacturing Capabilities – Technicals
Manufacturing Capabilities – Technicals Characteristics ▪ Multi-products plant and multipurpose lines ▪ State of art Effluent Treatment facility ▪ Self dependent in utilities ▪ Trained safety team with training facility ▪ Backward integration for products ▪ Higher capacity utilization ▪ Independent
Slide 66: Products Manufactured
Products Manufactured Insecticide & Fungicide Plant - Dahej Herbicide Plant - Dahej Product Brand Product Brand Chlorpyrifos Lethal Range of Products Atrazine Strike Pretilachlor Super Racer, Racer Cartap hydrochloride Indan Metribuzin Anchor Thiophanate Methyl Prism Diafenthiuron Hercules, Logo/ Ga
Slide 67: Expansion and Growth Plans
Expansion and Growth Plans Backward Integration Plan at Dahej and Chopanki Setting up “SEZ” unit at Dahej ▪ Developed land is readily available for expansion ▪ We are coming with export oriented unit at SEZ Dahej for formulation of Insecticides & herbicides ▪ Due to geographical location of Dahej, l
Slide 68: 4. Sales & Marketing
4. Sales & Marketing Dr. Arun Kohli Mr. Shrikant Satwe Mr. VK Garg Head - International Vice President Vice President – Institutional Sales Business
Slide 69: 4.1 Sales & Marketing – Domestic Sales
4.1 Sales & Marketing – Domestic Sales Mr. VK Garg Vice President
Slide 70: Agricultural Production vs Pesticides Consumption
Agricultural Production vs Pesticides Consumption “ FARMERS WAS THE FIRST SOCIAL PERSON ON EARTH” World rank in Agriculture Pesticide Use Number of Pesticide Country Agriculture Production ($ bn) (tons, 2017) molecules registered Production China 1 978 1,763,000 681 India 2 394 52,750 282 EU 3 269 3
Slide 71: Region-wise Pesticides Ratio
Region-wise Pesticides Ratio REGION 2002 2018 REMARKS IIL Share in B2c Market Share REGION Sales Generic dominant and 2018-19 East Zone 13% 20% 2018-19 fast-growing market East Zone 27% 6% Combination of Generic & West Zone 20% 25 % Research and fast- growing Market West Zone 22% 5% North Research d
Slide 72: Sales Team & Strategy
Sales Team & Strategy Strategy to move to Blue Ocean Team Farmer Engagement for the Product Launch Designation Strength Engaging farmers and Vice President 4 channel partners from the initial trials Marketing Manager 2 Zonal manager 7 Regional Manager 38 Collecting the feedbacks Working with the far
Slide 73: IIL Brand Business Strength
IIL Brand Business Strength ❖ Farmer centric approach ❖ Strong Brand Image and Recall o Old brands: Lethal, Lethal Super, Thimet, Monocil, Victor, Sharp, Hijack And Racer o New brands: Pulsor, Xplode, Nuvan, Mycoraja, Green Label, Hijack Super, Hakama, Super Racer, Lethal Gold, Hercules, Sofia, And
Slide 74: 5-Way Test
5- Way Test Strengthen the team Strengthen the market Strengthen the field Strengthen the product portfolio Strengthen the system and policy Capital Market Presentation 2019 74
Slide 75: 4.2 Sales & Marketing – Institutional Sales
4.2 Sales & Marketing – Institutional Sales Dr. Arun Kohli Vice President – Institutional Sales
Slide 76: B2B Institutional Sales
B2B Institutional Sales Institutional Sales Contribution Institutional Sales Trend FY2019 Revenue B2B, 31% Others, 69% 2016-17 2017-18 2018-19 Constant growth in sales over the years Capital Market Presentation 2019 76
Slide 77: B2B Capabilities and Key Products
B2B Capabilities and Key Products IIL Capabilities Diversified Range of Products ▪ Two synthesis plants Household Insecticides Fungicides Herbicides ▪ Five formulation plants Insecticides D-TRANS ▪ Capability to produce complex ACETAMIPRID TRICYCLAZOLE GLYPHOSATE ALLETHRIN molecules LAMBDA CYHALOTHR
Slide 78: Top Products & Customers
Glyphosate Pretilachlor Lambda Capital Market Presentation 2019 Bifenthrin Thiamethoxam Artrazine Thiophanate Methyl Top 10 Products – FY2019 Top Products & Customers Quizalofop Cartap Tricyclazole UPL Willwood Chemicals Parijat Industries Crystal Crop Protection Dhanuka Agritech IFFCO Indofil Indus
Slide 79: B2B Strategy and Outlook
B2B Strategy and Outlook Strategy Future Scope ▪ Adding new chemistries and molecules ▪ Agriculture markets to grow by double digit ▪ Focus on complex molecules with low ▪ Commodity prices are high competition ▪ Farmers are prepared to invest in Agri Input/agro ▪ Identifying the products getting off
Slide 80: 4.3 Sales & Marketing – International Sales
4.3 Sales & Marketing – International Sales Mr. Shrikant Satwe Head - International Business
Slide 81: B2B International Sales
B2B International Sales Highlights International Sales Trend (Rs. Cr.) • IBD grown at 82% CAGR between FY16-19 • IBD contribute 4 % of total IIL Sales 60 • Presence in 18 countries with 42 customers • APAC contributed maximum ( 40%) followed by Africa & ME • Herbicides Contributed maximum followed b
Slide 82: Market Expansion Strategy
Market Expansion Strategy Differentiated Product Mix to Existing & New Customers Geographical Presence Volume & through Regulatory Margin compliance Cost Efficient Expansion Generic through Leveraging R & D Supplier having Long Term Capability to Develop Off patent Competency in Supply Product/Chemi
Slide 83: Key Products : Data in Progress
Key Products : Data in Progress Insecticides Herbicides Fungicides ❖ Acetamiprid ❖ Bispyribac sodium ❖ Thiophanate Methyl ❖ Thiamethoxam ❖ Diuron ❖ Tricyclazole ❖ Dinotefuran ❖ Myclobutanil ❖ Diafenthiuron ❖ Lambda Cyhalothrin ❖ Bifenthrin Capital Market Presentation 2019 83
Slide 84: Regional Alliance Status
Regional Alliance Status Regional Alliances Highlights 227 • Presence in 30 countries & > 100 customers through registrations • Total 227 Dossiers submitted till Nov 2019 105 74 • Total 74 Registrations received till Nov 2019 15 12 5 FY16 FY20 No. of Customers Dossier Registrations Capital Market Pr
Slide 85: Focus Markets
Focus Markets (in USD BN) Registration Activities 12.3 2013 : $ 30.00 USB 2018 : $ 31.35 USB 10.010.1 2023 : $ 36.80 USB 7.5 6.5 3.6 2.9 1.7 1.8 2.3 2.1 1.7 1.8 2.1 2.4 2.0 2.0 2.3 1.2 1.1 0.9 1.0 1.0 0.9 1.0 0.60.60.7 0.70.8 1.0 0.7 0.50.6 0.9 1.0 0.60.60.7 0.60.60.7 0.60.60.6 0.70.60.7 Brazil Arge
Slide 86: Market Challenges
Market Challenges Regulatory Government Supply Chain ❖ Stringent Data Compliance & ❖ Slow Economy ❖ Major Uncertainties in Raw regulatory guidelines ❖ Distressed Farm Commodity Material availability & Pricing ❖ Lead time for Registration prices ❖ Lead time to register alternative ❖ Restricted produc
Slide 87: Exports : A Credible Large Opportunity
Exports : A Credible Large Opportunity Exports from India (USD Bn) Highlights 4.1 • Exports from India to grow up to 4.10 USD Bn by 2023 • Global players incrementally looking to diversify their sourcing base to India • Strong Ethanol demand 15% as bio diesel • Proportion of High Generic molecules i
Slide 88: IIL Exports Projections
IIL Exports Projections International Sales Trend (Rs. Cr.) Growth Outlook 300 • In FY23 revenue to grow up to Rs 300 crs which is 16.2 % of Total Sales • Formulation to Tech Sales Ratio 65 to 35 • APAC will contribute (33%) followed by Africa(28%) ; Middle East (15%) ; LA (15%) & Europe ( 8%) each
Slide 89: 5. Procurement
5. Procurement Mr. Sunil Wason Vice President Procurement
Slide 90: Centralized Procurement
Centralized Procurement Chopanki Plant - 1 Dahej Plant - 5 Chopanki Plant -2 Samba Plant - 6 Dahej SEZ Plant - 3 Shamli Plant - 7 Chopanki Technical - 4 Centralized Udhampur Plant - 8 Procurement Business Divisions Machine Production Warehouse Utilities Assets R&D ETP Lab Safety/Security Maintenance
Slide 91: Procurement Spend Analysis – FY2019
Procurement Spend Analysis – FY2019 Procurement Expenses – Category Wise 1% 2% 7% Raw Material Packing Material Consumable Assets 90% Raw Material Domestic vs Import Geography 6% 4% China 35% Domestic Japan Import Taiwan 65% 90% Capital Market Presentation 2019 91
Slide 92: Procurement Mix
Procurement Mix PM Procurement Bifurcation FY 2019 Top 10 spends CHINA FY 2019 Bags 0.95% M/Caps 1.12% Misc. 2.1% Cyanuric chloride Cartons 3.47% Bifenthrin 5% 4 Phenoxy -2 . 6 – Alcohol Dhsopropylniline 5% Lambda Labels etc 5.96% thiour Cyhalothric Acid 6% 27% 4-Phenoxy-2,6- disopropy Phenyl Isothi
Slide 93: Procurement Source
Procurement Source Moving from Traders to Manufacturers in China Manufacturer vs Trader (%) FY19 41% 59% FY18 37% 63% FY17 30% 70% Manufacturer Trader Capital Market Presentation 2019 93
Slide 94: Strengths and Challenges
Strengths and Challenges Challenges Strengths ❖ High dependency on China ❖ In-house R & D to support process improvement issue / new technology ❖ Supply commitment from China adoption ❖ Price volatility ❖ IIL is one of the top repute company – Gets ❖ Consistent quality priority supplies and pricing
Slide 95: 6. Financial Performance
6. Financial Performance Mr. Sandeep Aggarwal Chief Financial Officer
Slide 96: Financial Performance – Last 5 years
Financial Performance –Last 5 years Strong EBITDA and PAT growth with margin improvements every successive years Revenue from Operations (Rs. Mn) 5.4% 11,919 CAGR 9,942 10,733 9,652 9,882 FY15 FY16 FY17 FY18 FY19 EBITDA (Rs. Mn) PAT (Rs. Mn) 13.7% 22.3% CAGR 1,856 CAGR 1,228 1,478 1,110 1,114 15.6%
Slide 97: Products Freshness Index
Products Freshness Index Proven track record of successful new product launches exhibits IIL’s strong R&D capabilities and continues to provide competitive edge 535 478 70 420 407 Revenue from new product launches (Rs. Cr.) 66 89 15 131 71 299 148 90 11 40 33 13 9 221 38 10 45 34 84 172 30 89 66 41
Slide 98: Realization Trend
Realization Trend Increasing Sales Rate Per KG Trend Sales Rate per KG/LTR 353 274 256 260 234 FY16 FY17 FY18 FY19 H1FY20 Capital Market Presentation 2019 98
Slide 99: Key Return Ratios
Key Return Ratios Consistently improving return ratios and generating wealth for shareholders Return on Equity Return on Capital Employed Return on Asset 18.9% 18.6% 9.1% 20.2% 8.4% 15.4% 17.4% 12.9% 15.8% 6.1% 14.6% 6.0% 9.8% 12.5% 4.4% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY
Slide 100: Capital Structure
Capital Structure H1 (Rs. Million) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Key Highlights Long Term Debt 775 519 283 145 68 34 ▪ Higher debt in FY2019 was represents amount invested in Short Term Debt 2,409 1,514 2,060 968 2,952 2,972 building up higher inventory of Thimet and Nuvan Total Debt 3,1
Slide 101: Cash Flow from Operations
Cash Flow from Operations Net Cash from Operating Activities (Rs. Mn) Key Highlights 127.1 • At the end of FY2019 Inventory of Thimet and Nuvan amounted to Rs. ~250 Crores 35.0 3.9 • Thimet inventory to be fully FY16 FY17 FY18 FY19 cleared by the end of current year • Nuvan inventory to be fully cle
Slide 102: R&D Expenditure Trend
R&D Expenditure Trend Capital, Revenue and Data Generation Expenditure (Rs. Mn) 62.6 46.5 39.9 40.4 34.2 30.9 14.9 14.5 12.8 12.4 4.2 5.1 4.2 0.04 0.04 FY15 FY16 FY17 FY18 FY19 Capital Exp Revenue Exp Data Generation Exp Capital Market Presentation 2019 102
Slide 103: Working Capital Cycle
Working Capital Cycle Management is fully committed to improving its working capital cycle Working Capital Days 313 263 220 190 209 195 189 165 151 158 118 115 98 116 124 63 76 78 80 75 Payables Receivables Inventory Net Working Capital FY2015 FY2016 FY2017 FY2018 FY2019 Key reasons for high working
Slide 104: Segment Reporting - FY2019
Segment Reporting - FY2019 Gross Sales by Product Category Gross Sales by Segment 5% 4% 11% Insecticides 31% B2C 29% 55% Herbicides 65% B2B Fungicides Exports PGR Gross Sales vs Internal Consumption Breakdown of Top Seller Range in B2C Sales 45% 47% Maharatna 55% 53% Products Internal Consumption Ot
Slide 105: 7. Corporate Social Responsibility
7. Corporate Social Responsibility Mr. Sanjay Vats Vice President
Slide 106: CSR Vision - Empowering Sustainable Living
CSR Vision - Empowering Sustainable Living ❖ Empowering Children & Farmers of India ❖ Rural initiatives for a sustainable living ❖ Projects around Farmer Knowledge Enhancement & Child education ❖ Farmer First Approach ❖ Millions of beneficiaries till date ❖ Employee Participation & Volunteering Capi
Slide 107: Education Program
Education Program ❖ Children education programs in districts of Punjab, Rajasthan, Bihar, UP and Odisha ❖ Adoption of village schools ❖ Distribution of books, study materials and stationeries to children ❖ Empowering people with dignity and respect by organizing livelihood programs Capital Market Pr
Slide 108: Kisan Jagrukta Abhiyana
Kisan Jagrukta Abhiyana ❖Aimed at educating farmers on crop protection and judicious use of agrochemicals ❖Promoting the cultivation of 3rd crops for soil fertility and extra income ❖Organizing special camps Signed a MOU with ICAR – IARI for training of farmers to maximize their yield & Entrepreneur
Slide 109: Insecticides Jaroori Hai
Insecticides Jaroori Hai Insecticidesjaroorihai.com An awareness initiative of informing all the stake holders of the society about the importance, need and judicious use of agro-chemicals • Involving the agro experts from ICAR-IARI and different universities • Using social media to take the same to
Slide 110: Social Media Initiatives
Social Media Initiatives Social media initiatives helps in improving the internal as well as external communication about company and its activities Facebook Youtube Twitter Capital Market Presentation 2019 110
Slide 111: 8. Growth Strategy and Outlook
8. Growth Strategy and Outlook Mr. Rajesh Aggarwal Managing Director
Slide 112: Agriculture Sector in India– FY23 Outlook
Agriculture Sector in India– FY23 Outlook Limitation in India’s Arable Land Population Limited 1.46 billion expansion possible Climate Growing Change Middle Class High Volatility High demand in crop for calories production Important Characteristics • Crop protection continue to grow • Farmers will l
Slide 113: Capital Expenditure Plan
Capital Expenditure Plan Capex will be incurred in a phased manner over next 3 years and will drive IIL future growth ❖ Out of Rs. 150 Crores, already incurred Rs. 32 Crores of Capex for setting up SEZ unit at Dahej. SEZ will result Capital Expenditure Plan in increased expanding our exports to newe
Slide 114: Growth Plan FY2023
Growth Plan FY2023 Phasing out the generic products and introduction of new products in Maharatna category will significantly grow topline and bottomline by FY2023 ❖ Revenue is expected to grow by 11-13% CAGR in FY19-23 period Revenue Growth ❖ The topline growth will be primarily driven by recent an
Slide 115: Building Blocks of Growth
Building Blocks of Growth R& D will results in New product Phase out Generic Products Exports launches in Maharatna Category • Focus on in-house R&D and • Working on registration in new • Phasing out the Generic Products (high international partners to launch new countries with 100+ export agreement
Slide 116: Thank You
Thank You For further information, please contact: Sandeep Aggarwal Ravi Gothwal / Vikas Luhach Chief Financial Officer Churchgate Partners Insecticides India Ltd. +91 11 2767 9700 +91 22 6169 5988 sandeep@insecticidesindia.com InsecticidesIndia@churchgatepartners.com Capital Market Presentation 201
Slide 117: Insecticides (India) Ltd.
Insecticides (India) Ltd. (CIN: L65991DLl996PLC083909) 401-402, Lusa Tower, Azadpur Commercial Complex, Delhi - 110033 Telefax: +91 - 11 - 27679700 - 04 (5 Lines) investor@insecticidesindia.com | www.insecticidesindia.com