Aries Agro Ltd. · NSE:ARIES
Aries Agro — Investor Presentation (December 2018)
45 slides from Aries Agro's investor presentation, Dec 6, 2018
Slide 1: Cover letter to NSE
F.NSE/QPA/1580 6th December, 2018 Listing Department National Stock Exchange of India Ltd. ‘Exchange Plaza’, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Sub: Investor Presentation Dear Sir, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Di
Slide 2: Investor Presentation December 2018
Investor Presentation December 2018 aries agro limited
Slide 3: Executive Summary
Executive Summary Business Mix Manufacturing & FY18 Financial Snapshot* Company Overview (Revenue Share %) Distribution Networks (INR Mn) Incorporated in the year 1969 Aries • Primary Nutrients (13%) • 4 Manufacturing Units in India with Agro Limited (Aries) is a leading a capacity of 95,400 Metric
Slide 4: The Transformation
The Transformation Around the 2000s India witnessed a major change in Household incomes increased the cropping pattern The nutrition awareness increased. The food plates changed People started eating healthy Farmers started growing more fruits and vegetables Government Initiatives Technological Inno
Slide 5: The Nutrient Value Chain
The Nutrient Value Chain • Plants take up essential elements from the soil through their roots and from the air through their leaves. • They require 16 nutrients to boost growth and metabolism and to complete normal life cycle. • It gets oxygen, hydrogen and carbon from atmosphere. Nutrients are req
Slide 6: The Opportunity
The Opportunity Global Market Share • The Indian Agro – inputs industry (10% of the global agro inputs industry) of USD 16 Bn has 2014 2016 seen a CAGR of 10 – 12% over the last 10 years. Others 17% Others • The crop protection segment grew the fastest with a CAGR of 15 – 17%, followed by fertilizer
Slide 7: Aries Agro Limited
Limited | | Aries Agro | }
Slide 8: Company Overview
Company Overview Revenue From Operations* (INR Mn) • Aries Agro is India’s largest and the most respected manufacturer of speciality plant nutrition solutions 2,686 • Since 1969 Aries has provided Indian agriculturists with several innovative concepts for farming. 2,312 2,142 • Pioneering innovation
Slide 9: Milestones
Milestones 1994 2008 Converted into a public IPO and listing Winner 2018 limited company as 2006 of the most promising 1969 Aries Agro – Vet and best performing Clocked INR 3,000 Mn revenue Industries Ltd. Name changed to milestone Company was SME in the FMCG Food Aries Agro Limited incorporated and
Slide 10: Board Of Directors And Key Management Personnel
Board Of Directors And Key Management Personnel Dr. Rahul Mirchandani Dr. Jimmy Mirchandani • 23 years of experience as Director. • Bachelor of Veterinary Science & Animal • Holds a Doctorate in Management Studies from Husbandry from Konkan Krishi Vidyapeeth-Agri NMIMS University, Mumbai and is also
Slide 11: Geographical Presence
Geographical Presence Manufacturing & Distribution Network Distribution Network Total Capacity (MTPA) Registered Distributors & Dealers Manufacturing Units 6,800+ Jammu & Kashmir 4 Jalandhar Rudrapur Sri Ganganagar Hissar Dealer Counters Ghaziabad Jodhpur Manufacturing Capacity Lucknow 86,000+ Jaipu
Slide 12: Strong R&D Capabilities
Strong R&D Capabilities Mumbai R&D Laboratory Since its Inception, the Aries R&D team has been focused on new product development in the area of Chelated micronutrients and speciality fertilizers. Aries develops crop specific and soil specific formulation of micronutrient complexes, specifically ali
Slide 13: Awards And Accolades
Awards And Accolades The highest independent The National Record Among The 10 Agri Business Economic Times Award for Winner - Category FMCG Food Companies Selected To Showcase Champions of Rural Markets honour in India the awarded by & Agri Business Year 2008 Agri-innovations @ Indo-US Agri Expo 201
Slide 14: Why ARIES?
Why ARIES? Changing The Agri-Input Industry Chelation technology to deliver Inert forms of nutrients that enrich the soil Complexing of micronutrients to provide desired proportion in each molecule of finished products Customization of products on the basis of soil, crop and region Cost Benefit of 6
Slide 15: Key Strengths
Key Strengths Cost Benefit To The Farmers Complete Product Portfolio Providing a 6:1 cost savings to the farmers Diverse Product portfolio of all the by reducing dosages and improving yield nutrients required for plant nutrition plant protection, animal and fisheries nutrition Strategic Marketing Fo
Slide 16: Business Overview
BUSINESS OVERVIEW
Slide 17: Business Mix
Business Mix Plant Nutrition and Protection Animal and Fisheries Nutrition Other Speciality Primary Nutrients Secondary Nutrients Micronutrients Feed Additives Products 107 85 13 Crops Covered Brands Nutrients
Slide 18: Chelation Technology
Chelation Technology Chelation is the most advanced delivery system for crop EDTA CHELATES nutrition Synthetic Ethylene Diamine Tetra Acetic Acid EDTA forms stable chelates with Being inert, the chelates are incapable of any harmful micronutrients chemical reactions once applied to the soils and cro
Slide 19: Key Brands
Key Brands MacroFert Agromin Chelamin Combical (NPK 20:20:20) Product Contents Multi Micro Nutrients Zinc as Zn EDTA 12% N=20%, P=20%, K=20% Secondary Plant Nutrients Corrects micro nutrient deficiencies Promotes healthy green leaves, Improves root development, boosts Supplies calcium and other Bene
Slide 20: AGROMIN - An Evolution
AGROMIN - An Evolution Benefits Agromin - Multi Micro Nutrient • Prevents and corrects trace element Fertilizer deficiency and boosts major nutrient fertilizer absorption and nutrient balance • Produces stimulatory effects on various The longest running flagship. enzyme reaction. An Aries research b
Slide 21: Primary Nutrients
Primary Nutrients Water Soluble NPKs – a cost effective substitute to Urea and DAP Revenue Contribution* (INR Mn) • Aries supplies water soluble NPKs and reduces dosage by uniform 415 application over the field area. 324 • Water Soluble NPKs can reduce the traditional Urea and DAP usage to only 25%.
Slide 22: Secondary Nutrients
Secondary Nutrients Builds up Quality of the crops produced Revenue Contribution* (INR Mn) 551 • Secondary nutrients are essential for post harvest nutrition management 429 331 335 Benefits •Ca(Calcium) is important for the plants cell wall strength. It increases post-harvest management by making th
Slide 23: Micronutrients
Micronutrients Increases Quantity And Production Revenue Contribution* (INR Mn) Benefits •Fe(Iron) is necessary for photosynthesis and is present as an 1,943 enzyme cofactor in plants. •Mo(Molybdenum) is a cofactor to enzymes important in building 1,582 1,419 amino acids and is involved in nitrogen
Slide 24: Other Nutrients & Crop Management Products
Other Nutrients & Crop Management Products Crop Protection from Bacteria and Hormonal Imbalances Benefits Product Mix •Plantomycin: (Streptomycin sulphate and Tetracycline Hydrochlorine) a broad spectrum antibiotic bactericide for plants for control of bacterial diseases in plant •Agronaa: (Naphthal
Slide 25: Fisheries And Animal Nutrition
Fisheries And Animal Nutrition Feed Additives for livestock and fisheries nutrition Benefits Revenue Contribution* (INR Mn) • Chelacop for Fish: (5% Copper along with Chelating 14 Agent) Fine, supplementary feed for Aquaculture. • Fishmin: multi micronutrients fertilizer for pond culture. Supplement
Slide 26: Combat All Nutrient Deficiency With Aries
Combat All Nutrient Deficiency With Aries One stop solutions to all the agricultural nutrient deficiency N P K Zn Fe Mn Mg Ca B Cu Yellowing of Abnormal Necrosis Premature Mottling of Black specs Blight attack Calcium Severs fruit Gum pocket foliage Tillering leaf death leaves deficient cracking at
Slide 27: Marketing & Sales
Marketing & Sales
Slide 28: Marketing & Sales Strategy
Marketing & Sales Strategy Brand Building Through Concept Development And Knowledge Dissemination Showcase products in a Traditional Selling: pesticide store where a farmer comes for spray based agro- The farmer stands in the long queue at the inputs fertilizer shops, books the product, pays the adv
Slide 29: Marketing & Sales Strategy
Marketing & Sales Strategy Sales call begins with the language of Then they organise a farmers cost benefit of 6:1 ratio which is proven After generating interest among meeting like a field day and call by many universities: the farmers community, Aries all the farmers in that village to uses the in
Slide 30: Flash Sales Concept
Flash Sales Concept The Agri-inputs industry did not have the First Flash Sale concept of order book, monsoons were their only way to predict sales at the BSE trading floor on 19th April 2016 In lieu to droughts for the two consecutive years, Aries strengthened its order book with the concept of FLA
Slide 31: Mobile App
Mobile App • The Aries App provides a solution to empower the users with comprehensive information on Aries Products with specifications, Deficiency details for various crops and their nutrient management. • Along with being a mode of marketing, it also focusses on knowledge dissemination to farmers
Slide 32: Industry Overview
INDUSTRY OVERVIEW
Slide 33: Monsoons Of India
Monsoons Of India Rainfall/Monsoon is 6% below normal till date at 655mm (rainfall in the range of -19% to +19% is considered normal). Considerable increase in the monsoon. • Lesser areas experiencing All India water dryness and reservoir level at drought from 253 to 244 69% of Full districts. Reser
Slide 34: Agri-Input Industry
Agri-Input Industry Growth in yield in the Non Foodgrains (kg/hectare) • The Indian agro-input industry has a market size of US$ 16Bn. 8500.00 8000.00 • Growth over last 10 years of 10-12% CAGR. 7500.00 7000.00 • Crop protection growth has exhibited a CAGR of 15-17% in the last 10 years. 6500.00 600
Slide 35: Horticulture Industry
Horticulture Industry Andhra Uttar Tamil Madhya West Pradesh Maharashtra Pradesh Gujrat Karnataka Nadu Pradesh Bihar Bengal Telangana Others Why horticulture works 13 11 11 9 8 7 6 5 4 4 22 • Crops can be grown on smaller farms $ • Higher value crops yield better returns • Farmers can plant multiple
Slide 36: Financial Overview
FINANCIAL OVERVIEW
Slide 37: Historical Standalone Income Statement
Historical Standalone Income Statement INCOME STATEMENT (INR MN) FY16 FY17 FY18 H1-FY19 Revenue from operations 2,128 2,296 2,645 1,375 Other Income 14 15 41 85 Total Income 2,142 2312 2,686 1,460 Total Expenses 1,813 1,898 2,199 1,115 EBITDA 329 414 487 345 EBITDA Margin 15.46% 18.02% 18.41% 25.09%
Slide 38: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet PARTICULARS (INR MN) FY17 FY18 H1-FY19 PARTICULARS (INR MN) FY17 FY18 H1-FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 130 130 130 (A) Property, Plant and Equipment 247 339 342 (B) Other Equity 1,221 1,332 1,485 (B) Inta
Slide 39: Historical Consolidated Income Statement
Historical Consolidated Income Statement INCOME STATEMENT (INR MN) FY16 FY17 FY18 H1-FY19 Revenue from operations 2,680 2,653 2,947 1,375 Other Income 14 31 20 66 Total Income 2,694 2684 2,967 1,441 Total Expenses 2,220 2,264 2,489 1,124 EBITDA 475 420 479 317 EBITDA Margin 17.72% 15.83% 16.25% 23.0
Slide 40: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet PARTICULARS (INR MN) FY17 FY18 H1-FY19 PARTICULARS (INR MN) FY17 FY18 H1-FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 130 130 130 (A) Property, Plant and Equipment 709 874 937 (B) Other Equity 1,622 1,700 1,890 (B) In
Slide 41: Key Financial Highlights (Standalone)
Key Financial Highlights (Standalone) TOTAL REVENUE (INR Mn) EBITDA (INR Mn) & EBITDA PAT (INR Mn) & PAT MARGIN (%) MARGIN (%) 2,800 520 18.02% 18.41% 160 5.16% 5.35% 6.00% 2,686 480 17.50% 140 2,600 15.46% 487 3.01% 440 120 142 3.50% 15.00% 118 2,400 2,312 400 414 100 360 80 1.00% 2,200 2,142 12.50
Slide 42: Capital Market Information
Capital Market Information 100% 80% 60% 40% Aries Agro Ltd. 20% Sensex 0% -20% -40% Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 -60% PRICE DATA (AS ON 30th SEP 2018) Face Value (INR) 10.00 Market Price (INR) 95.85 52.66% Promoter 47.34% Public 52 week H/L (INR
Slide 43: Disclaimer
DISCLAIMER Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current
Slide 44: Thank You
Thank You aries agro limited
Slide 45: Annexure
Annexure • Products under different business segments Primary Secondary Other Speciality Animal and Micronutrients Nutrients Nutrient Nutrients Fisheries feed MacroFert(19-19-19) Zn-Sulf Chelamin Phosphocop Mobomin Endomyco Aquazin FertiMAX-NK(13-0-45) Magmix Chelafer Agromin-SA Tracemin Agronaa Boo