Slide 1: Stock exchange cover letter: Investor Presentation Half Year 2023
Ref: IIL/SE/2022/1212/01 Dated: December 12, 2022 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 Sub: Investor Presentation – Half Year 202
Slide 2: Insecticides (India) Limited Investor Presentation, December 2022
An Initiative in line with PM’s Vision of “Aatma Nirbhar Bharat” Insecticides (India) Limited Investor Presentation, December 2022 Growing responsibly towards a Sustainable Future.
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
IIL’s Dashboard BACKGROUND DISTRIBUTION AND MARKETING One of India’s Leading Agrochemicals Manufacturers. 6,000+ 380+ DISTRIBUTORS SKUS 1,400+ EMPLOYEES Owner of Prestigious Tractor Brand 20,00,000+ 70,000+ FARMERS IN TOUCH DEALERS PRODUCTS FACILITIES 21+ TECHNICAL PRODUCTS 2 TECHNICAL SYNTHESIS PLA
Slide 5: Our Journey So Far
Our Journey So Far 2016 Tie-Up with MOMENTIVE 2020 Started with Export Oriented 2021 Launched a (USA) For AGRO new Unit (EOU) at 2014 SPRED* MAX; Tie- SEZ, Dahej, patented Commenced product Up with NIHON Gujarat and Product Hachiman NOHYAKU(Japan) for launched Invention 2019 SUZUKA and HAKKO; 7 new
Slide 6: Update on Capex
Update on Capex Company had guided last year about its These expansions combined expansion plans at 5 required a total outlay of locations, (including 3 Rs.1,100 mn, out of which Rs.420 major and 2 minor mn has already been deployed expansions) in a span of by the company in FY21. 2 years (FY21 and
Slide 7: Aggregate Installed Capacity
Aggregate Installed Capacity 30,900 KLPA Liquid 80,750 MTPA Granules 24,770 MTPA Powder 13,800 MTPA Active Ingredient and Bulk. *Under toll arrangement Investor Presentation December 2022 6
Slide 8: Products Launched in FY21 & FY22
Products Launched in FY21 & FY22 INSECTICIDE HERBICIDE BIOLOGICAL AGGREGATE REVENUE IN • Dominant • Hachiman • Milstim Max FY22 FROM THESE NEW LAUNCHES • Shinwa • Master Stroke • Tadaaki • Oxim `732.16mn • Mahir • Avval • Hakama Super Investor Presentation December 2022 7
Slide 9: IIL Heading Towards Premiumization
IIL Heading Towards Premiumization Focused Maharatna Products 58% Revenue Revenue 45% Contribution 42% Contribution H1 FY23 55% H1 FY22 Maharatna Products Maharatna Products Maharatna Products Other Products Other Products Investor Presentation December 2022 8
Slide 10: Product Freshness Index
Product Freshness Index IIL is committed to launching new products to keep in touch with the changing needs of agricultural market. The below graph depicts Revenues from new products launched since FY 13 till date. Gross Revenue from New Product Launches (₹MN) Sales of New Products Launched During:-
Slide 11: Unmatched R&D
Unmatched R&D Synthesis & Formulations R&D (Dahej, Gujarat) Synthesis & Formulations R&D (Chopanki, Rajasthan) New Product Innovation (Chopanki, Rajasthan) Biological Products (Shamli, UP) *Market Development 18 PATENTS RECEIVED 12 PATENTS PENDING 60+ SCIENTISTS IN R&D *as on 31st October, 2022 Inve
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 first in-house R&D Centre was established in 2005. A unique initiative of product Today IIL has 4 different streams of R&D Centers. discovery in India by forming a JV • In house R&D Centre at Chopanki is Approved by
Slide 13: Our Differentiation Business Structure
Our Differentiation 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 • NAB
Slide 14: Biological Products - Game Changer
Biological Products - Game Changer BIOLOGICAL SOLUTION FEW CREDIBLE BIOLOGICAL BIOLOGICAL R&D CENTRE BIOLOGICAL FACILITIES Competitive Advantage due to lesser no. PRODUCTS Equipped with bio assay and product Sterile environment; Latest ultra-modern of players. development facilities such as Isolatio
Slide 15: Maharatna Brands
Maharatna Brands Focused Maharatna Products : Maharatna Products : Investor Presentation December 2022 14
Slide 16: Substitutes for Nuvan & Thimet
Substitutes for Nuvan & Thimet Nuvan Lethal Gold Revenue in FY21 SUBSTITUTE Revenue in FY22 `1,010mn `128.50mn Thimet Lethal Granules & Tadaaki Revenue in FY20 SUBSTITUTE Aggregate Revenue in FY22 `770mn `689.85 mn Investor Presentation December 2022 15
Slide 17: Business Strength
Business Strength STRONG TEAMWORK STRONG MARKETING STATE-OF-THE-ART AMONG EMPLOYEES TEAM; WIDE AND MANUFACTURING FACILITIES; AND CHANNEL DEEP DISTRIBUTION ONE OF THE LARGEST PARTNERS NETWORK COMBINED FACILITIES” SUSTAINABLE IN-HOUSE R&D TEAM; BACKWARD COLLABORATIONS DEVELOPMENT OF INTEGRATION; WITH
Slide 18: Knowledge Pool
Knowledge Pool Inherent resilience Ensuring farmers’ and the unparalleled holistic welfare is the dedication of our foundation of our team will help us alliance with them.” navigate through the Mr. H. C. Aggarwal exciting times ahead Chairman and continue to create unmatched value for all.” Mr. Raje
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. Anil Kumar Goyal, Whole Time Director Mr. Virjesh Kumar Gupta, Independent Director Mr. Navin Shah, Independent Directo
Slide 20: Exports - How We Have Grown?
Exports - How We Have Grown? Export Value (`in Million) No. of Countries 1,400.00 30 The Company surpassed its’ export target for FY22 by leaps and 1,308 bounds and closed the fiscal year with an export revenue tally of 1,200.00 Rs.1307.57 Mn. 24 25 The management contines to expect a positive p
Slide 21: Industry Overview
Industry Overview • Globally, India is the fourth-largest producer of agrochemicals after the United • Government Initiatives to incentivize the Chemical and Agro- States, Japan and China. Chemical space: • The Indian agrochemicals industry is valued at around USD 5.72 billion in FY21 • The governme
Slide 22: Growth Drivers
Growth Drivers R&D’S ENDEAVOURS TO LAUNCH BACKWARD AND FORWARD STRENGTHENING BALANCE SHEET NEW TECH INITIATIVE NEW PRODUCTS IN THE FOCUSED INTEGRATION AND IMPROVING OPERATIONAL IIL has started with the MAHARATNA &” MAHARATNA EFFICIENCY Moving on the strategic path of testing of the new gen. CATEGORY
Slide 23: Our Goals
Our Goals SHORT TERM Launch New Generics And Products Going MEDIUM TERM LONG TERM Launch 9(3) Off-patent To Launch Latest Proprietary & Technology Products Discovery Products Through International Partners. Launch New Combinations And Formulations Investor Presentation December 2022 22
Slide 24: IIL's Forward-Looking Strategy and Guidance
IIL’s Forward-Looking Strategy and Guidance The management expects the top line to grow by a double digit in FY23, mainly driven by expansion of facilities, addition of new generation products and adding significant number of product registrations in the current fiscal. The new generation products
Slide 25: Global Partners
Global Partners Collaborations with International Players for Manufacturing and Marketing of Innovative Products Marketing Tie-ups for Speciality Marketing Tie-up for products i.e. Pulsor, Hakama, AGROSPRED* MAX Kunoichi, Hachiman, Shinwa and for Silicone based Spreader Izuki JV for a dedicated R&D
Slide 26: Segmental Reporting Q2 FY22 v/s Q2 FY23
Segmental Reporting Q2 FY22 v/s Q2 FY23 MAHARATNA PRODUCTS V/S CATEGORY-WISE SALES BREAKUP NET SALES BY SEGMENT OTHER BRANDED PRODUCTS 70% 70% 80% 60% 73% 61% 60% 71% 60% 60% 70% 51% 50% 60% 50% 50% 39% 40% 40% 40% 40% 29% 30% 30% 21% 30% 25% 25% 20% 20% 16% 16% 20% 10% 10% 10% 3% 4% 4% 2% 0% 0% 0%
Slide 27: Segmental Reporting H1 FY22 v/s H1 FY23
Segmental Reporting H1 FY22 v/s H1 FY23 MAHARATNA PRODUCTS V/S CATEGORY-WISE SALES BREAKUP NET SALES BY SEGMENT OTHER BRANDED PRODUCTS H1 FY23 v/s H1 FY22 H1 FY23 v/s H1 FY22 H1 FY23 v/s H1 FY22 60% 80% 70% 53% 70% 70% 68% 60% 58% 50% 55% 44% 60% 41% 50% 40% 45% 50% 42% 33% 40% 30% 40% 30% 30% 26% 2
Slide 28: Segmental Reporting - FY22 v/s FY21
Segmental Reporting - FY22 v/s FY21 Net Sales by Net Sales by Breakdown of Top Product Category Segment Seller Range in B2C 70% 80% 60% 55% 55% 69% 60% 58% 70% 65% 50% 53% 45% 45% 60% 50% 40% 50% 40% 33% 31% 40% 30% 30% 30% 26% 27% 20% 20% 11% 20% 10% 9% 9% 10% 3% 2% 10% 4% 0% Insecticides Herbicide
Slide 29: Segmental Reporting - FY22 v/s FY21
Segmental Reporting - FY22 v/s FY21 Domestic Sales Region-Wise Sales v/s Exports (Branded Products) 120% 40% 36% 35% 33% 100% 96% 91% 30% 26% 80% 25% 22% 22% 21% 21% 20% 60% 20% 15% 40% 10% 20% 9% 5% 4% 0% 0% Domestic Sales Exports East West North South FY22 FY21 FY22 FY21 Investor Presentation Dece
Slide 30: Key Performance Highlights
Key Performance Highlights 7000 16.00% 14,000.00 14.00% 12.85% 14.45% 5,822.09 14.00% 6000 12,000.00 11,428.99 12.00% 5,606.90 11.10% 12.00% 11.76% 10,000.00 10.00% 5000 9,122.00 4,439.39 10.43% 10.00% 8.42% 4000 9.43% 8,000.00 8.00% 7.28% 8.00% 7.70% 3000 6,000.00 6.00% 6.83% 6.00% 4,000.00 4.00% 2
Slide 31: Key Performance Highlights
Key Performance Highlights 15,500.00 100.00 94.08 16.00 17.00 89.30 14.20 15,039.38 90.00 14.00 16.45 15,000.00 16.50 80.00 12.00 70.00 61.90 16.00 14,500.00 14,202.26 60.00 10.00 15.50 14,000.00 50.00 8.00 13,632.20 5.90 15.00 14.70 14.80 40.00 6.00 13,500.00 30.00 4.18 14.50 4.00 13,000.00 20.00 2
Slide 32: Key Performance Highlights Contd....
Key Performance Highlights Contd…. 1,800.00 1,696.77 11.6 1,200.00 7.2 60.00 12.40 12.30 1,558.58 1,070.21 53.97 1,600.00 1,523.31 12.20 11.4 1,000.00 934.34 7.12 7 50.00 11.43 45.21 1,400.00 41.63 11.28 11.2 860.41 12.00 6.8 11.80 1,200.00 800.00 40.00 11.80 1,000.00 11 6.6 600.00 30.00 11.60 800.0
Slide 33: WC Cycle
WC Cycle Declining trend of Working Capital Cycle 140.00 124 100.00 250.00 226 190.00 86 208 120.00 107 184 200.00 188 185.00 80.00 70 100.00 89 65 180.00 80.00 60.00 150.00 175.00 60.00 171 40.00 100.00 170.00 168 40.00 20.00 50.00 165.00 20.00 0.00 0.00 0.00 160.00 FY20 FY21 FY22 FY20 FY21 FY22 FY
Slide 34: Cash Flow from Operations v/s Free Cash Flow
Cash Flow from Operations v/s Free Cash Flow Generation of positive Free Cash Flows for Capex and Repayment of Debt 3,000.00 2,500.00 2,418.53 2,000.00 1,662.50 Cash Flow from Operations 1,553.56 1,500.00 1,348.49 Free Cash Flow to Equity (FCFE*) 1,000.00 789.38 723.77 500.00 (`in Mn) 0.00 FY20 FY21
Slide 35: Leverage Profile
Leverage Profile Strengthening Company’s B/S and Cash Position • Company continues to strengthen Balance Sheet by Particulars (`in Mn) FY22 FY21 FY20 reducing debt and improving collection process Long-Term Debt 18.5 23.96 19.05 • As of FY22, the Company has zero Long-Term Debt Short-Term Debt 475.4
Slide 36: Financial Performance
Financial Performance Consolidated Financial Statement Highlights for Q2 FY23 v/s Q2 FY22 : Particulars (Rs. Mn) Q2 FY23 Q2 FY22 YoY% Q1 FY23 Consolidated Financial Performance Revenue from Operations 5,822.09 4,439.39 31.15% 5,606.90 Comparison – Q2 FY23 V/S Q2 FY22: Other Income 2.84 (3.14) 1.94 T
Slide 37: Financial Performance
Financial Performance Consolidated financial statement highlights for H1 FY23 v/s H1 FY22 : Particulars (Rs. Mn) H1 FY23 H1 FY22 YoY% Financial Performance Comparison – Revenue from Operations 11,428.99 9,122.00 25.29% H1 FY23 V/S H2 FY22: Other Income 4.78 13.16 Total Revenue 11,433.77 9,135.16 25.
Slide 38: Financial Performance
Financial Performance Consolidated P&L Particulars (Rs. MN) H1 FY23 FY22 FY21 Revenue from Operations 11,428.99 15,039.58 14,202.26 Other Income 4.78 42.72 77.28 Total Revenue 11,433.77 15,082.30 14,279.54 Total Expenses excluding Depreciation, 10,159.91 13,342.81 12,678.95 Amortization & Finance Co
Slide 39: Financial Performance
Financial Performance Consolidated Balance Sheet Particulars (Rs. MN) As on 30.09.2022 As on 31.03.2022 As on 31.03.2021 Non-Current Assets Property, Plant and Equipment 2,138.98 2,208.58 2,085.35 Capital Work in progress 1,256.70 857.70 518.72 Right of Use Assets 255.98 259.58 258.46 Intangible Ass
Slide 40: Financial Performance
Financial Performance Consolidated Balance Sheet Continues Particulars (Rs. MN) As on 30.09.22 As on 31.03.2022 As on 31.03.2021 EQUITY & LIABILITIES EQUITY Equity Share Capital 197.32 197.32 206.68 Other Equity 9,286.31 8,498.79 7,977.07 Total Equity 9,483.63 8,696.11 8,203.75 LIABILITIES Non-Curre
Slide 41: Capital Market Information
Capital Market Information MARKET INDICATORS: SHAREHOLDING PATTERN AS ON 30th SEPTEMBER, 2022 CMP (as on 14th November, Particulars Percentage Shareholding 2022): Promoters & Promoters Group 72.16 `746.90 BSE Scrip Code: Institutions 17.64 532851 Public 10.20 NSE Symbol: TOTAL 100.00 INSECTICID 52 W
Slide 42: CSR
CSR Over the last couple of years, it On the occasion of World has been working on the Environment Day, IIL following projects: Foundation planted Trees for a better tomorrow. Spreading awareness about the judicious use of Distribution of masks and agrochemicals in rural as Sanitizers to farme
Slide 43: Thank You
Thank You For further information on the Company, please visit www.insecticidesindia.com SANDEEP AGARWAL, CFO VINAYAK SHIRODKAR / NAMAN MAHESHWARI Insecticides (India) Limited Captive IR Strategic Advisors Pvt. Ltd Contact: +91 11 2767 9700 Contact: +91 93724 67194 Email: sandeep@insecticidesindia.c