Stronger… Greener… Bigger… E.I.D.- Parry (India) Limited Investor Presentation June 2011
Making Sugar since 1842 0 Disclaimer
This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.
Making Sugar since 1842 1 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 2 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 3 E.I.D- PARRY (INDIA) LTD - OVERVIEW Serving for more than 200 years…. Flagship company of Murugappa Group since 1981. Pioneers in: ► Sugar from 1842 ► Distillery from 1848 ► Sanitaryware from 1906 ► Fertilisers from 1906 ► Sugar Based confectionery from 1914 ► Biogas and Bio earth 1987 ► Bio-pesticides from 1995 No.1 Sugar Producer in South India ► Co-generation- Exportable Power including Refinery from 1997 ► Algal Nutraceuticals from 1997 Second Largest Phosphatic Fertiliser ► Branded Retail sugar from 2004 producer in India
“ Ranked 51 amongst the Top 200 Companies in India” - Economic Times 2009 survey Enrich life by creating value from agriculture
Making Sugar since 1842 4 OVERVIEW
BUSINESS UNDER EID‟s FOLD
Sugar Bio – Products Farm Inputs
Phosphatic Sugar Cogeneration Distillery Refinery Bio – Pesticides Fertilisers & Nutraceuticals Tamil Nadu 32.6 LMT TCD - 19000 84.5 MW 135 KLPD & Puducherry Specialty Nutrients Andhra 2000 TPD & Compost TCD - 5000 16 MW 45 KLPD Pradesh 35 MW
Pesticides Karnataka TCD - 8500 45.5 MW 50 KLPD
2000 TPD TCD - 32500 146 MW 230 KLPD Retail 35 MW
TCD – Tons crushed per day MW - Mega Watt KLPD - Kilo Litres per day TPD - Tons per day LMT - Lac Metric Ton
Making Sugar since 1842 5 GROWING FACTS
Capacity - Sugar Power Distillery Production (in LMT) -Phosphatic Fertilisers
32.00 31.48 250 40000 230 230 35000 31.00 32500 35000 200 30.00 30000 29.00 146 146 25000 150 21500 135 28.00 20000 101 27.00 100 26.26 26.40 15000 26.00 10000 50 25.00 5000 24.00
0 0 23.00 2009-10 2010-11 2011-12 Est 2009-10 2010-11 2011-12 Est MW KLPD TCD Production Capacity – 32.6 LMT
Making Sugar since 1842 6 FINANCIAL FACTS
Consolidated Gross Income Consolidated EBIT
Rs Crores Rs Crores
12000 1800 909 1600 10000 24 1400 8 8000 1200 909 24 1000 8 6000 10424 9459 800 4000 7748 600 118 969 1001 4677 400 881 118 2000 2802 200 391 225 0 0 06-07 07-08 08-09 09-10 10-11 06-07 07-08 08-09 09-10 10-11
Gross Income Profit on Sale of Invest EBIT(operating) Profit on Sale of invest.
EBIT includes Minority Interest CAGR – Operating CAGR
Making Sugar since 1842 7 Segmental Revenue and EBIT Rs Crores
SUGAR Nutraceuticals 1800 200 100 4 1600 168 90 1 2 150 1 0 2 1400 1615 80 86 70 1200 100 0 60 1000 31 47 1148 50 50 -2 800 40 600 0 -4 760 30 400 642 39 556 20 -50 -6 200 -60 -41 10 11 17 29 0 -100 0 -8 -7 06-07 07-08 08-09 09-10 10-11 06-07 07-08 08-09 09-10 10-11
Bio- Pesticides Farm Inputs 70 14 13 12000 1200 60 12 991 10000 1000 50 10 871 8000 710 800 40 7 65 8 7528 6000 9614 600 6 6 30 6 394 6429 4000 400 3 3835 20 36 4 174 36 2000 200 31 2118 10 2 26 0 0 0 0 06-07 07-08 08-09 09-10 10-11 06-07 07-08 08-09 09-10 10-11 Note: Revenue & EBIT of 2008-09 includes Rs. 159 Crs Business Assistance Agreement
Making Sugar since 1842 8 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 9 SUGAR – DEMAND & SUPPLY
World Sugar (mln t) India‟s Sugar Balance (mln t)
Changes SS SS SS 2009/ 2010/ Particulars 2008-09 2009-10 2010-11 Particulars 10 11 in mln t in % Opening stock 8.6 2.5 3.5 Production 158.0 167.0 9.0 5.7 Production 14.5 18.9 24.2 Consumption 162.6 166.2 3.6 2.2
Surplus / Deficit -4.6 0.8 Imports 2.5 4.2 0.0
Import demand 53.8 50.4 -3.4 -6.2 Consumption 23.0 22.0 22.8
Export Availability 54.2 51.3 -2.9 -5.4 Exports 0.2 0.2 2.0
End Stocks 56.2 56.2 0.0 -0.1 Closing stock 2.5 3.5 2.9
Stocks/ Consumption Stock to Consumption 34.6 33.8 10.9 15.9 12.7 ratio in % Ratio %
Source: ISO Quarterly Market Outlook, May 2011 Source: Crisil , May 2011
Making Sugar since 1842 10 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 11 South India is good….
Competitiveness in the Sugar Industry is driven 12.00 by 11.00 Total Sugar Recovered 10.00 (MT/Ha) ► Mutual Inter-dependence between the Farmer 9.00 8.00 & the Miller 7.00 Combined Productivity (Farm Yields and 6.00 5.00 Factory Recoveries) is the key 4.00 3.00 Thus, Total Recovered Sugar as MT per Ha
(ie Cane Yield in MT per Hectare times UP Gujarat
Recovery as Ton of Sugar per Ton of Cane) India All Karnataka
must be maximised Tamilnadu
Maharashtra Andra Pradesh Andra ► Port Facilities Freight cost for importing / exporting is Source: ISMA (5 Yrs average) Lower for South Indian Mills comparing to North Indian Mills. ► Tamil Nadu Long crushing season being a plus 100% Drawal for Tamil Nadu Mills No Poaching ► No Prior Period Liabilities for EID
Making Sugar since 1842 12 South India is good….
Operating days & Off Season Yield and Recovery
120.0 14.00 No. of . Off Season State Operating Days Operation 12.00 100.0 10.66 11.59 9.26 9.81 9.36 10.00 Tamil Nadu 210 80.0 8.00 60.0 Karnataka 160 104.8 85.8 78.7 77.8 56.5 6.00 40.0 4.00
Maharashtra 150 20.0 2.00
0.0 0.00 Uttar Pradhesh 120
* Off Season Operation for running Power, Raw Sugar Processing
Yield (tonnes per hectare) Recovery
Source: ISMA (5 yrs Avg. No. of. Operating Days) Source: ISMA (5 Yrs Avg. of Yield and Recovery)
Making Sugar since 1842 13 Long Duration Vs. High Recovery Mill areas
TCD - 3500 No. of working days - 210 Long Recovery - 9.5% Only Colombia Duration Investments - Rs.210 Crs. Return on Investment - 17%
TCD - 4500 No. of working days - 163
Short Recovery - 10.5% No Interest Duration Investments - Rs.309 Crs. Return on Investment - 15%
Low Recovery High Recovery Key Assumptions Cane Crushing = 7.35 Lakh MTs Cane Crushing = 7.35 Lakh MTs Sugar Price = Rs.26000 Sugar Price = Rs.26000 Cane Price = Rs.2000/MT Cane Price = Rs.2200/MT
Making Sugar since 1842 14 Recent Acquisitions - Karnataka / AP
Location Advantage Recent Acquisitions
High Recovery Zone of NW Karnataka I) Sadashiva – Bagalkot (Karnataka) Bagalkot, Haliyal & Ramdurg Date of Acquisition : 7-10-2009 Closer to major Indian sugar markets Capacity - 2500 TCD , 15.5 MW Less controls on Molasses and Alcohol than 76% Shareholding, Investment Rs. 49.6 Crs TN Debt - Rs. 127 Crs Proximity to Silkroad minimise the freight cost II) Parrys Sugar Industries Ltd (PSIL*) – (Haliyal, Ramdurg, Sankili) (Karnataka Larger power shortage than TN for Cogen & Andhra)
Date of Acquisition : 27-08-2010
Capacity - 11000 TCD ,46 MW , 95 KLPD
65% Shareholding, Investment Rs. 98.8 Crs
Debt – Rs. 350 Crs
* Previously known as GMR Industries Ltd
Making Sugar since 1842 15 Sadashiva / Parrys Sugar Industries Ltd
Experienced Management Strong track record of turning around poorly performing sugar mills Additional benefits from use of Coromandel International’s expertise
Extending EID practices in Sadashiva / Parrys Sugar - Farmer relations , Agricultural depots - Building Trust with Farmers, Govt, Bankers etc. - Tie up with Harvesting & Transport Gangs
Cane development initiatives across Command area
Working with Bank/Farm equipment suppliers for introducing Best practices including Drip irrigation , Borewells for increase in Acreage & Yield - Significant cane planting ensuring cane availability for next season
Debottlenecking at all factories to achieve 100% capacity utilisation
Restructure debt – Substitution of high cost debt with low cost debt
Making Sugar since 1842 16 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 17 SOUTH INDIA PRESENCE
Bagalkot TCD – 2500 Adllabad Cogen – 15.5 MW Vizianagaram Nizamabad Karimnagar Bidar Srikakulam
Medak Warangal Sangareddi Khammam Vishakhapatnam Gulbarga Haliyal Rangareddi East Godavari Bijapur Nalgonda West TCD – 3500 Godavari Mahbubnagar Cogen – 24 MW Bagalkot Raichur Guntur Distillery –50 KLPD Belgaum Sankili
Kappal Dharwad Kurnool Ongole TCD – 5000 Gadag Cogen – 16 MW Bellary Uttar kannad Distillery – 45 KLPD Davengere Anantapur Cuddapah Nellore Silkroad Refinery 2000 TPD Ramdurg Shimoga Tumkur 35MW TCD – 2500 Chitoor Tiruvallur Udupi Bangalore Kolar Cogen – 6 MW Chikmangalur Chennai Vellore Hassan Kanchipuram Puduchery Koorag Krishnagiri Tiruvannamalai Mandya TCD – 2000
Mysore Dharmapuri Chamrajnagar Vilupuram Puduchery Salem
Cuddalore Pettavaithalai Nilgiris Erode Namakkal TCD – 3000 Perambalur Nellikuppam Trichirappalli Cogen – 20 MW Coimbatore Karur TCD – 6000 Thanjavur Tiruvarur Nagappattinum Cogen – 24.5 MW
Dindigul Pudukkottai Distillery – 75 KLPD
Teni Madurai Sivaganga Pugalur Virudunagar TCD – 4000 Ramanathapuram Pudukottai Cogen – 22 MW TCD – 4000 Tuticorin Tirunelveli Cogen – 18
Tamil Nadu Kanyakumari Sivaganga Andra Pradesh Distillery – 60 KLPD Karnataka
Making Sugar since 1842 18 Capacities and Operating Parameters
Sugar – 35000 TCD
2007-08 2008-09 2009-10 2010-11 2011-12 Est Nellikuppam 5000 6000 6000 6000 6000
Pugalur 4000 4000 4000 4000 4000
Pettavaithalai 2500 3000 3000 3000 3000
Pudukottai 4000 4000 4000 4000 4000
Puducherry 2000 2000 2000 2000 2000
Tamil Nadu & Puducherry 17500 19000 19000 19000 19000
Sankili 5000 5000
Andhra Pradesh 5000 5000
Bagalkot 2500 2500 3500
Haliyal 3500 4000
Ramdurg 2500 3500
Karnataka 2500 8500 11000
Making Sugar since 1842 19 Operating Parameters
Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 Est
Cane Registration(in acres) * 92261 97147 94553 192344 239000
Cane Crushed(LMT) * 42.34 33.73 25.46 42.83 59.20
Recovery % 9.06 9.52 8.89 10.30 10.30
Process Loss 1.91 1.89 1.89 1.85 1.85
No. of. Operating days in Season 278 204 158 150-230 180-230 off Season(Power, Raw Sugar) 40 40-50 40-50
Estimate for 2011-12
* Cane Registration (in acres) EID – 130000, Sadashiva – 30000, PSIL – 79000 Cane Crushing (LMT) EID – 36, Sadashiva – 5.4, PSIL – 17.8
Making Sugar since 1842 20 Cogeneration
Cogeneration - 146MW
2007-08 2008-09 2009-10 2010-11 2011-12 Est Nellikuppam 24.5 24.5 24.5 24.5 24.5 Pugalur 22.0 22.0 22.0 22.0 22.0 Pettavaithalai 20.0 20.0 20.0 20.0 Pudukottai 18.0 18.0 18.0 18.0 18.0 Tamil Nadu 64.5 84.5 84.5 84.5 84.5 Sankili 16.0 16.0 Andra Pradesh 16.0 16.0 Bagalkot 15.5 15.5 15.5 Haliyal 24.0 24.0 Ramdurg 6.0 6.0 Karnataka 15.5 45.5 45.5
4500 4000 230 3500 1049 3000 2500 597 2000 3850 3238 1500 2668 2518 1000 1975 500 0 2007-08 2008-09 2009-10 2010-11 2011-12 (Est)
Season Power Export to Grid(in Lac units) off Season Power Export to Grid(in Lac units)
Making Sugar since 1842 21 Distillery
Distillery – 230 KLPD
2007-08 2008-09 2009-10 2010-11 2011-12 Est Nellikuppam 40 40 75 75 75 Sivaganga 60 60 60 60 Tamil Nadu 40 100 135 135 135 Sankili 45 45 Andra Pradesh 45 45 Haliyal 50 50 Karnataka 50 50
800 40
700 35 34 31 600 30 31 500 25 26 400 22 695 20 414 300 15
200 10
100 166 5 99 98 0 0 2007-08 2008-09 2009-10 2010-11 2011-12 (Est)
Sales(Lac Ltrs) Avg Realisation
Making Sugar since 1842 22 Level of Value Addition
Bagasse utilisation (%) for Value Addition
100% 95% 90% 95% 89% 80% 79% 70% 72% Bagasse to Power 60% 50% 40% 30% 20% 10% 0% Molasses utilisation (%) for Value Addition 2007-08 2008-09 2009-10 2010-11 2011-12 E 120%
100% 100%
80% 80%
Molasses to Alcohol 60% 69%
40% 31% 20% 22%
0% 2007-08 2008-09 2009-10 2010-11 2011-12 E
Making Sugar since 1842 23 Recovery Improvement – Actions Taken
Optimum Utilization during Peak recovery by balancing the Cane supply and Operating Days, capacity expansion, modernization, efficiency improvement( Total Loss).
Increasing the coverage of HSV by introducing of Parry India (PI) Logistics Cane Variety through Parry's Management breeding program
Ensuring application of fertilizer for improving quality of cane through soil analysis, input supplies on right time by Parry Mayyams ,extension and farmer training programs .
Making Sugar since 1842 24 Unique – Agri services
Average Sucrose yield (MT/Ha) 10.87 10.58 10.71 10.50 Linkages Govt.. Registration 11.00 10.17 9.67 Institutions Crop schedule 10.00 Information Technology transfer 9.00 IndiaAgriline.com Knowledge sharing 8.00 Kiosk Training 7.00
6.00 Payments On time Infrastructure Cane Mt/ha yield Sugar 5.00 Banks/SAP & Crop loans 4.00 Development Soil analysis Harvest Logistics Nutrient schedule 3.00 Transport Remote sensing 2.00
1.00 Co 86032 PI 96 1946 PI 96 843 PI 95 151 PI 98 1160 PI 99 1750 Crop Insurance Agri -inputs
PI – Parry Varieties Bio control Machinery Agents Production Co – Benchmark Varieties Implements /Supply The only sugar company in India Monitoring Tissue culture & perhaps one of the five in the Diagnostics Plants Control Nursery setts world who practice sugar cane varietal development
Making Sugar since 1842 25 Higher Crushing & Higher Recovery
140000 12 11.25 10.87 10.54 10.07 120000 9.56 10 9.26 9.04 8.52 8.68 100000 8
80000
6
60000
4 40000
2 20000
0 0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Cane Crushed (MTs) Recovery (%)
Recent Investments in Sugar will enable Crushing during peak period
Making Sugar since 1842 26 Farmer Relations – leverage IT
Integrated System from Cane Registration to Payment at Rural banks
Cane weighment & Command Area payment alert 100% Drawal Through SMS
Automated display In House ERP Cane weighment solution system On factory On time Payment – gate Cane All the Time Management System, SAP wireless online connectivity No prior period Liabilities for EID
Centralised, Web based , online Hassle free cash delivery through Online baking at his rural back yard Parrys corner (Knowledge sharing ) Farmer Farmer Crop information & Insurance Loyalty Tissue culture, Parry Varieties Cane harvester Crop Loans Transporter Farmers Accidental Insurance & Hospitalisation
Making Sugar since 1842 27 Farm Labour Relations
Parry Service Kiosks (PARRY MAYYAM) Timely Supply Harvesting / Transport Labourers of Cane Insurance
Mechanisation of Cane harvesting
Centralised cane payment by e-mode… Higher Yield payment lead time reduced by 3 days
Making Sugar since 1842 28 Sugar Sales value chain
Traditional EID
Authorized Distributers Industrial Users Bulk Users Industrial 100% Users Retailers Sugar Mills Brokers Sugar Mills Wholesalers Retailers Brokers
Disadvantages Advantages - Pricing determined by few brokers - Derisking – Reduced channel dependency -End consumer needs not addressed - Customisation and Value addition. - Pricing is the “sole purchase criteria”
- No scope for Customization / Value addition
Making Sugar since 1842 Sugar Sales value chain
Sugar Sales Segment wise – Last 6 Years Achieved through 100% - Moving from Standards to Specifications 90% - Customised solutions for Industrial customers 80% Grades, Packing, Pricing modes, Service parameters. 70% 3.37 2.69 3.67 3.09 3.55 - Retail Brand – Large Sales Network 60% 3.80 50% 40% 30% 0.40 0.05 0.15 0.25 0.13 20% 0.08 1.30 10%0.69 0.80 1.00 0.85 1.02 0% Institutional Customers Retail Outlets 2006 -07 2007 - 08 2008-09 2009-10 2010-11 2011-12(Est) 500 14000 Institution Retail Trade
Reduced dependency on Traditional Channels
Making Sugar since 1842 30 Institutional Segment …………
Confectioner’s sugar Baker’s sugar Beverage sugar Biscuits
Sugar for Indian Sweets Pharma sugar
Making Sugar since 1842 31 Our Certifications
Indian Pharmacopoeia
Halal ISO 9001-2008 Kosher
Japanese Pharmacopoeia US Pharmacopoeia British Pharmacopoeia European Pharmacopoeia
Making Sugar since 1842 32 Working with
Cane Growing Milling Marketing
Mitr Phol – Thailand SPRI – USA Cargill
CTC – Brazil SRI – Australia Sucden
ICSB Mitr Phol – Thailand Czarnikow
ISSCT TLPT – UK
Honeywell Tech.
IPRO – Germany
ISSCT
Making Sugar since 1842 33 Silkroad Sugar… An Innovative Business Model
REACHING OUT BEYOND TRADITIONAL FRONTIERS………..
Making Sugar since 1842 34 Silkroad Sugar Pvt Ltd
Why Refinery in India? Capacity & Investments
Destination Refinery concept Unit in Parry Infra SEZ , Kakinada ► Logistical Advantage in transportation of (Andhra Pradesh) Raws and refining at destination Joint Venture company of Why Silkroad ? - EID Parry India Ltd (50%) - Cargill Asia Pacific Private Ltd (49%) Locational Advantage - New Ambadi Estates Private Ltd (1%)
► East Coast Advantage, proximity to Kakinada Capacity levels Port ► Refined Sugar – 2000 TPD(Annual ► Sugar Consumption /demand strongly capacity of 0.60 mn MT) correlated , future growth in countries like ► Power – 35 MW China, India ► Exportable Power – 25 – 27 MW Cargill backing, largest Sugar trader accounting Investment – Rs 430 Crores 25% of global trade SEZ Advantage ► Duty , Tax concessions Power Plant ► Integrated for energy, thus low cost
Making Sugar since 1842 35 Silkroad Sugar Pvt Ltd
Concept -- Refinery + Power plant Model -- India + Overseas…..
• Pioneering technology
Integration of Gas Turbine Power Plant with Refinery is Globally UNIQUE
• Strategic Location
Landfall point of India’s largest Natural Gas find
All weather deep draught Private port
Deficit sugar geography
Above all ….. Opportunistically can source from OR supply into India
Making Sugar since 1842 36 EID - Investment Trend in Sugar
Rs. Crores
Investment 06-07 07-08 08-09 09-10 10-11 Total
Existing Facilities 116 91 298 82 36 622 Puducherry Unit 56 56 Silkroad Sugar 4 46 36 14 99 Sadashiva 50 50 Parrys Sugar 99 99 Total 176 137 333 146 135 926
Note: Benefits to accure from following investment from 2011-12:
► Inv (Silkroad, Sadashiva & Parrys Sugar) - Rs. 248 Crores
Making Sugar since 1842 37 Consolidated Operation – Minimise Cyclicality
in Terms of PBIT
120 107 3 100 100 9 Rs Cr 23 80 36 63 60 14
40 80 55 49 20
0 Peak Mid Trough
Sugar Cogen Distillery
Low Cane High Cane High sugar price Low sugar price
Mid - Base 100 Peak/Trough - Represented in %age terms of Mid
Making Sugar since 1842 38 Agenda
Company Overview
Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South India
► EID – Sugar Business
Bio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 39 Nutraceuticals
Global Nutraceutical Segments Parry Nutraceuticals “Product portfolio”
Astaxanthin Beta carotene Herbal Lycopene formulations Lutein
Parry Nutraceuticals Nutraceuticals
Fenugreek Organic Galactomanon Spirulina
EPA /DHA Global Ingredient market size - $ 27 Billions
Global Nutritional products (formulated) Existing Products Industry size - $ 236 Billions Pipeline Products
Making Sugar since 1842 40 Products and Opportunities…..
Organic Spirulina Current market - $ 7.5 Mi. Parry share - $ 3.35 Mi. CAGR - 2%
Astaxanthin Current market - $ 35 Mi. Parry share - $ 2.46 Mi. CAGR - 7%
Lutein Current market - $ 150 Mi. Parry share - $ 1.47 Mi. CAGR - 9%
Lycopene Current market - $ 55 Mi. Parry share - $ 1.25 Mi. CAGR - 6%
Making Sugar since 1842 41 Nutraceuticals – Consolidated Financials
Rs. Crores
Description 07-08 08-09 09-10 10-11
Sales 17.2 29.1 38.9 85.8
PBIT 1.4 0.13 1.9 -7.4
Capital Employed 38.5 55.3 53.7 107.1
Investments
Phyto Remedies (2007-2010) 2.1
Valensa (2008-2011) 48.1
Total 50.2
Making Sugar since 1842 42 Agenda
Company Overview
Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South India
► EID – Sugar Business
Bio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 43 Bio - Business
Multi discipline R&D
1994 Main Plant Raw material – Product development Neem Seed
Registration
India/Abroad
Demonstration Market Test Marketing
28 countries Concept selling
Making Sugar since 1842 Exports 44 Market Est. for Bio pesticides
The global pesticide market was valued at approximately $40 billion in 2008. This figure increased to nearly $43 billion in 2009 and is expected to grow at a compound annual growth rate (CAGR) of 3.6% to reach $51 billion in 2014.
Biopesticides represent a strong growth area in the global pesticide market. This segment is expected to grow at a 15.6% compound annual growth rate (CAGR) from $1.6 billion in 2009 to $3.3 billion in 2014.
Synthetic pesticides represent the greatest market share, valued at $41 billion in 2009. This market will be worth an estimated $48 billion in 2014, a compound annual growth rate (CAGR) of 3%
Source:* http://www.bccresearch.com/chem/C204R.html
Making Sugar since 1842 45 Bio biz…so far
Achieved maximum production of 7450 Kg (09-10) and sale of 6800 kg (10-11) so far in a year.
Have registrations in over 41 countries and 5 different patents for product and process across 15 countries.
Launched a plant extract based Plant Growth Regulator Granulein Domestic market, sales of which was 500 MT in 09-10 and doubled to 1100 MT in 10-11. Plan in place to grow the volumes by 3 times in 11-12.
Highest ever sale of Rs.65 Crores achieved in 10-11(Against Rs.36 Crores of 09-10). Domestic Sales was 162% over 09-10 export sales was 157% over 09-10.
Highest ever profitability of Rs.13.3 Crores achieved in 2010-11.
Making Sugar since 1842 46 Bio – Pesticides Consolidated Financials
Description 07-08 08-09 09-10 10-11
Sales Quantities
Total Technical(in Kgs) 5129 4900 4319 6777
Abda MT 30 147 509 1136
Sales Value (Rs. Crores) 30.6 36.4 36.3 65.4
PBIT(Rs. Crores) 5.9 7.2 5.6 13.3
Capital Employed(Rs. Crores) 37.8 47.7 51.6 57.3
Making Sugar since 1842 47 Agenda
Company Overview
Sugar Business ► World and Indian Sugar Balance ► Closer look @ Sugar in South India ► EID – Sugar Business
Bio Products Business ► Nutraceuticals ► Bio Pesticides
Consolidated Financials
Making Sugar since 1842 48 FINANCIALS SNAP SHOT: CONSOLIDATED
Revenue Rs. Crores 12000
10000
8000 10158 9231 6000 7557
4000 4582 2000
0 FY 07-08 FY 08-09 FY 09-10 FY 10-11
EBT PAT *
1674 1163 1800 1200 1600 1400 1000 908 850 567 1200 823 800 567 555 8 1000 24 7 24 800 600 289 600 400 766 842 799 183 596 400 560 531 289 200 200 183 0 0 FY07-08 FY 08-09 FY09-10 FY 10-11 FY07-08 FY 08-09 FY09-10 FY 10-11 EBT(excl. Profit on Sale of Invest) Profit on Sale of Investments Net Profit excl Sale of Invest. Profit on Sale of Invest. after Tax
Making Sugar since 1842 * PAT with Minority Interest 49 FINANCIALS SNAP SHOT: CONSOLIDATED
Operating Margin % Return on Equity
FY 10-11 11% FY 10-11 24%
FY 09-10 13% FY 09-10 31%
FY 08-09 8% FY 08-09 37%
FY 07-08 8% FY 07-08 17%
0% 5% 10% 15% 0% 10% 20% 30% 40% Long Term Debt : Equity Return on Capital Employed
FY 10-11 0.45 FY 10-11 15%
FY 09-10 0.32 FY 09-10 17%
FY 08-09 0.27 FY 08-09 19%
FY 07-08 0.43 FY 07-08 13%
0 0.1 0.2 0.3 0.4 0.5 0% 5% 10% 15% 20%
Average Payout over last 5 Years – 32%, Rs. 351Crores
Making Sugar since 1842 50 OTHER FINANCIAL INFORMATION
Free Cash Flow (in Crores) Share Holding Pattern as on 31st Mar, 2011
700 643 Promoters 600
500 425 400 Mutual Funds
300 0.03% 200 166 Banks/Financial 18.95% Institutions/Insurance 100 55 4.20% Companies 45.87% 0 1.64% Foreign Institutional FY 07-08 FY 08-09 FY 09-10 FY 10-11 Investors 6.56% 8.81% Rating 13.94% NRIs / Foreign Nationals
CRISIL Bodies Corporate - Long Term Debt rating - AA/Stable outlook
- Short Term Debt rating to P1+ Indian Public/ Clearing - Same ratings also been assigned by CRISIL as Bank members Loan rating as per BASEL II requirement for the existing and proposed Bank Facilities. Trusts
Making Sugar since 1842 51 Investor Co-ordinator
For further information, please contact: P. Gopalakrishnan, Vice-President (Finance) E.I.D. - Parry (India) Limited, Dare House, 234 NSC Bose Road, Chennai – 600 001. Tel: +44 – 2530-6789 Email: [email protected] Website: www.eidparry.com
Quarterly Results Last week of July „2011, October „2011, January „2012, April „ 2012
Making Sugar since 1842 52 Stronger… Greener… Bigger…
Making Sugar since 1846 53