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. 1
Contents Company Overview Sugar Business World and Indian Sugar Balance EID Sugar Business Bio Products Business Nutraceuticals Bio Pesticides Financials Awards & Accolades 2
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E.I.D- PARRY (INDIA) Overview LTD - OVERVIEW Serving stakeholders for more than 225 years. Flagship company of Murugappa Group since 1981. Pioneers in: Sugar from 1842 Distillery from 1848 Fertilisers from 196 Bio-pesticides from 1995 Co-generation- Exportable Power from 1997 Algal Nutraceuticals from 1997 Branded Retail sugar from 24 4
Strengths Attractive Industry Dynamics PARRY, A Strong household brand Low Cost Producer Strong Farmer Relationship 5
Parry s Sugar Prestigious Superbrand Parry s has been selected and has been awarded the prestigious consumer Superbrand for 211-12 by popular consensus among both Consumers and Industry Experts. Parry s Sugar is THE ONLY SUGAR BRAND in India to be conferred Superbrand status. 6
Operational Achievements 1.38 lakh acres brought under cane cultivation 2 nd Largest sugar exporter in India 48 lakh Tons cane crushing in the year 296 days of operations vis a vis less than 2 in earlier years Focus on the export business - about 25% of production exported Focus on organic growth by debottlenecking & sweating the assets 7
Strategic Tie-ups during the Year Tie up with New Holland on mechanization during the year. Tie up with Coromandel on selling value added by - products Godavari Gold and Kash, yielded significant value added contributions. 8
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Businesses in EID Sugar Bio Products Farm Inputs Tamil Nadu & Puducherry Sugar Cogeneration Distillery TCD - 21 84.5 MW 135 KLPD Bio Pesticides & Nutraceuticals Phosphatic Fertilisers Andhra Pradesh TCD - 4 16 MW 45 KLPD Specialty Nutrients & Compost Karnataka TCD - 11 45.5 MW 5 KLPD Pesticides TCD - 36 146 MW 23 KLPD Retail TCD Tons crushed per day MW - Mega Watt KLPD - Kilo Litres per day LMT - Lakh Metric Ton 1
FINANCIALS - EID STANDALONE Gross Income Rs Crores 18 16 14 12 1 8 6 4 2 1678 1712 1436 1297 8-9 9-1 1-11 11-12 EBIT Rs Crores 35 3 25 2 15 1 5 286 21 115 19 8-9 9-1 1-11 11-12 11
Segmental Revenue and EBIT-EID Standalone Sugar Rs Crores 2 15 1 5 183.44 47 58-49.38 76 1137 1323 1447 8-9 9-1 1-11 11-12 2 15 1 5-5 -1 Bio- Pesticides Nutraceuticals 9 8 7 6 5 4 3 2 1 13 11.34 7.16 5.6 23 4 77 22 8-9 9-1 1-11 11-12 14 12 1 8 6 4 2 5 4 3 2 1 2.5 1.18.12-1 24 33 25 44 8-9 9-1 1-11 11-12 4-4 12
FINANCIALS - Consolidated Consolidated Gross Income Rs Crores Consolidated EBIT Rs Crores 14 12 1 8 6 4 2 99 99 24 8 12758 1424 7748 9565 4677 7-8 8-9 9-1 1-11 11-12 18 16 14 12 1 8 6 4 2 99 22 99 8 24 881 969 19 187 391 7-8 8-9 9-1 1-11 11-12 Gross Income Profit on Sale of Investment EBIT(operating) Profit on Sale of Investment EBIT includes Minority Interest 13
Consolidated Segmental Revenue and EBIT Sugar Nutraceuticals Rs Crores 3 25 2 168 2391 2 15 1 14 12 1 1 2 121 6 15 1 5 47 1765 5-6 1148-41 76 642 7-8 8-9 9-1 1-11 11-12 5-5 -1 8 6 4 2 86-7 -7 17 29 39 7-8 8-9 9-1 1-11 11-12 -6-12 Bio- Pesticides Farm Inputs 12 1 8 6 4 2 16 13 17 6 7 6 65 31 36 36 7-8 8-9 9-1 1-11 11-12 18 16 14 12 1 8 6 4 2 12 1 8 6 4 2 394 871 3835 9614 6429 7584 9,879 Note: Revenue & EBIT of 28-9 includes Rs. 159 Crs Business Assistance Agreement 71 991 137 7-8 8-9 9-1 1-11 11-12 12 1 8 6 4 2 14
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SUGAR DEMAND & SUPPLY World Sugar (million MT) India s Sugar Balance (million MT) Change Particulars SY 21-11 SY 211-12 Change in mln tons in % Production 165 173 8 5 Consumption 164 168 4 2 Surplus / (Deficit) 1 5 4 4 Import demand 53 49 (4) (8) Export Availability 53.22 53.27.5 - End Stocks 56.53 57.57 1.4 2 Stock to Consumption Ratio % 34.46 34.31 Particulars SY 21-11 SY 211-12 Est. Opening stock 6 6 Production 24 26 Imports Consumption 21 23 Exports 3 3 Closing stock 6 6 Stock to Consumption Ratio % 29 26 Source: MECAS Quarterly Market Outlook Note: SY refers to Sugar year. Source: ISMA 16
Sugar Industry Changes in the making Rangarajan committee formed to look into the decontrol of Sugar Industry. Recommendations expected in few months. Exports have been opened up on first come first served basis rather than quota regime. EID stands to gain significantly considering flexibility in manufacturing Whites and Raws; proximity to ports; strong capability to export. The Monthly release mechanism for selling Sugar has been changed to Quarterly release mechanism commencing this financial year, providing flexibility in managing sales volume. Levy Sugar, in respect of prior years, not already delivered companies are not required to continue with levy obligations Patna High Court ruling in favour of industry. 17
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SOUTH INDIA PRESENCE Bagalkot TCD 35 Cogen 15.5 MW Adllabad Vizianagaram Karimnagar Nizamabad Bidar Srikakulam Medak Sangareddi Warangal Khammam Vishakhapatnam Gulbarga Haliyal TCD 4 Cogen 24 MW Distillery 5 KLPD Rangareddi Bijapur Bagalkot Belgaum Mahbubnagar Raichur Kappal Dharwad East Godavari West Godavari Nalgonda Guntur Silkroad Refinery 2 TCD 35MW Ongole Kurnool Gadag Bellary Uttar kannad Davengere Anantapur Nellore Cuddapah Ramdurg TCD 35 Cogen 6 MW Tumkur Shimoga Udupi Tiruvallur Chennai Chitoor Kolar Bangalore Chikmangalur Vellore Hassan Kanchipuram Krishnagiri Koorag Tiruvannamalai Mandya Mysore Dharmapuri Chamrajnagar Nilgiris Cuddalore Erode Namakkal Coimbatore Karur Dindigul Madurai Teni Pugalur TCD 48 Cogen 22 MW Virudunagar Tirunelveli Tamil Nadu & Puducherry Puduchery TCD 22 Puduchery Vilupuram Salem Pettavaithalai TCD 35 Cogen 2 MW Sankili TCD 4 Cogen 16 MW Distillery 45 KLPD Perambalur Trichirappalli Thanjavur Tiruvarur Nagappattinum Pudukkottai Nellikuppam TCD 65 Cogen 24.5 MW Distillery 75 KLPD Sivaganga Ramanathapuram Tuticorin Pudukottai TCD 4 Cogen 18 Kanyakumari Sivaganga Distillery 6 KLPD Andhra Pradesh Karnataka 19
EID Sugar Success Factors Longer Crushing Location advantage Marketing Strength Farmer s Loyalty Number of days crushing > 27 days Complete integration by-products into Factories closer to Port facilitating export of Sugar. Availability of Diversified mix of selling Institutions, Retail and Exports. Payments to farmers made with 14 days.. No arrears. Cogen, Distillery and value added products. cane, both within our command area and outside. Flexibility in Raws production to take advantage of export pricing. Focus on yield improvement to address profitability to farmers. 2
SUGAR-EXPORT Quarterly Volume (MT) 7, 6, 59,446 61,755 5, 4, 3, 23,569 2, 1, 1,452 5,142 - Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Est. Sugar Surplus in India Leads to Export Opportunity Sugar Deficit in India Leads to Increase in Domestic Prices EID stands to Gain 21
Institutional Sales Sales to institutional customers has increased from 27% in 21-11 to 3% of total sugar sold in 211-12. Key institutional customers include Pepsi, Coke Cadburys, Britannia, Rasna. Institutional sales (MT) Innovations to customize the products and delivery mechanism ensures the growth in institutional sales. 15, 125, 1, 75, 1,534 82,348 91,825 121,726 The company s products has several certifications including ISO 91-28, Kosher, Halal, Indian Pharmacopoeia, Japanese Pharmacopoeia 5, 25, - 28-9 29-1 21-11 211-12 22
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R&D Productivity Improvement & Sustainability First private sector in sugar to start in-house varietal development - to meet specific command area needs Participate in All India Coordinated research Project on Sugarcane of Central Government (AICRP) and Coordinated Agronomic trials of State Government (CAE) - access to government R&D programs in advance Member of International Sugarcane Consortium for Biotechnology (ISCB) and Member of Global Sugarcane Sustainability Initiative Bonsucro DSIR recognized R&D centers at three locations Key Activities Tissue culture - for faster multiplication of new varieties and de-risking against major disease calamities if any Soil analysis and soil fertility maps for balanced nutrient application Development of Neem and non Neem Bio products for organic pest management. 24
Capacities and Operating Parameters Sugar Capacity 36 TCD 27-8 28-9 29-1 21-11 211-12 Nellikuppam 5 6 6 6 65 Pugalur 4 4 4 4 48 Pettavaithalai 25 3 3 3 35 Pudukottai 4 4 4 4 4 Puducherry 2 2 2 2 22 Tamil Nadu & Puducherry 175 19 19 19 21 Sankili 4 4 Andhra Pradesh 4 4 Bagalkot 25 25 35 Haliyal 35 4 Ramdurg 25 35 Karnataka 25 85 11 TOTAL 175 19 215 315 36 25
Sugar Operating Parameters Company wise EID Parry PSIL SSL 21-11 211-12 Growth 21-11 211-12 Growth 21-11 211-12 Growth Sugar Cane Registration in Acres 15,61 137,999 31% 68,837 92,42 34% 18,446 24,25 3% Cane Crushed LMT 28.36 48.2 69% 11.11 16.45 48% 3.36 4.62 38% Recovery % 8.9% 9.4% 1.76% 11.41% 1.91% 11.68% Production Qty LMT 2.89 4.34 5% 1.2 1.87 56%.37.54 46% Sales Qty LMT 3.23 4.4 25%.81 1.89 133%.16.57 256% No of days operated 179 296 92% 134 166 24% 167 166 (.1) 26
Sugar Parameters - Consolidated Particulars 29-1 21-11 211-12 Cane Registration(in acres) 94,553 192,344 254,426 Cane Crushed(LMT) 25.46 42.83 69.9 Recovery % 8.89 1.3 1.3 No. of. Operating days 198 19-28 16-3 8 7 6 5 4 3 2 1 Consolidated Cane Crushed in Lakh MT 25.46 42.83 69.9 29-1 21-11 211-12 6 5 4 3 2 1 EID standalone- Cane Crushed in Lakh MT 48.2 25.46 28.36 29-1 21-11 211-12 27
Cogeneration Capacity - 146MW Cogeneration- Particulars 29-1 21-11 211-12 Nellikuppam 24.5 24.5 24.5 Pugalur 22. 22. 22. Pettavaithalai 2. 2. 2. Pudukottai 18. 18. 18. Sankili 16. 16. Bagalkot 15.5 15.5 15.5 Haliyal 24. 24. Ramdurg 6. 6. Total 1. 146. 146. Power Exported 6 4 2 EID Parry PSIL SSL 21-211- 21-11 11 211-12 Growth 21-11 211-12 Growth 12 Growth In Lac units 3147 3427 9% 76 78-7% 38 347-9% Consolidated Power export to grid(lac units) 2572 4287 4482 4 2 EID Standalone Power export to grid(lac units) 29-1 21-11 29-1 211-12 21-11 211-12 2572 3147 3427 28
Distillery Capacity 23 KLPD Distillery-Particulars 29-1 21-11 211-12 Nellikuppam 75 75 75 Sivaganga 6 6 6 Sankili 45 45 Haliyal 5 5 Total 135 23 23 EID Parry PSIL Distillery 21-11 211-12 Growth 21-11 211-12 Growth Production(LL) 29 398 37% 139 186 34% Sales (LL) 275 397 45% 139 171 24% 6 5 4 3 2 1 Consolidated Sales (in lac litres) EID Standalone Sales (in lac litres) 568 5 414 4 397 3 275 166 2 163 1 29-1 21-11 211-12 29-1 21-11 211-12 29
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Nutraceuticals Global Nutraceutical Segments Parry Nutraceuticals Product portfolio Astaxanthin Beta carotene Lycopene Lutein Herbal formulations Nutraceuticals Parry Nutraceuticals Fenugreek Galactomanan Organic Spirulina EPA /DHA Global Nutraceutical market size - $ 151 Billions Existing Products Pipeline Products 31
Products 32
Valensa International Cartenoids Zanthin Brand Astaxanthin Parry Tomato Lycopene Lutein &Trans Zeaxanthin Parry Mixed Carotenoids Conditional Specific formulations Eye Health (EyeProMD ) Joint Health (FlexProMD ) Cardiovascular Health (DeepOceanKrill ) GI Health (GoEasy ) Men s Health (USPlus Saw Palmetto Extract) Women s Health (Cran Gyn DDS ) General Health & Wellness Parry Organic Spirulina SpiruZan Pur Blue SpiruZan 33
Products and Opportunities.. Organic Spirulina Current market - $ 7.5 Mi. CAGR - 2% Astaxanthin Current market - $ 35 Mi. CAGR - 7% Lutein Current market - $ 15 Mi. CAGR - 9% Lycopene Current market - $ 55 Mi. CAGR - 6% 34
OTC Products Distribution Expansion Products placed in 136 outlets Distribution network comprising of over 7 channel partners Sales organisation in place in Key towns Product Portfolio Existing products Pro 9, Pro 9D (Protein supplements) Parry s Spirulina NBC9 (Beta Carotene) New Products Launched GreenT 6 Antioxidant to address stress related ageing Rejuveneyes- Eye Supplement Products under development to position in Immunity, Skin health and other segments 35
Nutraceuticals Financials Rs. Crores Description 8-9 9-1 1-11 11-12 Sales 29. 37.3 43.9 43.6 PBIT - 2. 1.2 (1.) Capital Employed 49.3 47.4 51. 53.3 Description SALES PBIT 1-11 11-12 1-11 11-12 Valensa 42.7 73.7 (7.5) (2.8) Phyto 9.6 3.9 (1.) (2.6) Rs. Crores 36
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Bio - Business Multi discipline R&D Raw material Neem Seed Main Plant 1994 Product development Market Registration India/Abroad Demonstration Test Marketing 28 countries Concept selling Exports 38
Products 39
Market Estimate for Bio Pesticides The global pesticide market was valued at approximately $4 billion in 28. This figure increased to nearly $43 billion in 29 and is expected to grow at a compound annual growth rate (CAGR) of 3.6% to reach $51 billion in 214. Bio pesticides 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 29 to $3.3 billion in 214. Synthetic pesticides represent the greatest market share, valued at $41 billion in 29. This market will be worth an estimated $48 billion in 214, a compound annual growth rate (CAGR) of 3% Source:* http://www.bccresearch.com/chem/c24r.html 4
Bio biz so far Highest ever consolidated sale of Rs. 83 Crores achieved in 11-12 (against Rs.67 Crores of 1-11). Domestic Sales was 42% over 1-11 & export sales was 2% over 1-11. Achieved production of 6749 Kgs of Technical in 11-12 (6314 kgs in 1-11) and sale of 773 kgs of Technical in 11-12 (6777 kgs in 1-11) Obtained registrations in 37 countries besides 25 product & process patents Japan, Canada, Australia, U.S.A, India, New Zealand, Argentina, Mexico, China, Hong Kong and South Africa. Increased the sale of ABDA a plant extract based Plant Growth Regulator Granule in domestic market to 17 MT in 11-12 against 11 MT in 1-11. Highest ever profitability achieved in 211-12. 41
Bio New Products: Abda Variants Continuing with the success of Granulated Plant Vitalizer ABDA for rice and sugarcane. ABDA GOLD - an improvised ABDA for commercial crops. Launched a Liquid Plant Vitalizer ABDA FOLIAR for Fruits & Vegetables in Sep 11. 42
Bio Pesticides Financials Description 8-9 9-1 1-11 11-12 Sales Quantities Total Technical (in Kgs) 49 4319 6777 773 Abda MT 147 59 1136 1714 Sales Value (Rs. Cr.) 35.5 35. 55.3 77. PBIT (Rs. Cr.) 7.2 5.6 11.3 13. Capital Employed (Rs. Cr) 45.8 5. 55.3 57.8 Parry America Sales (Rs. Cr) 13.8 14 24.9 3.2 43
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FINANCIALS SNAP SHOT: EID STANDALONE 18 16 Gross Revenue Rs. Crores 14 12 1 8 1186 1291 1568 6 4 2 FY 9-1 FY 1-11 FY 11-12 Rs. Crores 3 Profit Before Tax 25 PAT 25 2 2 15 1 5 248 136 67 FY 9-1 FY 1-11 FY 11-12 15 1 5 25 137 79 FY 9-1 FY 1-11 FY 11-12 45
RATIOS FOR EID-STANDALONE Operating Margin Return on Equity 25% 2% 15% 1% 18% 22% 9% 13% 25% 2% 15% 1% 23% 18% 7% 11% 5% 5% % FY 28-9 FY 29-1 FY 21-11 FY 211-12 % FY 28-9 FY 29-1 FY 21-11 FY 211-12 Long Term Debt : Equity Return on Capital Employed.38.37.36.35.34.33.33.37.33.35 18% 16% 14% 12% 1% 8% 6% 1% 15% 6% 8%.32 4%.31.3 FY 28-9 FY 29-1 FY 21-11 FY 211-12 2% % FY 28-9 FY 29-1 FY 21-11 FY 211-12 46
FINANCIALS SNAP SHOT: CONSOLIDATED 14 12 1 8 6 4 1158 Gross Revenue 7557 9465 12646 Rs. Crores 2 FY 8-9 FY 9-1 FY 1-11 FY 11-12 Sales incl Govt. Subsidies EBT PAT * 1675 18 16 14 85 98 12 823 1 8 24 8 6 4 766 842 799 793 2 FY 8-9 FY9-1 EBT(excl. Profit on Sale of Invest) FY 1-11 FY 11-12 Profit on Sale of Investments 12 1 8 6 4 2 567 1163 567 596 56 555 7 24 527 531 527 FY 8-9 FY9-1 FY 1-11 FY 11-12 Net Profit excl Sale of Invest. Profit on Sale of Invest. after Tax * PAT with Minority Interest 47
RATIOS FOR CONSOLIDATED Operating Margin Return on Equity 14% 12% 1% 8% 6% 4% 2% % 13% 11% 8% 9% FY 8-9 FY 9-1 FY 1-11 FY 11-12 4% 35% 3% 25% 2% 15% 1% 5% % 37% 31% 25% 22% FY 8-9 FY 9-1 FY 1-11 FY 11-12 Long Term Debt : Equity Return on Capital Employed.8.7.6.5.4.3.2.1.67.54.32.27 FY 8-9 FY 9-1 FY 1-11 FY 11-12 2% 18% 16% 14% 12% 1% 8% 6% 4% 2% % 19% 17% 12% 1% FY 8-9 FY 9-1 FY 1-11 FY 11-12 Average Payout over last 5 Years 34%, amounting to Rs. 368Crores 48
OTHER FINANCIAL INFORMATION Consolidated Free Cash Flow (in Crs) Share Holding Pattern as on 31 MARCH, 212 7 643 6 5 Shareholding as a % 4 3 2 1 146 68 166 134 FY 7-8 FY 8-9 FY 9-1 FY 1-11 FY 11-12 4.72 1.51 18.36.3 45.72 Promoters Mutual Funds CRISIL Rating 12.58 8.28 8.8 Banks/Financial Institutions/Insurance Companies - Long Term Debt rating AA/Stable outlook - Short Term Debt rating to A1+ Foreign Institutional Investors - Same ratings also been assigned by CRISIL as Bank Loan rating as per BASEL II requirement for the existing and proposed Bank Facilities. 49
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UK HR EXCELLENCE - AWARD SISSTA Award Awards & Accolades Pugalur Factory - Safety award CII HR Excellence Best Industrial Relationship award in Tamil Nadu 51
Investor s Contact For further information, please contact: P. Gopalakrishnan, Vice-President (Finance) E.I.D. - Parry (India) Limited, Dare House, 234 NSC Bose Road, Chennai 6 1. Tel: +44 253-6247 Email: gopalakrishnan@parry.murugappa.com Website: www.eidparry.com 52
Making Sugar since 1846 53 53 53