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Corporate Presentation of Aries Agro Limited, India's largest and most respected manufacturer of Chelated micronutrients and value added specialty plant nutrition solutions. Aries currently has 65 brands marketed to 8 million farmers across 22 states of India using a network of 4900 distributors and 69000 retailers.
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1Energizing EarthEnergizing EarthEnergizing EarthEnergizing Earth August 2009
2
Background
� Aries Agro Ltd was founded by Dr. T. B. Mirchandani and Mrs. Bala Mirchandani in 1969196919691969
� The Company started by manufacturing a small range of mineral feed additives for animals & birds
� Through in-house R&D efforts, the company branched out into Agrochemicals in 1975 with the introduction of Chelated MicronutrientsChelated MicronutrientsChelated MicronutrientsChelated Micronutrients.
� Aries Agro Ltd is a pioneer of Agricultural Chelatespioneer of Agricultural Chelatespioneer of Agricultural Chelatespioneer of Agricultural Chelates in India, using indigenously developed technology for Chelation and Complexing of Multi Micro Nutrients.
� In 2001, Aries expanded its product line to include secondary nutrientssecondary nutrientssecondary nutrientssecondary nutrients – sulphur, magnesium and calcium. 2004 saw the further addition of water soluble NPK fertilizerswater soluble NPK fertilizerswater soluble NPK fertilizerswater soluble NPK fertilizers.
� The company manufactures a wide range of products under 65 Brands65 Brands65 Brands65 Brands. Products include Plant nutrients, crop protection chemicals and Veterinary products.
� SixSixSixSix manufacturing plants with capacity of 84,600 capacity of 84,600 capacity of 84,600 capacity of 84,600 tpatpatpatpa....
� Wide networkWide networkWide networkWide network of 25 branches, 4700 distributors and 69000 retailers across 22 states of India
� Investment in Golden Harvest, Sharjah - to set up unit to manufacture 10,800 10,800 10,800 10,800 tpatpatpatpa of of of of ChelatedChelatedChelatedChelated MicronutrientsMicronutrientsMicronutrientsMicronutrients.
� Through Golden Harvest, Aries has invested in Amarak Chamicals FZC for manufacture of 60,000 60,000 60,000 60,000 tpatpatpatpa of of of of SulphurSulphurSulphurSulphur BentoniteBentoniteBentoniteBentonite
3
Industry: Specialty Plant Nutrition Solutions
Source: Development of Education in India – 1990-93
Crops require above nutrients for balanced and healthy growth All nutrients are important for the growth of crops in varying quantities
Provided
by Air
Primary
Nutrients
Secondary
Nutrients
Micro
Nutrients
Provided
by Air
Primary
Nutrients
Secondary
Nutrients
Micro
HHydrogen
CCarbon
OOxygen
NNitrogen
PPhosphorous
KPotassium
MgMagnesium
SSulphur
CaCalcium
SiSilicon
ZnZinc
FeIron
CuCopper
MnManganese
BoBoron
MoMolybdenum
The Aries The Aries The Aries The Aries Range Range Range Range addresses addresses addresses addresses these crop these crop these crop these crop nutrient needsnutrient needsnutrient needsnutrient needs
4
Industry : Aries’ Unique Niche
58%58%58%58%
Low
XXXX
XXXX
Chelates
√√√√
Value added Value added Value added Value added MicronutrientsMicronutrientsMicronutrientsMicronutrients
9%9%9%9%10%10%10%10%12%12%12%12%--------Aries Revenue share %Aries Revenue share %Aries Revenue share %Aries Revenue share %
MediumMediumLowHighVolumes
XXXXXXXXXXXX√√√√Subsidies
XXXXXXXXXXXX√√√√Price Control
SulphatesCa, Mg, S20-20-20, 13-0-45, 0-52-34, 0-0-50
Urea, DAP, SOP
Typical products
√√√√√√√√√√√√XXXXAries Presence
Inorganic Inorganic Inorganic Inorganic MicronutrientsMicronutrientsMicronutrientsMicronutrients
Secondary Secondary Secondary Secondary nutrientsnutrientsnutrientsnutrients
Water Soluble NPK Water Soluble NPK Water Soluble NPK Water Soluble NPK FertilizersFertilizersFertilizersFertilizers
Commodity Commodity Commodity Commodity NPK FertilizersNPK FertilizersNPK FertilizersNPK Fertilizers
5
Industry | The Wonder of Chelation Technology
� Nutrients can be applied to crops in inorganic form or Chelate form
� 60% of inorganic compounds are wasted by leaching, fixation and due to its property of reacting easily with air, water & soil
� Aries products, which are Chelated, are able to deliver the nutrient more effectively to the crops, ensuring 100% availability.
� Nutrients ion is held in a claw-like structure which makes it chemically inert
� Soluble in water and easily absorbed by plants
6
Advantages of ‘Chelation Technology’
� ‘Chelation Technology’ is a cost effective, environment friendly delivery mechanism of crop nutrients.
� The process makes the nutrients chemically inert and water soluble in order to ensure 100% availability
� Lower dosage per unit of land area and a consequent saving in cost of application.
� Environmentally friendly as Chelated plant nutrients applied to soil/sprayed on crops are chemically inert
� Very efficient as there is no loss of nutrient
� Results in higher yield leading to cost-benefit in favour of farmers
� Post delivery of the nutrients, chelating agent clean the soils of harmful toxins by converting heavy metals into inert compounds
� Aries was instrumental in bringing this technology to India
7
Key Demand Drivers
Demand Demand Demand Demand ----Specialty NutrientsSpecialty NutrientsSpecialty NutrientsSpecialty Nutrients
Change in Change in Change in Change in Eating HabitsEating HabitsEating HabitsEating Habits
Shrinking Shrinking Shrinking Shrinking AgriAgriAgriAgri Land AreaLand AreaLand AreaLand Area
IncreasingIncreasingIncreasingIncreasingDeficienciesDeficienciesDeficienciesDeficiencies
Growing Growing Growing Growing PopulationPopulationPopulationPopulation
Micro Irrigation Micro Irrigation Micro Irrigation Micro Irrigation Systems Systems Systems Systems
Growing Growing Growing Growing AwarenessAwarenessAwarenessAwareness
GovtGovtGovtGovt focus on focus on focus on focus on enhancing enhancing enhancing enhancing
AgriAgriAgriAgri productivityproductivityproductivityproductivity
Contract Contract Contract Contract FarmingFarmingFarmingFarming
Growing Growing Growing Growing AffluenceAffluenceAffluenceAffluence
Increase in Increase in Increase in Increase in ExportsExportsExportsExports
Hybrid/genetically Hybrid/genetically Hybrid/genetically Hybrid/genetically modified seedsmodified seedsmodified seedsmodified seeds
Change in Change in Change in Change in Cropping PatternCropping PatternCropping PatternCropping Pattern
8
Strong Marketing network
� Aries has 309 trained marketing personnel
� 25 branches spread across 22 states
� First link of distribution channel has more than 4700 distributors
� Direct access to 69000+ retail dealers
� Database of purchase records of 8mn+ farmer population across 1,60,000 villages - one in six one in six one in six one in six villages of Indiavillages of Indiavillages of Indiavillages of India
� Present in 375 fertilizer consuming districts – two two two two out of three fertilizer consuming districts of Indiaout of three fertilizer consuming districts of Indiaout of three fertilizer consuming districts of Indiaout of three fertilizer consuming districts of India
� Trained staff directly visit villages to educate the farmer about the concept of Chelation and benefits of micronutrients and balanced crop nutrition
AAL
4700+ distributors
69000+ retailers
8mn + Farmers
30
9M
ark
eti
ng
pe
rso
nn
el
pro
vid
ing
te
ch
nic
al
su
pp
ort
9
Product Portfolio
� Product line includes 5 main categories namely,
� Multi-micro nutrient complexes
� Chelated micro nutrients
� Secondary nutrients
� Specialty water soluble NPK fertilizers
� Antibiotics and hormones for agricultural use
� These categories can be grouped under 3 segments namely,
� Plant nutrients, plant protection chemicals and veterinary products
� Flagship Brands
� Agromin (Chelated multi micro nutrients) –produced in 107 different crop, soil and geography specific variants
� Chelamin (Chelated zinc)
10
Product Portfolio : India’s Plant Nutrients Super Bazaar
Zincomix, Zn SulfChelamin, Aquazin, Pro ZincEco Zinc, Chelamin GoldZinc
Aries TotalAll Nutrients
Fertimax - KMacrofertPotassium
Fertimax – PKMacrofertPhosphorus
Fertimax – NPMacrofertNitrogen
Calcium NitrateChelacal, Combical, AquacalCalcium
MagmixChelamagMagnesium
SulfonitePrimasulf, NitrosulfSulphur
TetraborBorosoil, CalborBoron 20Boron
Mn – Chel, Pro – MnEco – MnManganese
Chelacop, Pro CopEco CopCopper
FerromixChelafer, Pro FerEco FerIron
Agromin Soil ApplicationAgromin Liquid, Agri ProAgromin Max, Agromin GoldMulti micronutrients
Economy RangeEconomy RangeEconomy RangeEconomy RangeMid RangeMid RangeMid RangeMid RangePremium RangePremium RangePremium RangePremium RangeNutrientNutrientNutrientNutrient
11
Product Portfolio : Increasing Network Throughput
Provides nutrition at germination stagesTeprosynSeed Treatment
Phosphorus Solubilizing bacteria
Nitrogen fixing bacteria
Aquaphos
Nitrofix
Bio Fertilizers
Fungicides, Miticides, InsecticidesHaasil, Nirbhay Plus, Jahaan, Avashya, Anokhi, Ashray, Mohar
Plant Protection Chemicals
Battery operated Sprayers
Knapsack Sprayers
SprayersFarm & Farmer Equipment
Sunflower (1 varieties), Paddy (3 varieties), Maize (3 varieties)
Ansh Seeds Hybrid Seeds
Induces flowering and fruitingAgronaaPlant Hormones
Broad spectrum BactericidePlantomycinAntibiotics for Plants
Objective : Maximize Share of Wallet from Aries’ wide distributiObjective : Maximize Share of Wallet from Aries’ wide distributiObjective : Maximize Share of Wallet from Aries’ wide distributiObjective : Maximize Share of Wallet from Aries’ wide distribution networkon networkon networkon network
12
Typical Usage Pattern
FARM PREPARATIONFARM PREPARATIONFARM PREPARATIONFARM PREPARATION
NURSERY SEEEDLING BEDSNURSERY SEEEDLING BEDSNURSERY SEEEDLING BEDSNURSERY SEEEDLING BEDS
Days in crop cycleDays in crop cycleDays in crop cycleDays in crop cycle
----15d15d15d15d
----5d5d5d5d
SOWING / TRANSPLANTINGSOWING / TRANSPLANTINGSOWING / TRANSPLANTINGSOWING / TRANSPLANTING
GERMINATIONGERMINATIONGERMINATIONGERMINATION
EARLY / EMERGENCE STAGESEARLY / EMERGENCE STAGESEARLY / EMERGENCE STAGESEARLY / EMERGENCE STAGES
GROWTH PHASEGROWTH PHASEGROWTH PHASEGROWTH PHASE
REPRODUCTIVE PHASE (FLOWERING & FRUITING)REPRODUCTIVE PHASE (FLOWERING & FRUITING)REPRODUCTIVE PHASE (FLOWERING & FRUITING)REPRODUCTIVE PHASE (FLOWERING & FRUITING)
HARVEST STAGEHARVEST STAGEHARVEST STAGEHARVEST STAGE
POST HARVEST MANAGEMENTPOST HARVEST MANAGEMENTPOST HARVEST MANAGEMENTPOST HARVEST MANAGEMENT
0d0d0d0d
10d10d10d10d
20d20d20d20d
35d35d35d35d
60d60d60d60d
75d75d75d75d
90d90d90d90d
Recommended Aries ProductRecommended Aries ProductRecommended Aries ProductRecommended Aries Product Indicative Cost of Application per acreIndicative Cost of Application per acreIndicative Cost of Application per acreIndicative Cost of Application per acre
AquaphosAquaphosAquaphosAquaphos, , , , NitrofixNitrofixNitrofixNitrofix, , , , OrgafertOrgafertOrgafertOrgafert
AnshAnshAnshAnsh seeds, seeds, seeds, seeds, TeprosynTeprosynTeprosynTeprosyn, , , , ChelaferChelaferChelaferChelafer, , , , PlantomycinPlantomycinPlantomycinPlantomycin
AgrominAgrominAgrominAgromin Soil, Soil, Soil, Soil, ChelaminChelaminChelaminChelamin SoilSoilSoilSoil
AgrominAgrominAgrominAgromin MaxMaxMaxMax
ChelaminChelaminChelaminChelamin, , , , ChelaferChelaferChelaferChelafer
MacrofertMacrofertMacrofertMacrofert, , , , AgrominAgrominAgrominAgromin MaxMaxMaxMax
FertimaxFertimaxFertimaxFertimax ---- KKKK
ChelacalChelacalChelacalChelacal
FertimaxFertimaxFertimaxFertimax ---- PK, PK, PK, PK, CalborCalborCalborCalbor, , , , AgronaaAgronaaAgronaaAgronaa, , , , PlantomycinPlantomycinPlantomycinPlantomycin
RsRsRsRs. 220. 220. 220. 220
RsRsRsRs. 400. 400. 400. 400
RsRsRsRs. 550. 550. 550. 550
RsRsRsRs. 230 . 230 . 230 . 230
RsRsRsRs. 200. 200. 200. 200
RsRsRsRs. 160. 160. 160. 160
RsRsRsRs. 100. 100. 100. 100
RsRsRsRs. 140. 140. 140. 140
RsRsRsRs. 350. 350. 350. 350
RsRsRsRs. 2350 per acre (MRP basis). 2350 per acre (MRP basis). 2350 per acre (MRP basis). 2350 per acre (MRP basis)Note : Aries realizations would be approximately 50% of MRPs
13
Outstanding Performance of Aries products
YearYearYearYear CropCropCropCrop Ins t itut ion Carry ing TestIns t itut ion Carry ing TestIns t itut ion Carry ing TestIns t itut ion Carry ing Test ControlCont rolCont rolCont rol Control YieldControl YieldControl YieldControl Yield TreatmentTreatmentTreatmentTreatmentYield with Yield with Yield with Yield with TreatmentTreatmentTreatmentTreatment
Increase in Increase in Increase in Increase in y ield with y ield with y ield with y ield with t reatmenttreatmenttreatmenttreatment
1981 ChilliesAssam Agricultural Univeity, Dept of Horticulture
No application 62.32 fruits / plant 25ppm Agronaa Alplication 148.34 fruits / plant 138.03%
1981 TomatoAssam Agricultural Univeity, Dept of Horticulture
No application 14.22 fruits / plant 75 ppm Agronaa Application 32.04 fruits / plant 125.32%
1984-85 WheatOffice of the Agronomist, Dept of Agriculture, Govindgarh, Rajasthan
No Zinc application 24.0 qntl./ha 10 kg/ha Chelamin Basal application 47.5 qntl/ha 97.92%
1987 SugarcaneCentral Sugarcane Research Station, Padegaon, Nira, Maharashtra
Normal P7K dose and 50 Kg/ha Less Nitrogen
84.833 MT/haRegular NPK dose + Soil application of Agromin @ 50 Kg/ha
119.5 MT/ha 40.86%
1992 RiceBangladesh Rice Research Institute
No Fertilizer (Var BR-14) 3.59 MT/haNPK + Chelamin @ 500 gms/ha (Var BR-14)
5.13 MT/ha 42.90%
2001 SugarcaneJai Jawan jai Kisan Sahakari Sakhar Karkhana, Latur
No micro nutrients 106 MT/ha Agromin 143 MT/ha 34.91%
2002-03 RiceGovt. of Tripura Dept. o Agriculture
No Fertilizer .90 MT/haMacrofert 2 Kg/ha x 2 application + Basal NPK
2.33 MT/ha 158.89%
2003-04 RiceGovt. of Tripura Dept. o Agriculture
No Fertilizer 1.04 MT/haMacrofert 2 Kg/ha x 2 application + Basal NPK
2.42 MT/ha 132.69%
14
The Driving Forces | Cost – Benefit Analysis
Cost on Applicat ion of NPK (60:30:30) as recommendedCost on Applicat ion of NPK (60:30:30) as recommendedCost on Applicat ion of NPK (60:30:30) as recommendedCost on Applicat ion of NPK (60:30:30) as recommendedN P K
Recommendation of traditional soil application grades 60 30 30Supplemented by Urea SSP MOPCost / Kilo 5 4 4.5Cost of appl icat ionCost of appl icat ionCost of appl icat ionCost of appl icat ion Rs 652.17Rs 652.17Rs 652.17Rs 652.17 750750750750 225225225225Total cos t of applicat ion per hectareTotal cos t of applicat ion per hectareTotal cos t of applicat ion per hectareTotal cos t of applicat ion per hectare Rs. 1627.17Rs. 1627.17Rs. 1627.17Rs. 1627.17
Cost on Applicat ion of Macrofert (Aries ' products)Cost on Applicat ion of Macrofert (Aries ' products)Cost on Applicat ion of Macrofert (Aries ' products)Cost on Applicat ion of Macrofert (Aries ' products)MacrofertMacrofertMacrofertMacrofert NPK 60:30:30NPK 60:30:30NPK 60:30:30NPK 60:30:30
NPK Soluble Fert i l izerNPK Soluble Fert i l izerNPK Soluble Fert i l izerNPK Soluble Fert i l izer 25% of Reg. Usage as Basal Dose25% of Reg. Usage as Basal Dose25% of Reg. Usage as Basal Dose25% of Reg. Usage as Basal DoseRecommended Dosage 6 g / lit sprayed twice, i.e. 25% dose of Urea. SSP, MOP
total of approx 1.5 kg/ha. compared to ControlCost of application Rs 140 x 1.5 = Rs.210 Rs 1627.17 / 4= Rs 406.79Total cost of NPKapplicat ion per hectareapplicat ion per hectareapplicat ion per hectareapplicat ion per hectare Rs 616.79Rs 616.79Rs 616.79Rs 616.79
15
The Driving Forces | Cost – Benefit Analysis
A saving of Rs. 1010.38 / ha, i.e. 62% of cost of application ofA saving of Rs. 1010.38 / ha, i.e. 62% of cost of application ofA saving of Rs. 1010.38 / ha, i.e. 62% of cost of application ofA saving of Rs. 1010.38 / ha, i.e. 62% of cost of application of NPK fertilizer NPK fertilizer NPK fertilizer NPK fertilizer
Incremental yield 6 quintals / ha, i.e. Excess income of Rs. 300Incremental yield 6 quintals / ha, i.e. Excess income of Rs. 300Incremental yield 6 quintals / ha, i.e. Excess income of Rs. 300Incremental yield 6 quintals / ha, i.e. Excess income of Rs. 3000 / ha or 14.05%0 / ha or 14.05%0 / ha or 14.05%0 / ha or 14.05%
Total benefit to farmer per hectare = Savings in cost + increased realization = 1010.38 + 3000 = Rs. 4010.38 / ha.
Benefit : Cost Ratio = 4,010.38 : 629.28 = 6.4 : 1Benefit : Cost Ratio = 4,010.38 : 629.28 = 6.4 : 1Benefit : Cost Ratio = 4,010.38 : 629.28 = 6.4 : 1Benefit : Cost Ratio = 4,010.38 : 629.28 = 6.4 : 1
16
Wide Distribution of Revenues
Statewise Share of Revenues
AP
23%
MAH
17%
MP
3%CG
3%OR
2%RAJ
5%
HAR
3%
GUJ
3%
UP
8%
HP
1%
BIH
4%
WB
15%
NE
2%
UK
1%
JHK
0.1%
PJB
6%
TN
3%
KER
0.1%KAR
2%
17
Bangalore
Kolkata
Mumbai
Hyderabad
Lucknow
Ahmedabad
Current Manufacturing Units
* Disclaimer: This map is for broad representational purposes only &
may not have accurate or exact national and international boundaries.
Nationwide Manufacturing Units
19,800 MT19,800 MT19,800 MT19,800 MT
10,800 MT10,800 MT10,800 MT10,800 MT
10,800 MT10,800 MT10,800 MT10,800 MT
1,650 MT1,650 MT1,650 MT1,650 MT
37,800 MT37,800 MT37,800 MT37,800 MT
3,750 MT3,750 MT3,750 MT3,750 MT
18
Inauguration of Hyderabad Factory
India’s largest and most India’s largest and most India’s largest and most India’s largest and most automated automated automated automated manufacturing unit for manufacturing unit for manufacturing unit for manufacturing unit for ChelatedChelatedChelatedChelatedmicronutrients micronutrients micronutrients micronutrients ––––35000 35000 35000 35000 tpatpatpatpa
19
Inauguration of Lucknow Factory
Aries first manufacturing Aries first manufacturing Aries first manufacturing Aries first manufacturing unit in North Indiaunit in North Indiaunit in North Indiaunit in North India
20
Inauguration of Ahmedabad Factory
Aries first manufacturing unit for BioAries first manufacturing unit for BioAries first manufacturing unit for BioAries first manufacturing unit for Bio----fertilizersfertilizersfertilizersfertilizers
21
Work Allocation across Manufacturing Units
Agromin Soil – WB & North EastAgromin SoilKolkata
Agromin Soil – GUJ, RAJ, MP, CG
Ferromix – All states not covered by Lucknow factory
Bio Fertilizers – All India
Agromin Soil, Ferromix, Bio fertilizers
Ahmedabad
Agromin Soil & Ferromix – UP, BIH, PJB, HRY, HP, J&K
Agromin Soil, FerromixLucknow
Chelamin – All India
Agromin Max – AP, Central & Northern states
Agromin Soil – AP, CG, OR, TN, KTAKA, KERALA
Agromin Max, AgrominSoil, Chelamin
Hyderabad
Agromin Max – Mah, TN, Karnataka, Kerala, East
Boron 20 & Magmix – All India
Agromin Max, Boron 20 and Magmix
Bangalore
Agromin Soil – MAH
Liquids & Technicals – All India
All Rebranded products
Agromin Soil, All liquids, All Product technicals, All rebranded products
Mumbai
Supply locationsSupply locationsSupply locationsSupply locationsProducts producedProducts producedProducts producedProducts producedLocationLocationLocationLocation
22
India : Installed Capacities and Utilization of Manufacturing Units
57% *57% *57% *57% *
70%
50%
50%
55%
65%
80%
Capacity Utilization 2010-11 E
(%)
71%71%71%71%
70%
60%
60%
75%
70%
85%
Capacity Utilization 2011-12 E
(%)
70%24%4011,6501,650Kolkata
42% *42% *42% *42% *30%30%30%30%16,90516,90516,90516,90584,60084,60084,60084,60054,00054,00054,00054,000Total Total Total Total
8,000Rebranded
Ahmedabad
Lucknow
Hyderabad
Bangalore
Mumbai
LocationLocationLocationLocation
30%7%1,41719,800--
30%0.8%8910,800--
40%16%6,22037,80037,800
60%49%1,8543,7503,750
70%64%6,92410,80010,800
Capacity Utilization 2009-10 E
(%)
Capacity Utilization
2008-09 (%)
Capacity Utilization 2008-09
(MT)
Installed capacity 2008-09
(MT)
Installed Capacity 2007-08
(MT)
* Note : Utilization of capacities excludes repacking of rebranded products
23
The Aries Growth Story
Sales & Profitability Trend & Projections
28,700
20,000
15,500
11,044
7,405
3,943
5,936
10,338
7,100
5,300
3,500
1,1821,9401,6941,222
309-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Rs in lakhs Sales
EBIDTA
PBT
24
Competitive Strengths
� Widest range of specialty plant nutrition solutions available to the Indian farmer
� Customized variants based on ongoing research of soil, crop and geography specific nutrient needs
� Highly skilled sales team geared up to promote concepts and branded agricultural inputs
� Unmatched distribution reach, with a proven capability to place a new product on 69000 retail shelves within 1 day of launch
� Specialized, cost effective, environmentally sensitive Chelation technology
� World class manufacturing systems for multi micronutrient complexes
� India’s only customer loyalty programme in agribusiness – market intelligence, data mining capability, interest free working capital
� Strong relationships with research institutions and Agricultural universities, along with systematic lab to land knowledge dissemination programmes
� Unique industry-government-private partnership : CII-Aries Agro Young Indian Farmers Network
� Nationwide network of manufacturing facilities, with ISO certified Quality Management system
25
Market Position
� Total market size for micronutrients in India (2008) : 2,45,000 MT
� Micronutrient consumption levels are one of the lowest in the world
� Chelated Micronutrients constitute about 15% of the total micronutrients market
� Estimated size of Chelated micronutrients market (2008) : 36,750 MT
� Aries market share of the Aries market share of the Aries market share of the Aries market share of the ChelatedChelatedChelatedChelated micronutrients market : 16,905 MT = 46%micronutrients market : 16,905 MT = 46%micronutrients market : 16,905 MT = 46%micronutrients market : 16,905 MT = 46%
� Aries market share in the total micronutrients market : 7%
� Note that 60% of the Indian micronutrient industry is unorganised and highly fragmented, with a large number of regional players
� Widest product portfolio in the specialty plant nutrients sector
� Only company in India with 65 brands providing all nutrients essential for balanced crop nutrition, in multiple formulations and at a range of price points, with options affordable even to the small and marginal farmers
26
Brand Strength
� Aries Corporate BrandAries Corporate BrandAries Corporate BrandAries Corporate Brand :
� Symbol of trust and quality
� Consistent delivery of quality products
� Premium pricing accepted by farmers due to high standards and credibility
� Product Branding :Product Branding :Product Branding :Product Branding :
� Synonymous with product category in agriculturally progressive states
� Brands built without high decibel advertising campaigns, using extension services and field demonstrations
� Knowledge, consistency and simplicity
� Nil sales of unbranded products since inception
27
Consumer Connect
� Increasing awareness is key to increasing mindshare and market sIncreasing awareness is key to increasing mindshare and market sIncreasing awareness is key to increasing mindshare and market sIncreasing awareness is key to increasing mindshare and market sharehareharehare
� Unique Young Farmers Network engaging 6100 farmers, all 25 to 40 years of age
� Partnership with the Confederation of Indian Industry’s Young Indians
� UniconnectUniconnectUniconnectUniconnect - Lab to land awareness programmes with 100+ Agricultural Universities and Research Stations
� Bal Bal Bal Bal KrishakKrishakKrishakKrishak SambodhanSambodhanSambodhanSambodhan ---- Exposure to young students in rural schools on best practices in crop management
� SuryodayaSuryodayaSuryodayaSuryodaya ---- Continuous schedule of farmer study tours, farmer meetings, demos and field trials
� Train the trainersTrain the trainersTrain the trainersTrain the trainers sessions with Government extension officers
� Regular Rural Immersion programmes
� Mobile Soil Testing and issue of Soil health cards
� SMS based weather advisories, commodity prices, farmer query resolution
� MCX-Aries Agro Gramin Suvidha Kendra – Pilot with India Post offices in 768 villages across 5 states as booking agents and information channels; scale up opportunity immense
28
A Fleet of 100 Krishi Vigyan Vahans
29
Aries KVV Objectives
� Build awareness in remote, unserviced markets
� Conduct farmer meetings and audio visual shows on product applications
� Visit six villages every day on a pre determined route
� Book orders from farmers and collect token advances to confirm order bookings
� Work with local distributor to liquidate stocks based on orders booked
� Provide door step farmer advisory services, soil testing and query resolution
� Incentivize farmers by providing special schemes on booking through the KVVs
� Tracking of impact of extension work – farmers contacted v/s booked orders v/s actual sales
� Advances will ensure dealers cannot push other competing brands at point of sale
� Advances collected accrue to the company with credit given to respective distributors after the sale is completed
30
Environment Sensitivity
� All Aries products are based on the philosophy of “Use less chemicals and use safe chemicals” –low doses of chemically inert and cost effective nutrient complexes
� The entire range of Aries Chelates are environmentally safe
� Starting April 2008, Aries has launched water soluble sachets for its flagship brands, reducing the use of plastics and aluminum foil in packaging
� The company promotes “Balanced Nutrition as a National Imperative”, building resistance of crops to pests and diseases and hence lowering the usage of harmful and expensive pesticides
� All Aries factories have zero effluents and produce no harmful emissions
31
Global Reach
� Investment in Golden Harvest Middle East FZC, Sharjah – now an Aries subsidiary – first International Chelated micronutrients manufacturing base for Aries in the Middle East
� Chelates manufacturing in Golden Harvest, UAE provides input cost savings for Aries’ Indian operations due to concessional duties on imports of finished products versus raw materials
� Investments in manufacturing facilities of Amarak Chemicals FZC for Sulphur Bentonite
� Current international customers are global arms of Indian customers (tea, coffee plantations)
� Distributors appointed in the UAE, EU, Nepal & Bangladesh for accessing new markets
� Manufacture world class nutrition solutions in the Middle East with indigenous, cost effective technologies to tap into the highly specialized farming requirements in water scarcity and technology intensive areas
32
The Aries Group – The Indian Multinational
Our first manufacturing Unit for Our first manufacturing Unit for Our first manufacturing Unit for Our first manufacturing Unit for ChelatesChelatesChelatesChelates overseas overseas overseas overseas ––––
Golden Harvest Middle East FZC, Golden Harvest Middle East FZC, Golden Harvest Middle East FZC, Golden Harvest Middle East FZC, SharjahSharjahSharjahSharjah
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The Aries Group – The Indian Multinational
Our second manufacturing Unit for Our second manufacturing Unit for Our second manufacturing Unit for Our second manufacturing Unit for SulphurSulphurSulphurSulphur BentoniteBentoniteBentoniteBentonite –––– FujairahFujairahFujairahFujairah, UAE , UAE , UAE , UAE –––– opening October 2009opening October 2009opening October 2009opening October 2009
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Main Achievements - 1
� First company to market Agricultural Chelates in India
� First company to receive license to manufacture broad spectrum Antibiotics for crops
� Recipient of the Trans World Gold Medal by the International Labor Organization for model labour relations in India
� Not a single man hour lost since 1969 due to labour disputes
� Responsible for the establishment of Indian Micro-Fertilizer Manufacturers Association
� Recipient of the National Unity Award by the Government of India
� Recipient of the Distinguished Leadership Award by American Biographical Institute
� Listed amongst the Top 100 Best Employers of India
� ISO 9000 Quality Management system
� Launched a new product across 22 Indian states on a single day - 15 August 2006
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Main Achievements - 2
� Setup of completely automated manufacturing facilities at Bangalore & Hyderabad, using 100% Indigenous technology and components
� Successfully launching and running India’s only customer loyalty programme in Agribusiness
� Establishing a unique National Young Indian Farmer Network, along with the Confederation of Indian Industry
� First Plant Nutrition company in India to successfully go public and list on the premier stock exchanges of India, the BSE & NSE
� Strong global partnerships with companies in South America, China, the Middle East and Europe
� First Indian specialty plant nutrient manufacturer to set up an International manufacturing base in the UAE
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Technology Transfer Arrangement
Technology Transfer – India Innovation Growth Programme : Plant controlled release Micronutrients
FICCI-Lockheed Martin USA-Dept of Science & Tech, Govt of India
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Global Recognition
� Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008Winner : CNBC Emerging India Award 2008– FMCG, Food & Agribusiness sector
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Stakeholder Value Creation
� Value for CustomersValue for CustomersValue for CustomersValue for Customers
� Proven benefit : cost ratio
� Cost effective, environmentally safe technologies
� Branded, high quality agricultural inputs
� Value for EmployeesValue for EmployeesValue for EmployeesValue for Employees
� Performance based variable pay across all levels and in all departments
� Informal, disciplined, open work environment
� Focussed and structured training and development initiatives
� Cordial employee relations, with not a single man hour lost since 1969 due to labour unrests
� Highly experienced mentors, with more than 120 staff having been with Aries for more than 20 years each
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Stakeholder Value Creation
� Value for SocietyValue for SocietyValue for SocietyValue for Society
� Research and continuous knowledge creation in over 100 Agricultural Universities and Research institutions across India
� Lab to land programmes across 97000 villages in 22 states, including ‘train the trainers’ programmes
� Sessions in Rural Schools to expose students to the ‘balanced crop nutrition’ concept during science classes
� Advocating the use of environmentally safe technologies for crop nutrition, reducing the use of harmful chemical fertilizers
� Focussed extension efforts to increase awareness levels in farming communities, using knowledge as a catalyst to raise agricultural productivity and consequently improve the economics of farming
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Competition | Challenges for new entrants
� Need to understand farmers at root levels, which requires not only capital investment but also lot of time and effort
� Business requires selling concepts and not just pushing products
� Not a commoditised price-point selling product
� Knowledge based service industry, which requires understanding problems of farmers and providing them with solutions
� Huge crop diversity, which requires large variety of product range
� Given the size of our country, huge amount of time and effort is required to establish the required sales and support infrastructure
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Future Plans
� Strengthen and increase global partnerships to source world class, Made for India products for Indian farmers
� Three manufacturing units in the Middle East for Chelates, Sulphur Bentonite and water soluble NPK fertilizers
� Expanding crop protection product portfolio in partnership with Indian manufacturers
� Launch hybrid seeds for field and vegetable crops in partnership with strong technology providers
� Penetrate new markets in India with a fleet of Rural Retail vehicles
� Scale up Knowledge dissemination activities across India using the Nationwide Young Indian Farmers Network
� Commence advisory services in remote rural areas, including weather reports, output price information and recommendations on agricultural input usage using SMS based services
� Position Aries manufacturing facilities as the Chelated micronutrient supply hubs for global and Indian plant nutrition companies
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Introducing Bio Degradable Chelates
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Introducing Natural Amino Acid Chelates
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Introducing Biological Pesticides
Biological Plant Protection Biological Plant Protection Biological Plant Protection Biological Plant Protection ---- Contact Fungicide, Anti Contact Fungicide, Anti Contact Fungicide, Anti Contact Fungicide, Anti FeedantFeedantFeedantFeedant, , , , MiticideMiticideMiticideMiticide, Insecticide, Insecticide, Insecticide, Insecticide
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Introducing Calcium Nitrate Derivatives
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Introducing Protein Hydrolysate & Sea Weed Extracts
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Introducing Majorsol Range
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Promoter Background
Dr. Jimmy Mirchandani – Chairman & Managing Director
Dr Jimmy Mirchandani is a veterinary graduate from Konkan Krishi Vidyapeeth. He has been associated with Aries for almost 3 decades, more particularly involved with development of new products. He was instrumental in propelling Aries Research into the Chelation area. He is immediate past president of Indian Micro FertilisersManufacturers’ Association of India (2001-2005).
Dr. Rahul Mirchandani – Executive Director
Dr. Rahul Mirchandani is a Commerce graduate, a PhD in Rural Marketing from NMIMS University, Mumbai, and a Chartered Financial Analyst from the Institute of Chartered Financial Analyst (ICFAI), India. He holds an Honors Diploma in Sales and Marketing from the National Institute of Sales, Bombay. He completed his MBA from the University of Canberra, Australia. He is also the visiting faculty in IIM, Ahmedabad and Narsee MonjeeInstitute of Management Studies (NMIMS), Mumbai. He is also the National Chairman of the Confederation of Indian Industry’s Youth arm, Young Indians. He looks after the marketing activities of the Company.
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Board of Directors
Independent DirectorProf. R.S.S. Mani
Independent DirectorDr. D.S. Jadhav
DirectorMr Akshay Mirchandani
Executive DirectorDr. Rahul Mirchandani
Chairman and Managing DirectorDr. Jimmy Mirchandani
DesignationDesignationDesignationDesignationName of the DirectorName of the DirectorName of the DirectorName of the Director
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Key Takeaways
� Vast experience of the Promoter Group
� Highly qualified and experienced management team
� Locational advantage of manufacturing units, branches and distribution network
� Unmatched distribution reach, including a fleet of 100 Rural Retail Vehicles
� International manufacturing base and global marketing partnerships
� In house research and development
� ISO certified Quality Management System
� Widest range of specialty plant nutrition solutions
� High brand recognition and brand strength in rural communities
� Capability to handle multiple customized formulations and varied SKUs to serve varied needs of large as well as small and marginal farmers
� Leadership position within a high growth, profitable, niche sector of agribusiness in India
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Energizing EarthEnergizing EarthEnergizing EarthEnergizing Earth
Aries House, Plot No.24, Deonar, Govandi (East), Mumbai 400 043, India.
www.ariesagro.com