Dhanuka Agritech Limited

Corporate Presentation

February, 2013

Safe Harbor

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This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dhanuka Agritech Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. There may be forward looking statements which the Company has made based on available information at present. The Company does not assume responsibility for the same as the conditions may change in the future. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Dhanuka Agritech Limited: An Overview

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An INR 500 crores+ revenue agrochemicals (Insecticides, Fungicides, Herbicides, Miticides, Plant Growth Nutrients) company in India, with a market capitalisation of Rs.6500 million

One of the fastest growing companies in the sector with a compounded annual revenue growth of over 20% for the last 5 years

Formulation manufacturing and marketing company with a portfolio of over 80 brands with 100% domestic sales

Three manufacturing facilities located in Gurgaon, Sanand and Udhampur

One of the largest distribution networks in India with over 7,000 direct distributors / dealers selling to over 65,000 retailers

Products are used by over 10 million farmers across India

Strategic Partnerships

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Nissan Chemical Industries

Japan

Sumitomo Chemical Company

Japan

Chemtura Agrosolutions

USA

Hokko Chemical Co Ltd

Japan

FMC Corporation

USA

E.I. Dupont India Private Limited (Subsidiary of E.I.Dupont Ltd, USA)

The Company enjoys long lasting relationships with its global partners. Most of the relationships have been active for more than a decade.

Key Product Portfolio

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• Media, Dunet, Caldan, Omite, Aaatank, Adfyre, Brigade, Bombard, Dhanpreet, Dhawa Gold, Markar

Insecticides

• Targa Super, Barrier, Craze, Qurin, Weedmar Super, Noweed, Ozone, D-Era, Hook WG, Nabood

Herbicides

• Vitavax Power, Sixer, Kasu-B, Hi-Dice, Cursor, Hexadhan Plus, Dhanteam, Sheathmar, Vitavax Ultra

Fungicides

• Dhanuvit, Dhanzyme Gold, Wetcit Plant Growth Nutrients,

Others

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Wide Range of Products

The Company has a wide portfolio of over 80 brands and keeps adding new brands every year. Two-thirds of the Company’s sales comprise of specialty molecules and the remaining one-third comprises of generics. The Company has a wide range of agrochemicals to protect all major Indian crops from most of the pests, insects and diseases that affect them.

Dhanuka's Top Products

Products Category

Targa Super Herbicide

Caldan Insecticide

Markar Insecticide

Omite Miticide

Dhanzyme Granules PGR

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Management Team

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Chairman; started pesticides

business more than 30 years ago;

a philanthropist; a man of vision

with utmost sincerity and devotion;

mentors and provides strategic

leadership; also served for two

terms as Chairman of “Crop Care

Federation of India”.

Managing Director; co-founded

the Company; has 36 years of

experience; re-elected as

President of HPMA (Haryana

Pesticide Manufacturers Association) consecutively for the

4th year; oversees the overall

operations of the Company

Director (Marketing); Masters in

Business Administration from S.P.

Jain, Mumbai; oversees the entire

marketing function of the

Company; leads the large

marketing team from the fore-front

& maintains cordial relations with

International collaborators.

Director; Masters in Business

Administration (Operations) from

NITIE, Mumbai; oversees the

manufacturing and supply chain

functions across the Company’s

three production facilities; spear-

heads expansion projects; brought technological and managerial

excellence in the company’s

operations

Management Team

Dr. O.P. Singh; President (R&D), vast experience in new product introductions and strategic partnerships, liaisons with the agricultural universities

Mr. V. K. Bansal; CFO, Chartered Accountant, experience of over 20 years with Dhanuka, controls entire financial division and has been one of the key contributors in the success of Dhanuka

Mr. Vijay Kumar; Senior GM (Quality Control), M. Tech from IIT Delhi, oversees quality of products

Mr. Y. K. Goel; Senior GM (Production), B.Tech, experience of 37 years, played a key role in expansion and automation of production capacities at all the locations of the company

Mr. Rajesh Sahni; Senior GM (Legal), experience of over 25 years with Dhanuka

Dr. P. C. Rai; GM (Marketing), manages marketing operations of North Zone & Madhya Pradesh

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•MSP (minimum support prices guaranteed by the Government for agri-produce purchase) for the majority of crops has increased by over 60% in the past four years giving thrust to rural incomes

Rise in rural incomes and profitability

•The current consumption of agrochemicals in India is low at ~0.5 kg per hectare compared to ~11 kg for Japan, ~7 kg for Korea and more than 2 kg for USA, awareness campaigns, Dhanuka Doctors

Low current consumption in India

•The Company has a pan-India network in rural India reaching over 2,500 distributors and over 4,500 dealers directly; ultimately reaching 70,000 retailers and over 10 million farmers

Large distribution network

Source: Reply to unstarred question no.3732 by the Union Minister in Loksabha, 10 Sept, 2007 and the report of Joint Parliamentary Committee, 14-2-2004

Source: Commission for agricultural costs and prices, Government of India

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4

6

8

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Consumption of Pesticides (Kg / Hectare)

Crop 2008 2009 2010 2011 2012

Price

increase %

(2008-12)

Paddy 645 850 950 1,000 1,080 67.4%

Red Gram 1,550 2,000 2,300 3,000 3,200 106.5%

Green Gram 1,700 2,520 2,760 3,170 3,500 105.9%

Black Gram 1,700 2,520 2,520 2,900 3,300 94.1%

Cotton 1,800 2,500 2,500 2,500 2,800 55.6%

Groundnut 1,550 2,100 2,100 2,300 2,700 74.2%

Soybean 1,050 1,390 1,390 1,440 1,690 61.0%

Wheat 1,000 1,080 1,100 1,120 1,285 28.5%

Minimum Support Prices, India

Crop marketing season (Prices in INR per quintal)

Key Growth Drivers (2/2)

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•As much as INR 1.2 lakh crores worth of potential crop production in India is destroyed due to insects, fungus and weeds.

•Although India has the largest area under cultivation in crops such as paddy and wheat, it lags behind in total production

Prevention of large crop wastages

•The share of herbicides in India is quite low at 20% of total agrochemicals compared to ~ 48% globally. But with rising farm labor prices, there is a visible shift from manual weeding to the use of herbicides in India

•Dhanuka has strong product portfolio in herbicides. Company has been able to increase the proportion of herbicides in its portfolio from 27% of sales in FY10 to 32% of sales in FY12

Disruptive growth in herbicides

Category

Area

(Mn Ha)

World

Ranking

In Area

Production

(Mn tons)

World

Ranking

In Production

Paddy 44 #1 91 #2

Wheat 28 #1 74 #2

Maize 8 #4 14 #6

Gram 8 #1 6 #1

Red Gram 4 #1 3 #1

Soybean 8 #5 9.0 #5

Cotton 9 #1 21 #2

Sugarcane 5 #2 323 #2

Insecticide Fungicides Herbicides Others

India 62% 16% 20% 2%

Global 23% 26% 48% 3%

0%

10%

20%

30%

40%

50%

60%

70%

Break-up of agrochemical consumption (2009)

Source: Varshney, 2009

Distribution Network

Particulars 5 Years prior Current

Total distributors 4,000 > 7,000

Reach - Districts covered through

distributors 450 550

Dhanuka Doctors 750 1,500

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Particulars FY 08 FY 09 FY 10 FY 11 FY 12

Revenue 2,494.6 3,374.2 4,087.2 4,935.9 5,298.1

EBIDTA 339.8 486.0 588.8 785.2 800.4

PAT 169.2 232.0 363.4 511.1 571.3

Revenue Growth (%) 23.9% 35.3% 21.1% 20.8% 7.3%

As % to Sales

EBIDTA 13.6% 14.4% 14.4% 15.9% 15.1%

PAT 6.8% 6.9% 8.9% 10.4% 10.8%

Financial Position of the Company

Net Worth 514.1 682.8 971.2 1,704.8 2,146.0

Debt 505.4 515.4 577.0 602.0 394.1

Cash & Investment 40.4 33.8 20.3 49.5 240.1

Financial Ratios

Debt- Equity Ratio 0.9 0.7 0.6 0.3 0.1

RoCE 20.0% 25.7% 27.6% 24.2% 24.3%

RoE 32.9% 34.0% 37.4% 30.0% 26.6%

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PERFORMANCE AT A GLANCE

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Net Sales (Rs. In Lakhs)

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PAT (Rs. In Lakhs)

Increase in Revenue by Rs. 3,622 Lakhs, which is 7.3% growth over Previous Year and boosting in Profit After Tax on regular basis shows incredible prospect of the organization

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PERFORMANCE AT A GLANCE

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Earning Per Share (in Rs.)

Maximizing Wealth: Continuous rise in Net Worth and Earning Per Share unleashes potential of the organization

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PERFORMANCE AT A GLANCE

0,005,00

10,0015,0020,0025,0030,0035,0040,0045,0050,00

05-06 06-07 07-08 08-09 09-10 10-11 11-12

Book Value per equity share (in Rs.)

0%

20%

40%

60%

80%

100%

120%

05-06 06-07 07-08 08-09 09-10 10-11 11-12

Dividend (%)

Greater Return: Company declared 110% dividend for the FY12 and the Market Price of the Company touched all time high of Rs.140 in the month of October of Current FY. Interim Dividend of 75% has been declared for FY13.

Particulars

Quarter Ended Nine Months Ended Audited

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall 2011-12 (in cr.)

Net Turnover 139.56 110.47 26.33% 451.13 399.26 12.99% 529.19

EBIDTA 16.33 12.80 27.58% 63.65 56.96 11.75% 80.04

% to Net Sales 11.70% 11.59% 11 bps 14.11% 14.27% -16 bps 15.13%

PBT 14.04 9.78 43.56% 57.64 49.07 17.46% 70.03

% to Net Sales 10.06% 8.85% 121 bps 12.78% 12.29% 49 bps 13.23%

Financial Highlights

Particulars

Quarter Ended Nine Months Ended Audited

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

2011-12 (in cr.)

PAT 11.68 7.84 48.98% 46.58 38.89 19.77% 57.13

% to Net Sales 8.37% 7.10% 127 bps 10.33% 9.74% 59 bps 10.80%

Tax Liability 2.36 1.93 22.28% 11.06 10.17 8.75% 12.90

% to PBT 16.81% 19.73% -293 bps 19.19% 20.73% -154 bps 18.42%

Financial Highlights

Particulars

Quarter Ended Nine Months Ended Audited

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

11-12 (in cr.)

EPS (Rs.) 2.33 1.57 48.41% 9.31 7.78 19.67% 11.42

Book Value

(Rs.) - - - 52.21 41.86 24.73% 42.90

RONW - - - 23.78% 24.76% -98 bps 26.62%

Current Ratio - - - 2.56 2.42 5.79% 2.12

Debt Equity

Ratio - - - 0.02 0.06 -66.67% 0.03

Financial Highlights

% to Net sales

Quarter Ended Nine Months Ended

Audited

Particulars Dec-12

(in cr.)

Dec-11

(in cr.)

rise / fall Dec-12

(in cr.)

Dec-11

(in cr.)

rise /

fall

2011-12 (in cr.)

Employee

Benefit Cost 8.47% 9.39% -92 bps 7.88% 7.70% 18 bps 7.85%

Other

Expenses 12.15% 14.68% -253 bps 11.59% 12.16% -57 bps 12.40%

Finance Cost 0.80% 1.69% -89 bps 0.59% 1.14% -55 bps 1.05%

Financial Highlights

Particulars

Quarter Ended Nine Months Ended Audited

Dec-12 Dec-11 rise /

fall

Dec-12 Dec-11 rise /

fall 2011-12

Insecticides 53.76% 48.86% 490 bps 50.63% 47.74% 289 bps 45.56%

Fungicides 17.49% 15.49% 200 bps 12.50% 11.73% 77 bps 11.50%

Herbicides 17.66% 22.97% -531 bps 26.79% 29.47% -268 bps 31.90%

Others 11.09% 12.68% -159 bps 10.07% 11.06% -99 bps 11.04%

Category wise % Sales

Particulars

Quarter Ended Nine Months Ended Audited

Dec-12 Dec-11 rise /

fall Dec-12 Dec-11

rise /

fall 11-12

North Zone 15.01% 18.54% -353 bps 19.64% 18.09% 155 bps 20.19%

East Zone 15.14% 15.13% 1 bps 13.90% 13.43% 47 bps 14.72%

West Zone 20.32% 17.41% 291 bps 29.24% 33.80% -456 bps 33.41%

South Zone 48.33% 44.04% 429 bps 32.44% 30.10% 234 bps 27.06%

Factories 1.21% 4.88% -367 bps 4.78% 4.59% 19 bps 4.63%

Region wise % Sales

Particulars Shares

QE Dec12 33.02%

QE Dec 11 35.73%

Rise / Fall -271 bps

NME Dec 12 42.26%

NME Dec 11 44.24%

Rise / Fall -198 bps

% Sales with Foreign/MNC tie-ups

Period Top 10

9ME Dec-12 39.53%

9ME Dec-11 43.20%

HYE Sep-12 44.30%

HYE Sep-11 48.34%

Brand Sales

Approx. 6 to 7 products are in pipeline, of which 2 products are expected to be launched

every financial year.

FY 11-12 FY 12-13

Brigade Fluid

Wetcit Fuzi Super

Bombard Lustre

Vitavax Ultra Dhanzyme Gold granules

New Product Launches

Key Players in Indian Agro-Chemical Market

Technicals Formulations Balanced Portfolio

Meghmani Organics Insecticides India Rallis India

Sabero Organics Dhanuka Agritech Bayer India

Punjab Chemicals PI Industries BASF

UPL Syngenta

Gharda Chemicals

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Rewards and Recognition

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Our Chairman, Mr. R.G. Agarwal receiving a

leadership award from Mr. Montek Singh

Ahluwalia, Deputy Chairman, Planning

Commission

Dhanuka bags a coveted place in ‘Forbes Asia-200 Best under the Billion’ list for two consecutive years.

Our MD, Mr. MK Dhanuka, has received

multiple awards in agrochemical and

pesticide industry forums

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Company has embarked on the mission of achieving Turnover of

INR 1,000 crores in the next three years…

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Mr. V. K. Bansal Chief Financial Officer vkbansal@dhanuka.com

Mrs. Shubha Singh

Company Secretary shubhasingh@dhanuka.com

Dhanuka Agritech Limited 14th Floor, Building 5A, DLF Cyber Terrace,

Cyber City, DLF Phase III, Gurgaon- 122002, Haryana, India Phone - +91-124-3838500 (60 Lines) Fax - +91-0124-3838888

www.dhanuka.com