Mumbai - Rallis India Limited · Copyright © Rallis India Limited. All rights reserved. Monsoon progress- June 2015 The NLM(Northern Limit of Monsoon) has made a rapid progress in

Copyright © Rallis India Limited. All rights reserved.

67th AGM

Mumbai 29 June 2015

V Shankar

Copyright © Rallis India Limited. All rights reserved. 2


Financial Customer Internal

processes Learning &

Growth

Business Priorities : all-round perspectives

Gross Sales: Rs 1900 Cr. Net Profit : Rs 160 Cr.

10 Lakh RKK farmers Mega Brands, MoPu

Safety Awards, Innovista CII Significant Achievement in HR Excellence


2014-15: how was it for Agriculture?

4


Rainfall comparison for the year 2013 & 2014

KHARIF 2013

Post Monsoon 2013

KHARIF 2014

Year/Season Deviation

KHARIF 2013 + 6%

KHARIF 2014 -12%

Year/Season Deviation

Post Monsoon 2013

+ 18%

Post Monsoon 2014 - 33%

Post Monsoon 2014 5


2014-15: Tough year for Farmers & Agriculture

April May June July Aug Sep Oct Nov Dec Jan Feb Mar

- 42% 17% - 42% - 10% - 9% 8% - 25% - 51% - 36% - 13% 105%

2014

SW Monsoon : -12% NE Monsoon : -33%

2015

Rainfall

Deviation

Crop

Sowing

Deviation - - -48% -29% -4% -3% -2% -4% -5% -6% -14% -6%

Kharif Sowing Delayed due

to delayed Monsoon

Rabi & Summer crop damaged due to untimely rains

and hail storms

Crop

Production

Paddy

-2%

Cotton

-2%

Soyabean

-2%

Pulses

-8%

Kharif

Crop

Production

Paddy

-11%

Wheat

--

Pulses

-6%

Rabi

Crop

Production

Unseasonal Rain & Hailstorm

6


Agricultural events : 2014-15

Kharif Sowing Delayed

Jan

Delayed SW Monsoon ,

(12%) Shortfall

2014 June July August Sep Oct Nov Dec 2015

(48%)

Feb March

Deficient NE Monsoon ,

(33%) Shortfall

Shortfall in Rabi Sowing (3%) (2%) (6%)

Shortfall in Kharif production

Paddy (2%), Cotton (2%), Soyabean (2%), Pulses (8%)

Shortfall in Rabi production

Paddy (11%) , Pulses (6%)

Variation in commodity Prices from July to March : Paddy (8%), Soyabean (22%) , Cotton (9%),

Groundnut 19% , Maize 10% , Red Gram 19% due to less production estimates

Urea Shortage leading to

severe cash crunch in the market

Brazil Drought Production impacted : Soyabean (25%), Corn (26%)

Sowing of the Crop delayed, impacted international sales

7

Unseasonal Rains


Year 2014-15

Stem borer Spodoptera Heliothis

Caterpillars

BPH Jassid Whitefly

Sucking Pest

Blast in Paddy Potato Blight Fungal Disease in Grapes and F&V

Fungal Diseases

Phalris minor Echinochloa crus-

galli Eclipta prostrata

Weeds

Severe Medium Low Intensity of Pest & Disease incidence

Impact on

Industry


Key Commodity Prices: Lower than farmers’ expectation

Crop Prices Trend

1000

1200

1400

1600

1800

2000

2200Paddy

Year 2013 Year 2014

2500

2700

2900

3100

3300

3500

3700

3900

4100Soyabean

Year 2013 Year 2014

3500

4000

4500

5000

5500

6000

6500Cotton

Year 2013 Year 2014

1100

1150

1200

1250

1300

1350

1400

1450Maize

Year 2013 Year 2014

3000

3200

3400

3600

3800

4000

4200

4400

4600

4800

5000Groundnut

Year 2013 Year 2014

• Paddy, Soyabean & Cotton prices lower than previous year – Impacted farmer earnings • Groundnut and Maize prices showed an upward trend due to less production than anticipated

9


Year Crop Protection

Agrochemicals ($m) Non Crop

Agrochemicals ($m) Total Agrochemicals

($m)

2009 40147 5860 46007

2010 41291 5880 47171

2011 46539 6290 52829

2012 49549 6372 55921

2013 54208 6481 60689

2014 56145 6557 62702

Global Market 2014

* Source: PMD

9.4%

3.3%

Growth in Global Agrochem Market was muted compared to previous year.

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Performance Highlights 2014-15


Financial Performance : Key Highlights Rallis Consolidated

Actual

13-14

Actual

14-15

Net Sales

1725.7 1800.8

Profit before tax (bei)

214.4 221.6

Net Profit After Tax (after MI) 151.9 157.2

EBITDA % 15.1% 15.4%

Rs Crs


2013-14 2014-15

Net Sales 224.5 309.3

EBIDTA 17.4 24.5

Net Profit after Tax 9.2 16.5

Crs Metahelix financials

Key wins

Growth of 38% in revenues ; profits up 80% Amongst industry leaders now in rice, millet and corn


New Products Launched in 2014-15, set for growth

Duton

Hunk

Origin Blend

Sonic Flo

14

1st ever Insecticide + Fungicide

combination product in India

Solution - Leaf folder & Sheath blight in

Paddy

Herbicide

1st time ever – launch of patented

molecule with the inventor

Solution for – Post emergent Herbicide

for Paddy crop

Insecticide

1st time ever – High Purity

Solution for – Larve & sucking

pests in Paddy and other crops

Fungicde for control of Downy

Mildew

Technical : Dimethomorph +

Ametoctradin

Insecticide for control of

Sucking Pest

Technical : Fipronil

Amplus

Plant Growth Nutrient

An innovative & modern

technology HYT™ based

microbial bio product


Sale of Asataf crosses Rs.100 Cr. for 3rd consecutive year.

IBD- Achieved Milestone of 500Cr. revenue

Signed MOU for MoPu with Madhya Pradesh Govt.

First dispatch of new CM Product from Dahej


76% 67% 66%

76%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Rallis 2014 Indian Chemical &fertilizer

India ManufacturingAvg.

AH Best employer India2013

Global Average

Rallis Engagement Score is 76%

16


Looking Ahead

17


Way Forward

Copyright © Rallis India Limited. All rights reserved

Decreasing per capita arable land

will lead to search for new areas

Rising population exerts pressure on

food production

Concern over depleting soil health

Declining Agri. Labour force

Increasing Urbanization

Trend 1: High Focus on Productivity

To meet the rising demand for food and dietary protein global food production will need to double by 2030

Trend 2: : Sustainability & Green Movement

Agricultural management will involve increasing

productivity by optimization of natural resources –

soil and water.

Trend 3: Farm mechanization will drive Agri. growth in future

With rising pressure on productivity coupled with labour constraints mechanisation will be crucial

18


Critical Factors

Weather related losses during Rabi Harvest

El Niño?

Monsoon - Varied Predictions

Commodity Prices – catching up to farmers’ expectations

19


Monsoon progress- June 2015

The NLM(Northern Limit of Monsoon) has made a rapid progress in the last one week and covered entire country.

This year almost all key states have received good & excess rainfall in the month of June except Kerala, UP & Bihar

June 2015

For the country as a whole, cumulative rainfall during this year’s monsoon has so far up to 25th

June been 28% above the LPA.

Subdivision wise Rainfall Departure

METEOROLOGICAL SUBDIVISIONS

PERIOD: 01st - 25th June'15

Actual (mm)

Normal (mm)

% DEP.

East & North East

India 289.3 281.2 3%

North West India 60.9 48 27%

Central India 184.4 119.3 55%

South Peninsula 164.4 126 30%

Country as a whole

159.2 124.6 28%

June 2014

Year

IMD

Forecas

t

Skymet

Forecas

t

US-

NOA

A

Aus

Metr

o

April

2015

93% of

LPA

102% of

LPA - -

Revisio

n

88% of

LPA

102% of

LPA - -

EI

Nino

Impac

t

70% No/less

Impact 70% 70%

*NOAA-The US National Oceanic and Atmospheric Administration


• Farmer relationship : RKK / Branding / ICT initiatives

• Suite of solutions : new offering

• NPP Growth platforms : Seeds, PGN, CM, GeoGreen,…

• Quality of operations : EBIDTA margin, Cash

• Sustainability : EHS & CSR

• Teamwork : People Engagement

the Rallis factors


Progress on Strategic Investments & Initiatives

1.5 Million

Farmer Base

Cumulative

Revenue of

Rs 1000 Crs in 5 yrs

Cumulative

Revenue of Rs 100 Crs in 5 yrs

Cumulative

Revenue of Rs 500 Crs in 5 yrs

Cumulative

1 Million farmers

to be benefitted

Enhance farm

productivity through

advanced

Agricultural Practices

22


Rallis – Pillars of growth

23


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Mumbai - Rallis India Limited · Copyright © Rallis India Limited. All rights reserved. Monsoon progress- June 2015 The NLM(Northern Limit of Monsoon) has made a rapid progress in