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E I D Parry (India) LimitedE I D Parry (India) LimitedStronger… Greener… Bigger…
E.I.D.- Parry (India) LimitedInvestor Presentation
E.I.D.- Parry (India) LimitedInvestor Presentation
0Making Sugar since 1846 0
June 2010June 2010
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 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 1846 1
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
2Making Sugar since 1846 2
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
3Making Sugar since 1846 3
E.I.D- PARRY (INDIA) LTD - OVERVIEWServing for more than 200 years…. Serving for more than 200 years….
Flagship company of Murugappa Group since 1981.
Pioneers in:
► Sugar from 1842► 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
► Co-generation- Exportable Power No 1 Sugar Manufacturer in South India No 1 Sugar Manufacturer in South India ► Co-generation- Exportable Power from 1997
► Algal Nutraceuticals from 1997
► Branded sugar from 2004
No.1 Sugar Manufacturer in South India including RefineryNo.1 Sugar Manufacturer in South India including Refinery
Second Largest Phosphatic Fertiliser producer in IndiaSecond Largest Phosphatic Fertiliser producer in Indiaproducer in Indiaproducer in India
“ Ranked 51 amongst the Top 200 Companies in India”- Economic Times 2009 survey
4Making Sugar since 1846 4
Enrich life by creating value from agricultureEnrich life by creating value from agriculture
y
OVERVIEW
BUSINESS UNDER EID’s FOLD
Sugar Bio – Products Farm Inputs
Sugar Cogeneration Distillery Refinery
Tamil Nadu
Bio – Pesticides & Nutraceuticals
PhosphaticFertilisers 32.5 LMT
TCD - 19000 84.5 MW 135 KLPD
TCD - 5000 16 MW 45 KLPD 2000 TPD 35 MW
Tamil Nadu & Puducherry
AndraPradesh
Specialty Nutrients & Compost
35
TCD - 8500 45.5 MW 50 KLPD
ades
Karnataka
2000 TPD
Pesticides
TCD - 32500 146 MW 230 KLPD 2000 TPD35 MW Retail
5Making Sugar since 1846 5
• Subject to completion of GMR acquisition ,expected by August 2010• Inclusive of Capacities of GMR - 11000 TCD , 46 MW , 95 KLPD
GROWING FACTS
2303250035000250
Capacity - Sugar Power Distillery Production (in LMT) -Phosphatic Fertilisers
26.26
30.00
14613519000
21500
20000
25000
30000
150
200
20.17 20.86
20.00
25.00
85100100
10000
15000
20000
100
10.00
15.00
0
5000
0
50
2008 09 2009 10 2010 11-
5.00
2008-09 2009-10 2010-11
MW KLPD TCD
Production Capacity – 32.5 LMTSubject to completion of GMR acquisition ,expected by
2007-08 2008-09 2009-10
6Making Sugar since 1846 6
August 2010Inclusive of Capacities of GMR 11000 TCD , 46 MW, 95 KLPD
FINANCIAL FACTS
Rs crore
Consolidated Gross Income Consolidated EBIT
Rs crore
8000
10000
12000 909
81400
1600
1800
909
2000
4000
6000
8000
4677
10424
774823 118 600
800
1000
1200
880 969
8
0
2000
2005‐06 2006‐07 2007‐08 2008‐09 2009‐10
2922 2802
Gross Income Profit on Sale of Invest
0
200
400
2005-06 2006-07 2007-08 2008-09 2009-10
256 225 391 23 118
( )EBIT(operating) Profit on Sale of invest.
7Making Sugar since 1846 7
EBIT includes Minority Interest
CAGR – Operating CAGR
Segmental Revenue and EBIT
168150
200
1200
1400Rs Crore
SUGARFARM INPUTS
9613
871
710 800
1000
8000
10000
12000
823
556 642 759
114893
3147
-50
0
50
100
200
400
600
800
1000
1899 21183835
9613
6429
126 174
394
200
400
600
2000
4000
6000
8000
-60-100
50
0
200
2005-06 2006-07 2007-08 2008-09 2009-10
i li i id
Note: Revenue & EBIT of 2008-09 includes Rs. 159 Crs Business Assistance Agreement
189900
2005-06 2006-07 2007-08 2008-09 2009-10
1
2
2
3
303540
366
7
66
7
8
30
35
40
NutraceuticalsBio- Pesticides
11
17
29371
1
0.10
1
1
2
0510152025
2626
31 364
3
6
0
1
2
3
4
5
0
5
10
15
20
25
8Making Sugar since 1846 8
00
2006-07 2007-08 2008-09 2009-1000
2005-06 2006-07 2007-08 2008-09 2009-10
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
9Making Sugar since 1846 9
SUGAR – DEMAND & SUPPLY
SS 2007-
SS 2008-
SS 2009-
India’s Sugar Balance (mln t)World Sugar (mln t)
Particulars2009/
102008/
09
Changes
in mln t in % Particulars 08 09 10
Opening stock 10.9 10 4.4
Production 26.3 14.6 18.5
Particulars 10 09 in mln t in %
Production 158.2 151.8 6.4 4.2
Consumption 166.7 164.0 2.7 1.7
S l / D fi it 8 5 12 2 Imports 0 2.5 4.3
Consumption 22.2 22.5 22.5
Exports 4.9 0.2 0
Surplus / Deficit -8.5 -12.2
Import demand 52.9 50.2 2.7 5.4
Export Availability 52.3 49.2 3.1 6.2
Closing stock 10.1 4.4 4.7
Stock to Consumption Ratio % 45 20 21
End Stocks 52.8 60.7 -7.9 -13.0
Stocks/ Consumptionratio in % 31.7 37.0
Source: ISO Quarterly Market Outlook, May 2010 Source: ISMA – May 2010
10Making Sugar since 1846 10
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
11Making Sugar since 1846 11
South India is good….
Competitiveness in the Sugar Industry is driven by
► Mutual Inter-dependence between the Farmer & the Miller& the Miller
Combined Productivity (Farm Yields and Factory Recoveries) is the key
Thus, Total Recovered Sugar as MT per Ha (ie Cane Yield in MT per Hectare times (ie Cane Yield in MT per Hectare times Recovery as Ton of Sugar per Ton of Cane) must be maximised
► Agro climatic conditions
Long crushing season being a plus
► Port Facilities
Freight cost for importing / exporting is Lower for South Indian Mills comparing to Internal SourcesLower for South Indian Mills comparing to North Indian Mills.
► Command Area
100% Drawl for Tamil Nadu Mills
12Making Sugar since 1846 12
No Poaching
► No Prior Period Liabilities
South India is good….
StateNo. of .
Operating DaysOff SeasonOperation
10 3511.44 12
14
100
120
Operating days & Off Season Yield and Recovery
Tamil Nadu 240
Karnataka 180102.5 83.7
65.9
9.6310.35
8.99
6
8
10
60
80
100
Maharastra 150
Uttar Pradhesh 140
65.952.3
2
4
6
20
40
* Off Season Operation for running Power, Raw Sugar Processing
00
Tamil Nadu Karnataka Maharastra Uttar Pradhesh
Yield (tonnes per hectare) Recovery
Source: ISMA Source: ISMASou ce S Sou ce S
13Making Sugar since 1846 13
Long Duration Vs. High Recovery Mill areas
Long Duration
TCD - 3500
No. of working days - 240
Recovery - 9.5% Only ColombiaDurationInvestments - Rs.210 Crs.
Return on Investment - 20%
TCD - 5000
Short Duration No Interest
No. of working days - 168
Recovery - 10.5%
Investments - Rs.326 Crs.
Return on Investment - 16%Return on Investment 16%
Low Recovery High Recovery
Other Assumptions
Cane Crushing = 8.4 Lakh MTs
Sugar Price = Rs.26000
Cane Price = Rs.2000/MT
Cane Crushing = 8.4 Lakh MTs
Sugar Price = Rs.26000
Cane Price = Rs.2200/MT
14Making Sugar since 1846 14
* Including Rs.9.5 cr of offseason, ROCE increases from 20% to 24%* Including Rs.9.5 cr of offseason, ROCE increases from 20% to 24%
Why Tamil Nadu?
Cane Productivity and Sugar recovery per unit area is highest
Average farm size is less than a hectare and owned by highly progressive and hardworking farmershardworking farmers
Geographically, Tamil Nadu has the advantage of good soil and abundant water
Long crushing season of 240 to 280 days which is 45% more than India norm of o g c us g seaso o 0 o 80 days c s 5% o e a d a o o172 days
Access to port to reach import / export markets for India’s surplus / deficits sugar cycle and improved development of infrastructure facilitiescycle and improved development of infrastructure facilities
Good Farmers adopting latest farm practices and mechanisation that improve yield
Tamil Nadu Agriculture university / Sugarcane breeding Institution Coimbatore Tamil Nadu Agriculture university / Sugarcane breeding Institution, Coimbatore remains the focus to ensure timely availability of newer varieties of cane
Infrastructure Linkage – Roads/ canals, borewells, tanks
15Making Sugar since 1846 15
Why Karnataka / AP?
Recent AcquisitionsLocation Advantage
High Recovery Zone of NW Karnataka Bagalkot, Haliyal & Ramdurg
I) SADASHIVA – Bagalkot (Karnataka)
76% Shareholding Closer to major Indian sugar markets
Less controls on Molasses and Alcohol than TN
76% Shareholding
Capacity - 2500 TCD , 15.5 MW
Debt - Rs. 93 Crs
Proximity to Silkroad minimise the freight cost
Larger power shortage than TN for Cogen
II) GMR – (Haliyal, Ramdurg, Sankili) (Karnataka & Andhra)
Shareholding to range between 65% - 71% Larger power shortage than TN for Cogen g g
Open offer for 20% shareholding at Rs.110.69
Deal is expected to complete by August Deal is expected to complete by August, 2010.
Capacity - 11000 TCD ,46 MW , 95 KLPD
16Making Sugar since 1846 16
Debt – Rs. 466 Crs
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
17Making Sugar since 1846 17
SOUTH INDIA PRESENCE
Bidar
Gulbarga
Bij
Adllabad
Nizamabad Karimnagar
Khammam
SrikakulamVizianagaram
East Godavari
Warangal VishakhapatnamMedakSangareddi
Rangareddi
BagalkotTCD – 2500
Cogen – 15.5 MW
HaliyalBijapur
BagalkotBelgaum
Kappal
Raichur
Bellary
DharwadGadag
Uttar kannad Davengere
East GodavariWest Godavari
Guntur
Nalgonda
Mahbubnagar
Ongole
NelloreCuddapah
Kurnool
Anantapur
yTCD – 3500
Cogen – 24 MWDistillery –50 KLPD Sankili
TCD – 5000Cogen – 16 MW
Distillery – 45 KLPDSilkroad Refinery
2000 TPD
TiruvallurChennai
Vellore
KanchipuramTiruvannamalai
Dharmapuri
Vilupuram Puduchery
Krishnagiri
Shimoga
Udupi
Tumkur
KolarBangaloreChikmangalur
Hassan
Mandya
Mysore
Koorag
Chamrajnagar
Chitoor
PuducheryTCD – 2000
RamdurgTCD – 2500
Cogen – 6 MW
2000 TPD35MW
VilupuramSalem
NamakkalErodeNilgiris
Sivaganga
PudukkottaiDindigul
M d iT i
Thanjavur Tiruvarur
Cuddalore
Trichirappalli
Perambalur
Karur
y
Nagappattinum
Coimbatore
PettavaithalaiTCD – 3000
Cogen – 20 MWNellikuppamTCD – 6000
Cogen – 24.5 MWDistillery – 75 KLPD
Kanyakumari
Tirunelveli Tuticorin
Ramanathapuram
SivagangaMadurai
Virudunagar
Teni
PugalurTCD – 4000
Cogen – 22 MWPudukottaiTCD – 4000Cogen – 18
Tamil Nadu
18Making Sugar since 1846 18
SivagangaDistillery – 60 KLPD
Andra Pradesh
Karnataka
Capacities and Operating Parameters
Sugar – 32500 TCD
2006-07 2007-08 2008-09 2009-10 2010-11 (Est)
Nellikuppam 5000 5000 6000 6000 6000
Pugalur 4000 4000 4000 4000 4000
Pettavaithalai 2500 2500 3000 3000 3000
Pudukottai 3000 4000 4000 4000 4000
Puducherry 2000 2000 2000 2000 2000
Tamil Nadu & Puducherry 16500 17500 19000 19000 19000
Sankili 5000
Andhra Pradesh 5000
Bagalkot 2500 2500
Haliyal 3500
Ramdurg 2500
Karnataka 2500 8500
• Subject to completion of GMR acquisition expected by August 2010
19Making Sugar since 1846 19
• Subject to completion of GMR acquisition ,expected by August 2010
• 2010 -11 Inclusive of Capacities of GMR - 11000 TCD
Operating Parameters
Particulars 2006-07 2007-08 2008-09 2009-10 2010-11(Est)
Cane Registration(in acres) 107782 92261 97147 94553 173000
Yield % 39 39 36 33 36
Cane Crushed(in LMT) * 40.95 42.34 33.73 25.46 52
Recovery % 8.93 9.06 9.52 8.89 10.3
Sugar Production (LMT) 3.66 3.83 3.23 2.26 5.30
Process Loss 1.92 1.91 1.89 1.89 1.80
No. of. Operating daysNo. of. Operating days
in Season 273 278 204 158 180-230
off Season(Power, Raw Sugar) 40 40-50
Estimates for 2010-11
Cane Crushing (in LMT)
EID – 36
*
20Making Sugar since 1846 20
Sadashiva – 3
GMR – 13
Cogeneration
Cogeneration - 146MW
2006-07 2007-08 2008-09 2009-10 2010-11* (Est)Nellikuppam 24.5 24.5 24.5 24.5 24.5Pugalur 22.0 22.0 22.0 22.0 22.0Pugalur 22.0 22.0 22.0 22.0 22.0Pettavaithalai 20.0 20.0 20.0Pudukottai 18.0 18.0 18.0 18.0 18.0Tamil Nadu 64.5 64.5 84.5 84.5 84.5Sankili 16.0Andra Pradesh 16.0Bagalkot 15.5 15.5Haliyal 24.0Ramdurg 6.0Karnataka 15 5 45 5
* Subject to completion of GMR acquisition, expected by August 2010
Karnataka 15.5 45.5
4000
5000
6000
1814
2010 -11 Inclusive of Capacities of GMR - 46 MW
0
1000
2000
3000
16302668 2518 1975
3681597
21Making Sugar since 1846 21
2006-07 2007-08 2008-09 2009-10 2010-11 (Est)
Season Power Export to Grid(in Lac units) off Season Power Export to Grid(in Lac units)
Distillery
Distillery – 230 KLPD
2006-07 2007-08 2008-09 2009-10 2010-11* (Est)Nellikuppam 40 40 40 75 75
Sivaganga 60 60 60Sivaganga 60 60 60
Tamil Nadu 40 40 100 135 135
Sankili 45
Andra Pradesh 45
H li l 50Haliyal 50
Karnataka 50
* Subject to completion of GMR acquisition, expected by August 2010
2010 -11 Inclusive of Capacities of GMR - 95 KLPD
22Making Sugar since 1846 22
Level of Integration
89%
92%90%
100%
Baggasse utilisation (%) towards integration
72%
79%
60%
70%
80%
52%
40%
50%
2006-07 2007-08 2008-09 2009-10 2010-11 E
Molassess utilisation (%) towards integration
100%
80%
100%
120%
22%31%
69%
20%
40%
60%
23Making Sugar since 1846 23
0%
2007-08 2008-09 2009-10 2010-11 E
Recovery Improvement – Action Taken
Clean Cane Management– Trash %
to be less than 3%
Increasing the coverage of HSV by introducing of Parry and Govt.
Variety through Parry's breeding Logistics
Management Variety through Parry s breeding program
Management
Optimum Utilization during Peak recovery by balancing the Cane supply and Operating Days, capacity pp y p g y p yexpansion, modernization, efficiency improvement( Total Loss).
Ensuring application of Ensuring application of fertilizer for improving quality
of cane through soil analysis, input supplies on
right time by Parry Mayyams,extension and farmer training
24Making Sugar since 1846 24
,extension and farmer training programs .
Higher Crushing & Higher Recovery
8.6 9.0
10.911.3
10.5
9.38.7
9.6
10 1
10
12
120,000
140,000
8.58.3
10.1
8
80,000
100,000
4
6
40,000
60,000
220,000
40,000
00
OCT DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Cane Crushed (MTs) Recovery (%)
25Making Sugar since 1846 25
Higher Investments in Sugar will enable Crushing during peak periodHigher Investments in Sugar will enable Crushing during peak period
Farmer Relations
Command Area100% Drawal
Cane weighment & payment alertThrough SMS
Integrated System from Cane Registration to Payment at Rural banks
On time Payment –
Through SMS
Automated display Cane weighment
system On factory C
In House ERP solution
All the Timesystem On factory
gate Cane Management System, SAP
wireless online
connectivity
No prior period Liabilities
Centralised, Web based
Farmer Loyalty
Parrys corner(Knowledge sharing )
Crop information & Insurance
,, online
Hassle free cash delivery through
Online baking at his rural back yard
Farmer
26Making Sugar since 1846 26
LoyaltyCrop information & InsuranceTissue culture, Parry Varieties
Crop LoansFarmers Accidental
Insurance & Hospitalisation
Farmer
Cane harvester
Transporter
Farm Labour Relations
Parry Service Kiosks (PARRY MAYYAM)
Harvesting / Transport Labourers Insurance
Timely Supply of Cane
Mechanisation of Cane harvesting
Centralised cane payment by e-mode… payment lead time reduced by 3 days
Higher Yieldpayment lead time reduced by 3 days
27Making Sugar since 1846 27
Segment-wise – Last 6 years
90%
100%
86%
72%77%
69% 69%
56%
60%
70%
80%
19%
86%
40%
50%
60%
26%21%
27% 23% 25%0%
2%2%
4% 8%
19%
10%
20%
30%
14%
0%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(Est)
Institution Retail Others(Export, Levy, Trade, Rake)
28Making Sugar since 1846 28
Our Certifications
Halal KosherISO 9001-2008
I di Ph i B iti h Ph iUS Ph i
29Making Sugar since 1846 29
Indian Pharmacopoeia British PharmacopoeiaUS Pharmacopoeia
Working With
Milling MarketingCane Growing
SPRI – USA
SRI – Australia
Mitr Phol – Thailand
CTC – Brazil
Cargill
Sucden
Mitr Phol – Thailand
TLPT – UK
ICSB
ISSCT
Czarnikow
Honeywell Tech.
IPRO – Germany
ISSCTISSCT
30Making Sugar since 1846 30
Silkroad Sugar… An Innovative Business Model
REACHING OUT BEYOND TRADITIONAL FRONTIERSREACHING OUT BEYOND TRADITIONAL FRONTIERS………..
31Making Sugar since 1846 31
Silkroad Sugar Pvt Ltd
Destination Refinery concept
► Logistical Advantage in transportation of Raws and refining at destination
Capacity levels► Refined Sugar – 2000 TPD (Annual
capacity of 0.60 mn MT)
Why Refinery in India? Capacity & Investments
Raws and refining at destination
Locational Advantage
p y )► Power – 35 Mwh► Exportable Power – 25 – 27 Mwh
Investment – Rs 400 cr
Why Silkroad ?
g
► East Coast Advantage, proximity to Kakinada Port
► Sugar Consumption /demand strongly correlated future growth in countries like correlated , future growth in countries like China, India
Cargill backing, largest Sugar trader accounting 25% of global trade
SEZ AdvantageSEZ Advantage
► Duty , Tax concessions
Power Plant
► Integrated for energy, thus low cost
32Making Sugar since 1846 32
g gy,
EID - Investment Trend in SugarRs CroreRs. Crore
Investment 05-06 06-07 07-08 08-09 09-10 10-11 (Est) Total
Existing Facilities 102 116 91 297 82 40 728g
Puducherry Unit 56 56
Silkroad Sugar 4 46 36 14 99
Sadashiva 50 50
GMR 110 110
Total 102 176 137 333 146 150 1043
Note:
B fit t f 2010 11
Total 102 176 137 333 146 150 1043
Benefits to accrue from 2010-11:
► Inv (Silkroad, Sadashiva & GMR ) - Rs. 260 Crs
► Cogen CAPEX - Rs. 105 Crs,
► Distillery CAPEX - Rs. 134 Crs
33Making Sugar since 1846 33
Investment in GMR Industries Ltd could be Rs. 120 Crs on 100% open offer subscription.
Consolidated Operation – Minimise Cyclicality
80
23
36
3
9
14
40
60
80
100
120107
100
63
Rs Cr
Low Cane
55 49
0
20
Peak Mid Trough
Sugar Cogen Distillery
High CaneLow CaneHigh sugar price
Mid - Base 100Peak/Trough - Represented in terms of Mid
High CaneLow sugar price
34Making Sugar since 1846
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
35Making Sugar since 1846 35
Nutraceuticals
Global Nutraceutical Segments Parry Nutraceuticals “Product portfolio”
Herbal formulations
AstaxanthinBeta caroteneLycopeneL t iLutein
NutraceuticalsParry
Nutraceuticals
Organic Spirulina
FenugreekGalactomanon
EPA /DHA
Global Ingredient market size - $ 27 Billions
36
Existing ProductsPipeline Products
Global Ingredient market size $ 27 Billions
Global Nutritional products (formulated) Industry size - $ 236 Billions
Products and Opportunities…..
Organic SpirulinaCurrent market - $ 7.5 Mi.
Parry share - $ 3.35 Mi.
CAGR - 2%
AstaxanthinCurrent market - $ 35 Mi.
Parry share - $ 2.46 Mi.
CAGR - 7%
Lutein Current market - $ 139 Mi.
Parry share - $ 1.47 Mi.
CAGR - 9%
Lycopene
Current market - $ 58 Mi.
37Making Sugar since 1846 37
Parry share - $ 1.25 Mi.
CAGR - 6%
Life Sciences – Business Model
Valensa
Participation in this segment will multiply the Value of the business
ValensaIP / Science based
products
FormulationsDietary Supplements
Food & BeverageCosmeceutical
Brand / Retail
Oleoresins
Pre-Mixes Life ScienceHealth condition
products backed by IP / Science
Biomass Enhancing value of existing ingredients
H lth l ti id
38Making Sugar since 1846 38
Ingredient Supplier Health solution provider
Nutraceuticals - Financials
Description 06-07 07-08 08-09 09-10
SALES 11.20 17.19 29.14 37.47
Rs. Crore
SALES 11.20 17.19 29.14 37.47
PBIT 1.30 1.37 0.13 2.05
CAPITAL EMPLOYED 24.34 32.76 49.09 47.46
INVESTMENTSINVESTMENTS
PHTYO REMEDIES (2007-2010) 2.13
VALENSA (2008-2011) 48.10
TOTAL 50.23
39Making Sugar since 1846 39
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
40Making Sugar since 1846 40
Bio - Business
Multi discipline R&D
P d t d l t
1994Main Plant
Product development
Registration
Raw material –Neem Seed
a a t
RegistrationIndia/Abroad
MarketDemonstrationTest Marketing
41Making Sugar since 1846 41
Test MarketingConcept sellingExports
28 countries
Market Est. for Bio pesticides
Particulars 2004 2010 AAGR%Bio control market est. (Mn $) 562 1075 9.9 %
Global Bio control & Synthetic pesticide market est. – Million $ *
Synthetic pesticide. (Mn $) 26600 24205 -1.5 %Total 27162 25280 -1.1 %Biopesticide % of Total 2.07% 4.25%
BT based Microbial
bio pesticidesMn 300 $
Others, Mn 215 $
EID share – 11%
Other Microbial bio pesticides
Mn 80 $Biological control
Mn 160 $Pheromones
Mn 160 $
Plant extracts Mn 160 $
42Making Sugar since 1846 42
Source:* http://www.bccresearch.com/chem/C204R.html
Bio biz…so far
Achieved maximum production of 5550 Kg (Name plate capacity 7000 kg) and sale of 5300 kg so far in a year.
Obtained p od ct egist ation in o e 32 co nt ies ith B a il S Ko ea Obtained product registration in over 32 countries with Brazil, S Korea, Australia and Japan developing into new high volume potential markets.
Got 3 different patents for product and process across 10 countries.Got 3 different patents for product and process across 10 countries.
Year 09-10 was an abberation
Pl t i l b 60% d i 2010 11Plan to increase sale by 60% during 2010 -11
43Making Sugar since 1846 43
Bio – Pesticides Financials
Description 06-07 07-08 08-09 09-10
Sales Quantities
Total Technical(in Kgs) 3928 5129 4900 4319
Abda MT 30 147 509Abda MT 30 147 509
Sales Value (Rs. Cr) 26.27 30.60 36.36 36.26
PBIT(Rs. Cr) 2.93 5.92 7.17 5.61
Capital Employed(Rs. Cr) 36.89 36.37 46.39 50.56
44Making Sugar since 1846 44
Agenda
Company Overview
Sugar Business Sugar Business
► World and Indian Sugar Balance
► Closer look @ Sugar in South Indiag
► EID – Sugar Business
Bi P d t B iBio Products Business
► Nutraceuticals
► Bio Pesticides
Consolidated Financials
45Making Sugar since 1846 45
FINANCIALS SNAP SHOT: CONSOLIDATED
Revenue
8000
10000
12000
Rs. Crore
4409
101587551
0
2000
4000
6000
EBT PAT
FY 07-08 FY 08-09 FY 09-10
Sales incl Govt. Subsidies
1500
2000
9098
1675
850800
1000
567
954
0
500
1000
FY07‐08 FY 08‐09 FY09‐10
289766 842
8289
0
200
400
600
105387 386
7393
105
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EBT(excl. Profit on Sale of Invest) Profit on Sale of Investments
0
FY07‐08 FY 08‐09 FY09‐10
Net Profit excl Sale of Invest. Profit on Sale of Invest. after Tax
FINANCIALS SNAP SHOT: CONSOLIDATED
12.51%09-10 22%09-10
Operating Margin % Return on Equity
8.37%
8.45%
07-08
08-09
10%
24%
07-08
08-09
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 0% 5% 10% 15% 20% 25% 30%
Long Term Debt : Equity Return on Capital Employed
19%
17%
2008-09
2009-10
0.27
0.32
08‐09
09‐10
13%
0% 5% 10% 15% 20%
2007-080.43
0 0.1 0.2 0.3 0.4 0.5
07‐08
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Average Payout over last 5 Years – 32%, Rs. 357 Crs(includes final dividend of 200% for 2009-10)
Average Payout over last 5 Years – 32%, Rs. 357 Crs(includes final dividend of 200% for 2009-10)
For further information, please contact:
P Gopalakrishnan
Investor Co-ordinator
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
Quartely Results
Last week of July ‘2010, October ‘2010, January ‘2011 and April ‘2011
48Making Sugar since 1846 48
Stronger… Greener… Bigger…
49Making Sugar since 1846 49