Insecticides

(India) Ltd.
Investor
Presentation
AUGUST
2018

1
This is
Insecticides
(India) Ltd
In line with the Indian PM focus
of doubling farm incomes by

2022
Focused on enhancing farmer
incomes and purchasing
capacity by delivering the
best-of-breed crop care
solutions to the farmers.
2
 Moving on the
strategic path of
Backward and
Forward
Integration

Launched Make in India;

New Products; Import
9(3) Registration Substitution

Diversified Revenues Business Established

footprint in MEA

Model
(Active Ingredients, and Asian markets;
Bulk & branded
Formulations)
Quick offtake,
; De-risking robust recall

Investment in upgrading
its intellectual
capabilities, Presence Across
manufacturing processes Value Chain;
to offer smart solutions
Strong Margins
to the emerging
challenges of agriculture;
Prospective Pipeline
125
global export
partnerships;
Expanding
clientele

3
 Revenue
Rs 1,106.39Crs
58% Insecticides Net Profit
Sales by 28% Herbicides
Rs 83.97 Crs
Product
10% Fungicides
Category
4% PGR Export
Rs 35 Crs

Mkt Cap
Sales by 70% B2C as on 31/3/18
Segement 30% B2B Rs 1,422.46 Crs

Number of
Sales vs
51% In House Consumption Farmers Impacted
Internal 25 Lakhs+
Consumption 49% Sales
(For Technical)
No. of Brands with
turnover of over
Breakdown Rs 25 Crs
45% Navrathna Products
of Top Seller
55% Other Products
Range

4
Exports-How we have grown
66.02
70.72

2015-16 06 Countries
2016-17 12 Countries
282.71
700 2017-18 17 Countries
2018-19 27 Countries

Year Number of Countries Export Value(Inr – Mns) Growth(%)

2015-16 6 66.02 -
2016-17 12 116.00 75.70
2017-18 17 341.30 194.22
2018-19 27 700.00 105.09
(Targeted)
5
Insecticides (India) Ltd.

1 Background 2 Product mix 3 Distribution

and marketing 4 Where we make
Commenced operations in Insecticides, herbicides, Pan-India distribution: Rajasthan, Gujarat,
2001-02 (headquarters fungicides and plant Jammu & Kashmir and
New Delhi); growth regulators Uttar Pradesh

1099+ employees 107+

Branded 60,000 retail outlets 5
formulation
products plants
+

Technical technical
15+ products 3,000 Distributors 2 synthesis plants

biological
depots/branch
375+ SKUs 31 es 1 manufacturing
unit

sales team, dedicated

500+ Prominent 4 research
‘Tractor’ brand facilities

6
Our Differentiated Business Structure

1 Marketing 2 Manufacturing 3 R&D 4 Development &

Training

 Sales & Market  5 Formulation Plants  NABL QC Labs  Emphasis on field

development activities
 Branding  2 Technical Synthesis  IN-house R&D Centre
 International Tie ups Plants  Farmer Awareness
 JV with OAT Agrio Co.
and Collaborations  1 Biological Japan for dedicated  Sales force Training
 Evolving Media Mix Manufacturing Plant invention R&D centre

7
Our Presence

Corporate Office

Branch / Depot

8
How we have grown
Commenced Chopanki Plank Got
2001 Operation 2005 ISO 9001: 2008
Certification; Set Up R&d Lab

Listed on NSE and BSE;

Acquired 21 Brands Chopanki Technical Plant
2003 Of Montari Industries 2007
Commenced; Samba Plant
Expansion

Samba (J&K) Received OHSAS 18001

2004 Plant Commissioned
2008 Certification

Chopanki (Rajasthan) Technical Collaboration

2002 Formulations Plant 2006 With AMVAC, USA, To
Commenced Manufacture And Market Thimet

9
How we have grown
Tie-Up With MOMENTIVE (USA)
For AGRO SPRED* MAX; Tie-Up
Acquired MONOCIL from NOCIL;
2011 with NIHON NOHYAKU (Japan)
Commissioned Two Plants 2016 for SUZUKA and HAKKO; Launched
(Dahej and Udhampur)
GREEN LABEL (Bispyribac Sodium 10% SC);
Manufactured in India for the First time
Commenced
Product Invention
R&D Center in JV
2014 with OAT Agiro Co.
(Japan); Commenced
New Formulations
unit in Chopanki

Launched Bio-Product
MYCORAYA;
2015 Bonus Shares Issued;
Followed By QIPs

Launched NUVAN With AMVAC; Product Launched Under

2012 launched HAKAMA and PULSOR 2018 9(3) Registration (Sopia, Encounter,
With NISSAN (Japan) Hercules and Aikido)

10
Aggregate
Installed Capacity

17,450 KLPA 75,600 MTPA 16,980 MTPA 13,800 MTPA

Liquid Granules Powder Active Ingredient
& Bulk

11
R & D Themes & Strategies
More than Developed
Reverse Targets: 18 patents 59+ New
Engineering pending Processes
Short Term: Launch new generics and products
Product going off-patent (Innovation & Reverse Engineering)
(Chopanki,
Rajasthan)

Developed
59+ New
Combination Processes
Medium Term: To launch products through partners;
Product launch new mixture products and formulations
(Dahej, (Formulation & Development)
Gujarat)
Development
4 Process
and launch
Product of soil Patents
Biological Discovery Long Term: Launch proprietary discovery transformation Received
Product (Chopanki, products (Biological & New Molecules) formula
(Shamli,UP) Rajasthan)

More than
80 +
Scientists

12
Strong In-House
& Product Invention R&D Center
In-house R&D Center
Established in 2005
Approved by DSIR, Ministry of Science and Technology
Four process patents has been granted & over
18 process patents filed.
Signed an agreement with DSIR for commercialization of
MNIO, an import substitute
Working on new formulations & new combination
products as per trend
Synthesis of new molecules in process

Product Invention R&D Center

A unique initiative of product discovery in India by
forming a JV with Japanese co., OAT Agrio Co. Ltd.
Two different sections of Chemical & Biological Laboratories
Spread in 25000 Sq feet of working area
Equipped with the latest machines and equipment's like
NMR, Lab set designed by Kewanee, USA
Lead by the internationally renowned scientists with
more than 25 years of experience
Ultra-modern green houses to compliment the
effective testing
One of its kind Breeding centers, Bio Assay
Rooms and Spray-Cabinets
13
Biological Theme - A Game Changer
Biological R&D Center
Equipped with bio assay and product development facilities such as Isolation, detection
and multiplication of biological microorganisms

Made a break through by developing and commercializing VAM

(Vaslcular Arbuscular Mycorrhiaze)
Looking forward to development of 3-4 new biological products

Biological Solution
First-mover advantage due to less number of players
Co-existence of agro-chemicals and biological inputs to enhance synergic farmer benefits

Developed and commercialized Kayakalp, Soil Energizer

Biological Facilities
Sterile environment Latest ultra modern production facilites Automatic filling lines
Products manufactured are organic certified
Biological products are manufactured under the expert supervision of bio technologists and Micro biologists.
The QC facility are equipped with latest instruments for detection and quantification of micro organisms

Products
Kayakalp has been created to replenish the soil, increase its organic carbon and improve its physical properties

Mycoraja equipped to promote healthy growth and greater nutrient absorption in a wide range
of crops, oilseeds and cotton
NPK Consortia (Nitrogen, Potash & Phosphorous) Zinc Solubilizing bio-fertilizer
14
New Development :
Launch of New Products
under 9(3) category
The products launched under 9(3) registration - Encounter, Sofia, Aikido and
Hercules have been launched after they were made at the Formulations R&D
Centre. All these products have been launched for the first time in India and
have been applied for the patent. All these four products are based on the
combinations of two products that will provide synergistic effect in terms of
better control and efficacy. All these products are based on the latest
technology & safe formulations.

Aikido is launched
in technical collaboration Hercules is an insecticide
Encounter helps fight with Nihon Nohyaku, Japan. Sofia is very useful broad that protects the all important
This product gives complete spectrum fungicide which gives cash crop- Cotton from sucking
lepidopteron and sucking pest
protection from brown plant complete protection from pest like white fly, Jassids &
together in important crops like
hoppers (BPH), white plant various diseases in different Thrips. It has unique 'Vapor
tea, pulses, cotton, and
hoppers (WBPH) and leaf folder crops for farmers in the country. Action' which help the product
vegetables.
which destroy about 25-30% It gives Broad Spectrum Control to reach the insect in high
percent of paddy crop in the against diseases in crops. density crops for better and
country every year. effective control.

15
Global Partners

Technical Collaboration For Marketing tie-up for

Manufacture And specialty products PULSOR Tie-up for SUZUKA
Marketing Of Thimet (Since fungicide and HAKAMA (Flubendiamide) and HAKKO
2006) And Nuvan (Since Selective Herbicide (Buprofezin)
2012)

Tie-up with MOMENTIVE Tie-up with OAT Agrio to bring JV for dedicated R&D Centre to
specialized seed treatment discover new agrochemical
Performance Material Inc.,
product (ROOTBEAD) molecules
USA for AGROSPRED

16
Forward-Looking
Strategy
From a generic agrochemicals player, the company has
developed a three-pronged growth strategy, which
focuses on R&D, Manufacturing and Marketing.

This fiscal year the company will add another

75 Partners in Export segment.

Negotiating with partners for launching new

products in the Indian market

Backward integration to capitalize

on Make in India initiative

Management sees a huge opportunity in the

Exports segment and aims to double the sales by FY19

Strong Product Pipeline

Focus on In house R&D to launch New Products

17
Leading Brands
MONOCIL : Systemic insecticide-cum-acaricide; controls broad pest spectrum across crops

HAKAMA : Post-emergence selective herbicide; controls narrow leaf weeds across leaf crops

PULSOR : Systemic fungicide with preventive and curative action; controls Rice Sheath Blight

VICTOR : Among 3 top brands in category; controls termites

LETHAL : Organo-phosphorus group of insecticides; controls insects through contact,

stomach and vapour action

XPLODE : Naturally derived insecticide; controls all Lepidopteran stages

HIJACK : Non-selective systemic herbicide; controls annual and perennial weeds

GREEN LABEL : Specialist of weed control in Paddy; in line with ‘Make in India’

MYCORAJA : Bio product equipped to promote healthy growth and greater

nutrient absorption in a wide range of crops, oilseeds and cotton.

18
 IIL’s Strategy:
On the ban by Central Govt.

Prohibition Impact on IIL’s

of 18 Pesticides IIL Product Portfolio Focus/stand To
Mitigate The Risk
As per the Gazette Notification dated  Four pesticide falls under the said prohi-  New products are already introduced in
8th August 2018, the Central Government bition of 18 pesticides:
has passed an order prohibiting 18 pesti- place of retiring products.
 Nuvan (Dichlorvos)  Thimet (Phorate)
cides .  Replacement of old technology products
 Titan (Trizophos)  Shark (Trizophos)
 Of the 18 pesticides, the registration, with greener technology.
manufacture, import, sale and use of 11  Asper the order, the Company can  Distributors and retailers channels are
stand banned with immediate effect while manufacture the said pesticides upto 31st geared up for the new products.
six will be phased out by December 2020. Dec 2018 & further it can be sold till 31st  Efforts are on to induct the new products
Dec 2020 minimizing an impact on total in our Maharatna category.
sales of the Company in a
phased manner.

19
Financial Snapshot
NET REVENUES (RS LAKHS) PROFIT BEFORE TAX (RS LAKHS)
2014 86,453 2014 4,865
2015 96,464 2015 6,417
2016 98,814 2016 4,988
2017 1,07,629 2017 8,197
2018 1,10,639 2018 11,810

EBITDA (RS LAKHS) NET PROFIT (RS LAKHS)

2014 8,222 2014 3,994
2015 11,149 2015 5,484
2016 9,169 2016 3,928
2017 11,820 2017 5,940
2018 15,106 2018 8,397

EARNINGS PER SHARE D/E

2014 31 2014 1.06
2015 43 2015 1.11
2016 19 2016 0.76
2017 29 2017 0.51
2018 41 2018 0.21

20
Financials FY17-18
Standalone Profit and Loss Statement
Particulars (INR MN) FY15 FY16 FY17 FY18 Q1FY19
Revenue from Operations 9641.91 9881.45 10,762.69 11,063.94 3,189.26
Other Income 4.35 5.56 68.27 32.41 1.82
Total Revenue 9646.26 9887.01 10830.96 11096.35 3,191.08
Cost of Materials Consumed 6796.36 5976.72 6289.06 6514.03 1,775.62
Purchase of Stock in trade 496.22 678.73 1428.61 708.02 101.52
Change in Inventories 809.71- 90.25 295.07- 412.19 325.65
Excise Duty 820.59 331.43
Employee Benefit Expenses 344.44 400.68 455.09 506.21 149.04
Other Expenses 1704.01 1823.74 950.66 1,113.84 281.63
Total Expenses 8531.32 8970.12 9,648.94 9,585.72 2,631.66
EBITDA 1114.94 916.89 1,182.02 1,510.63 557.60
EBITDA Margin (%) 11.56% 9.28% 11.89% 14.08% 17.48%
Depreciation 141.68 159.25 160.02 170.46 48.23
Finance Cost 331.56 258.78 202.32 159.17 28.89
PBT with Exceptional Item 641.70 498.86 819.66 1180.97 480.46
Exceptional Items 0.00 0.00 0.00 0.00 0.00
PBT 641.70 498.86 819.66 1180.97 480.46
Tax 93.24 105.98 225.67 341.24 140.55
PAT 548.46 392.88 593.99 839.74 339.91
PAT Margin % 5.69% 3.98% 5.97% 7.83% 10.65%
Diluted EPS 43.24 20.01 28.74 40.63 16.45

21
Financials FY17-18
Standalone Balance Sheet
Liabilities (INR MN) FY14 FY15 FY16 FY17 FY18
Shareholders Fund
Share Capital 126.83 126.83 206.67 206.67 206.67
Reserve and Surplus 2338.72 2787.28 3882.29 4438.89 5,269.22

Total Shareholders Fund 2465.55 2914.11 4088.96 4645.57 5,475.90

Non - Current Liabilities
Long term Borrowing 302.07 536.62 280.49 154.17 82.84
Deferred Tax Liabilities 132.66 155.69 175.51 89.26 188.43
Other Long term Liabilities 42.89 39.35 54.96
Long Term Provision 3.26 6.02 13.80 5.07 5.65
Total Non Current Liability 480.88 737.68 524.76 248.51 276.92
Current Liabilities
Short Term Borrowing 2124.29 2409.45 1519.77 2059.55 967.62
Trade Payable 2036.04 2098.27 2109.11 1986.84 2,433.56
Other Current Liabilities 645.25 780.97 840.37 515.53 598.67
Other Financial Liabilities 319.54 244.97
Short Term Provision 161.70 267.12 281.96 8.54 2.92
Total Current Liabilities 4967.28 5555.81 4751.21 4,890.02 4,247.76
Total 7913.71 9207.60 9364.93 9,784.10 10,000.59

22
Financials FY17-18
Standalone Balance Sheet contd…
Assets (INR MN) FY14 FY15 FY16 FY17 FY18
Fixed Assets 2242.74 2423.55 2451.71 1,858.27 2357.08
Capital Work in Progress 569.45 126.83
Non Current Investment 110.85 110.85 110.85 110.52 162.61
Long Term Loans and Advances 47.44 59.24 26.95 19.47 18.86
Other Non - CurrentsAssets 62.72 21.85 59.44 51.23 108.73
Non - Currents Tax Assets(Net) 23.47 31.55
Total Non Current Assets 2463.75 2615.49 2648.95 2,632.44 2,805.66
Current Assets
Inventories 3116.59 3914.03 3506.03 4,257.76 4,072.89
Trade Receivable 1278.74 1668.08 2076.32 2,116.14 2,348.12
Cash & Cash Equivalent 90.33 65.57 94.82 92.20 201.09
Short term loans and Advances 662.65 575.93 45.55 - 0.59
Other Financial Assets 45.54 32.79
Other Current Assets 301.63 368.50 993.17 639.94 539.42
Total Current Assets 5449.94 6592.11 6715.89 7,151.66 7,194.92
Total Assets 7913.69 9207.60 9364.84 9,784.10 10,000.59

23
Financial Profile

Insecticides India reported

a 8% growth yoy to Rs. 10,732 EBITDA increased by 28% yoy
mn in FY18 since the company to Rs1,511 mn as EBITDA margin
PAT margin grew by 186 bps to
has been focusing on the expanded by 219 bps yoy to
7.83% led by a better product
branded segments and a 14.08% due to higher
mix.
higher concentration in the B2C realization in the Maharatna
category and gradually category, change of product
shelving off the generic mix and additions of new
products. Products.

IIL has shown a significant IIL has exhibited an improve- The company has also been
improvement in the Cash Flow ment in ROE from 12.79% in FY gradually reducing sales of
from operation from Rs 40.10 2017 to 15.34% in FY2018 & Red Triangle / generic products
million in FY 2017 to Rs 1,815.42 ROCE from 14.90% in FY2017 to by Rs 400-500mn p.a.
million in FY 2018. 20.53% in FY 2018.

24
Financial Outlook

IIL’s
revenue to witness IIL is likely to launch ~10 Going ahead we expect IIL
new products in FY19, to benefit from high
a CAGR of 15% plus in Going ahead, with the
operating leverage and
coming years with the mostly in the 9(3) launch of 9(3) category
sustainable EBITDA margins
target to increase topline category, of which 4 of around 150 bps every year product the RMC cost
by 10-15% every year by products has already on the back of the rising will reduce significantly
launching new products. been launched, that will share of Technical segment
On an average planning drive margin and a superior product mix
to double the topline in improvement by 150- which will lead to higher
ROCE in coming years.
every 5 years 200bps over FY19-20

IIL will
take advantage of Huge
the government’s thrust on Export Potential
Make in India by enhancing IIL 3 points strategy viz;
Synergy with the partners, IIL is likely to enhance
its existing manufacturing by IIL intend to be Debt free
creating huge demand for its Capacity Utilization
setting up new facility for in this fiscal year with
new generation technicals through product mix
Pesticide Syntheses along strong cash flow.
& tie up with partners for with higher price
with an EOU in Gujarat &
launching new products. realization.
Rajasthan by planning to do
a capex of RS 1-1.5 bn in Currently, exports stand at
next 2-3 years ~Rs350-400mn

25
CSR Initiatives

Children education
programs in Punjab,
Rajasthan, Bihar and
Odisha

Kisan Adoption of Village

Jagrukta Schools

Abhiyan
Educates farmers in crop
protection and agrochemical use
Signed a MOU with
Promotes cultivation of third
ICAR – IARI for training
crops for soil fertility
of farmers to maximize
Organizing special camps their Yield &
Signed MOU with ICAR -IARI to train farmers Entrepreneurship
in maximizing yields and entrepreneur ship

26
Capital Market
Shareholding Pattern as on 30th June 2018

16.61% Price Data (As of 7th INR

2.79% September, 2018)
Promoters
DII
Face Value 10
11.85%
FII
Market Price 598.35
68.75% Others

52 Week H/L 959.70/586.25

Market Cap(INR MN) 12,367

Equity Shares (Mn) 20.67

Source: BSE

27
Management Team

Shifting towards Safe and Clean Food is not just an act; it is a shift of consciousness.
We are continuously evolving ourselves towards it through new age green chemistry.

Mr. H.C. Aggarwal

Chairman

Passion to work for the farmers & make sure they get best of
the technology within their reach.

Mr. Rajesh Aggarwal

Managing Director

Management Team consists of senior and

experienced players of the industry, Functional Heads,
R&D, Procurement, Production, Marketing & Sales,
Product Development,
IT, Finance, Admin & HR, International Business

28
DISCLAIMER

Certain Statements In This Document May Be Forward

Looking Statements. Such Forward-looking Statements Are
Subject To Certain Risks And Uncertainties Like
Government Actions, Local Political Or Economic
Developments, Technological Risks, And Many Other
Factors That Could Cause Our Actual Results To Differ
Materially From Those Contemplated By The Relevant
Forward-looking Statements. Insecticides India Limited Will
Not Be In Any Way Responsible For Any Action Taken
Based On Such Statements And Undertakes No Obligation
To Publicly Update These Forward-looking Statements To
Reflect Subsequent Events Or Circumstances

29
 Thank You

Investor Relations Advisor:

For more information, please contact:
Company: Mr. Vinayak Shirodkar
Mr. Sandeep Agarwal - CFO Mr. Krunal Shah
Insecticides (India) Ltd. KDA Strategic Advisors LLP
Contact: +91 11 2767 9700 Email: vinayaks@[Link]
E-mail: sandeep@[Link] krunals@[Link]
Contact: +91 22 2615 0007/2611 0007

30