Sumitomo Chemical India Limited has informed the Exchange about Investor Presentation
+ SUM1701V110 HEVECAL
Corporate identity Number (CIN) L24110MH2000PLC124224
Corporate Office: 13/14, Aradhana IDC, Near Virwani industrial Estate, Goregaon (East), Mumbai - 400 063. Tel. : +91-22-4252 2200 / Fax : +91-22-4252 2380 URL http://wuw,sumichem-india.co.in
SCIL/SEC/2023 19th May, 2023
To, BSE Limited, Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001
Dear Sirs,
The National Stock Exchange of India Listing Department, Exchange Plaza, Bandra Kurla Complex Bandra East, Mumbai - 4OO 051
Sub: Investor Presentation on Financial Results for the Quarter and Year ended 31St March, 2023
Pursuant to Regulation 3O of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2O15, we investor presentation on the Financial Results of the Company for the quarter and year ended 31st March, 2023.
enclose herewith
Kindly do the needful to display the same on your website.
Thanking you,
Yours faithfully, For Sumitomo Chemical India Limited
Deepika Trivedi Company Secretary & Compliance Officer
Encl.: a/a
Registered Office: Building No. 1, Ground Floor, Shant Manor
ig
Ltd . Chakravarti AshiA X Road, Kandivli
tVlornt4 - 400 101. Tel.: +91-22-2886 6666
Investor Presentation
May 2023
Safe Harbour
SCI 2.0
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India 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 what so ever. 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. 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.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are
individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of
the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the
company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and
advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The
Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this
Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements
and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party
statements and projections.
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SCI 2.0
Financial Performance & Key Highlights
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Performance Highlights – Quarter & YTD
SCI 2.0
Revenue (Rs Crs)
Gross Profit (Rs. Crs)
EBITDA (Rs. Crs)
PAT (Rs Crs)
-2%
664
652
-19%
253
204
-26%
109
81
-3%
75
72
Q4FY22
Q4FY23
Q4FY22
Q4FY23
Q4FY22
Q4FY23
Q4FY22
Q4FY23
Revenue (Rs Crs)
Gross Profit (Rs. Crs)
EBITDA (Rs. Crs)
PAT (Rs Crs)
+15%
3,061
3,511
1,153
+8%
1,240
+11%
667
600
+19%
502
424
2 2 Y F 4 Q s v 3 2 Y F 4 Q
2 2 Y F
s v 3 2 Y F
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
Given the seasonality in the business, it is best monitored on an annual basis
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Performance Highlights – FY23
SCI 2.0
FY23 started with a very good first and second quarters : ~25% growth in revenue as well as in profitability vs FY22; the was mainly due to good water reservoir level, pre- monsoon showers, low cost opening inventory, increasing costs wherein industry and trade partners were building up inventories and overall positivity in market in first half of FY23
However, the situation turned difficult in second half due to following key factors :
Low insect infestation and limited volume offtake in FY23 caused by weather-related disturbances such as late monsoons, erratic and uneven rain pattern, excess rains
towards end of monsoon period; this resulted into higher channel inventory overall in market
Chinese market open-up with relaxation of zero-Covid policy – due to excess supply situation, the market prices started getting softer and softer
The above two factors caused double impact – low demand, higher inventory, excess supply and falling prices; most industry players and channel partners attempted to
reduce inventory levels drastically in second half of FY23
The situation was further aggravated due to similar trends in other key export markets like LATAM as some Indian players have sizable exports to LATAM
Due to above challenging factors, our domestic volume growth and margins were impacted, especially in second half. Large part of growth was witnessed due to price Increases
in all our portfolios segments. If we ignore the challenging situation in domestic market in second half, overall it is a reasonable performance in domestic market
4 insecticide, 4 PGR, 1 fungicide and 1 metal phosphide products launched during FY23; several of these are unique 9(3) first time registrations in India after years of efforts and
expected to ramp up over next few years
Even though exports were lower in second half as compared to our internal estimates, overall we achieved very good growth in exports markets in line with our strategic direction
to increase exports.
On manufacturing side, while production levels were lower due to lower volumes, especially in second half, our teams expanded our manufacturing capabilities in line with ‘Make
in India’ initiatives
Overall, we are proud of all our teams who worked together in this challenging situations and delivered a respectable performance in line with our past trends and overall strategic direction; we look at this situation as a small pause which gave us the opportunity to reflect on our strengths and business fundamentals with a strategic theme ‘BACK to CORE’
In near short term, our current assumptions are as follows : efforts taken to minimize impact of the above-mentioned challenges are expected to start showing trend reversal in
near term; limited adverse impact of El Nino weather situation assuming current projection of ~95% monsoon level and no impact on crop acreages
As one of the most diversified platforms in Indian agro-chemical sector and with track record of extra-ordinary year-on-year growth even in challenging situations, we continue on
the path towards our strategic ambition of taking leadership position in Indian agro-chemical market
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New Product Launches - PAN India
SCI 2.0
Pyclome Insecticide Clothianidin 3.5% + Pyriproxyfen 8% SE
Sumiblue Diamond Plant Growth Regulator Gibberellic Acid 0.1 % GR
Santana Insecticide Clothianidin 0.5% GR
Danitol® NXT Insecticide Fenpropathrin 10% EW
Promalin Plant Growth Regulator 6BA 1.8% + GA 1.8% L
Korko Insecticide Emamectin Benzoate1. 5%+ Profenofos 35% WDG
Derecho Fungicide Ethaboxam 40% SC
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Consolidated Profit & Loss Account Statement – Quarter & YTD
SCI 2.0
Particulars (Rs. Crs)
Revenue from Operations
COGS
Gross Profit
Gross Profit %
Employee Expenses
Other Operating Expenses
Operating EBITDA
EBITDA Margin
Other Income
Depreciation
EBIT
EBIT Margin
Interest
Profit Before Tax
PBT Margin
Tax
Net Profit
Net Profit Margin
Other Comprehensive Income
Total Comprehensive income for the period
Given the seasonality in the business, it is best monitored on an annual basis
54.5
69.1
80.6
12.4%
16.5
14.0
83.0
12.7%
1.4
81.6
50.5
93.2
108.9
16.4%
7.4
11.5
104.9
15.8%
0.7
104.1
Q4 FY23
Q4 FY22
651.6
447.4
204.1
664.1
411.3
252.7
YoY
-2%
-19%
Q3 FY23
753.0
487.3
265.7
QoQ
-13%
FY23
FY22
3,511.0
3,061.2
2,270.6
1,908.0
YoY
15%
-23%
1,240.3
1,153.2
8%
31.3%
38.1%
-673 bps
35.3%
-395 bps
35.3%
37.7%
-234 bps
52.3
92.9
-26%
120.4
-33%
218.4
355.4
666.6
202.0
351.3
599.9
11%
-404 bps
16.0%
-363 bps
19.0%
19.6%
-61 bps
13.2
11.4
44.9
51.9
-21%
122.2
-32%
659.6
-305 bps
16.2%
-349 bps
18.8%
-22%
1.3
120.9
-32%
5.4
654.2
12.5%
15.7%
-315 bps
16.1%
-353 bps
18.6%
9.5
72.1
29.5
74.7
-3%
30.4
90.5
-20%
152.0
502.2
11.1%
11.2%
-17 bps
12.0%
-95 bps
14.3%
0.6
72.8
2.3
76.9
-5%
-1.2
89.3
-19%
2.3
504.5
26.8
44.8
581.9
19.0%
6.2
575.7
18.8%
152.2
423.5
13.8%
2.4
425.9
13%
-22 bps
14%
-17 bps
19%
47 bps
18%
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Revenue Breakup – FY23
SCI 2.0
Product Breakup
7%
11%
7%
9%
43%
FY22
8%
9%
43%
FY23
9%
9%
21%
24%
0% 1%
10%
1% 2%
4%
4%
Geographic Breakup
9%
1% 0%
2% 2%
5%
6%
FY22
FY23
78%
75%
Insecticides
PGR
Fungicides
Herbicides
Metal Phosphides
AND & EHD*
Domestic
Japan
Europe
North America
Africa
Asia (Ex. India)
South America
Australia
Segment Breakup
70%
71%
30%
FY22
29%
FY23
Generic
Speciality
Bulk & Branded
Domestic
Exports
21%
20%
79%
80%
FY22
FY23
76%
70%
24%
FY22
30%
FY23
Bulk
Branded
Animal Nutrition Division (AND) and Environmental Health Division (EHD)
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*
Consolidated Working Capital Movement
SCI 2.0
Particulars (Rs. Crs)
Inventory (A)
Mar-23*
Dec-22*
Change (Dec-22 to Mar-23)
Mar-22*
Change (Mar-22 to Mar-23)
888.7
750.4
138.3
937.8
-49.1
Inventory Days (Inventories/ COGS* No. of days in period) (i)
143
113
179
Trade Receivables (B)
946.1
1,035.7
-89.6
843.1
103.0
Trade Receivables Days (Trade Receivables / Revenue*No. of days in period) (ii)
98
100
101
Trade Payables (C)
490.6
473.9
16.7
517.2
-26.6
Trade Payables Days (Trade Payables/ COGS*No. of days in period) (iii)
79
71
99
Other Financial Liabilities (D)
366.2
436.4
-70.2
399.7
-33.5
Other Financial Liabilities Days (Other Current Liabilities / Revenue*No. of days in period) (iv)
38
42
48
Net Working Capital (A+B-C-D)
Net Working Capital Days (i + ii – iii – iv)
Key Highlights
978.0
875.8
102.2
864.0
114.0
124
99
133
Rise in inventory days on account of upcoming Kharif season and fall in payable days on account of higher purchases on immediate payment basis
Focused efforts towards improving collections - Collection during FY23 of ~Rs. 3,676 crores as compared to Rs. 3,458 crores during FY22, increased by 6% yoy
Cash, Cash Equivalents and Liquid investments of ~Rs. 827 crores as on 31st March 2023
Given the seasonality in the business, it is best monitored on an annual basis * No. of Days in period: Mar-23 – 365 days, Dec-22 – 92 days, Mar-22 – 365 days
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SCI 2.0
Company Overview
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Journey to 15x Growth in India
SCI 2.0
SCIL – Vision & Mission
Formidable Player in the Indian Agrochemicals Space
Strategically Located Manufacturing Facilities
Strong Focus on R&D, Process Innovation and Safety, Health and Environment (SHE)
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Autonomous Board with Vast Industry Experience
Strong Brand and Well-Entrenched Distribution Network
Growth Strategies
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SCIL - Vision & Mission
SCI 2.0
Vision & Values
Vision:
• To be a trusted market leader in Indian crop-
protection sector
• To develop a vibrant corporate culture
• Endeavor to achieve success and sustainability
through innovation & excellence
Core Values:
•
Innovation
• Excellence
•
Integrity
• Respect & value all stakeholders
• Customer focus
• People focus
• Sustainability
Mission
Marketing and Sales:
• Further penetration into Indian market & take
leadership; expand exports
• Strengthen Sales Force, Distribution and Product
Portfolio
Manufacturing:
• Supplying the most competitive products with safe
and stable operation and meet demand
• Strengthen Procurement Power
• Expand Manufacturing Functions
Management & Support:
• Establishing the most efficient organization to
support business growth and alignment with SCC
• Develop administrative efficiency while ensuring
internal controls
• Full & Strict Compliances
• Value Creation for all stakeholders
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Journey to 15x Growth in India in last 13 years
SCI 2.0
2000
Manufacturing JV with New Chemi Industries
2002
Started EHD (Public Health) business
2005
Acquired product - ‘Sulfosulfuron’ Leader rights from Monsanto
2009
Exploration Phase : 2000 – 2009
Feasibility study to set-up correct business model to capture potential in Indian market and start aggressive growth phase
SCIL incorporated in India as EHD (HHI) distribution company
2001
Started ASD business
2003
Acquired EHD (HHI) unit from Bayer Vapi
2006
Started Animal Nutrition
SCIL Sales ~ INR 2 Bn
Aggressive Growth Phase : 2010 – 2021
2018 & 2019 : Legal integration of ECC with SCIL; SCIL converted from private company to listed company
2010 : Acquisition of New Chemi Industries and integration with SCIL
Setting-up new organization, control system, PCO function and innovative sales team
2016 : Majority stake acquisition of Excel Crop Care Limited (ECC)
Revenue (Rs. Bn)
9.5
7.2 [VALUE]
11.4
6.9 4.5
12.7
7.8
4.9
16.3
17.4
16.9
9.8
6.5
10.3
7.1
9.0
7.9
18.2
9.7
8.5
19.1
11.9
9.0
22.3
24.2
26.4
30.0
13.2
10.0
SCIL 2.0 – 1st full year of integrated operations
35.1
FY10-11
FY11-12
FY12-13
FY13-14
FY14-15
FY16-17 Robust 15 times growth driven by Organic & In-organic expansion
FY17-18
FY15-16
FY18-19
FY19-20
FY20-21
FY 21-22
FY 22-23
Innovate Nurture Grow
www.sumichem.co.in
ECC
SCIL
13
Formidable Player in the Indian Agrochemicals Space
SCI 2.0
5 Manufacturing Facilities
14 Technical Actives
15,000+ Direct Distributors & 60 Depots
200+ Brands 700+ SKUs
25+ Patents 200+ Registrations
Grown 15X+ over FY11-23
Rs. Bn
15X
35.1
1600+ Employees 1500+ FDOs#
#FDOs - Field Development Officers (contractual)
s t c u d o r P y e K
Product Name
Fenpropathrin Glyphosate Profenophos Pyriproxyfen
Clothianidin
Tebuconazole
Product Category
Indicative Use
Insecticide Herbicide Insecticide Insecticide
Insecticides
Fungicides
Paddy, Cotton, F&V Tea Gardens, non-cropped Cotton, Soya bean Cotton
Vegetables
Wheat, Soya bean, Chilli
Gibberallic Acid
Plant Growth Regulator
Citrus Fruits
Aluminum Phosphide
Fumigant
Warehousing of Food Grains
Chlorpyriphos
Insecticide
Paddy, Beans, Gram
DL-Methionine
Animal Nutrition
Poultry
2.3
FY11
FY23
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Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
SCI 2.0
Well-Diversified across multiple dimensions
Business Segments
Products
Geographies
Customers
Crops Served
Diversified Portfolio Across Segments
Geographic Diversification with Exports to ~50 countries
Generics
Speciality
7%
9%
43%
FY23
29%
Insecticides
Herbicides
PGR
Metal Phosphides
Fungicides
AND & EHD
8%
9%
24%
Domesti c 75%
FY23
71%
1%
34%
Exports 25%
10%
24%
4%
Australia
8%
19%
North America
South America
Europe
Asia (Ex. India)
Japan
Africa
Greater focus on high growth, stable and high profitable segments such as Herbicides, PGR,
Bio-rational products
Increasing contribution from PGR segment and offerings for both Kharif and Rabi crops to
reduce seasonality in the business
Top 10 products contributes less than 47% of Total Revenue
No product / molecule contributes more than ~18% of Total Revenue
Diversified across key crops - Concentrated efforts now on fruits & vegetables, paddy and other high
One of the highest proportion of environmentally-friendly products in the Industry
growth segments
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Strong Brand and Well-Entrenched Distribution Network
SCI 2.0
Strong brand with market leading position across various product categories
Dual brand portfolio can offer products at all price points serving multiple
customer sub-segments
26 States
60 Depots
In-depth knowledge of own research products, proven go-to-market strategy and deep farmer connect facilitates launch of Speciality products
15,000+ Distributors
On-field demonstration of products, training of farmers in using the products,
building awareness among stakeholders in relation to the products
Pan-India distribution network ensures strong presence with both
retailers and farmers and on-time feedback mechanism
4.4 million+ Farmer Connect through physical meetings 20 million+ Digital Connect
~40,000 Dealers
~600 Sales Team
Scale and diversity of product offerings lead to superior bargaining power
with distributors and provides one-stop solution for farmers
Expanded teams for strategic marketing, demand generation, product
development and regulatory affairs to focus on future growth
Domestic
20%
Bulk & Branded Contribution (FY23)
70%
80%
Bulk
Branded
Exports
30%
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Expanding Brand Visibility and Connect
SCI 2.0
Wide range of generics and speciality products for Increased crop presence and providing crop
protection solutions
More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop
cycle
Over 200 brands covering maximum of crops and pest segments
15,000+ distributors; 40,000+ dealers and 60 Depots help in expanding brand visibility and
connect
More than 600+ Qualified and skilled managers in Sales, Marketing and customer support
Company with 20+ mega brands with high brand recall
Healthy geographical Brand coverage throughout India including North East and J&K
Optimum use of advertising media with increased Digital Platforms presence
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Digital Marketing Initiatives
SCI 2.0
Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales.
Our Digital Assets : 23 websites (9 local languages), engaged with 20 million consumers in FY23
YouTube - Advantage
More than 53,000 subscribers
http://www.danitolindia.com/
http://www.naturedeep.in/
Conducted 100s of YouTube, Facebook, Google, Zoom Video Live sessions in 2022-23
http://danzapower.com/
http://www.vidyutindia.com/
Successful campaign to introduce the QR codes of http://www.sumitomoproducts.com/ to the
retailers and farmers.
Create Interest and real experience Digital + Physical = PHYGITAL
15 Digital Launch programs of Taboli across India to introduce the product to distributors & retailers
More than 5,000 downloads Rating – 4.5
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Strategically Located Manufacturing Facilities
SCI 2.0
Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs
Plant Location Area (acres) Segment Served
Product Manufactured
Bhavnagar
~58
Gajod
~120
Tarapur
Vapi
Silvassa
~5
~6
~3
Manufacturing of Technical Grade Pesticides and Formulations Production and manufacturing of Metal Phosphides, Sulphur WDG and other WDG formulations Production and manufacturing of Active Ingredients
Formulation & Packaging
Formulation of Glyphosate and Other Speciality Products
Technical Grade Products: Chlorpyriphos, Profenophos, Glyphosate, Tebuconazole Tech, Quinalphos, Imidacloprid, Thiacloprid, Acetamiprid, Byspyribac Sodium, Fluroxypyr, Aluminium Phosphide, Zinc Phosphide, Sulphur WDG, Fenpropathrin
Formulations for above TG products and several other speciality and generic products
• Overall Optimal capacity utilization ~ 80% to 90% for TGAI’s • Bought 2 additional private owned land parcels for future
expansion:
o ~20 acre adjoining our existing Bhavnagar site o ~50 acre at a prime location at Dahej within Chemical Zone
Gajod
Bhavnagar
Tarapur
Dahej
Silvassa
Vapi
Mumbai
Mumbai – Head Office
5 Manufacturing Plants
4 Branches & 60 Depots Pan India
Gujarat
Maharashtra
Mumbai
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R&D: End-to-End Product Development Capabilities
SCI 2.0
3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development; Soil Health Research Laboratory and in-house field trials
R&D Team comprises of 75+ qualified and dedicated engineers & scientists of
which 10+ are PhDs with more than 15 years of Experience
25+ patents granted across various geographies; 9 applications filed
R&D facilities to gain capability for creating new processes and new improve
combinations using SCC Japan’s chemistries which would help production processes and efficiency
D E V E L O P M E N T
F O R M U L A T I O N
Bhavnagar, Synthesis Lab
Bhavnagar, R&D Analytical lab
Bhavnagar, Soil Health Research Lab Bhavnagar, Biopesticides Unit
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Capex Plans
Regular Capex Rs. 70-75 crore p.a.
Maintenance capex
Additional Capex Rs. 120 crore over 2 years for 5 products
To manufacture additional proprietary technical grade active ingredients products for our parent company SCC Japan and our global affiliates
Capacity enhancements for existing products in line with projected demand
5 products have been approved in-principle for supply to SCC and several others are in pipeline
Infrastructure enhancements for supporting future growth
Projects are being set-up at our existing sites. Target commercialization over next 1 year
Efficiency improvement projects and safety enhancement
Revenue potential of these 5 products on the above capex is Rs. 200 crore to Rs. 250 crore p.a.
Sustainability initiatives, full compliance with environmental norms & renewable energy projects
Estimated margins are in line with current margins earned by SCIL for similar projects
SCI 2.0
Research & Development
team
several
Indian R&D is working on off-patent manufacturing products for Domestic as well as Exports to global affiliates including high growth regions such as Latin America, Africa and Asia Pacific which will entail additional capex and is under evaluation
Future Expansion Plans
Signed and registered agreements to buy 2 land parcels and transfer process is additional expected to be completed soon
• ~20 acre privately owned land parcel adjoining our
existing Bhavnagar site
• ~50 acre privately owned land parcel at a prime
location at Dahej within PCPIR Zone
Trials and registrations for future pipeline products
These products have growing global demand. Potential to add further capacities and additional products in medium to long term
One project for a very important global proprietary product began commercial production recently and the second project involving multiple products is expected to begin commercial production in Q1 FY23-24
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Thrust on Safety, Health and Environment (SHE)
SCI 2.0
Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites
Abiding by SCC Japan’s EHS Policies
ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapur and Silvassa; ISO:9001:2015 at Vapi
A8000 Certification for Social Accountability in Bhavnagar and Gajod
Dr. Vikram Sarabhai award department of Science and Technology, Government of Gujarat
for developing green technology
from
Efforts focused on reducing effluent load and effluent treatment cost, for staying innovative and competitive in the market
The quality of the products is maintained and upgraded to the applicable national and international standards through rigorous pursuit of Six Sigma initiative
Focused on energy conservation and energy cost reduction: 65% of total power requirement through wind and solar power generation plants
Expanding solar power plant capacity in line with towards green energy would also help in reducing dependence on outsourced power as well as in energy cost reduction
3R Principle: Recovery – Recycle – Reuse
Safety audit, training programmes and other safety management processes and programmes are carried out/conducted at regular intervals
Certificates of appreciation received ten times from jointly by Gujarat Safety Council and Dish
Government of Gujarat for achieving 10 lakh accident free man-hours
Certificates of merits received from jointly by Gujarat Safety Council and Dish Government of Gujarat for achieving 20 lakh accident free man-hours
Certificates of honour received two times jointly by Gujarat Safety Council and Dish Government of Gujarat for achieving 30 lakh accident free man- hours
Focus on purity, quality and timely delivery of products to the customer
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Awards & Accolades
SCI 2.0
Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites
Jamnalal Bajaj Award for “Fair Business and Practices”
National Safety Award by Labour Ministry, Government of India for safety performance
Chemexcil Best Exporter's award: 2017-18 received in 2023
Shramveer Award to employees from Labour Ministry, state level received six times
First award for export of organic and inorganic chemicals
Shram Bhushan Award to employees received five times
ICMA award for innovation and purposeful programs for social progress
Shram Ratna to employees, received seven times
First Sir P.C. Ray award for development of products and process with indigenous technology
Shram Shri award to employees received three times
Punjab Haryana Delhi Chamber of Commerce and Industries award for ethical business
Gujarat State Safety Certificate for safety commitment
Winner active ingredient trophy and certificate from M/s. Bayer
CSR Award from Federation of Gujarat Industries
Trishul award for the excellent performance for exports in international markets
Global CSR award from SCC for one of our Integrated Village Development Programme
ICMA award for innovation and purposeful programs for social progress
Shramveer award for improvement of product efficiency received from national level Delhi
Vishwakarma Rashtriya Puraskar received for process development
Focus on purity, quality and timely delivery of products to the customer
23
Innovate Nurture Grow
www.sumichem.co.in
Autonomous Board with Vast Industry Experience
SCI 2.0
Dr. Mukul Govindji Asher Chairman and Independent Director
Professorial Fellow at Lee Kuan Yew School of Public Policy at
the National University of Singapore
Advisor to Govts in Asia on tax policy & pension reforms; and to multi-lateral institutions including IMF, Asian Development Bank, PFRDA of India, Govt of Gujarat, & World Bank
Member of the panel to review Crawford School of Public Policy
at Australian National University
Bhupendranath Bhargava Independent Non-executive Director
Experience of over 50 years in areas including banking,
project financing and credit rating
Held directorship in several leading corporates and was on the advisory board of an independent regulatory body set up in by the Government of telecommunications sector
India to work on reforms
Preeti Gautam Mehta Independent Non-executive Director
30 years of experience in corporate laws, foreign investment and collaborations, mergers and acquisitions and private equity investments, banking, franchising and hospitality
Ninad Dwarkanath Gupte Non-executive Director
Experience of 43 years in management of companies operating in fine chemicals, performance chemicals, industrial chemicals & agrochemicals
Held senior positions at Excel Industries, BASF India, Herdillia Chemicals and worked as MD of Cheminova India and Agrocel Industries and as Joint MD of Excel Crop Care
24
Innovate Nurture Grow
www.sumichem.co.in
Autonomous Board with Vast Industry Experience
SCI 2.0
Tadashi Katayama Non-executive Director
MBA from Vanderbilt University, U.S.A. and a Master’s degree from Kyoto University in Japan
Associated with Sumitomo Chemical,
Japan since 1992 in the Health and Crop Science business unit in various positions
Masanori Uzawa Non-executive Director
MBA from University of Virginia, USA and a Bachelor’s degree from the University of Tokyo in Japan
Associated with Sumitomo Chemical, Japan and has experience of over 19 years in the areas of strategy, planning and business development for crop protection & other chemical businesses.
Chetan Shantilal Shah Managing Director
Commerce graduate from the University of Mumbai and holds a master’s degree in Business Administration from North Rope University in the USA
Over 43 years of industry experience in
various leadership and senior management roles
Sushil Champaklal Marfatia Executive Director
Chartered Accountant with over 42
years of industry experience
Worked with New Chemi Industries Limited for 33 years which was later merged with the Company
Dr Suresh Ramachandran Whole Time Director* & Chief Commercial Officer (CCO)
Ph.D. in Entomology“ from The University
of Georgia, USA
25 years of expertise - Sales and
Distribution, Product Management, Regulatory, Business Management, R&D, Six Sigma & Enterprise Resource Planning, in Crop Protection & Seeds Business.
*Effective from 1st June 2023
Board is supported by a strong and experienced management team associated with Company since long
25 25
Innovate Nurture Grow
www.sumichem.co.in
Growth Strategies
SCI 2.0
Continued Investment in R&D and Pipeline
Capacity Expansion
• Aim to invest in seamless integration of R&D between SCIL and SCC improve our production processes,
units which would help enhancing yields and efficiency Introduce new products as per market demand
•
• Driving operational efficiencies maintaining highest safety
•
standards and Responsible Care compliances Invest ~15% of consolidated EBITDA every year for upgradation of manufacturing facilities and capacity expansion to cater to strong domestic/global demand
Further Brand Development
Product Pipeline
Expand Export Business
• Multiple products coming from initiatives • Global Speciality Proprietary products to be
•
launched in India
• New combination products / pre-mixtures currently under development for domestic and exports
• Off-patent products under development
•
for domestic and exports Technical products for manufacturing and exports
Enhance exports in regions like Africa Leverage SCC’s Global supply chain and marketing network to drive exports in Latin America, Asia and Europe
•
Investments for marketing of new and existing products and brands
• On-field demonstrations,
training of farmers for building ground-level demand generation supported by digital marketing for new Extraordinary preparations product launches underway
•
26
Achieving Market Leadership in India
Balanced portfolio of specialty products (including futuristic green products) and off- patent products
Consolidate position as best agro-chemical marketer in India
for manufacturing excellence &
Strive expand Make in India Projects
Making organization ready to handle future
challenges (Transform)
Sustainable and healthy financial results (Harvest)
Leverage expertise in successful product launches, demand generation and manufacturing capacity expansions to fuel future growth
Innovate Nurture Grow
www.sumichem.co.in
SCI 2.0
Financial Performance & Key Takeaways
27
Innovate Nurture Grow
www.sumichem.co.in
Consolidated Balance Sheet
SCI 2.0
Investments
Assets (Rs. Crs) Non-Current Assets (A) Property, Plant and Equipment Capital work-in-progress Right to use an Asset Other Intangible Assets Intangible Assets under Development Non-Current Financial Assets (i) (ii) Loans & other financial assets Deferred tax Asset (net) Non-Current tax Assets (net) Other non-current Assets Current Assets (B) Inventories Current Financial Assets Investments (i) (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other financial assets Other Current Assets Total Assets (A+B)
Mar-23 581.2 392.8 53.5 33.2 3.8 17.7
0.1 36.4 - 34.9 8.7 2,787.9 888.7
238.8 946.1 46.9 256.0 0.5 284.9 126.1 3,369.1
Mar-22 487.6 349.6 21.1 36.4 4.3 14.1
0.1 30.8 - 21.6 9.5 2,522.0 937.8
356.0 843.1 57.2 21.9 0.5 174.5 131.0 3,009.6
Equity & Liabilities (Rs. Crs)
EQUITY (A)
Equity Share Capital
Other Equity
Non-current liabilities (B)
Non-Current Financial liabilities
Lease Liabilities
Provisions
Deferred tax liabilities (net)
Non-current Tax Liabilities
Current liabilities (C)
Current Financial liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Lease Liabilities
(iii) Other financial liabilities
Other current liabilities
Provisions
Current tax liabilities
Mar-23
2,381.8
499.1
1882.6
53.9
17.7
22.6
13.6
-
Mar-22
1,927.2
499.1
1428.1
61.0
24.7
22.3
13.9
-
933.4
1,021.4
-
490.6
16.2
366.2
51.2
6.3
2.8
-
517.2
12.9
399.7
79.8
7.2
4.7
Total Equity & Liabilities (A+B+C)
3,369.1
3,009.6
NIL borrowings Cash, Cash Equivalents & Liquid Investments of ~Rs. 827 Crs as on 31st March 2023
28
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www.sumichem.co.in
Consolidated Cash Flow Statement
SCI 2.0
Cash Flow Statement (Rs. Crs)
Net Profit Before Tax
Adjustments for: Non-Cash Items / Other Investment or Financial Items
Operating profit before working capital changes
Changes in working capital
Cash generated from Operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Year ended 31-Mar-23
Year ended 31-Mar-22
654.2
38.5
692.7
-135.2
557.5
168.1
389.4
575.7
46.3
622.0
-257.6
364.4
142.6
221.8
Net Cash from Investing Activities
-327.2
-290.2
Net Cash from Financing Activities
Net Increase /(Decrease) in Cash and Cash equivalents
Add: Cash & Cash equivalents at the beginning of the period
Cash & Cash equivalents at the end of the period
-72.5
-10.4
57.2
46.9
-62.6
-131.1
188.3
57.2
29
Innovate Nurture Grow
www.sumichem.co.in
Historical Performance Highlights
SCI 2.0
Revenue (Rs Crs)
EBITDA (Rs. Crs) & EBITDA Margin (%)
PAT (Rs Crs)
+13%
3,511
3,065
2,228
2,425
2,645
1,913
+25%
487
667
600
+28%
345
502
424
291
333
217
11.3%
13.0%
13.7%
18.4%
19.6%
19.0%
145
166
205
FY18*
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
Networth (Rs Crs)
RoCE (%)^
Net Working Capital Days
2,382
+20%
1,541
1,927
954
1,048
1,222
23.2%
25.3%
24.8%
29.8%
30.2%
27.7%
119
131
115
104
133
124
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
1. Appointed date for merger of ECC and SCIL is 1st Apr’18 *Revenue is Net of Excise Duty.
^ ROCE – {EBIT/ (Net Worth + Borrowings)}
30
Innovate Nurture Grow
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Consolidated Profit & Loss Account Statement
SCI 2.0
Particulars (Rs. Crs) Net Revenue from Operations COGS Gross Profit Gross Profit % Employee Expenses Other Operating Expenses Operating EBITDA EBITDA Margin Other Income Depreciation EBIT EBIT Margin Interest Profit Before Tax & Exceptional Exceptional Item Gain / (Loss)** Profit Before Tax PBT Margin Tax Net Profit Net Profit Margin Other Comprehensive Income Total Comprehensive income for the period EPS
FY23 3,511.0
2,270.6
1,240.3
35.3%
218.4
355.4
666.6
19.0%
44.9
51.9
659.6
18.8%
5.4
654.2
0.0
654.2
18.6%
152.0
502.2
14.3%
2.3
504.5
10.06
FY22 3,061.2
1,908.0
1,153.2
37.7%
202.0
351.3
599.9
19.6%
26.8
44.8
581.9
19.0%
6.2
575.7
0.0
575.7
18.8%
152.2
423.5
13.8%
2.4
425.9
8.49
FY21 2,644.9 1,655.4 989.5 37.4% 194.3 308.4 486.9 18.4% 18.6 46.6 458.9 17.3% 5.6 453.3 - 453.3 17.1% 107.9 345.4 13.1% 1.6 347.0
6.9
FY20 2,424.8 1,607.6 817.2 33.7% 179.3 304.7 333.2 13.7% 10.7 41.0 302.9 12.5% 5.5 297.4 -30.9 266.5 11.0% 61.8 204.7 8.4% -5.1 199.6 4.1
FY19 2,228.4 1,458.9 769.6 34.5% 158.4 320.5 290.7 13.0% 7.6 27.8 270.5 12.1% 3.7 266.8 -7.0 259.8 11.7% 94.0 165.8 7.4% 0.1 165.9 3.3
FY18 1,912.9* 1,238.7 674.2 35.2% 147.5 309.6 217.1 11.3% 30.5 23.7 223.8 11.7% 2.8 221.0 - 221.0 11.6% 75.8 145.1 7.6% 5.1 150.2 2.9
1. Appointed date for merger of ECC and SCIL is 1st Apr’18 * Revenue net of Excise Duty; ** Merger expenses
31
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Consolidated Balance Sheet
SCI 2.0
Investments
Assets (Rs. Crs) Non-Current Assets (A) Property, Plant and Equipment Capital work-in-progress Right to use an Asset Other Intangible Assets Intangible Assets under Development Non-Current Financial Assets (i) (ii) Loans & other financial assets Deferred tax Asset (net) Non-Current tax Assets (net) Other non-current Assets Current Assets (B) Inventories Current Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other financial assets Other Current Assets Total Assets (A+B)
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 312.7 581.2 264.8 392.8 4.5 53.5 - 33.2 1.9 3.8
318.3 277.2 3.2 - 2.1
360.6 282.9 6.5 34.9 1.7
367.6 277.6 4.3 31.1 0.6
487.6 349.6 21.1 36.4 4.3
17.7
14.1
10.0
3.8
4.9
4.3
0.1 36.4 - 34.9 8.7
0.1 30.8 - 21.6 9.5
0.1 6.0 - 20.4 17.6
0.1 5.3 1.1 20.2 4.2
0.1 7.6 - 18.8 4.4
0.1 7.3 - 24.8 5.1
Equity & Liabilities (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 EQUITY (A) 954.0
2,381.8 1,927.2 1,541.3 1,221.8 1,048.4
Equity Share Capital
499.1
499.1
499.1
499.1
274.6
274.6
Other Equity
1882.6
1428.1 1,042.2
722.6
773.8
679.4
Non-Current liabilities (B) Non-current Financial liabilities Lease Liabilities
Provisions
Deferred tax liabilities (net)
Non-current Tax Liabilities
53.9
61.0
49.6
44.5
30.2
32.5
17.7
22.6
13.6
-
24.7
22.3
13.9
-
15.3
29.2
5.0
-
19.4
25.1
-
-
-
15.6
14.6
-
-
12.7
18.1
1.7
Current liabilities (C)
933.4
1,021.4 1,081.0
839.9
781.4
671.9
2,787.9 2,522.0 2,304.3 1,745.6 1,541.7 1,345.7 609.3 888.7
680.6
588.0
754.4
937.8
238.8 946.1 46.9
356.02 843.13 57.25
290.2 848.2 213.3
86.0 849.8 92.6
- 671.0 50.5
- 551.8 73.5
Current Financial liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Lease Liabilities
(iii) Other financial liabilities
366.2
399.7
356.8
235.4
179.2
256.0
21.88
28.8
0.9
0.9
0.8
Other current liabilities
51.2
79.8
108.2
80.2
87.2
0.47 174.50 131.03
0.5 284.9 126.1 3,369.1 3,009.6 2,671.9 2,106.2 1,860.0 1,658.4
5.1 15.8 117.8
7.7 11.4 150.3
7.9 21.8 98.6
3.7 10.4 96.3
Provisions
Current tax liabilities Total Equity & Liabilities (A+B+C)
6.3
2.8
7.2
4.7
5.6
1.9
9.7
7.4
2.5
12.0
3,369.1 3,009.6 2,671.9 2,106.2 1,860.0 1,658.4
-
55.6
70.1
2.3
6.6
-
-
-
-
19.7
10.1
490.6
517.2
591.2
490.9
480.8
527.3
16.2
12.9
17.3
16.2
-
1. Appointed date for merger of ECC and SCIL is 1st Apr’18
32
Innovate Nurture Grow
www.sumichem.co.in
Consolidated Working Capital Movement
SCI 2.0
Particulars (Rs. Crs)
Inventory (A)
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
888.7
937.8
754.4
588.0
680.6
Inventory Days (Inventories/ COGS*365) (i)
143
179
166
134
170
Trade Receivables (B)
946.1
843.1
848.2
849.8
671.0
Trade Receivables Days (Trade Receivables / Revenue*365) (ii)
98
100
117
128
110
Trade Payables (C)
490.6
517.2
598.3
490.9
480.8
Trade Payables Days (Trade Payables/ COGS*365) (iii)
79
99
132
111
120
Other Financial Liabilities (D)
366.2
399.7
349.8
235.4
179.2
Other Financial Liabilities Days (Other Current Liabilities / Revenue*365) (iv)
38
48
48
35
29
Net Working Capital (A+B-C-D)
978.0
864.0
654.5
711.4
691.6
Net Working Capital Days (i + ii – iii – iv)
124
133
103
115
131
33
Innovate Nurture Grow
www.sumichem.co.in
Consolidated Cash Flow Statement
SCI 2.0
Particulars (Rs. Crs)
Net Profit Before Tax
Adjustments for: Non-Cash Items / Other Investment or Financial Items
Operating profit before working capital changes
Changes in working capital
Cash generated from Operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Year ended 31-Mar-23
Year ended 31-Mar-22
Year ended 31-Mar-21
Year ended 31-Mar-20
Year ended 31-Mar19
Year ended 31-Mar-18
654.2
38.5
692.7
-135.2
557.5
168.1
389.4
575.7
46.3
622.0
-257.6
364.4
142.6
221.8
453.3
54.5
507.8
25.6
533.4
107.9
425.4
266.5
45.7
312.2
-9.4
302.8
81.4
221.4
259.8
18.6
278.5
-112.7
165.8
88.1
77.7
221.0
9.6
230.6
-100.0
130.6
83.1
47.4
Net Cash from Investing Activities
-327.2
-290.2
-282.7
-117.9
-35.3
-39.6
Net Cash from Financing Activities
-72.5
-62.6
-47.1
-61.4
-65.4
7.2
Net Increase /(Decrease) in Cash and Cash equivalents
Add: Cash & Cash equivalents at the beginning of the period
Cash & Cash equivalents at the end of the period
1. Appointed date for merger of ECC and SCIL is 1st Apr’18
-10.4
57.2
46.9
-131.1
188.3
57.2
95.7
92.6
188.3
42.2
50.5
92.6
-23.1
73.5
50.5
15.0
58.6
73.6
34
Innovate Nurture Grow
www.sumichem.co.in
Key Takeaways
SCI 2.0
Formidable Player in the Indian Agro-chem Space
Experienced Management Team and Board of Directors
Well-diversified Product Portfolio Across Agro-Chem Value Chain
Strong Brand and Well-Entrenched Distribution Network
Strong / leadership position across
products and processes
Ability to develop new combination products (9 under registrations and additional under development)
Strong
management
autonomous experience and domain expertise
Board with
and vast
Localized experience enables better understanding of market needs to drive growth
Multi-product,
multi-geography,
multi-customer de-risking
26 states, 60 depots, 15,000+ distributors, 40,000+ dealer network
Access to an impressive range of own actives along with significant speciality exposure towards products product offerings at all price points serving multiple customers sub-segment
resulting
in
High credibility and brand recall amongst famers and the trade on account of transparent and ethical business dealings
To Benefit from Strong Parentage of SCC Japan
State-of-the-art Manufacturing and R&D Facilities
Strong Track Record of Driving Growth
Benefits from international standing of SCC Japan; most well revered brand renowned for its quality
Access to SCC’s global supply chain and global R&D activities (one of the in largest development of actives and broad range of formulation research
spenders)
resulting
Operates
five manufacturing facilities with state-of-the-art plants at strategic location which helps reduce logistic time and costs
Capacity not a constraint allowing for significant growth on existing investments
Holds 27 patents and further 9
applications filed
Grown 15X over FY11-23 driven by inorganic expansion; organic and for merged entity 10.6% CAGR (including Excel Crop Care) over the same period
Debt free balance sheet with strong
return ratios
35
Innovate Nurture Grow
www.sumichem.co.in
Annexures
Glance of various events to bring people together
36
Glance of various events to bring people together
SCI 2.0
37
Innovate Nurture Grow
www.sumichem.co.in
Annual Sales Conference – Sumi Manthan
SCI 2.0
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SCI 2.0
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Innovate Nurture Grow
www.sumichem.co.in
SCI 2.0
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