Sumitomo Chemical India Limited has informed the Exchange about Investor Presentation
+ SUMITOMO CHEMICAL INDIA LTD. 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://www.sumichem-india.co.in
SCIL/ SEC/ 2023 31st July, 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 - 400 051
Sub: Investor Presentation on Financial Results for the Quarter ended 30th June, 2023
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure investor Requirements) Regulations, 2015, we presentation on the Financial Results of the Company for the quarter ended 30th June, 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 86 Compliance Officer
Encl.: a/a
Registered Office: Building No. 1, Ground Floor, Shant Manor Co-op. Housing Society Ltd., Chakravarti Ashok 'X' Road, Kandivli (East), Mumbai - 400 101. Tel.: +91-22-2886 6666
Evolving Responsibly
Sumitomo Chemical India LTD. Investor Presentation July 2023
Safe Harbour
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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Financial Performance and Key Highlights
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Performance Highlights – Quarter
Revenue (Rs Crs)
Gross Profit (Rs. Crs)
986
347
724
225
Q1FY23
Q1FY24
Q1FY23
Q1FY24
EBITDA (Rs. Crs)
PAT (Rs Crs)
188
138
81
62
Given the seasonality in the business, it is best monitored on an annual basis
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Q1FY23
Q1FY24
Q1FY23
Q1FY24
Performance Highlights – Q1FY24
✓ Our stance has been to consistently emphasize the importance of evaluating our performance on a yearly basis. This approach acknowledges that the performance of a specific quarter It is can be influenced, either positively or negatively, by external factors beyond the control of our management team, such as rainfall patterns and the timing of the monsoon season.
imperative to note that the performance of a single quarter should not be extrapolated as a definitive indicator of the overall performance for the entire year.
✓ Last year, during our exceptional Q1FY23 performance, we effectively communicated the same message to our investors. As you would have observed, the performance normalized on full
year basis in FY23.
✓ In addition to the persistent challenges faced in the previous quarter of the preceding year, our company, along with other industry participants, encountered further obstacles such as delayed and erratic monsoons, delayed sowing, pricing pressure, surplus channel inventory, and deferred purchasing decisions by trade partners - all of which had a notable impact on the
company's operations.
✓ The delayed onset of the monsoon season has had a consequential impact on the sales performance of the company, resulting in a spill over of sales from Q1FY24 to the next quarter. The
recent occurrence of the Biparjoy cyclone, which made landfall along the western coast of our nation, had a transitory impact on our factory operations.
✓ However, based on various reports, it has been determined that the utilisation of agrochemicals in India and export markets has not exhibited any detrimental effects on ground level
consumption. The consumption patterns remain consistent and unaffected, indicating a stable market environment.
✓ We are undertaking efforts to minimize impact of the above-mentioned challenges, which are expected to start showing trend reversal in near term; given good monsoons in July across
India, improved crop acreages and improving situation in market inventory levels.
✓ We launched 3 herbicides & 1 insecticides in Q1FY24. We are gearing up to launch several unique first-time registrations in India after years of efforts, which are expected to ramp up
over next few years.
✓ We are actively engaged in pursuing a range of strategic initiatives and possess a high degree of confidence in our ability to achieve substantial growth in the medium to long term.
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New Product Launches - PAN India
Herbicide
Oxadiargyl 1% + Pretilachlor 6% GR Category: Herbicide
Herbicide
Tembotrione 34.4% SC
Herbicide
Glufosinate Ammonium 13.5 SL
Insecticide
Chlorantrasniliprole 0.4% w/w GR
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Consolidated Profit & Loss Account Statement – Quarter
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
Q1 FY24
Q1 FY23
724.2
498.9
225.4
31.1%
60.1
84.7
80.6
11.1%
17.5
13.5
84.6
11.7%
1.3
83.3
11.5%
21.6
61.7
8.5%
-0.2
61.5
985.8
639.2
346.6
35.2%
57.2
101.8
187.6
19.0%
4.7
11.2
181.0
18.4%
1.3
179.7
18.2%
41.5
138.1
14.0%
2.5
140.7
YoY
-27%
-35%
-405 bps
-57%
Q4 FY23
651.6
447.4
204.1
31.3%
54.5
69.1
80.6
QoQ
11%
10%
-21 bps
0%
-789 bps
12.4%
-123 bps
16.5
14.0
83.0
2%
-53%
-667 bps
12.7%
-105 bps
-54%
1.4
81.6
2%
-672 bps
12.5%
-103 bps
-55%
9.5
72.1
-14%
-550 bps
11.1%
-255 bps
-56%
0.6
72.8
-15%
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
18.6%
152.0
502.2
14.3%
2.3
504.5
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Revenue Breakup – Q1FY24
7%
8%
Product Breakup
9%
4%
8%
39%
39%
Geographic Breakup
2% 3% 2%
4%
1% 0%
2%
7%
1% 0%
3% 3% 1%
5%
Q1FY23
7%
Q1FY24
Q1FY23
Q1FY24
8%
6%
32%
33%
80%
86%
Insecticides
PGR
Fungicides
Herbicides
Metal Phosphides
AND & EHD*
Domestic Africa
Japan Asia (Ex. India)
Europe South America
North America Australia
Segment Breakup
75%
71%
25%
29%
Q1FY23
Q1FY24
Generic
Speciality
Bulk & Branded
Domestic
Exports
22%
26%
78%
74%
68%
65%
32%
35%
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Bulk
Branded
* Animal Nutrition Division (AND) and Environmental Health Division (EHD)
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Consolidated Working Capital Movement
Particulars (Rs. Crs)
Inventory (A)
Inventory Days (Inventories/ COGS* No. of days in period) (i)
Trade Receivables (B)
Trade Receivables Days (Trade Receivables / Revenue*No. of days in period) (ii)
Trade Payables (C)
Trade Payables Days (Trade Payables/ COGS*No. of days in period) (iii)
Other Financial Liabilities (D)
Other Financial Liabilities Days (Other Current Liabilities / Revenue*No. of days in period) (iv)
Net Working Capital (A+B-C-D)
Net Working Capital Days (i + ii – iii – iv)
Jun-23*
Jun-22*
Change (Jun-23 to Jun-22)
Mar-23*
Change (Jun-23 to Mar-23)
805.6
147
957.8
-152.2
888.7
-83.1
136
143
810.0
1,057.9
-247.9
946.1
-136.1
102
558.0
102
424.0
53
98
98
648.8
-90.8
490.6
67.4
92
79
489.3
-65.3
366.2
57.8
45
38
633.6
877.6
-244.0
978.0
-344.4
94
96
124
Key Highlights ✓ In term of overall net working capital days, the number as on June ’23 is similar to that of June ’22. ✓ Current quarter has released working capital to the extent of Rs. 344 crore ✓ Focused efforts towards improving collections - Collection during Q1FY24 of ~Rs. 1,014 crores as compared to Rs. 973 crores during Q1 FY23, increased by 4% yoy ✓ Cash, Cash Equivalents and Liquid investments of ~Rs. 1,250 crores as on 30th June 2023
Given the seasonality in the business, it is best monitored on an annual basis * No. of Days in period: Jun-23 – 91 days, Jun-22 – 91 days, Mar-23 – 365 days
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Company Overview
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Journey to 15x Growth in India
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
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
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
Setting-up new organization, control system, PCO function and innovative sales team
2016 : Majority stake acquisition of Excel Crop Care Limited (ECC)
SCIL 2.0 – 1st full year of integrated operations
35.1
9.5
7.2 2.3
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
24.2
26.4
30.0
18.2
9.7
8.5
19.1
11.9
9.0
22.3
13.2
10.0
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
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2010 : Acquisition of New Chemi Industries and integration with SCIL
Revenue (Rs. Bn)
ECC
SCIL
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Formidable Player in the Indian Agrochemicals Space
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
Well-Diversified across multiple dimensions
Business Segments
Products
Geographies
Customers
Crops Served
Diversified Portfolio Across Segments
Geographic Diversification with Exports to ~50 countries
7%
9%
43%
FY23
Insecticides
Herbicides
PGR
Metal Phosphides
Fungicides
AND & EHD
8%
9%
24%
Generics
Speciality
29%
Domestic 75%
71%
Exports 25%
FY23
1%
34%
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
✓ 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
✓ 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
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
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
Gajod
Bhavnagar
Tarapur
Dahej
Silvassa
Vapi
Mumbai
Mumbai – Head Office
5 Manufacturing Plants
4 Branches & 60 Depots Pan India
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
Gujarat
Maharashtra
Mumbai
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R&D: End-to-End Product Development Capabilities
❑ 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 combinations using SCC Japan’s chemistries which would help improve 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
Research & Development
several
Indian R&D team is working on manufacturing off-patent 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 additional expected to be completed soon
to buy 2 land parcels and transfer process is
• ~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
*Both the projects have started commercial production recently and are expected to generate some revenue in current fiscal year of FY24
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Thrust on Safety, Health and Environment (SHE)
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 for developing green technology from department of Science and Technology, Government of Gujarat
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
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
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Autonomous Board with Vast Industry Experience
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 institutions including IMF, Asian Development
multi-lateral 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 India to work on reforms in by the Government of telecommunications sector
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 industrial chemicals &
fine chemicals, performance 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
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Autonomous Board with Vast Industry Experience
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.
Board is supported by a strong and experienced management team associated with Company since long
25
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Growth Strategies
Continued Investment in R&D and Pipeline
Capacity Expansion
• Aim to invest in seamless integration of R&D between SCIL and SCC units which would help improve our production processes, 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
training
demonstrations,
of farmers for building ground-level demand generation supported by digital marketing new Extraordinary product launches underway
preparations
for
•
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
Strive for manufacturing excellence & expand Make in India Projects
▪ Making organization ready to handle future
challenges (Transform)
▪
Sustainable and healthy financial (Harvest)
results
Leverage expertise in successful product launches, demand generation and manufacturing capacity expansions to fuel future growth
Innovate Nurture Grow
www.sumichem.co.in
Financial Performance & Key Takeaways
27
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Historical Performance Highlights
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)}
28
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Consolidated Profit & Loss Account Statement
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
29
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Consolidated Balance Sheet
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-18 581.2 312.7 264.8 392.8 4.5 53.5 - 33.2 1.9 3.8
487.6 349.6 21.1 36.4 4.3
360.6 282.9 6.5 34.9 1.7
367.6 277.6 4.3 31.1 0.6
318.3 277.2 3.2 - 2.1
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
1,541.3
2,381.8
1,927.2
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
754.4
680.6
588.0
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
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
3.7 10.4 96.3
7.9 21.8 98.6
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
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
87.2
2.5
12.0
-
-
-
-
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
30
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Consolidated Working Capital Movement
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
31
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Consolidated Cash Flow Statement
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
32
Innovate Nurture Grow
www.sumichem.co.in
Key Takeaways
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 product products 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 organic and inorganic expansion; 10.6% CAGR for merged entity (including Excel Crop Care) over the same period
▪ Debt free balance sheet with strong
return ratios
33
Innovate Nurture Grow
www.sumichem.co.in
Annexures
Glance of various events to bring people together
34
Innovate Nurture Grow
www.sumichem.co.in
Glance of various events to bring people together
ACC
-57A
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Innovate Nurture Grow
www.sumichem.co.in
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Innovate Nurture Grow
www.sumichem.co.in
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Innovate Nurture Grow
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Goal Setting Meet – Gajod
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39
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Goal Setting Meet – Vapi, Silvassa, Tarapur
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40
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For further information, please contact:
Company :
Investor Relations Advisors :
Sumitomo Chemical India Limited
Strategic Growth Advisors Pvt. Ltd.
CIN: L24110MH2000PLC124224
CIN: U74140MH2010PTC204285
investor.relations@sumichem.co.in
Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 jigar.kavaiya@sgapl.net / parin.n@sgapl.net
www.sgapl.net
For further information, kindly visit our new website www.sumichem.co.in
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