27, June 2011

Investors Presentation

Disclaimer
This presentation contains forward-looking statements which may be identified by their use of words contains plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forwardlooking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise

Contents
Company Snapshot Company Snapshot Global Fertiliser Industry Overview Global Fertiliser Industry Overview Indian Fertiliser Scenario & New Policy Indian Fertiliser Scenario & New Policy Coromandels Journey Coromandels Journey Strategic Direction Farm Inputs Business Strategic Direction Farm Inputs Business Specialty Nutrients Business Specialty Nutrients Business Crop Protection Business Crop Protection Business Retail Business Retail Business Financial Performance Financial Performance Annexures Annexures 4 4 7 7 11 11 20 20 24 24 30 30 36 36 44 44 49 49 53 53

Snapshot of Coromandel
Coromandel International Limited, established in 1961 is the flagship company of the 3.8 Billion USD Murugappa group, contributing 45% of the group turnover and 51% of EBITDA Coromandel is Indias second largest producer of Phosphatic Fertilizers In FY2011, Coromandel reported PAT of Rs.6,945 million on a turnover of Rs.77,161 million. E.I.D. Parry (India) Ltd. holds 62.86% of Coromandels equity
Shareholding Pattern Shareholding Pattern
21%

Coromandel Share in Coromandel Share in Murugappa Group Murugappa Group

Turnover
45% 55%
Coromandel Other group companies

EBITDA
49% 51%
Coromandel Other group companies

Murugappa Group Institutions

15% 64%

Others

Business Structure
Phosphatic Phosphatic Fertilisers Fertilisers
DAP DAP Complex Fertilisers /SSP/MOP Complex Fertilisers /SSP/MOP

Coromandel Coromandel

Specialty Specialty Nutrients & Nutrients & Compost Compost

G-Sulphur G-Sulphur Water Soluble Fertilisers Water Soluble Fertilisers Organic Manure Organic Manure

Crop Protection Crop Protection

Technicals Technicals Formulations Formulations

Agri Inputs Agri Inputs Agri Services Agri Services

Retail Retail

+
Life Style Products Life Style Products

Financial Performance
Sales and Subsidy (Rs. Million) Sales and Subsidy (Rs. Million) PBT (Rs. Million) PBT (Rs. Million)
CAGR 53.65%
CAGR 32.78%

PAT (Rs. Million) PAT (Rs. Million)

6,945

EPS and DPS (Rs.)* EPS and DPS (Rs.)*

CAGR 52.75%

4,964

4,682

2,098 835 1,007

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

*Adjusted for share split from Rs.2/share To Rs. 1/share in 2010-11

Industry Overview

World Fertiliser Map

EU Fertiliser Market DAP/MAP NPK UAN Nitrates

USA Fertiliser Market

7% 20% 7% 14% DAP/MAP NPK UAN 26% 26% Ammonia Urea Other

6% 18%

3%

18%

Urea Other

12% 43%

China Fertiliser Market

2% 5% 7% DAP/MAP NPK 27% ABC Urea Other

59%

DAP/MAP NPK AS

India Fertiliser Market

14% Urea 19% 52% 5% 9% 1% AS/CAN MOP SSP DAP NP/NPK

Brazil Fertiliser Market

11%

Nitrates Urea 15%

51% 14% 9%

USA uses Ammonia, Brazil uses UAN, China uses ABC, India use UREA

World N,P,K Fertilizer Market

"K" World Market

"N" World Market

Ammonia 13% 6% 11% 4% Urea UAN AN/CAN NPK 52% 9% 5% DAP/MAP Others
70% 1% 29% MOP/SOP NPK Others

K Market is 29 Million MT
Global Fertiliser Industry: Consumption is growing at 2.0 - 2.2% p.a. World nutrient production increased by 11% in 2009 and sales by 13% mainly due to potash sales India and China account for 40% of global consumption Bulk availability of nutrient fertilisers is concentrated in certain regions N nutrient in Middle East, USA & FSU P nutrient in North/West Africa, USA & Jordan K nutrient in Canada, FSU & Middle East

N Market is 100 Million MT

"P" World Market

6% 17%

2%

DAP/MAP NPK
48%

SSP TSP Others

27%

P Market is 39 Million MT

International Raw material Price Movement

Prices rising steadily (~10%) in 2011 Prices on the rise in April

Rise of 200 $ (~25%) since December

20-30% Fertiliser raw material price increase happened in last 4 months

Outlook: Prices expected to remain on high side;

10

Indian Fertiliser Scenario

11

Indias Nutrient Consumption and Crop Productivity

Nutrient Consumption among the Nutrient Consumption among the Asian Countries Asian Countries
333

Kg/Ha

Indias Nutrient consumption (Kg/Ha) is lower than countries like China (333), Bangladesh

133

170

135

106

(170) and Pakistan (135).

India

Bangladesh

Pakistan

Srilanka

China

Crop Productivity (Mt/ha) Crop Productivity (Mt/ha)

World Sugarcane Wheat Rice Corn Soybean Rapeseed Peanut 74 3 4.2 5 2.2 1.9 1.6 India 67 2.8 2.3 2.2 0.9 1.1 0.9

Indias Crop productivity is below world average To enhance the crop To enhance the crop productivity, Nutrient productivity, Nutrient

consumption in India has consumption in India has to go up. to go up.

12

Indias Food Production and Nutrient Consumption

Food grain consumption crosses 234 million MT challenge to produce more from the shrinking arable land Increased demand of food grains to drive nutrient consumption - to go up from 25 million MT to 29 million MT Increasing yield key for future sustenance N:P:K ratio currently @5.1:2:1 balanced ratio is critical for enhancing yield NBS policy calls for prudent use of nutrients to improve yield

13

Indias Fertiliser Outlook

Indias NPK Demand (Million Mt) Indias NPK Demand (Million Mt)
17.00 15.00 13.00 11.00 9.00 7.00 5.00 3.00 N (LHS) P2O5 (LHS) K2O (RHS) 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.40 1.20 1.00

2 -1 11 20

1 -1 10 20

5 -0 04 20

0 -1 09 20

4 -0 03 20

9 -0 08 20 8 -0 07 20 7 -0 06 20

Nutrient Demand growth rate: N is growing at a rate of 3% P is growing at a rate of 6% K is growing at a rate of 5%

3 -0 02 20

6 -0 05 20

14

Fertilisers The emerging scenario in India

Fertiliser consumption India contributes 16% of the Global consumption The year 2010-11 saw an unprecedented increase in import of fertilisers MillionMt 200910 201011 %Increase DAP/SSP/TSP 5.8 7.4 28% Urea 5.2 6.6 27% MOP 5.2 6.3 21% OtherPhosphaticGrades 0.2 1.2 500% TotalImport 16.4 21.5 31%
84%

2010-11
16%

India

Rest Of World

Fertilisers The potential of Indian Market

From
2010-11 Urea DAP Complex SSP Potash Total Million MT 28.2 11.3 10.2 3.5 5.8 59.0

To
2012-13 Urea DAP Complex SSP Potash Others Total Million MT 30 14 12 6 7 1 70 2012-13 Specialty Zinc Sulphates Water Soluble Fertilisers Sulphur Other Micro Nutrient Organic Compost Million MT 0.3 0.1 0.1 0.1 Un Limited

15

Fertiliser Subsidy Scenario

New Nutrient based Subsidy Policy New Nutrient based Subsidy Policy
Nutrient Based Subsidy (NBS) policy introduced in April10 has been received well by all stakeholders- farmers/Industry/Govt Ensured timely availability of fertilisers through out the year supplemented by imports Subsidy reimbursement reasonably on time to meet the liquidity ( delay in last qtr of FY 11) International prices were stable throughout the yr

MRP revised NBS for FY to offset the cost increases NBS for FY11-12 11-12 Govt announced new rates in Nov 2010 , much lower as compared to then prevailing international prices ; Revised again in April and final rates are as follows
Sl No 1 2 3 4 Nutrients Dollar/mt 2010 -11 310 500 370 190 Rs. Per kg for 2010 -11 23.227 26.276 24.487 1.784 Dollar/mt 2011-12 350 612 420 180 Rs. Per kg for 2011-12 27.153 32.338 26.756 1.677 % increase 17% 23% 9% -6%

Urea (N) DAP (P) MOP (K) Sulphur (S)

16

Subsidy rates for 2011-12

Subsidy in Rs. per 50 kg bag of fertilisers
2011-12 DAP 20:20:0:13 10:26:26 12:32:16 14:35:14 988 606 904 894 943 2010-11 813 507 776 756 794 % Change

22% 20% 16% 18% 19%

Due to sharp rise of international raw material prices , Govt increased the subsidy rate for FY 12 for all the Phosphatics fertilisers

Relaxation in road freight direct delivery allowed upto 700 Km MRP market linked - Prices revised 3-4 times in tune with input prices

17

Output prices have grown more than input prices

18

NBS policy Advantage Coromandel

Strong Brands in the highly irrigated and Agricultural dominated Southern states Consistent agriculture Very good infrastructure with port facility/captive jetty Flexibility to produce wide range of complexes: low P to high P; Crop & soil specific grades; Highly focused player in Phosphatics; Presence in 8 large states Ability to introduce new products in short notice strong technology Dynamic scenario ability to manage price fluctuations and exchange risks

19

Coromandels Journey

20

Key Milestones in Coromandels Journey

In the last 48 years Coromandel has evolved as a strong Agri player serving the Indian farmers by supplying quality Agri inputs and providing timely advice 2nd largest player in Phosphatics segment Strong operational focus & higher efficiencies Grown 5 times over the last 7 years 2003 2006
Acquired Godavari fertilisers JV with GCT, Tunisia

2007
Merger of Godavari with Coromandel

2009

Latin America presence for Agro Chemical Tie up with SQM,Chile for WSF

Merger of Farm Inputs Business of EID Parry with Coromandel. Create focused entity for Farm Input Business

Business Assistance for FOSKOR

Consolidation of Agrochemical Business Acquisition of FICOM and Jammu Unit

Enhancing stake in FOSKOR under BAA Launch of Rural Retail and set up 423 centers

2003

2005

2006

2008
21

Key Developments in 2011-12

C Train in Kakinada C Train in Kakinada
Adding a new granulation train to increase the production capacity by 8 lac mt Turn key order placed with Uhde India Pvt Ltd Project progressing on brisk pace Over 50% of piling work completed Project is expected to be commissioned on schedule by Q2 2012-13

Sabero Acquisition Sabero Acquisition

Coromandel entered into a definitive agreement to acquire 42.22 % stake from the promoters Coromandel is also in the process of filing for open offer to acquire up 31% from public Post acquisition, Coromandel will move in to the top 5 players in Indian Agro Chemical market

22

State of The Art Manufacturing Facilities

Plants are strategically located in highly irrigated southern Indian states and in heart of fertilizer consumption market low freight cost Plant Facilities State of art with good infrastructure support and robust systems Phosphate lowest cost manufacturer in India Captive jetty at Vizag, Own storage tanks and pipeline for raw materials: Ammonia & molten sulphur (Vizag & Ennore) - Lower handling and associated costs Captive power plants at Vizag & Ennore saves power costs Captive desalination plants at Ennore ensure water supply at low cost Coromandel Lowest cost producer of complex fertiliser in the country Coromandel Lowest cost producer of complex fertiliser in the country 23
Visak Kakinada Ennore Ranipet

High capacity utilisation levels & continuous modernisation of facilities Backward integration into manufacturing the intermediate phosphoric acid from rock

Strategic Direction
Farm Inputs Business Farm Inputs Business
Dominance in Fertilisers Dominance in Fertilisers
Sourcing Sourcing
Strategic Alliances in Sourcing Long Term tie-up with Foskor, South Africa and Group Chemique, Tunisia TIFERT JV in Tunisia Supply agreement for Ammonia and Sulphur with Mitsui Potash from Canpotex

Non Subsidy Non Subsidy Businesses Businesses

Marketing Marketing Strength Strength

Cost Cost Leadership Leadership

Low cost manufacturer of Phos acid - Visak and Ennore Kakinada - High Efficiency and Very low conversion cost Ex Plant/Rail deliveries - Low Freight Cost Low cost of borrowing

Wider reach and penetration Strong brand image in the home market Wide Product Range - Low P to high P Direct contacts with farmers - Mana Gromor Centers Extensive field promotions

Specialty Nutrients/ Water Soluble Fertilisers/Micro Nutrients and Organic compost Crop Protection Technicals and Formulations Retail Farm Mechanization Services

24

Strategic Alliances for Key raw materials

MOP PotashCanada 0.50 Million Mt Rock Phosphate 0.9 Million MT Israel , Togo Algeria

Ammonia and Sulphur 0.61 Million Mt Ammonia, 0.30 Million Mt Sulphur- Mitsui, Japan

WSF and MAP JV with SQM, Chile TIFERT JV Tunisia Strategic Stake in FOSKOR Urea 0.25 Million Mt Arab Gulf

25

Tie ups for Phosphoric Acid

Million MT Captive Production Supply contracts with FOSKOR, ICL , GCT and Sterlite New JV TIFERT Spot Buying Total 0.23 0.60 0.20 0.20 1.23

Acid tie up of 1.2 million Mt can cater to 4 million Mt Production of fertilisers Coromandel has successfully concluded Business Assistance Agreement (BAA) with FOSKOR in 2008 and picked up Sweat Equity in FOSKOR. Current equity holding in FOSKOR: Coromandel International Limited:2.18% CFL Mauritius Limited: 11.82% Coromandel holds 15% stake in TIFERT JV for Phos acid venture in Tunisia

26

Cost Leadership
Visak Plant Visak Plant
Captive Phos Acid Continuous de-bottle necking to increase production levels Value gap - imported Vs own acid Increased Gypsum generation Use of various sources /grades of rocks New belt filter technology- to use low grade rocks Sulphuric Acid Consistent production performance operating at 100% + capacity Air pre heater technology Total avoidance of LSHS/Furnace oil Increased Power generation Logistic Cost Ex Plant Deliveries minimizing freight cost Visak Production (Million Mt)

Kakinada Plant Kakinada Plant

Very High Efficiency N 99% P 98% K 94% Low Conversion Cost Availability of Natural Gas Increased through put of all trains Logistic Cost Increased rail dispatches minimizing freight cost to be in line with subsidy

Kakinada Production (Million Mt)

27

Marketing Network
Factory Factory
West Bengal (WB) Orissa (OR) Andhra Pradesh (A.P) Karnataka (KN) Maharashtra (MH)

Wholesaler Wholesaler //Distributor Distributor

Madhya Pradesh (MP) & Chattisgarh Tamil Nadu (TN)

PDO PDO

Semi Semi Wholesaler / Wholesaler / Dealer Dealer

Visak
Retailer Retailer / Sub Dealer / Sub Dealer

Kakinada Ennore Ranipet

Farmer Farmer

28

Production Capacity
Plant Volume (Million MT) Product 28:28:0 Visak 1.30 14:35:14 20:20:00 10:26:26 12:32:16 14:35:15 Kakinada 1.50 DAP 10:26:26 Ranipet Ennore Total 0.12 0.33 3.25 29 SSP 20:20:00 16:20:00

Specialty Nutrient Business

30

SPECIALITY NUTRIENTS DIVISION (SND)

G-SULPHUR

WSF

Micronutrients

Organic Compost

GROMOR SULPHUR GROMOR SULPHUR

GROMOR SPRAY GROMOR SPRAY

Boron Boron Zinc Zinc Sulphozinc Sulphozinc

GROMOR POWER GROMOR POWER

31

Basics of Water Soluble Fertilisers

What is Water soluble fertilizers? What is Water soluble fertilizers?
100% water soluble Available in double and multi nutrient combinations with or without secondary elements or micronutrients. Available in the Powder or liquid form and can be used for fertigation and foliar application. Foliar application Fertigation (with Drip)

How to use Water soluble How to use Water soluble fertilizers? fertilizers?

Fertiliser use efficiency Fertiliser use efficiency Comparison Comparison

Conventional Fertilisers (%)
Nitrogen Phosphorous Potassium 30-50 20 30

Why Water soluble fertilizers? Why Water soluble fertilizers?

To enhance fertiliser use efficiency High cost benefit ratio in Horticultural Crops To improve crop quality and Crop Productivity

WSF (%)
95 45 80

32

SND Industry Trend

Global Trend Global Trend
Global WSF Business 5.6 Million MT Global giants like Yara, SQM, Haifa, ICL increasing their capacity and spread across the globe New capacities increasing in China (est. 0.3 Million Tonnes)
3.5 3 2.5 2 1.5 1 0.5 0 2008-09 2009-10 2010-11 2011-12

Global WSF Consumption (Mio Mt) Global WSF Consumption (Mio Mt) Europe America

Middle East Asia Africa

2012-13

Indian Trend Indian Trend

Increase in area under horticultural crops Govt aggressively promoting Micro irrigation Increase in acreage of Bt cottons / Hybrid paddy Wide spread deficiency of Sulphur and, Zinc and Boron

33

Specialty Nutrients Business Case

Coromandels Strategy --Increase the share of Non Subsidy business Coromandels Strategy Increase the share of Non Subsidy business G-Sulphur Market G-Sulphur Market
Current market Size 30,000 Mt Projected market Size(2012-13) 0.1 Million Mt Key Players: Coromandel, Chambal, Deepak, Tata Chemicals Coromandels Market Share - 60%

Coromandels Strength Coromandels Strength Separate focussed SBU Tie up with international players like SQM, Yara, Rio tinto for key materials Early mover advantage for sulphur Pan India operations Integrated WSF plant Strong brand promotion and excellent distribution net work including MGCs in A.P.

Water Soluble Fertilisers Water Soluble Fertilisers Market Market

Current market Size 50,000 Mt Projected market Size (2012-13) 0.1 Million Mt Key Players: Coromandel, Nagarjuna, Zuari, Deepak. Coromandels Market Share - 20%

34

Organic Manure Business Case

Organic Manure Market Organic Manure Market Global Scenario Globally very large market US, Europe and China nearly 50-60% of the total fertiliser used in the form of compost Indian Scenario Highly unorganized sector - with numerous vendors selling small quantities. Only 15-20%of the compost being marketed in India is branded. Govt is encouraging use of Organic Manure to improve soil productivity
2008-09 2009-10 2010-11 0.2 0.8

Coromandels Strategy Coromandels Strategy

First Mover Advantage Introducing variants

Volumes (Lac Mt) Volumes (Lac Mt)

1.2

35

Crop Protection Business

36

Crop Protection - Industry Scenario

Global Scenario Global Scenario
The total global agrochemical market was USD 38 Billion in 2010. Global markets are projected to grow at 5-10% in coming years. China is estimated to account 40% of Worlds manufacturing capacity of CPP. Ag-Bio segment would continue to be fastest growing segment MNCs continue to invest on R & D/ Acquisitions for GM crops More off patent products likely to be available from China Generics nearly constitutes 70% of the market scope for growth

Indian Scenario Indian Scenario

Indian Crop Protection Market is Valued at 55 Billion INR Paddy continued its dominance in crop protection market with Bt II cotton adoption brought down pesticide consumption in Cotton. Co-marketing or Import registration expected to play bigger role in bringing in new chemistry molecules With increased focus on Ag inflation/Food production, high MSP of food crops would be maintained by Govt likely to boost demand for crop protection Per capita consumption in India is one of the lowest in the World Industry dominated by Insecticides; New chemistry molecules catching up 37

Coromandel Products & Markets -Crop Protection

Coromandel is one of the top 15 companies in Pesticides .Coromandel pesticides product range includes Insecticides : 27 Others : 8 Pan India presence Introduced new technicals Profenophos (high quality) & Phenthoate( II co to produce) Acquired Ficom Organics in 2007 Entry into Public health segment Malathion & Temephos Set up formulation unit in Jammu Excise & IT benefits Acquired 2nd unit in Jammu
38
Mexico Goetmala Ecuador Bolivia Uruguay New Zealand Argentina Australia Belgium Spain Germany Iran Turkey Korea

Vietnam Thiland Bangladesh Malaysia

Initiatives
Operational Initiatives Operational Initiatives

Jammu Jammu

Expansion of technical plant capacity at Ankleshwar Export to more countries & increase the reach Focusing on high margin super specialities Leveraging on retail network in AP & Accelerated growth plan in all states

Strategic Initiatives Strategic Initiatives

Exploring Acquisition possibilities domestic / abroad Co-Marketing with MNCs Access to new molecules Tie up with BASF, Syngenta, Dupont R&D Initiatives & registraton capabilities Alternate sourcing from China New Products Introduction Foray into Latin American market Set up office in Brazil

Ranipet Ranipet

39

Recent Developments - Ban on Endosulfan

The April 2011 meeting of the Conference of parties to the Stockholm convention unanimously approved phasing out of endosulfan, a product listed as Persistent Organic Pollutants (POP), with exemptions for India (5 years initially extendable by additional 5 years) In April 2011, the Supreme Court of India (SC) took up a Public Interest Litigation (PIL) filed by the Democratic Youth Federation of Kerala and applying precautionary principles issued ad-interim ban on production and usage of endosulfan in India for 2 Months The SC also appointed a committee headed by Indian Council for Medical Research (ICMR) to the study the affects of usage of Endosulfan on Human health and submit a report to it within 2 months Impact on Coromandel - Endosulfan contributes 15% of the crop protection SBUs revenue Alternative strategies
o

Coromandel has several new technicals under development and implementation stage to replace Endosulfan Sabero manufactures Monocrotophos, Acephate and DDVP which are key substitutes of endosulfan 40

Recent Developments Sabero Acquisition

Sabero is a Gujarat based Agro Chemical Product manufacturer with strong export base Coromandel entered into a definitive agreement to acquire 42.22% promoter stake @ INR160 per share Coromandel is also in the process of filing for open offer to acquire up 31% from public Expected payout for Saberos acquisition - Rs. 450 Cr funded out of internal accruals Post acquisition, Coromandel will move in to the top 5 players in Indian Agro Chemical market
% of Revenue Domestic Exports 2009-10 42% 58% 2010-11 51% 49% (Rs. Mio) Turnover EBITDA 2008-09 3670 520 2009-10 4300 860 2010-11 4130 480

% of Revenue Fungicides Insecticides Herbicides Others

2009-10 56% 35% 5% 5%

2010-11 43% 41% 8% 9%

41

Manufacturing Facilities
Sabero has a manufacturing facility in Sarigam Industrial Area, District Valsad, Gujarat. The plant is ISO9001 and ISO14001 certified Expansion of Chloropyrophos and Monocrotophos facilities along with construction of a new Propineb facilitiy is underway and is expected to be completed in FY12 The company is constructing a synthetic Pyrethoids technicals plant at Dahej with a capacity of 3,300TPA. The construction
Dahej Ankleshwar Sarigam

is expected to be complete by end of FY12. The project is located in the Dahej SEZ II and has IT and excise exemptions

42

Strengths
Market leader in the products which it produces; Is amongst top 3 players in its top 4 products Sabero has over 240 registrations in 50 countries International presence with subsidiaries or affiliates present in 5 countries viz, Australia, Europe, Brazil, Argentina and Philippines. The company also has tie-ups with MNCs for supply of its key technicals. Fully backward integrated in manufacturing of its key products Low cost supplier of many off patent generics Coromandel can leverage on its Retail outlets for increasing branded formulation business

43

Mana Gromor Centers (MGCs) - Retail

44

MGC Retail Model

The centre is located at Mandal HQ. (One Mandal for 20-25 villages) Each centre covers 30-40 villages having 5,000 farm families in a radius of 20 km Model envisages repetitive interaction between the centre and the farmer Primary focus is on technology transfer and providing services Convenience to the farmer and reliability will be the guiding factors

45

Retail Business - Rationale

Viable Alternative Develop Distribution Channel for Coromandel Reduce Dependency on Distributors

Opportunities in Rural Areas

Capture opportunities in Rural Areas Providing Lifestyle Products at nearest Location Supply Products and Solutions to improve earning capabilities of farmers Thereby improve their lifestyle

Earning Capabilities

Marketing Solution

Provide Marketing Solutions for farm Produce

46

Rural Retail - Verticals

Agri Products - Fertilisers
Products-SSP/DAP/NPKs/Urea Micronutrients/Municipal Compost Water Soluble/MOP Soil Testing & Recommendation Lifestyle Products Durables, footwear, apparels, non durables

Agri Products - Pesticides Diagnosis and Solution Spraying Entire Range of Pesticides Spray Equipments Rural Retail

Insurance Life & Non life insurance Tie up with Chola MS Farm Mechanization Services

Veterinary Services Cattle Care Cattle feed

47

Expansion Plans
Currently 423 stores in operation in AP Achieved Breakeven at EBITDA level for FY 11 Stabilizing LSP operation 21 stores opened in Karnataka in Q4 in FY 11 Addition of 200 stores planned for 2011-12 : 75 centers in Karnataka and 125 centers in AP Farm mechanization:
o Covered over 5000 Acres in 1st year of launch o New services like laser leveling, harvesting and power spraying o Targeting 1 lac Acres by FY14.

48

Financial Performance

49

Financial Performance
Turnover ((RS. Million) Turnover RS. Million)
96,678 77,161 65,268 38,001 18,747 20,842

EBIDTA (Rs. Million) & EBIDTA % EBIDTA (Rs. Million) & EBIDTA %
(Rs. mio) 13,200 11,200 9,200 7,200 5,200 3,200
9.4 2,181 10.5

One time exceptional income from Foskor (%)

EBITDA EBITDA %
7,904
1,586 12.0 9.8 1,765 4,554

11,344 14.7 8,430

17.0 15.0 13.0

12.9

11.0 9.0 7.0

'05-06

'06-07

'07-08

'08-09

'09-10

'10-11

1,200
'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

PAT (Rs. Million) & PAT % PAT (Rs. Million) & PAT %
(Rs. Mio) 7,500 6,500 5,500 4,500 3,500 2,500 1,500 500 (%) 6,945 10.0 9.0 9.0 8.0 7.2 4,964 7.0 4,682 6.0 2,098 5.0 5.1 5.6 1,007 4.0 835 4.9 4.5 3.0 2.0 PAT PAT Margin
'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

ROE & ROCE (%) ROE & ROCE (%)

(%) 60.0 50.0 40.0 30.0 20.0 16.7 10.0 '05-06 '06-07 '07-08 '08-09 '09-10 '10-11 17.2 20.5 21.2 31.1 26.4 24.6 32.1 ROE ROCE

51.7 36.8

41.6 36.5

50

Income Statement
2006 2007 2008 2009 2010 2011

Revenue (INR m) EBITDA (INR m) PBT (INR m) PAT (INR m) EPS (Rs.) Debt / Total Capital (%) LT Debt / Total Capital (%)

18,747 1,765 1,154 835 3.29 45.4% 16.0%

20,842 2,181 1,464 1,007 3.97 48.5% 20.3%

38,001 4,554 3,334 2,098 7.50 54.3% 14.0%

96,678 9,490 8,082 4,964 17.74 58.8% 4.2%

65,268 8,430 7,084 4,682 16.72 55.8% 2.1%

77,161 11,344 9,884 6,945 24.69 42.6% 4.23%

51

Balance sheet
2006 Equity Debt Deferred Tax Liability Sources of Funds NFA Investments Cash Bonds* Other CA CL Net CA Application of Funds 4,380 4,263 752 9,394 3,637 1,618 243 9,455 5,559 4,139 9,394 2007 5,124 5,490 713 11,327 3,824 1,741 1,695 10,042 5,974 5,762 11,327 2008 7,944 10,429 825 19,198 7,354 723 1,072 2,790 15,614 8,355 11,121 19,198 2009 11,271 17,199 795 29,265 7,918 1,633 3,415 8,803 25,046 17,550 19,714 29,265 2010 14,350 19,178 855 34,382 8,173 2,110 8,099 8,600 16,923 9,524 24,099 34,382

INR mn
2011 19,041 14,712 815 34,567 8,532 2,123 9,020 4,300 28,383 17,791 23,912 34,567

* GOI bought back 50% of O/S bond FV of 499 Cr on 31st Mar, 2011 52

Annexures

53

Annexures
Nutrient Based Subsidy Policy State of the Art Plants Fertiliser Technology Center Rural Girl Child Education Assistance Programme Coromandels Firsts External Recognition...

54

Nutrient Based Subsidy Policy

55

Indian Fertiliser Industry Overview

2000 1500 1000 500 0
-0 0 -0 1 -0 2 -0 4 -0 5 -0 3 -0 7 99 00 01 03 04 05 02 06 08 07 -0 9 -0 6 -0 8
Yield (Kg/Ha) Nutrient Consumption (Million MT)

30 25 20 15 10 5 0
Fertiliser Use Efficiency : For the last 10 yrs, Crop yield growth rate has been only 1.20% where as Nutrient consumption has grown by 3.6%. Fertiliser use efficiency is the major concern in the Indian Agriculture.

20

19

20

20

20

20

20

20

Galloping Fertiliser Subsidy Bill: Fertiliser Subsidy grew at a CAGR of 21.53% over the last 10 years

20

20
100,000 80,000 60,000 40,000
Decontrolled fertilizer Subsidy Imported (Urea) Fertilizer Indigenous (Urea) Fertilizer

Though Fertiliser Subsidy Bill has gone up efficient usage of Fertiliser remains a major area of concern

20,000 1 99 9 -2 00 0 2 00 0 -0 1 2 00 1 -0 2 2 00 2 -0 3 2 00 3 -0 4 2 00 4 -0 5 2 00 5 -0 6 2 00 6 -0 7 2 00 7 -0 8 2 00 8 -0 9

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Nutrient Based Subsidy Policy - Rationale

Indian Agriculture Indian Agriculture Right Nutrient balance for optimum farm productivity Encourage usage of other Micro nutrients Fiscal Consolidation Fiscal Consolidation NBS policy will help Govt of India to contain Fertiliser subsidy Bill Fertiliser Subsidy Bill is expected to decrease

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Main features of the NBS

Primary Nutrients viz. Nitrogen N, Phosphate P and Potash K and Nutrient S will be eligible for NBS. Any variant of the fertilisers mentioned above with secondary and micronutrient (except Sulphur S) as provided for under Fertilisers Control Order (FCO) are also eligible for subsidy. Secondary and micro nutrients in such fertilisers attract separate per Mt subsidy to encourage their application along with Primary Nutrients NBS paid on each nutrient viz., N, P, K and S is decided annually by the Government.

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Main features of the NBS

Import of all fertilisers covered by NBS including 15 grade of complex fertiliser is placed under open General License (OGL) Urea will not be covered under NBS and Import of Urea will continue to be channalised during the first phase. Fertiliser Companies have flexibility to determine the MRP of the decontrolled fertilizers covered by NBS. Customized fertilisers are eligible to source subsidized fertilisers as inputs for manufacture. Subsidy under the NBS to be released through the industry during the first phase. 20% of the decontrolled fertilisers covered by NBS will be within the movement control. DOF will have authority to regulate movement of these fertilisers to bridge the supplies in under-served areas. Freight subsidy for movement of fertilisers covered by NBS by rail will be allowed on actual basis and for road movements upto 500 kms, subsidy at the prescribed rate or actual whichever is lower, will be allowed.

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Products under NBS

Di Ammonium Phosphate (DAP, 18-46.0) DAP Lite ( 16-44-0) Muriate of Potash (MOP) Mono Ammonium Phosphate (MAP, 11-S2-0). Triple Super Phosphate (TSP, 0-46-0) 15 grades of Complex fertilisers. Ammonium Sulphate (AS (caprolactum grade by GSFC and FACT) and Single Super Phosphate (SSP).

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NBS -Win-Win Proposition for all Stakeholders

Certainity in Subsidy amount Reduction in Subsidy outgo

Govt of India

NBS

Industry

Farmers
Access to new products and technologies

Company
NBS will help companies with Strong Brand image Intensive Extension activities

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Subsidy Computation Pre Vs. Post NBS

Pre NBS NBS DAP Price 500 $ per Mt

Commodity Price

DAP IPP Price 500 $ per Mt

Fixed

Farm Gate Price 203 $ per Mt

Variable

Farm Gate Price 235 $ per Mt

Variable

Subsidy Amount 297 $ Per Mt

Fixed

Subsidy Amount 377 $ Per Mt

Minus

Pre NBS Pre NBS

Product Based Subsidy Fixed MRP and Floating Subsidy No import of complex fertilisers Input prices calculation- 1 Month lag for raw materials and 2 Month lag for finished product Exchage rate average of Daily RBI rate Subsidy is on despatch basis

NBS NBS
Nutrient Based Subsidy Fixed Subsidy and Floating MRP Import of complex fertilisers allowed Input prices fixed for the year to be reviewed for any update at the end of every season Exchange rate fixed at Rs. 45.65 Subsidy is on despatch basis

Under NBS, Farm Gate Price has increased by 15.76% and Subsidy has increased by 26.94%

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Subsidy Calculation under NBS 2010-2011

Particulars IPP (U.S $/MT) Total delivered cost @ Rs.46/$ Less: MRP (Rs. Mt) Subsidy (Rs. Mt) (A) Nutrient Content (B) Subsidy/Nutrient (Rs/KG) Urea (N) 310 15,994 5,310 10,684 46% N 23.227 DAP (P) 500 25,618 9,350 16,268 18%N and 46% P 26.276 MOP (K) 370 19,147 4,445 14,692 60% K 24.487 1.784 1,784 (20%) Sulphur 190 8,920

Illustration of 20:20 Product Subsidy Calculation DAP Subsidy Amount (Rs/Kg) (A) N Content (B) N Subsidy in DAP ( 18%*23.23) (C) P Content (D) Subsidy/Nutrient (Rs/KG) (A-C)/D 16.26 18% 4.18 46% 26.27 Subsidy for 20:20:0:13 (100 Kg ) N Component P Component S Component Total Subsidy for 100 Kg Total Subsidy for 1 Mt Unit 20 20 13 INR/Unit 464.54 525.52 23.192 1,013.25 10,132.52

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Subsidy Calculation under NBS 2011-2012

Particulars IPP (U.S $/MT) Total delivered cost @ Rs.45.65/$ Less: MRP (Rs. Mt) Subsidy (Rs. Mt) (A) Nutrient Content (B) Subsidy/Nutrient (Rs/KG) Urea (N) 350 17,800 5,310 12,490 46% N 27.15 DAP (P) 612 30,513 10,750 19,763 18%N and 46% P 32.34 MOP (K) 420 21,109 5,055 16,054 60% K 26.76 1.68 1,677 Sulphur 180 8,386

Illustration of 20:20 Product Subsidy Calculation DAP Subsidy Amount (Rs/Kg) (A) N Content (B) N Subsidy in DAP ( 18%*27.15 (C) P Content (D) Subsidy/Nutrient (Rs/KG) (A-C)/D 19.76 18% 4.89 46% 32.34 Subsidy for 20:20:0:13 (100 Kg ) N Component P Component S Component Total Subsidy for 100 Kg Total Subsidy for 1 Mt Unit 20 20 13 INR/Unit 543.04 646.77 21.80 1,212 12,116

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State of the Art Plants

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State of the Art Plants

Kakinada

700 acres of land Located 2.7 kms from Kakinada, an AP sea port Flexible Production Facility Capable of producing 1.5 mtpa upto

Adequate land for further major capacity expansion in future Adequate Power (co-owned), infrastructure facilities water and other

Low conversion cost /highly efficient operation Large Railway siding, also well connected by road Skilled, experienced workforce

Vizag Plant

Captive phos acid /Sulphuric acid plants One of the low cost producers highly energy efficient Captive Jetty Technology Pilot plants for rock trials and granulation Cleaner production technologies low emission levels and environmental friendly High Safety standards and ISO 9001 certified

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State of the Art Plants

ENNORE
Certified for ISO 14001 for Environment Ammonia submarine pipeline for unloading ammonia first of its kind in Asia Captive phos acid/sulphuric plants Captive power plants/ water desalination plant

Ranipet
First in Asia to install a fertilizer plant SSP unit in 1906 Modernized in 1997

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Fertiliser Technology Center

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Fertiliser Technology Center

FTC --Phosphoric acid FTC Phosphoric acid & complex pilot plant & complex pilot plant 1. Phos Acid pilot plant 2. Granulation Pilot plant to study New product formulations Optimizing the granulometry (granule size, strength) Efficacy of new defoamers, anti-caking agents, granulation aids, etc. Developing new grades of customised fertilisers

First in India One among few in the world

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Rural Girl Child Education Assistance Programme

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Rural Girl Child Education Assistance Programme

Objectives: To empower Rural Women To encourage the Rural Girl Child for higher education

Programme launched in 2005 Landmarks:

1320 Schools 2640 Students Rs. 5.9 million worth of Scholarships

Going An Extra Mile

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Coromandels Firsts

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Coromandels Firsts
First fertiliser factory in India (1906) Ranipet Plant First Integrated Complex fertiliser plant in private sector (1963) Ennore Plant First in India (1967) to commercially manufacturer UAP 28:28:0, a high-analysis complex fertiliser with highest nitrogen-phosphate content in 1:1 ratio First in India (1975) to install a Sulphuric Acid Plant based on DCDA technology to control sulphur-dioxide emission First in India (1987) to successfully implement modern anodically protected acid coolers in the Sulphuric Acid Plant, replacing conventional trombone serpentine coolers First in India (1988) to successfully implement total recycling of seawater for its effluent recirculation system to the Phosphoric Acid Plant First in India (1997) to install a terminal for handling Molten Sulpur that is environmentally safe, conserves energy and minimises pollution First in India (2003) to install state-of-the -art screw-type ship unloader at the captive jetty First in India (2003) to install automatic bagging facilities First in Indian Fertiliser Industry (2006) to use steam-based air pre-heaters in the the granulation plant, instead of fuel First in India (2007-08) to set up pilot plants for the study of fertiliser technology applications

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External Recognition

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External Recognition...
D&B Rolta Corporate Award DMA-Erehwon National Award for Innovation in HR CNBC Award for the Most Engaged Workforce FAI Best Production Performance Award for the Phosphoric Acid Plant at Vizag, for the 10th time. FAI Best Production Performance Award for Complex (P2O5) Fertilisers, Kakinada Plant FAI Environment Protection Award for Complex (P2O5) Plant, Vizag. FAI Award for Best Video Film for the 6th time. CII-EXIM BANK Business Excellence Award for Strong Commitment to Excel for Vizag & Kakinada Plants Public Relations Society of India National Award for Best House magazine, The VOICE, for the 4th time.

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External Recognition...
International Award for The VOICE magazine from IAVA, New York. National Energy Conservation Award (Commendation Certificate) for efforts in Energy Conservation from Ministry of Power, New Delhi, for Kakinada Plant. Ranked among the Top 20 Best Employers to work for by MERCER-TNS Business Today.

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THANK YOU

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