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Investor Presentation
March 2016
Camson Bio Technologies Limited (BSE: 538858)
Cautionary Statement
2
This presentation contains statements that contain “forward looking statements” including, but
without limitation, statements relating to the implementation of strategic initiatives, and other
statements relating to Camson Bio Technologies Limited’s (“Camson Bio Technologies”) future
business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning
the development of our business, a number of risks, uncertainties and other unknown factors could
cause actual developments and results to differ materially from our expectations. These factors
include, but are not limited to, general market, macro-economic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us, legislative
developments, and other key factors that could affect our business and financial performance.
Camson Bio Technologies undertakes no obligation to publicly revise any forward looking statements
to reflect future / likely events or circumstances.
Contents
3
Company Overview 1 5 - 11
Industry Dynamics 2 13 - 15
Strategy: Path-to-Value 3 17 - 19
Business Operations 4 21 - 24
Financial Performance 5 26 - 27
Company Overview
4
Camson: At a Glance
5
Pioneer in ‘zero residue’ biocide products, supported by scientific research spanning over two decades
• Camson Bio Technologies Limited (“Camson” or the “Company”) is India's first integrated IPR driven
agricultural biotechnology company
• Founded in 1993, Camson is headquartered in Bangalore, with primary focus on biotech R&D
• Pioneer in zero residue farming products, which uses secondary metabolites (biological origin) of microbes
to kill / inhibit pathogens, with no use of chemicals
• Recently filed patents for its discovery of Natural Fertilizer
• Recognized by Deloitte as one the fastest growing technology companies in 2015 and conferred the
Technology Fast 500 award and awarded ‘Leaders of Tomorrow Award by ET Now & Indiamart 2014-15
• Long standing relationship with its institutional investors such as CLSA and SBI
4000+ microbes library
3 Research Centers;
(Bangalore, Aligarh and
Hyderabad)
R&
D
2.7 mn litres per
annum capacity
Pro
du
ctio
n
22 Bio pesticides
7 Bio fertilizers
4 Water Soluble
Natural Fertilizers P
rod
uct
Ty
pe
Corporate History
6
1993-2000 2008 2010 2011 2012
• 1993: Started
operations
• 1995: IPO and went
public
• 2000: Launched
Calphomil, Camson’s
first product based on
microbial extract
• Launched ‘Zero
Residue’ line of farm
produce
• Land procured for
the second
production unit at
Nangal, Himachal
Pradesh
• Research begins
at Aligarh, UP
• Among Forbes Asia’s
best 200 companies
under a billion
• Technology Fast 50
India 2010 award from
Deloitte
• Best Green SME
award from Yes Bank
• Operationalized new
R&D centre at
Doballapur; investment of
Rs. 300 mn
• CLSA committed an
investment of US$ 10 mn
• Camson Agri Ventures
commenced operations
• Signed MOUs with: 1) Kerala
Cardamom Processing and Marketing
Co., 2) Vazhakkulam Pineapple
Growers, 3) Coconut Development
Board and 4) Zuari Agri Sciences Ltd.
• First company globally to patent
Natural Fertilizers
• Demerger of Seeds Business; Record
date of 22-Sep
• Awarded
‘Leaders of
Tomorrow’
award by ET
Now &
Indiamart
• Filed patent for
Natural
fertilizers
2013 2014 – 2015
• Tie-up with HDFC Bank to
advance HDFC’s BC
initiative
• Organic certification by
USOCA, Dehradun
• Capacity increase started
for the R&D unit in
Doballapur, Karnataka
• Awarded top 100
mid sized company
by Inc. India
• Most innovative
award at SIAL, Abu
Dhabi
• Indira Gandhi
Excellence Award
Geographical Presence and Distribution Network
Geographical Presence and Key Markets Sales & Distribution Network
Manufacturing Facilities
R&D Centres
Target Markets
Currently having pan-India
presence
Intends to enter in the International
markets
Target Farmers
Category A: Export oriented
farmers
Category B: Farmers looking for a
remedial solution for a particular
pest/disease
Category C: Farmers who are
aware of environmental cons from
chemicals
Headquartered in Bangalore,
has a 50 acre R&D centre
and production facility in
Dodaballapur, Bangalore
Sales & Marketing
Officers
Authorized
Dealer
Retail
Farmers
Product
Development
Officers
Product
consultancy &
Demos
Marketing Mechanism:
• Has clearing & forwarding agents across the country for
storage and handling
Also, employs Field Assistants at local level on a temporary basis
during sales promotions
7
Key Strengths and Core Competencies
8
R&D capabilities driving operational excellence and market positioning
• First mover advantage in the
‘Zero Residue’ biocides market
• Developed an in-house
proprietary technology platform
consisting of 4,000+ microbes
database, screening technology
and a natural compound library
• Scientific results driven by state-
of-the art technology platform
• Significant knowledge base of
microbes study
• Recently filed patents for its
discovery of Natural Fertilizer
• Technologically advanced
manufacturing process
• Camson products uses secondary
metabolites with no live micro
organisms, thereby leading to
much higher shelf lives
• Two company owned and two
contracted production facilities
• Facilitate sales via two way
process: One of direct sales to the
retail shops and second is to
derive demand via product
demos and consultancy to the
farmers
• Has a strong network of 2,600+
dealers, 300 distributors and
300+ marketing personnel spread
across India
Highly Specialized
R&D Capabilities Operational Excellence
Well Established
Market Reach
Camson Differentiating Factors
9
Proprietary
Technology
Platform
(R&D)
• Has competitive advantage in the ‘Zero-residue’ bio inputs
• With already established over 4,000 select microbial
library, has very low threat from new entrants
• In-house R&D Units recognized by Ministry of Science and
Technology, Govt. of India
Production
Facilities
• Have set up production facilities in North India as well as
South India, in order to cater to the diverse demand and
easy access to the markets
Biocides
USP
• Camson biocides are target specific, bio degradable, high yielding and does not harm soil productivity
• Longer shelf life and Pests/insects do not develop resistance to biocide even after multiple uses
• Offer higher protection period
• Zero-residue product
Entire Biocides research process
takes about 9 - 12 years
Future Scope: Wide Range of
Applications across the Industries
Recognition
Real-time market access
• Waste Water Management
• Waste Management
• Life Sciences
• Power Generation
Santosh Nair
WTD & Chief Executive Officer
• Having an experience of over 19 years in Banking
and Finance industry and previously worked with
organizations like Merrill Lynch and HDFC Bank
• Prior to joining Camson, worked as Director, Global Wealth
Management, Merrill Lynch
• At Camson, responsible for streamlining processes and
strengthening backend systems
• Introduced several stringent performance benchmarks to boost the
quality of Camson products
Key Management and Board of Directors
10
Sound management team backed with years of experience and a mix of technical & financial skill set
Dhirendra Kumar
CMD & Chief Scientific Officer
• Founded Camson Bio Technologies in 1993
• A technocrat with passion for R&D, has led
Camson’s pioneering research in Sciences like
Intragenics and Metagenomics
• Spearheaded the development of ‘zero-residue’ products, new
technological platforms and organically viable hybrid seeds.
• Previous experience includes ITC, Coromandal and Ranbaxy
• At ITC, he took over a loss making division and reworked the entire
product range, positioning and strategy to transform it into the fastest
growing and most profitable division at ITC
Board of Directors
A.N. Singh Non-Executive Director
V.K. Singh Non-Executive Director
Krishnaswamy Ramaswamy Non-Executive, Independent Director
B.C. Madappa Non-Executive, Independent Director
Anurudh Kumar Singh Non-Executive, Independent Director
Reeta Gangwani Non-Executive, Independent Director
Gulshan K. Khanna Non-Executive, Independent Director
Recent Corporate Developments
11
Awards and Recognition
Camson recognized as one the fastest
growing technology companies in Asia
Pacific and received the Technology Fast
500 award
Camson wins 2nd Inc India
Innovative 100 Award under
the category “ Responsible
Business & Technology” Camson awarded ETNow
‘Leaders of Tomorrow’
Key Developments
Received approval from Shareholders and Creditors for the Scheme of Arrangement (Demerger) of the Seeds Business to create a
separate entity Camson Seeds Limited ; record date of 22-Sep-2015; On 14-Nov-2015, Board of Camson Seeds approved
allotment of shares to all who are the shareholders of Camson Biotech as on the record date; Allotment done in Jan 2016
Filed patents for the discovery of natural fertilizers
Appointed Deloitte Haskins & Sells as the statutory auditor of the Company
MOU with Zuari Agri Sciences to market Camson products through Zuari’s distribution network
MOU with the Kerala Cardamom Processing & Marketing Company to facilitate residue free farming for Kerala farmers
MOU with Vazhakkulam Pineapple Growers & Processors to advance the usage of biocide products in pineapple farming
MOU with the Coconut Development Board (a Government of India enterprise), to undertake research on secondary metabolite
based biocides to control red palm weevil infesting coconut plantations
Industry Dynamics
12
Industry Trends & Opportunities
13
Increasing
Food
Demand
• World population projected to rise from 7.2 bn in 2014 to 9.6 bn in 2050E
• Due to growing population, shifting diets and increasing purchasing power, the world will need to produce 69%
more food calories in 2050 than 2006
• Expected shortfall of food grains globally is 27.7 mmt by 2020 and 14.0 mmt in India by 2017
5.77.2
9.6
0.9 1.3 1.7
1994 2014 2050E
World Indian
Population Statistics (bn) Global Agricultural Total Factor
Productivity (TFP) Growth
1.75%
1.69%
Required growth
by 2050
Current rate of
growth
Agri
Ecological
Footprint
24%
Greenhouse Gas Emissions
(100% = 49 GT CO2) • Agri sector itself contributes majorly
to environmental degradation mainly
on account of unhealthy agri practices
• Long-term sustainability demands a
large scale shift to biocides based
healthy agriculture
Reducing
Arable
Land
• Reducing arable land due to rapid industrialization
• South Asia is currently using 94% of its potential arable land
• Worldwide, over 0.5 mn tons of banned and unhealthy pesticides
are threatening the arable land
0.38 ha 0.23 ha 0.15 ha
1970 2000 2050
50% 70%
Global Middle Class by 2050E
Current
Source: UN Population Report 2014, World Resource Institute Report on Global Food Challenges 2013, UN-FAO Agriculture Report
In Hectares (ha) / Person
37%
Earth’s Landmass Usage
(100% = 13.3 bn ha)
70%
Water Withdrawal
(100% = 3862 km3 H2O)
Agri's Current Ecological Footprint
14% 13%
17%
12%
22% 18%
Global Market Size
14
Crop Protection Industry (US$ bn) Organic Food Market (US$ bn)
Asia, Latin Americas and South Africa are projected to have highest
demand for organic foods in the future
71.2
104.5
161.5
2012 2015 2018
40
5571
2008 2013 2018
Increasing consumption and farmers’ need for higher profitability are
driving the growth in crop protection industry
Biocides Market (US$ bn)
2012
7.3
47.2
2018
9.6
73.8
Biocides Market
Total Agri Input Market
Biocides
market to
grow at a
CAGR of
4.7% from
2012-2018
Region Wise Growth in Bio-Pesticide Markets
Significant export potential backed by robust growth in Biocides
market
Source: Lucient Report, Research & Markets Report 2014, BCC Research Report on Organic F&B 2014, Accenture Report 2013,
Transparency Market Report on Global Biocides Market 2015
37% 20% 6% 6% 5% 26%
Cotton Rice Chilli Wheat Vegetables Others
Pesticide Consumption Pattern in India
India Market Size
15
Crop Protection Industry (US$ bn) Key Industry Highlights
• Approx. 2.5% of all agricultural land to be certified organic
by end 2015
• Organic (fruits & dairy products) market to grow at a CAGR
of 13-14% and 10-11% respectively from 2012-2017
• Total Indian Bio Input (including Genetically Modified)
market estimated to reach US$ 37.0 bn by 2025
• Approx. 18% of the crop yield worth US$ 19.6 bn is lost due
to pests every year in India
Rising middle class and increased health awareness to influence the
demand for biocides in the Indian market
Bio-Pesticides Market (US$ bn)
3.8
6.8
2012 2017
0.16
0.35
2013 2018
Source: Tata Strategic Management Group, Care Report 2007, Dawn Magazine, SBI Cap, Technopak Organic Food Report 2012,
Camson Analysis
Strategy: Path-to-Value
16
Driving Long-term Growth
17
Focusing R&D efforts on developing
compelling technologies to continue
to deliver a sustainable pipeline of
new products
Pillars
of
Growth
Capitalizing on
our diverse
product range to
address the
farmer needs for
‘zero-residue’
products, thereby
creating
sustainable
demand and
revenue stream
Continuous focus on optimizing
operational costs and further
streamlining processes to achieve
excellence
Clearly Defined Strategic Plan
o Focus on the institutional desk business, both in
domestic and international markets
o Optimize utilization of existing manufacturing
platform to enhance capital efficiency and
shareholder returns
o Continue to develop and patent the innovative
products
o New Hybrids: Further stress upon product
development
o Successful integration of recent corporate
MOUs which will bring scalability through a
larger research space and new customer base
Target Optimization Areas
18
Simplifying
Business Segments
Enhancing Market Reach
Improving Support
Functions
• Develop best-in-class Agri Biotech (Biocides)
products
• Demerger of Seeds business; In line with the core
strategy and optimization plan
To support the superior R&D capabilities, three target areas identified under the optimization plan
• Deploy a mix of push and pull marketing strategy to
create demand and push sales
• Deepen the product consultancy interaction with the
farmers
• Focus on receivable timelines
• Ensure sustained compliance with global regulatory
standards
o Improved
business
agility
o Liberating
resources to
re-invest in
R&D to fuel
further
growth
Demerger of the Seeds business
19
Demerger Highlights Rationale for Demerger
Camson Bio Technologies (CBTL)
(Pre Demerger)
Agri Biotech
(Biocides)
Segment
Seeds Segment
Seeds
Cultivation
Seeds Trading
Agri Biotech
(Biocides)
To operate only in the Agri
Biotech segment, backed by
advanced R&D capabilities
Camson Bio Technologies
(CBTL)
(Post Demerger)
Camson Seeds Ltd.
(New Entity)
Seeds Segment
Spin off
Application filed with Karnataka High court, for the Demerger
of Seeds business to form a new entity (Camson Seeds Limited) 1
Existing shareholders of CBTL allotted shares of Camson Seeds
ltd. in the ratio of 1:1 3
CBTL will continue to operate only the Agri biotech (Biocides)
business, focusing upon Zero-residue & eco friendly products 4
• Most dynamics
like risk, capital
requirements &
return ratios of
both businesses
begun to differ,
necessitating need
for the demerger
• Enhance focus on
the rapidly growing
Agri-biotech
business, to further
scale it up
• In line with the
Company’s long-
term strategy
Changing Business
Dynamics
Cultivating Future
Growth
Enhancing
Market Position
• Building brand
equity
• Further
penetrating the
Indian agri market
Shareholding pattern of Camson Seeds to be same as of CBTL 2
Business Operations
20
R&D enabled Product Development
Multi-Stage Process
Identification
Metabolite Research
Testing and Production
• Bio-medical facts are mined from scientific literature,
further to use in search for microbial sources
• Microbe samples are sourced from various agro-climatic
zones
• Camson uses in-house technology to facilitate the growth
and multiplication of cultures
• Extraction of primary and secondary metabolites, from
the cultures
• Camson’s manufacturing process is continuously
optimized to suit a huge spectrum of temperatures
• Helps in mass production of biocides and reduce
operational costs
Field Trials
• Camson uses multi-component formulations to develop
products whose ingredients have multiple effects
• Has in-house capability over 300 acres of land, where
agro-climatic field trials are conducted
Sub – Stages
• Identifying target pathogen
• Literature/data mining
• Microbial source tracking
1
2
3
4
• Isolation of microbes
• Mass multiplication
• Extraction of Sec Metabolites
• Biocide testing
• Production optimization
• Product improvement
• Formulations
• Field trails
Process Description
A complex process developed over two decades of microbial research
21
Biocides Business
22
Ability to leverage its first mover advantage in a market with significant growth potential
Bio Insecticides Bio Fungicides Bio Fertilizers Bio Stimulants
Agri Biotech
Products
(Biocides)
• Produced using secondary metabolites of microbes,
suitable for killing pests
• Maximize agricultural productivity while reducing the
environmental impact
• Products are highly specific in their action, non –
synthetic, economical and environmentally safe
• Categorized into four product types: Bio Insecticides, Bio
Pesticides, Bio Fertilizers and Growth Stimulants
Product Range
23
Agri Biotech (Biocides)
Bio Insecticides
• Help protect crops
and produce high
quality yield
• Has unique mode of
action, less toxic and
organic
Calgard
Cal-mb
Calhopp
Calmyte
Calterm
Calpaste
Calnova
Bio Fungicides
• Help control fungi
and act as both:
Preventive and
Curative
• Bio degradable
Bio Fertilizers
• Maximize farm
potential by
promoting plant
growth
• Improve productivity
Bio Stimulants
• Make farm operations
more efficient by
plant growth
• Reduce the cost of
cultivation
Calbahaar
Calmonas
Calderma
Caltop
Calbase
Calphomil
Calobium
Calphorus
Calosphere
Calspiral
Caltash
Calzoto
Calshri
Calstim
Caltika
Camistrong
Calhume
Water Soluble Natural Fertilizers: New Segment
24
Natural Fertilizers enables effective mobilisation of nutrients to the plant
• Camson is the ‘First in the World’ to develop ‘Water Soluble Natural Fertilizers’
derived 100% from natural sources; recently filed patent
• Natural Fertilizer technology certified by the ‘Control Union’, a major certifier of
organic agri produce and inputs globally
• Camson is capable to manufacture this in commercial quantities to meet the
increasing demand
Performance Metrics – Natural Fertilizers Product Advantages
Bio Available NPK: Easier for the plant to absorb the
nutrients 1
Do not leach or evaporate as in case of synthetic
fertilizers 2
Free from Sodium, Chloride and other harmful
chemicals 3
Completely and uniformly water soluble, 100%
Organic 4
Germination: Increase of 10%-20%
Plant Height: Increase of 10%-12%
Girth: Increase of 5%
Yield: Increase of 10%-15%
Soil Microbe Count: Increase of 20%
Financial Performance
25
Select Financials: Biocides Business
26
Profit & Loss Statement1
(Rs. million) 30.09.2015
Short Term Borrowings2 358.4
Long Term Borrowings 99.5
Total Debt 457.9
Less: Cash & Cash Equivalents (11.0)
Net Debt 446.8
Net Worth 1,413.9
Total Debt / Net Worth (x) 0.32x
Capital Employed 1,871.8
Note:
1. During the year, the Company has received order from the High Court for the demerger of the seeds business of the Company with an appointed
date of 1st April, 2014. Accordingly the above results have been presented for the Agri Biotech business. Consequently, the Company operates in
a single segment, i.e. Agri Biotech and the results relating to previous quarter/period/year are not comparable
2. Short term borrowings include: a) Current portion of long-term maturities and b) Interest accrued but not due on borrowings & security deposit
(Rs. million) Q3 FY2016 Q2 FY2016 Q1 FY2016
Operating Revenue 45.5 122.6 142.4
EBITDA (including other income) (61.5) 28.9 39.1
EBITDA Margin nm 23.6% 27.4%
Depreciation &
Amortization 23.9 27.0 27.7
EBIT (including other income) (85.0) 1.9 11.4
EBIT Margin nm 1.5% 8.0%
Leverage Profile1
Capital Structure
27
Shareholding Pattern (Dec. 31, 2015) Key Investors Market Data (February 24, 2016)
Market Cap (Rs. mn) 990
Enterprise Val (Rs. mn) 1,437
52 Week H/L (Rs.) 127.73 / 31.20
Bloomberg CBTL:IN
Reuters CAMS.BO
Sector Biotechnology
Shareholding Pattern
Shareholders Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
Promoters 24.47% 24.46% 24.46% 24.46% 24.46%
Foreign Institutional Investors (FIIs) 21.04% 21.20% 21.30% 21.67% 21.32%
Domestic Institutional Investors (DIIs) 2.83% 2.85% 2.85% 2.84% 2.84%
Others 51.66% 51.49% 51.39% 51.03% 51.38%
Total Shares (million) 29.99 29.99 29.99 29.99 29.99
Source: BSE
24.47%
21.04%2.83%
51.66%
Promoters FIIs DIIs Others
Camson Bio Technologies Limited
(CIN: L85110KA1993PLC014944)
C-7, 7th Floor, Corporate Block
Golden Enclave, Old Airport Road, Bangalore - 560 017
Phone: +91 80 4076 8900; Fax: +91 80 2520 2285
Email: [email protected]
Website: www.camsonbiotechnologies.com
Neethi
Camson Bio
Technologies
+91 80 4076 8906
Saket Somani
Churchgate Partners
+91 22 6169 5988