rallis india limited a tata enterprise - … meet/100355_20080523.pdf · rallis india limited a...

RALLIS INDIA LIMITED A TATA ENTERPRISE

May 23, 2008

Presentation to

Fund Managers


RALLIS RALLIS –– A 155 year old enterprise A 155 year old enterprise

Set up in 1851 by Stephan Ralli as Ralli Brothers for trading in Jute, Cotton & other agricultural commodities

Rallis India Ltd after independence became country’s leading Distribution company for Fertilizers, Pesticides & other Agri inputs.

Tata Fison a Manufacturing & Marketing company merged with Rallis.

Had diversified lines of business- Fans, Engineering tools, Pharmaceuticals tools, Gelatin, Leather chemicals etc.

Currently focused on Agro Chemicals – Agri inputs

Pioneers – First Indian company to set up factory for production of technical grade Pesticide (Dimethoate)

- First Pesticide company to establish R&D facility (at Bangalore) - First company to introduce a new molecule in India

Association with Indian Farming Community for more than a centuryTrust in Rallis and TATA name with farmers


Fungicides

Triazole

Hexaconazole

Melataxyl

Metconazole

Propiconazole

Tebuconazole

Insecticides

Lambda

Acetamiprid

Polymer

PEKK

Herbicides

Pendimethalin

Metribuzin

Insecticides

Acephate

• Akola Dedicated formulation unit. • Jammu New formulation unit proposed• Dahej Multpurpose technical plant to be setup

Ankleshwar Turbhe Lote Patancheru

Manufacturing Units & Capacities


• Strong Farmer Connect

§ Customer & Market knowledge, a century old

connection

• Marketing / Branding Prowess

§ Contaf, Asataf, Rogor, Applaud : Timeless Brands

• Distribution Reach : Pan India presence

§ Preferred Partner for Research based organisations

• Strong Customer Relationships

• New Product Introductions

• Large & Diversified manufacturing base

Rallis : Some highlights


Portfolio StrengthPortfolio Strength


Rallis Rallis -- Spread and Depth of Distribution Spread and Depth of Distribution

4 Zonal Offices

37 Area Sales Offices

24 Depots

190 Sales Territories

1800 Direct Accounts

> 30,000 Retailers

Zonal OfficesArea sales Offices

Zones-Chandigarh KolkattaBangaloreHyderabad

Rallis DistributionChannel

Fertilizer Companies Pesticide Companies

Seed / PGN Companies


Farmer Needs

Changing Trends

Competition

Focused Group Discussions : Capturing Customer Insights


Based on feedback on last year FGDCommunicated improvements to all

Based on feedback on last year FGDCommunicated improvements to all

More number of FGDs

Involvedall Stakeholders

in FGDs

Pulses, Vegetables and Plantation crops in view of the new products

Pulses, Vegetables and Plantation crops in view of the new products

Increased Focus in Niche

crops

Involvement of Retailers and SS/PDInvolvement of Retailers and SS/PD

Improvements through process check

& communication

Separate & ParallelFGDs to validate

outcomeParallel FGDs in the same area were conducted with dealer network

Parallel FGDs in the same area were conducted with dealer network

Focused Group Discussions : Capturing Customer Insights

• 79 FGDs conducted across 16 crops in 37 area offices• Participation from 850 farmers, 500 Channel Partners


SirSirSirSir

Discussion in the field

Farmers Exchange Programme Farmers Exchange Programme –– Punjab To KarnatakaPunjab To Karnataka


Quick Registration& Development

R&D &RegistrationCapabilities

The Applaud StoryUnique identityUpright positioningHigh impact launches

Ensured deep penetration in paddy areas

Earliest sensing of resistance buildup

Understanding of farmer need

Personal visit to every userHelpline service, testimonials> 10,000 early season demos

Specs meeting benchmarksConsistent quality

BrandingProwess

ManufacturingSkills

Strong Farmer Connect

Strong Customer

Relationships

DistributionReach


Our Performance…

03-04

Sales Rs Mn

5460

7640

07-08 03-04

P B TRs Mn

260

1460

07-08

03-04

NetworthRs / Share

16

208

07-0803-04

Dividend%

160%

07-08

O

Rallis Annual Report


Agriculture : A BackboneAgriculture : A Backbone

Agricultural growth continues to be a critical component of Indian Economy

To sustain an 8% growth in GDP during 11th five year plan, agriculture growth needs to be at 4%.

Need for higher productivity

18%GDP

>50% population

High yielding varieties

FertilizersIrrigationPESTICIDES


72%

12%

16%

62%17%

21%

Insecticides Fungicides Herbicides

AGROCHEMICAL INDUSTRY : CHANGING PRODUCT PROFILE

GM Cotton cultivation has resulted in decline of insecticides in total industry size

2001-02

2006-07

Contribution of Insecticides declining while Herbicides & Fungicides are gaining


Cotton26%

Paddy29%

Others9%Wheat

8%Pulses & Oilseeds

9%

Chilli4%

Vegetables9% Fruits

6%

2001-02

Agrochemical Industry : Crop Wise ConsumptionAgrochemical Industry : Crop Wise Consumption

2006-07

Cotton35%

Paddy23%

Others10%Wheat

8%Pulses & Oilseeds

7%

Chilli4%

Vegetables8% Fruits

5%


North is perennially

irrigated with canals and

ground water systems

South & West are rainfed and

seasonally irrigated with reservoirs and

canals

INDIAN AGRICULTURE : HIGHLY HETEROGENEOUS & SUBJECT TO UNPREDICTABLE WEATHER


323

21

9

3

6

14

74

91

Production

M T

2

2

5

1

1

6

2

2

WorldRanking in Production

58Soybean

48Maize

25Sugarcane

19Cotton*

18Gram

14Red gram

128Wheat

144Rice

World Ranking in

Area

Area

M Ha

Crop

Status of Key Crops in India

7th biggest country in Area2nd biggest in arable land

Country with highest irrigated area

Biggest producer of Tea & Pulses, Second in Oilseeds, Fruits, Vegetables & Third in Cereals

* In million bales of 170 Kg


5UK

1Pakistan

0.5India

5France

7Korea

7USA

12Japan

14China

17Taiwan

Consumption* per kg per ha

Countries

*Source : Dow / Phillip Mc Dougall

Huge Untapped PotentialHuge Untapped Potential

Pesticide usage in Indiao Only 21% of cultivated area

treated by pesticides

o Crop losses estimated at Rs 90,000 -140000 crannually.

CP product usage in India lowest

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