EPC Industriè Ltd - Mahindra EPC · Long Term Cost Reduction Access to Credit Reduced Labour Dependency Subsidy Reasons for Micro Irrigation Purchase Source: AlphaWise. 7 Industry

1Copyright © 2013 Mahindra Agri Business. All rights reserved.

AGRI BUSINESS

EPC Industriè Ltd

2Copyright © 2013 Mahindra Agri Business. All rights reserved.

AGRI BUSINESS

Contents Micro Irrigation

Need for Micro Irrigation

Industry size & opportunity

EPC Industriè ltd.

EPC Product & Service Portfolio

Financial Performance Q2 F’16 & YTD Sep F’16

Future Plans

The Mahindra Group

Mahindra Agri Business

3

Micro Irrigation Industry

4

Need for Micro Irrigation

India a water stressed economy ; will be water scarce by 2050

70% of the water available used for agriculture

Need for water efficient methods of irrigation

Benefits of Micro Irrigation:

– Water saving: 30% - 40%;

– Labour saving: 30% - 50%;

– Power saving: 20% - 40%;

– Fertilizer & Nutrition saving: 30%

– Productivity improvement: 10% - 30%.

5

Industry Size & Opportunity

Strong potential for growth

– Almost 60% of cultivable land is still Rain fed in India.

– 70 million Hectare Irrigated; Only 6 Million is under MIS

10,789

6,3915,658

3,378 3,2782,714

2,3901,850

1,442 1,232

1,117

0.2% 2.2%13%

0.7% 9%26% 22%

0%28% 12%

51%

0

2,000

4,000

6,000

8,000

10,000

12,000

UttarPradesh

MP Rajasthan Punjab Gujarat Maharashtra Haryana Bihar Karnataka West Bengal AndhraPradesh

Are

a (

x1000 H

a) Potential

Source: Raman 2010

6

Industry Size & Opportunity

The industry has been flat for the last 4 years, showing early signs of recovery

this year

Strong Customer Pull

0

1000

2000

3000

4000

5000

F '09 F '10 F '11 F '12 F '13 F '14 F'15

Revenue in Rs. Cr.

63

14

11

6

4

0 10 20 30 40 50 60 70

Higher Productivity

Long Term Cost Reduction

Access to Credit

Reduced Labour Dependency

Subsidy

Reasons for Micro Irrigation Purchase

Source: AlphaWise

7

Industry Size & Opportunity

Industry becoming more structured & streamlined

– Gujarat & AP Project markets use Tripartite agreements

– Use of IT to streamline ‘application to subsidy disbursal’ cycle

Bank support

– Banks Financing MIS systems aggressively.

– SBI, DENA, ICICI & IDBI initiators

– Loan availability has increased business potential

8

EPC Industriè ltd.

Pioneered Micro-Irrigation Systems (MIS) in India in 1986

Registered in 15 states under subsidy program in India

More than 600 channel partners; 11 regional offices.

M & M Ltd. holds majority stake & Management Control

Revenue

87.7

127.2

164.2 177.3 171.8

-

50.0

100.0

150.0

200.0

F '11 F '12 F '13 F '14 F '15

Revenue in Rs. Cr.

9

Open Markets

Project Markets*

Newly Opened Markets

Strong All India Network

10

Product & Service Portfolio

11

Strong Presence in Various segments

Drip irrigation System: Targeted, intelligent application of water, fertilizer,

and chemicals directly to the plant roots

Sprinkler Irrigation System: Suitable for modern farming as they offer

quality, high yield and cost efficiency

12

Product Portfolio

Superior Product Quality

Good Brand Equity in Indian market.

All the products comply to Indian Standards.

13

Product Portfolio: Drip Irrigation

Online Drippers

Inline Drippers

– Round Inline drippers

– Flat Inline drippers

Irrigation laterals

14

Product Portfolio: Drip Irrigation

Drip Fittings

Drip Filters

Filters

15

Product Portfolio: Drip Irrigation

Fertigation Equipment

16

Product Portfolio: Sprinkler Irrigation

Sprinkler Irrigation pipes

Pipe fittings

Sprinkler Nozzles

17

Field Services

Survey: Surveys of individual farms to collect data on crops to be

irrigated, its water & fertilizer requirements and agronomical practices

to be followed

Design: Complete designing of drip / sprinkler Irrigation layouts for

individual farms as well as for large plantation projects

Installation & Commissioning: Installation & commissioning of

micro-irrigation (drip & sprinkler) systems by trained and experienced

team

18

Field Services

Agronomy service

Demo Plots to explain & establish best practices

Soil and water testing

Crop Suitability recommendation

Fertigation & Irrigation schedules as per crop need

Farmer & Dealer training for

– Operation & maintenance of irrigation systems

– Fertigation

– Suitable chemical treatments

19

Field Services

Agronomy Training Demo Plots

20

Sales & Marketing

21

Farmers Training Program Van Campaign

Rural Exhibition Participation Demo Plot

Sales & Marketing

22Copyright © 2013 Mahindra Agri Business. All rights reserved.

AGRI BUSINESS

Financial Performance for Q2 F’16

and YTD Sep-2015

23

Performance at Glance Q-II F-16

Revenue

EBIDTA

Capital Employed

PAT

Figures in Rs. Cr.

32.6

41.4

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Q-II F-15 Q-II F-16

113.2

117.6

100.0

102.0

104.0

106.0

108.0

110.0

112.0

114.0

116.0

118.0

120.0

Q-II F-15 Q-II F-16

-1.3

1.1

-1.5

-1.0

-0.5

-

0.5

1.0

1.5

Q-II F-15 Q-II F-16

-2.4

0.4

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

-

0.5

1.0

Q-II F-15 Q-II F-16

24

Performance at Glance YTD Sep-15

Figures in Rs. Cr.

Revenue

EBIDTA

Capital Employed

PAT

80.3

94.5

70.0

75.0

80.0

85.0

90.0

95.0

100.0

F-15 F-16

2.8

3.9

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

F-15 F-16

0.4

1.6

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

F-15 F-16

113.2

117.6

100.0

102.0

104.0

106.0

108.0

110.0

112.0

114.0

116.0

118.0

120.0

F-15 F-16

25

Reducing Subsidy Dependence

26

New Allied Businesses

Greenhouse Pumps

27

Managing Large Projects

Large Community Projects

28

Newer Revenue Streams

Landscaping

29

Newer Revenue Streams

Exports

30

The Mahindra Group

31

The Mahindra Group

Founded in 1945 as a steel trading company

Diversified into manufacturing Willy’s jeeps

India’s 7th Largest Group - From Automotive to

Defense to Construction to IT to Agriculture

Recognised as a global leader in Utility Vehicles

and Tractors

More than 120,000 people across 110

subsidiaries, 6 JVs and 11 Associates, in more

than 100 countries

K.C. MahindraJ.C. Mahindra

32

Mahindra Rise: House of Mahindra

Accepting No

LimitsAlternative

Thinking

Driving

Positive

Change

“We will challenge conventional thinking and innovatively use all our resources to

drive positive change in the lives of our stakeholders and communities across the

world, to enable them to Rise.”

CORE PURPOSE

CORE VALUES : Good Corporate Citizenship | Professionalism | Customer First | Quality Focus |

Dignity of the Individual

33

Mahindra Agri Business

34

Deliver FarmTech Prosperity

We will deliver Farm Tech Prosperity through a

variety of existing and new agri initiatives to impact the

lives of farmers enabling them to RISE

BHAG: Big Hairy Audacious Goal

35

Agri Business Performance: Revenue

0

100

200

300

400

500

600

F 11 F 12 F 13 F 14 F 15

~ 8X

Rs. Crore

36

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37

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