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1Copyright © 2013 Mahindra Agri Business. All rights reserved.
AGRI BUSINESS
Mahindra Agri Business
2Copyright © 2013 Mahindra Agri Business. All rights reserved.
AGRI BUSINESSContents
Micro Irrigation
Need for Micro Irrigation
Industry size & opportunity
EPC Industriè ltd.
EPC Product & Service Portfolio
Financial Performance F-14
Financial Performance for QII & YTD Sept 2014
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 1,2321,117
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
Uttar
Pradesh
MP Rajasthan Punjab Gujarat Maharashtra Haryana Bihar Karnataka West Bengal Andhra
Pradesh
Are
a (x
10
00
Ha)
Potential
Penetration
Source: Raman 2010
6
Industry Size & Opportunity
The industry growing at 15% CAGR
Strong Customer Pull
0
1000
2000
3000
4000
5000
F '09 F '10 F '11 F '12 F '13 F '14 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
127.17
164.17 177.29
0
50
100
150
200
F '11 F '12 F '13 F '14 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 F-14
23
Performance at Glance F-14Figures in Rs. Cr.
Revenue
EBIDTA
Capital Employed
PAT
164.2
177.3
100.0
130.0
160.0
190.0
F-13 F-14
10.4
12.9
-
4.0
8.0
12.0
16.0
F-13 F-14
5.3
7.7
-
2.0
4.0
6.0
8.0
F-13 F-14
119.3
129.4
100.0
110.0
120.0
130.0
F-13 F-14
24Copyright © 2013 Mahindra Agri Business. All rights reserved.
AGRI BUSINESS
Financial Performance for
Q-II & YTD Sep 2014
25
123.4
113.2
Q-II F-14 Q-II F-15
1.3
-2.5
Q-II F-14 Q-II F-15
41.4
33.0
Q-II F-14 Q-II F-15
Performance at Glance Q-II
Revenue
EBIDTA
Capital Employed
PAT
0.7
-2.4
Q-II F-14 Q-II F-15
Figures in Rs. Cr.
26
Performance at Glance YTD Sep F-15Figures in Cr.
Revenue
EBIDTA
Capital Employed
PAT
86.8 84.6
F-14 F-15
6.5
2.8
F-14 F-15
4.3
0.4
F-14 F-15
123.4
113.2
F-14 F-15
27
Q2 Industry Environment
Due to change from NMMI to NMSA there has been some
confusion at the state level
Few states have not announced their policy, as a result,
business has virtually come to a standstill in these states
As per industry estimates, H1 industry has dropped by 15
to 20% over last year
It is expected that in H2, the policies will be announced for
all the states and there will be a higher priority at the Sate
level to utilize the subsidy
28
Future Plans
29
Customer Centricity: Enabling increased
customer reach
Agri Helpline
30
New Allied Businesses
Greenhouse Pumps
31
Reducing Subsidy Dependence
Large Community Projects Landscaping
Exports
32
The Mahindra Group
33
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
34
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
35
Mahindra Agri Business
36
BHAG: Big Hairy Audacious Goal
37
Agri Business Performance: Revenue
0
100
200
300
400
500
F '11 F '12 F '13 F '14
In Rs. Cr
38
Disclaimer
EPC Industrié Limited. (A Mahindra Group Company), herein referred to as EPC provide a wide array of presentations and reports, with thecontributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do notconstitute an offer to buy or sell any securities mentioned therein. They do not purport to be a complete description of the markets conditionsor developments referred to in the material. While utmost care has been taken in preparing the above, we claim no responsibility for theiraccuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use theinformation contained herein at their own risk. These presentations and reports should not be reproduced, re-circulated, published in anymedia, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of EPC. Any unauthorized use,disclosure or public dissemination of information contained herein is prohibited. Unless specifically noted, EPC is not responsible for the contentof these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, so viewers andothers utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may notrepackage or sell the presentation. Products and names mentioned in materials or presentations are the property of their respective ownersand the mention of them does not constitute an endorsement by EPC. Information contained in a presentation hosted or promoted by EPC isprovided “as is” without warranty of any kind, either expressed or implied, including any warranty of merchantability or fitness for a particularpurpose. EPC assume no liability or responsibility for the contents of a presentation or the opinions expressed by the presenters. Allexpressions of opinion are subject to change without notice.
Copyright © 2012 Mahindra Agri Business. All rights reserved.
Thank you“Investors don't invest in businesses, they invest in People."
39
AGRI BUSINESS
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