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Usher Agro Limited - Meet/132765_20100917.pdf Rice-Mathura Rice-Buxar Rice-Chatta Wheat-Mathura Board of Directors Name Age Profile Mr. Vinod Kumar Chaturvedi Managing Director 45

Mar 14, 2020

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    Usher Agro Limited

    Investor Presentation 17 September 2010

  • Executive Summary

    Contents

    Industry Overview

    Company Overview

    Key Competitive Strengths

    Key Financial Highlights

  • Executive Summary

    One of the largest agri-food processing company engaged in milling of Rice and Wheat

    Founded in 1996 by Mr Vinod Kumar Chaturvedi and Mr Manoj Pathak, USHER’s success lies in well-timed expansions, uncompromised quality and profitable growth

    Total rice and wheat milling capacity of 327,000 MTPA currently and an additional rice milling capacity of 291,600 MTPA expected to be on-stream in December 2010

    Achieved sales of Rs 3,420 mn in FY 2010 which represents a CAGR of more than 70% in the last 3 years

    Focusing on expanding its business by putting up modern processing, storage and handling facilities

  • Industry Overview

    4

  • Food & Grain Processing Industry

    Basic Food

    Value Added Food

    Packed Food Juices/ Beverages

    Biscuits/ Bakery Ready to Eat Food

    Rice Wheat Pulses Coarse Grain

    Basmati Non Basmati Atta

    Maida

    Suji

    Bran

    Industry Structure

  •  India constitutes approx. 10% of the global food production estimated at 5,484.9

    mn MTPA1

     Agri-products like Grains and Fruits & Vegetables contribute majority (420 mn

    MTPA) to the food produced in India, followed by Milk (108 MT). Meat contributes

    2.9 mn MTPA to the food production

    Source: Ministry of Agriculture, NHB, NDDB, Industry sources, *2009-10 data, **2007-08 data

    Food Production in India

    Indian Agri-business Industry

    Source: Ministry of Agriculture, NHB, NDDB, Industry sources, *of Agriculture, NHB, NDDB, Industry sources, *of 2009 10 data, **2007 08 data

    Product Annual Production, Mn MTPA (08-09)

    Total Production Mn MTPA

    Cereals and Pulses 210.66

     Rice 99.15

     Wheat 80.71*

     Pulses 14.66

     Bajra 8.83  Jowar 7.31

    Edible oil 6.7 6.7

    Fruits 73.5** 209.6

    Vegetables 136.1**

    Milk (MT) 108.5 108.5

    Poultry – eggs 56,031 mn

    Meat 2.9 2.9

    538.36

    1Source: FAOSTATS, Statistics Division, Food and Agriculture Organization of the UN, Statistical Yearbook 2009

  • Overall Scenario

     Asia contributes to almost 88% of the

    global rice production and consumption

     India is the second largest producer

    contributing 24% to global rice production

     Rice plays a vital role in the national food

    security being the largest staple food. It

    contributes approx. 43% of total food

    grain production in India

     The main growing areas for Rice in India

    are Northern Grain belt constituting Uttar

    Pradesh, Punjab, Haryana, Bihar, West

    Bengal and Andhra Pradesh in South

     India’s rice production in 2008-09 was a

    record 99.15 mn MT

     India has traditionally been an exporter of

    both non-basmati and basmati rice

     Approx. 99% of the Indian Rice

    production is Non-Basmati

    31%

    24% 9%

    7%

    5%

    5%

    3%

    2%

    2%

    12%

    China

    India

    Indonesia

    Bangaladesh

    Vietnam

    Thailand

    Myanmar

    Japan

    Philippines

    Brazil

    Top Rice producing countries 2008-09

    Rice Industry (1)

    State Production of rice (% Share)

    West Bengal 15.16

    Andhra Pradesh 14.36

    Uttar Pradesh 13.20

    Punjab 11.09

    Orissa 6.87

    Bihar 5.64

    Total 455.9 mn MT1

    1Source: FAOSTATS. Data may vary from the estimates of Ministry of Agriculture in India Top Rice producing States in India (2008–09)*

    *Lok Sabha Unstarred Question No. 843, dated on 24.11.2009.

    Source: Ministry of Agriculture, India

  •  Being an essential commodity, the Government of India, procures around 25 mn MT of rice for distribution through Public Distribution Scheme (PDS).

     The millers are essential part of the value chain wherein either the Government gets the paddy processed by millers or procures milled rice from the millers.

     Food Corporation of India undertakes an assured procurement of food grains on behalf of Government of India.

     A Minimum Support Price or MSP is declared on an Annual basis only for Common and Grade A varieties of Paddy and Milled Rice, which are subject to Levy.

    Rice Industry (2)

    Paddy/ Rice 2005-06 2006-07* 2007-08* 2008-09 2009-10

    Paddy Common 570 580 645 850 950

    Paddy Grade A 600 610 675 880 980

    Rice Common 990 1074 1263 1502 1655

    Rice Grade A 1035 1120 1309 1548 1701

     The rice milling process results in by-product Husk, a biomass for generating green energy

     Another by-product Bran, is used for extracting Edible Oil.

    Minimum Support Price/ Rice Levy rate over the years (Rs/Quintal)

    *does not include Bonus price. Prices of 2007-08 are before the approx. 13% revision done from 12 June 2008

  • Overall Scenario

     World wheat production reached a

    record 686.1 mn tonnes in 2008-09 and

    has grown at a rate of 12.4% over the

    last year

     India has the largest area in the world

    under wheat (about 12.5%). However,

    in terms of production, India is the

    second largest behind China.

     India produces about 81 mn tonnes of

    wheat a year, which is about 36% of

    India's total food grain production in

    India.

     The Northern States of Uttar Pradesh,

    Punjab, Haryana , Bihar, etc contribute

    to more that 70% of the wheat

    production in India

    Top Wheat producing countries 2008-09

    Wheat Industry (1)

    Total 686 mn MT1

    1Source: FAOSTATS. Data may vary from the estimates of Ministry of Agriculture in India

    Top Wheat producing States in India (2008-09)*

    Total 686 mn MT1

    Source: FAOSTATS. Data may vary from the estimates

    State Production of wheat (% share)

    Uttar Pradesh 35.39

    Punjab 19.50

    Haryana 13.40

    Rajasthan 9.03

    Madhya Pradesh 8.08

    Bihar 5.47

    * Source : Lok Sabha Starred Question No. 451, dated 04.08.2009

    Source: Ministry of Agriculture, India

  •  Being an essential commodity, the Government of India, procures around 15 mn MT of

    wheat for distribution through Public Distribution Scheme (PDS).

     Food Corporation of India undertakes an assured procurement of food grains on behalf of

    Government of India.

     A Minimum Support Price or MSP is declared on an Annual basis

    Wheat Industry (2)

    Wheat Grade 2005-06 2006-07 2007-08 2008-09 2009-10

    Wheat 650 750* 1000 1080 1100

    Wheat Products

     Wheat is sold after crushing or rolling as wheat products (unlike rice, where the grain is sold), commonly classified based on the fineness of grain:

    ‒ Suji, or semolina and used for various preparations in household

    ‒ Atta, or Whole Wheat Flour, is used for making Chapattis, which central to the Indian diet

    ‒ Maida, or Fine Flour is used to make bread, biscuits, pasta, and other products in bakery industry

    ‒ Bran, is used as a poultry/ cattle feed supplement.

    Minimum Support Price over the years (Rs/Quintal)

    *does not include Bonus price

  • Rice/ Wheat Supply Chain

    APMC/ Mandis

    Intermediaries /Agents

    Customers

    Farmers Mill CFA/depots

    Large retailers Wholesalers

    Small & medium retailers

    Traders/ Stockists/ Brokers/Others

    Customers

    Kaccha Arahtiya

    Pukka Arahtiya

  • Company Overview

  • Name:  Usher Agro Limited

    Business:  Processing of agro based products

     Rice and allied products, mainly Non-Basmati rice

     Wheat products such as Atta, Maida, Suji, etc.

    Industry:  Agriculture – Food Processing

    Key Highlights:  An ISO 9001:2000 and HACCP certified company with automated and modern processing facilities

     ‘Rasoi Raaja’ registered umbrella brand for all our products

     Strong promoter background and professional management supported by a team of highly qualified and dedicated people

     Listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)

    Promoter Directors

     Mr. Vinod Kumar Chaturvedi

     Mr. Manoj Pathak

    Usher in a Glimpse

  • Incorporation of USHER

    Second rice milling plant at Mathura

    Initial Public Offer

    New Rice Milling at Chhata (under implementation)

    First rice milling plant at Mathura

    First rice milling plant in Bihar

    Wheat flourmill at Mathura

    Rice Milling at Chhata

    Jun 96 Nov 96 Dec 99 Nov 03 Sep 06 Nov 06 Feb 09 Dec 10

    Key Milestones

  • Rice Products

    Raw Rice  1121

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