s

Amazan Agro Products Ltd.

Infinity Infotech Parks

Tower-1, 2nd Floor, Plot No. A3, Block- GP,

Sector- V, Salt Lake City ,

Kolkata-700091

Tel: +91(33) 4013 2300

Fax: +91(33) 4013 2399

Developments and Upcoming Events Annabhog Popular and Annabhog Premium Non-Basmati rice launch.

Annabhog Popular and Premium rice in the non-basmati segment is all set to

make its presence felt with its launch in Kolkata region in the initial launch phase.

MEGGA value added eggs in market soon.

MEGGA will soon bring to the consumer’s breakfast table Vitamin rich eggs and

semi-organic eggs.

.

MONTHLY NEWSLETTER

Professional Development

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AMAZAN ’S W EB PORTAL

Amazan Agro Products Ltd. made

public ,its web portal in Nov.2010.

The vibrant and dynamic web

portal, developed in collaboration

with PricewaterhouseCoopers, is a

comprehensive information source

about the company and also

facilitates a direct link for putting in

queries. PwC also conducted a

training session for web portal

management and administration to

those who would take over the

responsibility of updating the portal

on a dynamic basis.

At Amazan we believe in keeping

abreast with time and technology.

The very preference of a web portal

over a conventional website

endorses this very belief.

The portal can be accessed at

www.amazaninternational.com

Ushering into the New Year 2011 Managing Director’s Address

“Innovation skills or I-skills is all about being

creative to be able to stay ahead of competition”,

says Robert Tucker, an internationally recognized

leader in the field of innovation. Innovative

management is being embraced as the latest

concept in the corporate world. Driving growth

through innovation is in. Endorsing similar beliefs

and providing motivational impetus, Managing

Director of Amazan Agro Products Ltd., Mr. Joydeb

Garai, ushered us into the New Year 2011.

Addressing the members of the Amazan family, he

reiterated his vision to develop a holistic and

efficient business model for Amazan Agro

Products and Agri Business Supply Chain, and

urged all to dream big.

Some Excerpts:

“There is nothing stopping us from growing, but

the need for right strategy & its execution with

real hard work. We are in the process of

developing our Food & Agri Business Supply Chain

strategic road map for the next five years in

consultation with KPMG, that the Company will

follow in an attempt to reach its objectives. This

road map will be the result of strategic planning

analysis and survey that considers short, medium

and long term goals for our company. This will

also act as a guide for our execution team,

specifying exact action that must be taken in order

to obtain Company’s objectives.”

Emphasizing the essence of ideas in today’s

world, Mr. Garai stated “Ideas are the Real

Capital, Rest is just Money. In fact ideas are the

real currency in the Twenty first Century.” His

belief in innovation and differentiation being as

one’s strength, came across clearly as he

quoted” You cannot stop an idea whose time

has just come”. He called upon to stand out

from the crowd and refrain from being one

amongst many. At the same time emphasizing

on the need for consistency and reliability of

product and service offered to the consumer.

“Dream big for dreams are seedlings of reality”

he quoted Napoleon Hill, the author of all times

classic, “Think and Grow Rich”. Seedlings are

supposed to be planted so that one day they

may bear fruits.

Even as we further our attempts to sow for the

future and make dreams the blue prints of our

ultimate accomplishments, he urged the need

to equally look back, “Open your eyes and look

at the fields. They are ripe for Harvest”.

this issue Ushering into the New Year 2011 P.1

In Conversation With P.2

Is Change Overdue! P.3

Amazan Capital: Private Equity P.4 & P.5

Integrated Poultry Hub P.6

The Growing Amazan Family P.7

Developments and Upcoming Events P.8

I S S U E

J A N 2 0 1 1

01

Tech Times Issue 00 Month Year

Visit us at: amazaninternational.com

It gives me immense pleasure to bring to you the maiden issue of Amazan Newsletter. The forthcoming issues will feature articles on developments at Amazan, industrial analysis and overview, opinions and the latest in related fields, amongst others. More and more participation from the members of the Amazan family is solicited to make the newsletter a grand success and truly reflective of the Amazan family. The entries would be published in the newsletter and one of them adjudged and acknowledged as the best amongst all

Mudita Shah

In Conversation With

Amazan celebrated its Foundation

Day on 22nd of Jan. We got into

conversation with some, asking

them, how their journey with

Amazan has been so far.

Is Change Overdue!

Imported Refined Edible Oils Scenario

EYE ON IT Current Industry Trends

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MONTHLY PICKS

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dolore, ut at praemitto opto si

sudo, opes feugiat.

Is the Imported edible oil scenario up for a

change? Edible oil import in crude form at

present is duty free while refined oils bear

customs duty of 7.5 per cent ad valorem as in

case of soybean oil. The rate of duty though is

not levied on the invoice price but on the

specified tariff value, around US $580/Ton in

case of Soybean oil as against the present

market value, which is substantially higher. So

the effective duty on refined oils is much lower

than the statutory one. The SEA proposed tariff

value is US$ 870/MT.

With the Govt. finding itself under duress to

take some effective measures to control the

reigning food inflation which hovered above 18

% in the first week of Jan, there emerges to be a

strong case for abolishing the duty on import of

refined oils and bringing it at par with crudes.

Sitting in the conference room during the induction period,

listening to presentations on topics varying from

company’s business operations to HR policies, to getting

introduced to the Amazan family. Those moments seem all

too distant now for all the inductees, who have become so

intricately woven in the very Amazan fabric and deeply

ingrained in working towards a common goal. The journey

so far has been accosted with dollops of learning, glints of

challenges, gleams of success, flavours of camaraderie and

oodles of motivation. This keeps alive the flame to counter

challenges and innovate ways to make Amazan carve out a

distinct niche for itself, making it stand out from the

crowd.

On the 22nd of Jan , Amazan celebrated its Foundation Day.

The mood was all jubilant and buoyant on the day as it

commemorates how the dream of an innovator took shape

and charted an upward growth path ever since, never

looking back. On the momentous occasion we got into

conversation with a few of the Amazanites to know what

their experience has been so far.

For Atul ,who has developed a keen insight into sales and

distribution network and is responsible for this segment of

the supply chain of Amazan Agro, it has been a journey of

constant exploration. It has enabled him not just to learn

but also to delve into the human psyche ,as he endeavors

to build relationship with all the members of the supply

chain network. He opines “business is not just about

generating revenues, but when viewed holistically it is

about working in conjunction with your business partners

to deliver a promise to the end customer”. He believes that

the bottom line for sales is, to walk the talk.

Mr Saiket Dutta, heading the Third Party Distribution

Business at Amazan Capital and one of the new members

of the Amazan family says that the journey for the past one

and a half months for him has been wonderful and it felt

good to be a part of the family. Mr. Dutta was all praises for

the senior management and his team for providing

constant support

to meet the objectives and goals that Amazan has

envisioned.”We are trying hard to build a good team for

Insurance Business so that we can leave a mark in the field

of insurance broking industry in India”.

While brands like Pureline Kachi Ghani Mustard oil in the

edible oil segment and Megga in the poultry segment are

already getting rave reviews from customers and

distributors alike, Amazan Agro’s brand portfolio is soon to

add to its kitty Annabhog, branded non-basmati rice and

Pureline Refined Soybean Oil in the coming days. The

commendable performance of Amazan Agro and Amazan

Capital is attributed to the sincere and dedicated efforts of

its various teams .

“We take success as a milestone in the journey and not the

destination itself, making them the stepping stones

towards realization of a bigger dream as envisaged by our

Managing Director Mr. Joydeb Garai. We believe in striving

to develop an opportunity at hand and not await one. We

create and innovate as the guiding light beacons us to

‘refresh, revalue and rethink’,” remarked one of the

members.

In conversation with Mr. Garai, the tremendous zeal with

which the organization is being lead, was underlined when

he opined, “There are several things in this world that are

set right. No wonder in our journey ahead there will be

stones .We need people who believe that eventually the

stones will be converted to milestones and not be

encumbered by harsh reality .A quarter of a watermelon is

always larger than a whole cherry.”

Persistent strong demand resulting in bullish

markets and La Niña attributed weather

aberrations in the major producing countries,

may cause the edible oil sector to look

forward to some import duty changes.

However this salutary measure may counter

some strong opposition from the Solvent

Extractors Association who put forward the

cause for development of the indigenous

solvent extracting units and supporting

farmers and industry. Advocating imposition

of import duty on crude oils as well, they are

of the view that excessive speculation in the

markets in addition to reserve selling by

stockists are responsible for the industry

facing negative crush margins. The

imperfectness as of now in the edible oil

markets is largely due to tight control and

influence of large refiners who dictate market

prices and sway the trends. The time lag

created between landing of crude at ports and

disposal after refining encourages speculative

trading positions in the market. With

abolishment of import duty, traders will have

the liberty to import refined edible oils while

the refiners will have to competitively price

their refined crude, thus bringing about

healthy competition.

Will the refined edible oil industry witness

any change in the coming days? As of now it’s

just wait and watch!

THE INTERCOMPACTA

SIX ROW EGG GRADER

FROM STAALKAT

INTERNATIONAL

The semi-automatic six row grader

from Staalkat International,

purchased by Amazan will facilitate

easy and efficient washing, sorting,

grading and packing of eggs. The

machine will introduce newer levels

of hygiene and efficiency in the egg

industry. The grader with a capacity

of 25 cases an hour can produce

upto seven grades. Replete with an

infeed table, a candling section,

grader and a hand-packaging and

packing shelves, the machine

minimizes human intervention to

provide hygienic ,well sorted and

graded eggs.

What is Private Equity

Private equity firms generally want to buy companies or part of

companies for their portfolios, re-engineer them, make them

operationally more efficient, and sell them on. The investment

period is seldom less than a year and can be as long as 10 years,

but the objective is always to sell the business on at a substantial

profit. Private equity investors have three main investment

strategies:

1. Venture capital

2. Growth capital

3. The leveraged buyout (LBO)

Investment Approach We at Amazan capital limit our investment activity to a small

number of businesses to allow the focus necessary to achieve

our goal of building market-leaders. We work closely with

management to support the development of each company's

strategic plan and initiatives to improve growth, profitability,

operational effectiveness and, ultimately, business value. By

dedicating our resources in this way, we enable management

teams to expand the scope or accelerate the time frames of their

business plans. The effectiveness of this focused approach has

been demonstrated through the achievement of substantial

growth and improved profitability at each of our prior

investments. As part of this approach, we let business plans

determine the appropriate capital structures for our

investments. For this reason, we typically employ lower levels of

leverage than available in the market to ensure that ample

resources are in place to support the development of each

business.

Investment Philosophy

Amazan capital has a well-defined investment philosophy that

guides our investment activities. This philosophy is manifested

in the partnerships we develop, in our approach to building

businesses and in our commitment to alignment with our

investors and management. We believe adhering to these

principles leads to superior results for everyone involved in our

investments. We firmly believe that most high growth

businesses in the Indian subcontinent require more than just

capital. We seek to combine a hands-on, active and operational

Amazan Capital: Private Equity

This space features the best entry for the month .Pen down your views and opinions and grab this space. Rush your entries at mudita.shah@amazanagro.com

Article of the month

Healthcare:

The Indian healthcare sector presently a US$ 40 billion

industry is expected to become a US$ 280 billion industry by

2020 with spending on health estimated to grow 14 per cent

annually, according to a report by an industry body. Healthcare

has emerged as one of the most progressive and largest service

sectors in India with an expected GDP spend of 8 per cent by

2012 from 5.5 per cent in 2009. We believe that the fragmented

nature of both the hospitals and pharmaceuticals sectors,

investors also see potential for tapping into consolidation

opportunities in partnership with growth-oriented

entrepreneurs. The sheer levels of under-penetration of

healthcare services - in addition to factors such as a growing

population, increasing disease profiles etc. – is one of the key

growth drivers for the sector.

Agriculture and Agri Business:

India’s retail market for fresh fruits and vegetables is estimated

at $35 billion. Organized retailing is estimated at $73 million

and growing at the rate of 30%.Rapid growth of food retailing

& increasing health consciousness with changing lifestyles is

driving growth of agricultural produce which is hygienic and

healthy. According to Rabobank, the Indian agri biotech sector

has been growing at blistering 30% in the last 5 years & this

trend is expected to be maintained in future as well .Another

potential lies in biofuel. Indian food market is estimated at

$200 billion & is estimated to grow to around $300 billion

2014-15.There is an opportunity for large investments in food

and food processing technologies especially in areas of canning,

dairy and food processing, specialty processing, packaging,

frozen food or refrigeration and thermo Processing .Fruits &

vegetables, fisheries, milk & milk products, meat & poultry,

packaged or convenience foods, alcoholic beverages & soft

drinks and grains are important sub-sectors of the food

processing industry. Health food and health food supplements

are another rapidly rising segment.

billion with a CAGR of 30%.It is expected to reach US $ 200

billion by 2020.

.

Real Estate and Infrastructure:

Indian Real Estate industry is currently estimated to be US $

48.Growth is energized by:

High growth in the services sector- telecom, financial services, IT & ITES etc.

Growing demand for affordable housing and high rate of urbanization

Growing penetration of mortgage finance Current contribution of Real Estate sector to India’s GDP is

5%.In the recent year’s industry has evolved from a highly

fragmented & unorganized market into a semi-organized

market. According to McKinsey, if infrastructure

development is not aggressively pushed, India could suffer

a GDP loss of USD 200 billion (around 10% of GDP) in fiscal

year 2017. India’s infrastructure build out envisages

investment of close to USD 500 billion with USD 430 of this

in the core transport and utility sectors . About one fourth

of this investment is expected to be met through public

private partnership. India is on a course to a deficit of USD

150 billion to USD 190 billion in financing core

infrastructure sectors. The infrastructure sector provides a

large opportunity for financial sector players, with potential

revenues of USD 10 billion to USD 12 billion between the

financial years 2010 and 2014 & a revenue pool of USD 25

billion to USD 29 billion beyond 2014.

Education:

Indian Education System is by far the largest capitalized

space in India with $30bn of government spending (3.7% of

GDP; at global average), and a large network of ~1m

schools and 18,000 higher education institutes. Yet, the

public education system is ‘insufficient’ and ‘inefficient’,

leading education-hungry and affluent Indians to spend

$50bn on private education (14% CAGR over FY08-12E).

We see tremendous potential in exploiting the untapped

potential in the Indian Education Sector.

Santosh Bukitgar & Satvinder Kumar

What is Private Equity?

Amazan Private Equity: Approach, Philosophy and Strategy

approach with the willingness to compound capital over the long

term.

This enables us not only to deliver superior and consistent

returns, but also to manage risk in a more effective manner. The

firm’s globally-integrated partnership ensures that all of our

resources are committed to the success of each portfolio

company. Regardless of an investment's stage of development,

industry focus or geography — the right people, with the right

experience, are available to every entrepreneur and management

team.

Investment Strategy

Private Equity at Amazan Capital follows a classic private equity,

long term investment approach which involves extensive due

diligence and substantial rights. We expect entrepreneurs and

management to view us as knowledge partners with the aim to

add value to the underlying business rather than financial

investors. Our strategy is to invest only in businesses where our

knowledge of the relevant technology, science, competitive

marketplace and service requirements gives us confidence in our

ability to assist management teams in growing their companies

and building value. We believe that through our years of

experience and exceptional team we would be able to use our

operational and financial engineering experience in re-

engineering struggling businesses into efficient businesses with

long term sustainable growth and profitability for all the

stakeholders. When we make an investment, we provide

substantial strategic, operational and financial resources to the

business to help assure its future success

Our core strategy involves identifying companies with enterprise

values between $10 - $50 million

Equity Investments of $1 - $15 million

Invest in growth sectors in India:

• Healthcare/Pharmaceutical

• Food and Agri business

• Infrastructure and Real Estate

• Information Technology and IT enabled services

• Education

Potential structures: Seed Capital

Early stage ventures

Growth Capital

The Growing Amazan Family : New Inductees Since Nov. 2010

NAME DIVISION DEPARTMENT DESIGNATION

1 SANTOSH S BUKITGAR CAPITAL PRIVATE EQUITY AVP

2 PARTHA SARATHI CHAKRABORTI CAPITAL PRIVATE EQUITY GENERAL MANAGER

3 ABHISHEK SENGUPTA CAPITAL PRIVATE EQUITY SENIOR MANAGER

4 ARNAB SINHA CAPITAL PRIVATE EQUITY MANAGER

5 BIBEK BANERJEE CAPITAL WEALTH MANAGEMENT ZONAL MANAGER

6 KHALID SHAMIM CAPITAL WEALTH MANAGEMENT MANAGER

7 SAIKAT DUTTA CAPITAL THIRD PARTY DISTRIBUTION SENIOR MANAGER

8 SUBHASIS MUNSHI CAPITAL THIRD PARTY DISTRIBUTION MANAGER

9 KOUSTAV BISWAS CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

10 AMAN VERMA CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

11 CHIRADIP SEN CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

12 RITWIK BHATTACHARYYA CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

13 ASHIM SWARNAKAR CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

14 RAJ KUMAR CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

15 SRIPRAKASH SINGH CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

16 SHILAJIT KOLEY CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

17 PARVEEN PRASAD CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

18 SUDIP GOBINDA CHAUDHURY CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP MANAGER

19 UTTAM SING CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP OFFICER

20 RAKESH KHANDELWAL CAPITAL THIRD PARTY DISTRIBUTION RELATIONSHIP OFFICER

21 SRIJATA GHOSH CAPITAL THIRD PARTY DISTRIBUTION OPERATION-EXECUTIVE

22 AMRITA ROY CAPITAL OPERATIONS EXECUTIVE

23 ABHIJEET DEY CAPITAL FINANCE & ACCOUNTS EXECUTIVE

24 SUBROTA MONDAL CAPITAL IT EXECUTIVE

25 INDRANIL SENGUPTA AGRO HR & ADMIN SENIOR EXECUTIVE

26 NIRMAL CHATTERJEE AGRO HR & ADMIN EXECUTIVE

27 HEMARUN MUKHERJEE AGRO SALES MANAGER

28 BISWAJIT BASAK AGRO SALES EXECUTIVE

29 BARUN KUMAR JANA AGRO SALES EXECUTIVE

30 SK ZIAUR RAHAMAN AGRO SALES EXECUTIVE

31 LALTU SARDAR AGRO SALES EXECUTIVE

32 BIKASH KALI DAS AGRO SALES EXECUTIVE

33 BIDROHI CHAUDHURI AGRO SALES EXECUTIVE

34 SUBHANKAR PAL AGRO SALES EXECUTIVE

35 RITAL MAJUMDAR AGRO SALES EXECUTIVE

36 CHAUDHURY MUSADDIK KADIR AGRO SALES EXECUTIVE

37 SOUMYADIP GHOSH AGRO SALES EXECUTIVE

38 AMITAVA CHAKRABORTY AGRO SALES EXECUTIVE

Improper disposal of the bird’s excreta is a grave

threat to the hygienic conditions in the poultry

farms. EC poultry farms ensure proper collection

and suitable disposal of birds’ droppings.

All these conditions alleviate the chance of

clinical as well as subclinical infectious spread of

diseases to the birds resulting in considerably

reduced mortality rate and ultimately improve

the returns from the birds.

State of the art packing center facilitates proper

collection, sorting, grading and cleaning of eggs.

Packing center clubbed with the production

house ensures that fresh eggs reach the ultimate

consumer within 24hrs of production.

In recent times the poultry industry has

witnessed scare from bird flu, resulting in culling

of millions of birds and considerable monetary

losses. In such a hub, proper measures are

undertaken to help preempt any such threat and

keep the virus at bay.

The conceptualization of an integrated poultry

hub aligns itself with Amazan’s commitment to

bring in the latest technology to revolutionize

agri. and food products supply chain, so that

consumers can bring home the best poultry

products.

In furthering its efforts towards development of

a composite poultry hub, Amazan Agro

Products Ltd. paid host to Benjamin van Dijk

form Agrotop Ltd., an Israel based company

which specializes in planning design and

implementation of complete turnkey projects

worldwide, for the agriculture and industrial

sectors. Agrotop Ltd. is Israel’s leading company

for poultry complex turnkey projects, having a

market share of 80% in Israel. Mr. Benjamin,

responsible for Environment Controlled

Turnkey Projects at Agrotop, submitted an offer

for Environmentally Controlled houses for

layers and pullets, as well as eggs center with

packing machine and discussed in depth its

implementation feasibility in context of

Amazan.

Eggs produced in EC poultry houses are of the

best quality due to well maintained diets and

optimum environmental conditions. This also

reduces the risk of infectious as well as other

diseases thereby resulting in healthy birds and

ultimately healthy eggs.

Amazan played host to

Agrotop’s Mr. Benjamin van

Dijk from Israel for an

integrated poultry hub

establishment.

Integrated Poultry Hub:

A dream taking shape

BRANDS FROM THE

HOUSE OF AMAZAN

We take pride in offering to our

customers the best in the industry.

In the edible oil segment, Pureline

Kachi Ghani Mustard oil brings to

the consumers, the pure taste of

Mustard oil.

Our egg brand Megga delivers

wholesome nutrition through the

bigger and better tasting white

and brown eggs.

Annabhog Popular and Premium

non-basmati rice are all set to

make their mark in the cereals

segment.

For us at Amazan, brands are a

source of promise to our

customers and we firmly believe in

keeping promises. Branding helps

us create a personal touch even

as we create brand into a sum

total of the expectations and

perceptions of the customer. We

adhere to the company philosophy

of providing satisfaction to our

customers by means of delivering

quality products to meet their

expectations and give them the

best value for their money.