Sales Review Meet - 2009-10Integrated Business India

1

Presentation OutlineIntegrated Business Organogram Integrated Business India Structure UPL Products Strength UPL Sales Journey & Key Contributing Products Business Highlights Integrated H1 Sales Performance Projections for Q3 & Q4 Sales Outlook 2009-10 Q1 A + Q2 A + Q3 F + Q4 F

SWOT Analysis Registration Outlook for the year Competitive Scenario Indian Agrochemical Market An Overview UPL in India Product Group & Market Share AF Key Products Journey Indian Business Marketing Strength Marketing Activities Marketing Inputs Corporate Brand Building Activities

2

Integrated Business Organogram

Integrated Business Organogram.doc

3

Integrated Business - India StructurePunjab Rajasthan H.P & J & K Haryana Uttar Pradesh Chandigarh

Employee Strength - 381 Zonal Business Heads - 7 Regional Managers 35 Marketing Team 37 SO/SE/SSE 260 Depots 24 Channel Partners 4500

Delhi Ahmadabad

Madhya Pradesh Gujarat Chhattisgarh

HO

Pune

Kolkata Hyderabad

West Bengal Bihar, Orissa Assam & NE States

N

Maharashtra Bengaluru Andhra Pradesh

W

EKarnataka Tamilnadu & Kerala

S

4

5

UPLs Products Strength (AF)

6

UPL Seed Product Profile (FC & VC)

Key field Crops (Advanta)1. 2. 3. 4. 5. 6. 7. Paddy Cotton Maize Sunflower Jowar Bajra Mustard

Key Vegetable crops (Golden + Unicorn)1. 2. 3. 4. 5. 6. 7. Tomato Chilli Brinjal Bhindi Cabbage Cauliflower Cucurbits

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Integrated Business SnapshotPeriod - H1(April - Sep 2009), Value - Rs. Cr.

Division Agro Formulation Field Crops Vegetable Crops ntegrated Total3 0 300 2 0 200 1 0 100 0 0 Agro Formul ion Previous Year Actual 14 1 2 1 2 1 4 101

Previous Year 162 59 29 250

Budget 2009 182 70 38 289

Actual % % 2009 Achievemen Growth 184 46 31 261 101 67 82 90120 2 0 2 2 9 2 1 90 100 0 0 40 20

14 (22) 6 4

9

0

4 (22)

4 29 3 31

0 -20 -40

Fi l Crops udget 2009

Vegetable Crops Actual 2009

Integrated Total % Growth

% Achievement

8

Agro formulation Journey (Net Sale Rs. Cr.)

300 250 200 150 109 100 50 0 111 130

277

Rs. C .215 176 181

2008-09

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

9

Key Products (AF)2008-09 (% Contribution of Net sale)Kaardon, 4 T otal, 3 Lancergold, 4 Jhatka, 4 Phoskill, 13

Lagaam, 4 Uthane, 7 Umet, 11Brand Names Jha ka Lancerg d Kaard n T ta

Saaf, 13

Brand Names Saaf

Technical Name M n cr ph s 36% SL Carbendaz m 12% + Manc zeb 63 % WP ra e 10 G Ph Manc zeb 75% W.P. mazethapyr 10% SL

Technical Name C d naf p pr pargy 15% WP Acepha e 50% + m dac pr d 1.8% SP Car ap Hydr ch r d 4G Su f su fur n 75% + Metsu furan Methy 5% WG

Lagaam

Uthane

Ume

Ph sk

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H1 Sales Snapshot (Integrated)

Val

Budget (Sale) Actual (Sale) al i i i i al

Q 158 167 3

Q 131 95 73 3 3

al 289 261 37

11

H1 Sales Snapshot (AF - All India)

Valu - Rs. Cr.

Budget (Sale) Actual (Sale) Sal s Ach. ( ) Bu g t Co tri utio Co tri utio Actual

88 89

94 95

H Total 182 184

12

Sales Snapshot (FC All India )

Value Rs

r

H Bu g t (S le) tual (Sale) Sales Ac udget o tr but o o tr but o Actual 55 62 15 -15

otal 70 46

13

H1 Sales Snapshot (VC All India )

Val

s.

.

2009-10 Budget (Sale) Actual (Sale) al s . Budget tribution Contribution tual

Q1 16 16 99 7

Q2 22 15 70 47

H1 38 31 82 47

al

14

Sales Outlook 2009-10 (Integrated All India)Value s. Cr.

Budget Actual/Forecast % ievement

Q 158 167 5Budget500 450 400 350 300 250 200 150 100 50 0 105

Q 131 94 7Actual/Forecast101

Q3 98 99

Q 48 51 7% Achievement435 107 411

Outlook 435 411 5

120 100

95 72 158 167 131 94 98 99 48 51

80 60 40 20 0

Q1 A

Q2 A

Q3 F

Q4 F

FY 09-10 Outlook

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Sales Outlook 2009-10 (AF)Value Rs. Cr.

1A

Q2 A 94 95 101

Q3 F 70 75 108

Q4 F 31 36 116

FY 09-10 Outl k 282 295 104

Budget A tual ecast Achievement

88 89 101

350 300 250 200 150 100 50 0 1 101 88 89

101 94 95

2

3

4

!( # '&%$ !#"108 70 75

a

r a

m

116

282 295

31 36

09 10

!3

2 1 0#" )

!

120 115 110

104

105 100 95 90

16

Sales Outlook 2009-10 (FC)Valu Rs. Cr.4

Q1 A

Q2 A 15 15 -102Actual/Fo cast67

Q F 14 3 21

Q4 F 6 6 10

FY 09-10 Outl 90 55 62

Budget Actual ecast Achi v t

55 62 11Budg t6

% Achievement90 107 55 50 62 0 6 6 -50 150 100

100 80 55 60 40

113 62

21 15 14 3

20 0 -20 -40 Q1 A Q2 A -102 -15

Q3 F

Q4 F

F 09-10 Outlook

5

-100 -150

17

Sales Outlook 2009-10 (VC)98

Value Rs.

.

A

A 22 15 68

F 14 21 151

F 11 9 81

FY utlook 63 61 97

Bud et Actual/Forecast % A hievementBudget

16 16 99

70 60 50 40 30 20 10 0 Q1 A 16 16 99

A tual Forecast

% Achievement 63

22 68 15 14

Q2 A

A

@

151

61

160 140 120 100

81 21 11 9

97

80 60 40 20 0

Q3 F

Q4 F

FY 09-10 Outlook

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Q3 + Q4 Sales Outlook (AF - Key Products)GF GF D ED DS.No. Produ ts Te ni a l

Carbendazim 12 + Mancozeb 63 Wp

horate 10 G

Sulfo 75 + Metsulfo 5 WG

Cartaphydrochlorde 4 G Acephate 75 SP Acephate 50% + Imidacloprid 1.8% SP Pyrazosulfuron 10 WP Buprofezin 25 SC Cypermethrin 10 EC Phosphomidon 40 SL Sulfosulfuron 75 WG Paraquatdicholride 24 SL

Total

P

Monocrotophos 36 S

I

Mancozeb 75 % W

I

H

I

Q

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Jhatka Saaf Uthane Umet Total Phoskill Kaardon ancer Lancergold Saathi Buprolord Ustaad Kinadon plus SF-10 Uniquat

Cl dinofop 15% W

12 11 11 10 8 4 4 3 3 3 3 2 2 2

12 12 12 12 8 6 4 4 3 4 3 3 2 2

83

89

CB

D

CB

Budget

r.)

Expe ted

r.)

19

Q3 + Q4 Sales Outlook (FC - Products)

S. o. Produ ts 1 Field Corn 2 Sunflo er 5 Sorghum 3 4 ice Mustard Total

Budget H 8 7 2 1 1 1

r.)

xpe ted H 1 3 2 1 2

r.)

20

Q3 + Q4 Sales Outlook (VC - Key Products)S. o. 1 2 3 4 5 6 7 8 9 10 11 12 14 15 Produ tsHybri C bbage OP C riander Hybrid C illi Hybrid Tomato Hybrid Watermelon Hybrid Caulifolwer OP Bhindi Hybrid Cucumber Hybrid Bhindi Hybrid Beetroot Hybrid Brinjal Hybrid Muskmelon Hybrid Bottlegourd Hybrid Bittergourd Total

Budget H 4 2 2 2 2 2 2 1 1 1 1 1 0 0

r.)

xpe ted H 4

r.)

2 2 2 2

20

1 1 1 1 1 2121

Measures to Cash Opportunities & Improve Strength1.

Opening of New Markets/ GeographiesBenefits of inter divisional network & Human resource available. Opportunity to be strong & branded in remote area like Assam, Manipur, Jharkhand, J & K, Himanchal

2.

Brand & Segment differentiation of proprietary productsSaaf, Saathi, Lancergold, Total & Lagaam

3.

To cash maximum productivity from IPR departmentTo get maximum patents for upcoming new products UPH 206, UPH 203B, UPH 309 ISK Products

4.

Competitive advantage over competitionBig integrated Distribution network Sales team equipped with strong & structured marketing team

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Strategies to Combat Threats & Weaknesses1.

Safeguarding Big Integrated customer baseFarmers as well as Trade Partners Regular Contact with innovative marketing tools

2.

New upcoming Strong pipeline productsISK Products - exclusively new Chemistry To compete with strong competitors & to improve overall image (company dependent on old generics)

3.

Keep an eagle eye on G.M Crops & Market trendsTo have a best product fit, To be proactive to accept the changes & develop the strategy

4.

To be a Farmer Centric OrganizationFocus on farmers, root level extension activities to compete from low cost manufacturers/Local players To compete with new entrants like Makteshim, Sinochem, Devgen etc

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Registration outlook for the year1.

Key Registrations Obtained in H1Fipronil 5 % SC Fipronil 0.3 Gr Chlorpyriphos 50 + Cyper 5 EC

2.

Key Registrations Expected in next two QtrsClodinofop 15% + Metsulfuron 1% WP Emamectin Benzoate 5% SG Ethion 40 + Cyper 5 EC

3.

Key Registrations Planned in H2 Qtrs

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Competition for top 5 UPL ProductsVolume Kl/MtS. o. Produ ts Te hni alStrategy to target Che onova Customers, Overall they are getting eak in Product range, Distribution & Team Continue to focus on new segments, Seed Treatment, Concept development like Saafilizer, contuation in promotional activities

b

5

Jhatka

Clodinofop 15 WP

560

98

17

Complete range in wheat herbicides, 2nd most popular brand

a

4

Uthane

Mancozeb 75 WP

8100

881

11

Biggest anufacturer, Improving penetration & reach in new geographies

Indofil (2100 t)

Syngenta (220 Brand Leader t)

`

3

Umet

Phorate 10 G

35000

7254

21

Integrated Big distrbibution PI Industries network, 2nd popular (9000 t) Brand

Y

2

Saaf

Carbendazim 12 + Mancozeb 63 WP

1400

874

62

Brand Leader( 60 S), Indofil Patented Product, Developed (250 t) New Segments

Specilalized in Fungicides

Strong in Brand

Benefit out of best services to farmers & Trade partners by providing complete solution & Customer relationship

Benefits out of low cost of Brand & production, biggest Volume leader manufacturer, preplacement Open Distribution Channel in North, Benefits from Pipeline product "Vesta"

W

1

Phoskill Monocrotophos 36 SL

8600

1234

14

Largest anufacturing Che inova Capacity, 2nd popular Brand, (1350 Kl)

Big Brand,

25

V

V

T YX

Industry Volume

UPL UPL Market UPL Strength Volume Share

ompetitors

T

ompetition Strength

Suggestions to Maintain/Improve sale

a

U

S S

S

R

Top five Products (Industry - 2008 )

S.No

erbicidesGlyphosate 41 SL Clodino op 15WP Imazethapyr 10 SL Sulfosulfuron 75%WDG Pretilachlor 50 EC

Value (Cr.) 134 108 87 80 68 477 984 49

nsecticidesImidacloprid 17.8 SL Acephate 75 SP Endosulfan 35 EC Monocrotophos 36 SC Spinosad 45 SC

Value (Cr.) 264 245 226 170 150 1054 3065 34

FungicideseMancoze 75

Value (Cr.)

3 4 5i

phg

Total (To ) ndustry Total % Cont of to

f

2

Hexaconazole 5 EC Carbendazim 50 WP Tricyclazole 75 WP Propiconazole 25%EC

roducts

c

1

d

126 74 63 59 52 374 883 42

hg

26

Key Initiatives to sustain 20% growth for next three (3) years

1.

Product Portfolio StrategyNew Product Launches, AF 5, FC 3 & VC 8 Total 16 products, Average sale Rs. 5 Cr./product Total Expected Sale 80 to 100 Cr.

2.

TalentRecruitment, Training & Development Leadership Development ICCI

3.

Customer Service >4500E- Custal SMS Service Business Processes to be more automated

4.

Quality of produces especially Seed portfolioRevamp QC organization Induct best talent & revise quality management system

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28

Saafilizer Concept Promotion

Float Vans

29

Lancergold float Van

30

Night View of Float Van (Saaf + Lancergold)

31

Seed Treatment Campaign Govt Participation

Inaugurated by Karnataka Agriculture Minister

32

Seed Treatment activitiesGovernment Participation & Media Coverage

33

Crop Specific Activity Coral Master Meeting

Coral Masters Meeting Behrampur (Rajasthan)

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Crop Specific Activities Focus on Farmers

Media Coverage for Coral Masters Activity35

Participation in Local Festivals (Pune)

36

Farmer Meetings (Punjab)

37

Farmer Meetings (Punjab)

38

Farmer Meetings (Bihar)

39

Farmer Meetings & Product Display

40

Farmer Meeting Pune

41

Farmer Meeting Andhra Scientist Participation

42

New Products field days (Vesta)

43

New Products Media Coverage

44

New Product Promotion Udora (Soybean Herbicide)

45

Saafilizer Concept Display at Retailer counterResults display at dealer shop

46

Folks in Andhra

47

Lagaam Walker Campaign (Maharashtra)

48

Lagaam Rally - MP

49

Vehicle Campaign

50

Coral Farmer Meeting - Rajasthan

51

Coral Jagrukta Rath

52

Coral - Oil Testing Lab

53

Training to Field Assistants

54

Model Plot Activities

55

ISK Team VisitProducts 1. 2. 3. 4. UPI 206 (Sucking Pests) UPI 106 (Lepidopteron) UPF 206 (Early & Late Blight) UPF 108 (Early & Late Blight)

Crops Covered Cotton, Chilli, Tomato, Okra Brinjal, Cabbage, Potato, Bitter Gourd

Zones Covered Chandigarh, Delhi Ahmedabad, Hyderabad & Bengaluru Period 2nd to 14th September Delegates Hories San & Morita San

56

Distributor Meeting

57

Retailers Meeting

58

Retailer Meeting - Davangere

59

Retailers Meeting Media Coverage

60

Use of Saaf Empty Cartons & Product Display

61

Use of Saaf Cartons as Cost effective Promotional

Cartons & Flaps as Dangler

Integrated Counter

62

Saaf Walker Campaign

63

Integrated Field Day Activities - Punjab

64

65

Integrated Crop Schedule Cards

Crop Schedule cards kept inside the seed packets66

Integrated Promotional Inputs (AF +VC)Saaf + Divyajyoti

Saaf Leaflet

Saaf Poleposter67

Crop Specific Inputs (AF + VC)Saaf + Vaisnavi

Saaf Handbill on Tomato68

Crop Specific Inputs

Saaf Handbill on Vegetables

Saaf + Other Veg

69

Crop Specific Inputs (AF +FC)Mustard + Saaf + LG + Insulfgold

Saaf + Lancergold + Insulfgold Handbill on Mustard70

Crop & Product Specific Inputs

Saaf Paddy Handbill

Saaf + Paddy Varities

71

Saafilizer Concept - Handbill

Saafilizer + Paddy Varities

72

Integrated Marketing Inputs

Dealer Board Integrated Umbrella

73

Crop Specific Inputs

74

Crop Specific Inputs

75

Crop Specific Inputs

76

Product Specific Inputs

Saathi Handbill on Paddy77

Product Specific Inputs

Sticker

Poleposter78

Product Specific Inputs

Dangler

Balloon79

Saaf Balloons & Walkers

80

Product Specific Inputs

Wall PaintingIntegrated Inputs

Walker81

Product Specific Inputs

CUT OUT

Carry Bag

CARRY BAG

82

Product Specific Inputs

Banner

Demo Board

Poster Wall Clock Dangler83

Product Specific Inputs

Display Canopy

Integrated Inputs

84

Product Specific InputsDangler Sticker

Integrated Inputs

85

Product Specific InputsPoster Pole Poster

Integrated Inputs

86

Product Specific Inputs

Banner

Integrated Inputs

Field Board87

Product Specific InputsLea let Front

Integrated Inputs

88

Product Specific InputsWalker

89

Product Speci ic Inputs

Integrated Inputs

90

Crops Specific Handbills

91

Saaf lancergold Hoardings

92

Order Book

93

94

Crop Speci ic Complete Package o Practices

95

Crop Specific Complete Package of Practices

96

Participation in Exhibitions

PAU Kisan Mela

97

PAU Kisan Mela 1st Prize

98

UPL Advanta Farmer Field SchoolAn Educational Project dedicated to Indian Farming Community OBJECTIVES 1. To equip the farmers with pest knowledge and their control measures and techniques To give them diversified knowledge of farming like Pisciculture, Animal Husbandry, Poultry etc. To train the farmers on Organic farming, ICM, IPM and Sustainable Agriculture

2.

3.

99

100

101

Corporate Calendar

102

Farmer Prescription Pad

103

104

Integrated Visiting Card

105

Product Press/Magazines Adds

106

Trade Recognition & Motivation

107

Thanks

108

Indian Agrochemical Market Overview

al e (Rs. r.)r w

(No)

(No)

(No)

Her i ides F n i ides Insecticides x

39 50 75 164

710 607 2621 3938

38 56 81 17

842 773 2693 4307

40 59 82 181

984 883 3065 4931

Tota

r

r

al e

al e

q

r

q

r

r

q

ort olio ategory

s

u

r

v t

q

al e (Rs. r .)

ear 2006Form lations

ear 2007Form lations

ear 2008Form lations Growth % in 07 al e over 06

17 14 14 14

109

Crop Market Share

Value - Rs. Cr. SL. No. CROP Value % Contri UPL Value UPL Crop Contri

Red ram % rapes 3%

1 2 3 4 5 6 7 8 9 10

Rice Cotton Chillies Wheat Soybean Potato Tea Grapes Red Gram Sugarcane Others Grand Total

1231 1002 288 284 225 152 140 134 103 93 1279 4931

25 20 6 6 5 3 3 3 2 2 26

88 40 18 24 21 13 14 2 8 12 36 277

32 14 6 9 8 5 5 1 3 4 13

Others 25% Sugarc ane 2%

Ric e 25%

ea Potato 3% Soybean 5% W heat 6% Chillies 6%

Cotton 20%

3%

110

India Land UsageArea Arable Land Net Sown Area Gross Cropped Area Net Irrigated Area 329 M ha. 172 M ha. 141 M ha. 190 M ha. 45 M ha.

111Source: Syngenta estimates

Percentage of Operational Holding

Holding category Marginal(10 ha)So rce : NSSO 2003

1960 61 1970 71 1980 82 1991 92 2002 03 39 45 56 62 69 22 22 19 17 16 19 17 14 12 9 14 11 8 6 4 4 3 1 1 0.8

In 1960-61, 60% of the cultivated area was operated by farms exceeding 4 ha, but by 2002-03 the figure has reduced to 35%

112

Distribution Types

1. 2. 3. 4.

Cooperative channel State Cooperatives Public distribution Government Outlets Private retail chains Agri Retail Stores Private distributors Associated with Organizations

113

Distributors Role in support of Farmers1.

Finance to farmersProviding Agri-inputs (Seeds, fertilizers & Crop protection chemicals & equipments) on credit terms Finance to farmers to grow their crops as well as for personal issues

2.

Market intelligence & Purchase of inputsProvide the daily pricing & others details Purchase their final products directly from farmers

3.

Technology TransferHelps in updating with latest technology Provide the technology to their fields Update regarding the new avenues of upcoming segments etc

114

Saaf (Carbendazim 12% + Mancozeb 62%)Saaf (Rs. Cr.)

5

0

24 16

2

2

2

2

6

1

2

115

Kaardon (Cartap Hydrochloride 4G)K rd n(Rs. Cr.)11 8 5 6

12 10 8 6 4 2 2005 2006 2007 2008 0

116

Phoskill (Monocrotophos 36% SL)

P oskill (Rs. r.)

40 35 30 25 20 15 10 5 0 18 19

36

24

2005

2006

2007

2008

117

Umet (Phorate 10% G)Ume Rs. r.) 30

30 25 20 15 10 52005 2006

27 20

28

2007

2008

0

118

Uthane (Mancozeb 75% WP)

Uthane (

. Cr.)

25 20 20 15 10 10 52005 2006 2007 2008

6

7

0

119

Ustaad (Cypermethrin 10% EC)

U taad R

Cr

10 8 6 4 22005 2006 2007 2008

9 7 6 7

0

120

Total (Sulfosulfuron 75% + Metsulfuron Methyl 5% WG)

Tot l (Rs. C .

10 8 6 4 22005 2006 2007

9 7 6

9

2008

0

121

Lancergold (Acephate 50% + Imidacloprid 1.8% SP)L n rg ld . Cr.)

1 10 8

10

2 0005 00

0008 00

0

122

Lagaam (Imazathapyr 10 % SL)

Lagaa

(Rs. Cr.)

1212 10 8 6 4 2 0 2005 2006 2007 2008

0.0

0.0

0.4

123

SF -10 (Sulfosulfuron 75%WG)

SF-10 ( s. C .)e d

12 10 8 6 4 22005

11

3

4

3

2007

2006

2008

0

124

Thanks

125