PI Industries Ltd Investor Presentation - June, 2021
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PI EXTERNAL
PI Industries Ltd
Investor Presentation
June, 2021
Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of PI Industries Limited (“PIIL"), its future
outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward‐looking statements due to a number of factors, including future
changes or developments in PIIL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation
does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or
purchase any of PIIL's shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on
behalf of PIIL.
PIIL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The
information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. PIIL assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any
subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change
without notice and past performance is not indicative of future results. PIIL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This
presentation may not be copied and disseminated in any manner.
THE INFORMATION PRESENTED HERE IS NOT AN OFFER OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY EQUITY SHARES OR ANY OTHER SECURITY OF Pi INDUSTRIES LTD.
CDR India PI Industries Limited
Siddharth Rangnekar Rajnish Sarna
siddharth@cdr-india.com r.sarna@piind.com
Nishid Solanki Rajiv Batra
nishid@cdr-india.com rajiv.batra@piind.com
Tel: +91 22 6645 1221 /1209 Tel: +91 124 6790000
Fax: +9122 6645 1213 Fax: +91 124 4081247
1
PI EXTERNAL
Performance Highlights
Q4FY21 & FY21
Corrigendum
PI EXTERNAL
Out-performance continued in Q4’FY21…
Revenue up by 40%, EBITDA up by 22%.. PAT up by 62% YoY
CONSOLIDATED
Fig in Crores Q4FY20 Q4FY21 % YOY ✓ 40% YoY revenue growth driven by..
Revenue 855 1,197 40% ✓ ~47% growth in Exports contributed by Strong
Gross Margin
Volume growth in key products
47% 42% (470) bps
✓ ~11% growth in Domestic in line with the
Overheads 214 277 29% business plan. Newly acquired Isagro registered
EBITDA 187 227 22% impressive 51% YoY revenue growth
✓ Gross Profit improved by 26% YoY driven by higher
EBITDA as % Revenue 22% 19% (290) bps
revenue. Overall Gross Margin however softened on
account of change in sales mix & reduced MEIS benefits
Net Profit 111 180 62%
✓ EBITDA improved by 22% YoY due to higher revenue
47 % 11 % 22 % 62 % although the quarterly margin %age softened mainly on
1006
account of reduced gross margin despite operating
227 leverage benefit
683 187 180
✓ Net profit improved by 62% YoY due to operationalization
111 of new SEZ unit and reduced ETR
172 191 ✓ Board recommends final dividend of Rs. 2/- Share
EXPORTS DOMESTIC EBITDA PAT
Q4FY20 Q4FY21 Q4FY20 Q4FY21
Q4 & FY21 Earnings Presentation 3
PI EXTERNAL
FY21 performance exceeded plan amid challenging conditions around
Revenue up by 36%, EBITDA up by 41%.. PAT Up by 62% YoY
CONSOLIDATED
Fig in Crores FY20 FY21 % YOY ✓ Proactive measures taken in supply chain and
Revenue 3,366 4,577 36% operations planning lead to limited Covid-19 disruption
Gross Margin 45% 44% (~100)bps
✓ ~36% YoY revenue growth mainly driven by
✓ ~35% YoY growth in Exports contributed by volume
Overheads 801 994 24%
growth of existing products and commercialization of
EBITDA 719 1017 41% 5 new products
EBITDA as % Revenue 21% 22% 90 bps ✓ ~39% YoY growth in Domestic in line with the
business plan
Net Profit 457 738 62%
✓ Gross profit improved by 32% YoY and Gross Margin
35% 39% 41% 62% % broadly maintained at last year level despite
change in product mix and reduced MEIS benefit in
3322 1017 the 2nd half of FY
2466 ✓ EBITDA % improved with strong control on fixed overheads
719 738 and operating leverage
1255 ✓ Lower ETR @ 21% due to new SEZ unit getting operational
900 457
✓ Significant improvement in Free Cash Flow @ Rs 303 Cr
and Gross cash flow at Rs. ~900 Cr with contained capex
EXPORTS DOMESTIC and improved W/C management
EBITDA PAT
FY20 FY21 FY20 FY21
Q4 & FY21 Earnings Presentation 4
PI EXTERNAL
Balance Sheet position remained strong
showing resilience & growth appetite
(Rs in Cr.) FY20 FY21
Shareholders' Funds 2,619 5,342
Non Current Liabilities 505 403
Long-term borrowings 399 257 ✓ Net worth of the Company almost doubled over last year
Other long-term liabilities 106 146 due to increased operating profits and QIP fund raise
Current Liabilities 1,100 1,257
Short – term Borrowings 108 - ✓ Sales to Net working capital improved to 4.13 from 3.52 as
Trade payables 591 796 at March’21
Other current liabilities 401 461
TOTAL 4,225 7,002
✓ Increased inventory levels in line with expected growth and
Non Current Asset 2,216 2,509
proactive safety stock planning amid Covid Scenario
Net Fixed Asset 2,045 2,343
Good Will 83 83
Non-current investments 18 21 ✓ Investment in capital expenditure at Rs. 459 Cr for FY21
Other Assets 70 62
Current Asset 2,009 4,493 ✓ Surplus Cash net of Debt as on March’21 stood at Rs 2070
Inventories 799 1,053 Cr (Incl of QIP net proceeds of Rs. 1975 Cr)
Trade receivables 749 852
Cash, Bank & Investments 267 2,327
✓ QIP funds invested with SLR philosophy while final
Other assets 194 261
Total 4,225 7,002
deployment aligned with PI’s longer term growth strategy is
underway
Key Ratios (%) FY20 FY21
Net Sales to Fixed Assets 1.65 1.95
ROCE 22% 26%*
Total Debt/Equity 0.16 0.06
* Basis funds deployed into business (excl. QIP proceeds)
Q4 & FY21 Earnings Presentation 5
PI EXTERNAL
Key Operational Highlights FY21
Progress on strategic initiatives continues for sustained growth..
• 2 manufacturing facilities operationalized
Capacity • Capacity enhancement of upto ~15% in • In FY21, crossed the milestone of having more
IPRDevelopment
Build-up key products than 100+ patents filed
• 4 new products commercialized for • 160K+ acres were covered under Application
New Farm Application
exports. services, greater than 60% growth YoY
Enquiry/Scale-up Services
• >40 active enquiries at different stages
• Deployed Sales Order Application across all zones
Customer • 7 new customer relationships initiated
in FY21 Digitalization, Process • Automated Fleet Mgmt. of Application Spraying
Acquisition & Services
• Order book position >$1.5billion Improvements
Order book • Launched ARIBA sourcing platform,
• Significant scale up in cotton crop protection
• Novel catalysts, enzyme tech, portfolio with a growth of >40%
Technology Green chemistry (Ecoscale) Product Penetration
Scaleup • Successful scale up of Awkira(wheat herbicide)
• Pharma lab commissioned with 5x growth
• Successfully integrated Isagro • Multiple HR initiatives kick-started focusing on
M&A • Actively evaluating pharma strategic Human Capital Leadership development, employee engagement,
Transaction options and Culture on-boarding
• NWC investment reduced by 10%, DSO reduced by
New Product • Shield (fungicide) launched in Q2 Capital Efficiency 10 days In domestic brands allowing room for
• Successful launch of Londax Power (Rice strategic inventory for exports to hedge ag. Covid
Launch disruption.
herbicide)
PI EXTERNAL
Key performance metrics trend depicts sustainable growth trajectory..
Revenue (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr)
4,577 738
1,017
3,366
2,841 719 457
576 410
2,309 368
494
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
Fixed Assets (Rs Cr) Net worth (Rs Cr) ROCE
5,343 26%
2,426
2,128
24%
24%
1,369 2,619
1,088 2,285 22%
1,925
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
FY21 - Basis funds deployed into business (excl. QIP proceeds)
Q4 & FY21 Earnings Presentation 7
PI EXTERNAL
Business outlook remains robust..
Targeted expansion backed by solid growth visibility to support momentum
Focus on new strategic initiatives to elevate performance
• Business outlook continues to be robust in FY22 supported by new launches and
crop diversification
Domestic : • 5 new launches in FY22, will strengthen rice, cotton and horticulture portfolio
Focus on portfolio diversification with • Crop diversification of existing products
launch of novel offerings • Rice, Horticulture, Cotton, Soybean and Wheat to drive growth
• Focus to expand application services business with an effort to provide wider
solutions to farmers challenges
• 5-6 pipeline molecules at various stages of development to be commercialized in the
CSM Export: coming FY
R&D focused approach to drive • Another MPP is planned to be made ready by Q2FY22, thus enhancing the overall
capacities
incremental business
• Order book continues to remain robust @ $1.5bn with high visibility of sustainable
growth in the next 3-4 years
• Pursuing inorganic growth opportunities to diversify into adjacencies, widen
technology portfolio and de-risk operations
Efforts to drive strategic initiatives • Investing in a new R&D facility for deepening our technological capabilities, de-risking
continues current operations and opening up newer opportunities
• Actively evaluating select pharma assets and working with global consulting firm for
crystallisation and successfully implementing strategic road map of diversification
Amidst challenges owing to covid-19 and related uncertainties, we are confident of achieving >15%
Q4 & FY21 Earnings Presentation growth in FY22 and resolutely progressing on that path 8
PI EXTERNAL
Integration of acquired business of Isagro progressing as per plan..
Long term plan in place to unleash full potential
The Plan OurAim Current Update
JIVAGRO
• Industry-leading, 25% top-line growth in FY21 YoY,
• Tobe one of the leading players in the from new horticulture products
Domestic Mergewith
Marketing JIVAGRO
horticulture segment in India • Leveraged production, commercial & product
Piece (100% Sub of PI) portfolio synergy to enhance customer experience
• >25% CAGR growth over next 4-5 years • NCLT order in favour of demerger of Jivagro from
Isagro & subsequent operational integration on
track with launch in Q1FY22
• Jivagro products are ready in new pack & would be
Isagro
Asia
available in market Q2’22 onwards
MFG SITE
• 5 pipeline products of PI’s exports commercialized
Manufactu • Repurpose current mfg set up to align in FY21 & ~3 more to be commercialized in FY22 at
ring / CM Merge with PI with PI’s CSMexports
Piece Isagro mfg site
• Major synergies with PI’s neighboring operations in
• Enhance capacity utilization from mfg, EHS, Quality, IT, sourcing, HR, etc realized as
• Merger activities are expected to get current 20-25% to >90% to more than
completed in Q4FY21
per plan
• Repurposing of mfg site expected to get
triple the revenue generation in next • Merger of remaining business of Isagro with PI
completed by end of year. couple of years. expected in Q1FY22
• Capacity utilisation in Q4FY21 at Isagro facility
significantly improved to ~75%
Q4 & FY21 Earnings Presentation 9
PI EXTERNAL
Proactive initiatives contained Covid-19 disruption..
SOPs in place with regular reviews / vigilant oversight to ensure safety of
employees and continuity of operations…
SOPs have been instituted to focus on alleviation of suffering of the citizenry, reassurance of
customer base and maintenance of business momentum
Stringent protocols for streamlining operating and non-operating processes are in place. Workplace
hygiene and safety steps have been taken to underline minimal disruption to routine functionality
Customer commitment is a hallmark of our business approach. Through pro-active communication
clients are being reassured and their needs are getting assessed, in real-time basis. Deployment of
digital methods last year helped achieve connect with farmers and key constituents of the
distribution chain, these are being activated again
Manufacturing facility level processes have been augmented. Inventories of critical feedstock and
ingredients are being optimally maintained such that the chain of dispatches remains un-broken.
Measures to attend to the needs of the associated workforce are also in place
Government-based organizations and NGOs are being supported to mitigate hardships and facilitate
care, where it is most required. Various employee welfare initiatives such as providing insurances,
vaccination drives, safe employee bio-bubble, oxygen concentrators/cylinders, salary advances, etc.
are also undertaken
Q4 & FY21 Earnings Presentation 10PI EXTERNAL
Doing our bit to support govt effort and communities
around us to fight Covid-19
Sanitizer Distribution of Awareness Mask Support to Front Webinars for
Hi-Tech Spraying
Production food kits Campaigns Distribution line workers Farmers
Leveraged 60 spray • Sanitizer • >12,500 dry ration • 3 Mobile Med. • Distribution of • Arranged PPE & • Around 11,000
machines, sanitized distribution kits have been Vans 70,000 masks funded medical farmers benefited
in benefitted over distributed to • Community across the country infra, extending through webinars
• 5 states 1,50,000 people in migrant and daily- outreach programs through PI’s support to 2 govt. for better yield to
• 34 districts over 30,000 wage laborers covered >30,000 women hospitals overcome
covered households people in 64 empowerment • Also supported economic losses
• 642 machine • 100,000 liters of villages program near Gujarat and during Covid-19
working days sanitizer was used • ~1500 people are plant operations Rajasthan govt. induced lockdown
for disinfection screened daily healthcare infra
Q4 & FY21 Earnings Presentation 11PI EXTERNAL
Company’s performance was well recognised and earned
accolades during the year…
PI has won 3 awards at World Leadership Congress - Business
Leader of the Year Awards
Business Leader of the Year awarded to Corporate Social Responsibility
Mr. Mayank Singhal, VC & MD, PI Programme of the Year to PI’s DSR
Industries Ltd. initiative
CII-National Award for Golden Peacock Award for
'Excellence in Water Corporate Social
Management 2020' Responsibility (GPACSR)
Most Admired Company of the Year
Awarded ISO 27001:2013
Certification from British
Standards Institute for
implementation of
#1 Rank at the Global HR information security based
Excellence Awards by on global standards and
World HRD Congress frameworks
Q4 & FY21 Earnings Presentation 12PI EXTERNAL
Corporate Overview &
Strategy Recap..PI EXTERNAL
Our Vision & Values..
VISION
“Building on the foundation of trust, we shall be at the forefront of
science-led opportunities by delivering innovative solutions.”
VALUES
INNOVATION
TRUST SPEED Enlivening, like the air, in
Like the earth, we are Blazing ahead, like fire, we the constant quest for the
ADAPTABILITY
dependable. We work with constantly strive to work with horizon, the never-ending Adaptive, like water, we are
integrity of purpose, honesty in speed in the way we observe, search for a better, newer constantly transforming
action and fairness in all our think and act way to do things; ourselves. Being nimble
dealings Innovation, for us, is a way footed, we are highly
of life responsive to change
Q4 & FY21 Earnings Presentation 14PI EXTERNAL
PI’svalue proposition
Strong tangibles: R&D,
Favorable dynamics driving Offerings across the value
Businessmodel ready to manufacturing, extensive Quality governance, talent Performance over a long
Indian chemical industry chain driven by strategic
go beyond Ag-Chem networkof & learningskills termperiod
growth partnership
intangibles: Brands
1 2 3 4 5 6
• Global specialty chemicals • Business built onend-to- • Integrated and innovative • Globally certified with use • Professionals with • Revenue CAGR(FY18-
market expected to grow end partnerships with services to provide of Technology, 4 expertise acrossvarious FY20) of 21.6%2
at 5.4%CAGR1 global innovators • Comprehensive solutions manufacturing facilities, technical and business • EBITDA CAGR(FY18-FY20)
• Increasing focus on CSM • ~90% CSMrevenues from by partnerships 12 multi purposeplants functions of 20.6%3
as innovators shift focus patented molecules; • Relationships with 20+ • 5 formulationfacilities • Senior managementteam • Pre-tax RoCEof more than
to core competencies, 60%+ domestic revenues global innovators builton • R&D team of ~300 of qualified experienced 20% over last 3years4
developing new active from in-licensed IPprotection researchers andscientists professionals
ingredients and outsource molecules • Technology enabled
production • Proven capabilities in distribution network and
• M&A activitiesboosting agrochemicals; nowready relationships with more
specialized CSMplayers to be replicated across than 2.5 million
• Emerging new areas of other chemicalssegments farmers/retailers
innovation such as • FY21 started with entry
batteries, coatings, etc. into pharma valuechain-
• Global supply chain risk successfully developed
diversification: China and scaled up an
facing issues – pollution, intermediate for a
trade wars, safetyissues promising Covid-19drug
Well positioned to capture value from changing market landscape
Note: (1) FY19-24 CAGR;Source: Frost & Sullivan; (2) Revenue = Revenue from operating - excise duty; (3) EBITDA = Revenue - Cost of Materials consumed - Purchase of Stock in Trade - Changes in Inventories of FG, WIP and stock in trade - Employee Benefits expense - Other
Expenses; (4) Pre-tax RoCE %= (EBITDA – D&A) / Average Capital Employed (CE); CE= Net Debt + Total Equity.
Q4 & FY21 Earnings Presentation 15Track record of building several successful businesses, partnershipsand
PI EXTERNAL
industry leading brands..
1961 Ag-Chem Formulation andMarketing
1971 Mining later hivedoff
1976 First Technical Manufacturing plant
1985 Energy Metering, later hivedoff
1992 Name Changed to PI IndustriesLimited
1993 Facility atPanoli (Gujarat)
1993 PILLFinance and Investment Ltd.
1995 Polymer Compounding laterdivested
1996 Custom Synthesis & Manufacturing 2011 GLPCertification
1st company in the Ag-chem to 2011 Inauguration of PI-Sony ResearchCentre
2001
implementSAP
2014 Germanyoffice
Formulation site setup at Panoli
2015
Founded as The Mewar (Gujarat)
1946 2004 PI Life Science Research Ltd.
Oil and General Mills Ltd.
Joint Venture – Solinnos
Established Subsidiary in Japan 2016
2007 New R&D Centre at Udaipur
(PI Japan Co.Ltd)
2017 Joint Venture – PI Kumiai Pvt.Ltd.
Started New Rep Office in
2008
China(Shanghai) 2019 M&A – acquired IsagroAsia
Continuingly creating value propositions for the stakeholders …
Q4 & FY21 Earnings Presentation 16PI EXTERNAL
Businessmodel built on the principles of respect for IP and
establishedrelationships
LeadingAg-chem
India’s largest CRAMSCompany
Distribution Company in
with over 90% Revenue from
Domestic Brand Market India with leading market Exports Market
PatentedProducts
share in certain crops
Leveraging our Pan India network,
Leveraging on chemistry process research
demonstrating brand building capabilities
and manufacturing capabilities catering to
and experienced team to deliver in- R&D
Global Innovators; Partnering for IP
licensed, branded generics & co-marketed Partnership
Creation.
products
SYNERGISTICAPPROACH
IN-LICENSING Custom Synthesis & Manufacturing
• Introducing new products, partneringwith • Early stages of their life cycles
globalinnovators Common Infrastructure
• ComplexChemistries
• Ensure longer product cycles by brand building Develop knowledge,products,
• Processdevelopment
• Develop solutions for the Indian Ag-chem processes and experience in
• IP Protection & Generation
Industry with the partnershipapproach different complex chemistries
Cross-Selling Opportunities
• State of the Art R&Dfacilities • To service its customers • 3 Globallocations
• 1 R&DFacility
— ~300 researchers and • Japan for business
• 4 ManufacturingSites developmentactivities
scientists Consistent track record of
• Domestic Brand Distribution
— Accredited for GLPand — 28 stockpoints • China for Sourcing financialperformance
‘Norms on OECD — 10,000+ distributors • Germany for Knowledge
Principles’ by NGCMA — 70,000 retail points Management
Non conflicting business model …well respected by Global Innovators as Partners !!!
Q4 & FY21 Earnings Presentation 17PI EXTERNAL
Over the years, we aim to build assetsto distinguishus from
others
• Established relationships • Constantly developing IT • Board with 50% • Pro-active approach toasset • Known for respect for IP
based ondelivery tool for business independentmembers build-up to reduce • Technical capabilitiesand
• Relationships across the management from R&Dto • Result oriented team turnaround time to cater to sustainability
valuechain sales for decision making • Growing our talent by customerneeds • Recognized for best
to achieve customer nurturing, buildingand practices for EHS &
satisfaction acquiring governance
Customers Process People Infrastructure Intangibles
• 2.5 mn farmers/retailers • Web based integrated • > 3000 Employees • 4 manufacturingfacilities • Know for itsGovernance
• 70,000 retailers, 10,000+ mobile tools to connect • 51% workforce < 35years • 1 R&DCampus • IP Protection Trust
distributors panIndia with stakeholders • > 40% of total workforce are • 12 Multi Purposeplants • Noconflict
• 20+ Global innovator • ELNfor R&D atleast post-graduate • 5 formulation setups • Established strongbrands
Partners • LIMS-for Quality & • ~300 researchers and • 28 stock points PanIndia with majority brands as
• Several decades of working Production scientists • International presence. leaders
with Japan • DCS systems with analytics • > 130 PhDs Japan, Germany andChina • FarmerConnect
• Trusted business • ESS& EPM System thru • 35% of our top management • IT enabled and system driven • Partner of choice with
partnerships – many of SAP > 5 years tenure with PI Information and alignment of customerneeds
them more thana decade • Built in IT security communicationsystem and businessstrategy
old • SSCShared Service Centre • Layout, systems and • Focus on EHS
• EHSmanagement system managementprocesses
& practices • In house capabilities for
design, flexibility & scalability
We continue to invest to retain our leadership position with a focus on Sustainability …
Q4 & FY21 Earnings Presentation 18PI EXTERNAL
Presence across the agchem value chain
Strong focus on customer needs and continuous innovation
CSM Exports Domestic Brands
Evaluation & Regulatory services Marketing &
Discovery Development Scale-up Manufacturing
Trials & Registrations Distribution
Customer Needs Business Strategy
Consistent Quality
Cost Competitiveness
Speed of execution, delivery
Reliable & Adaptable
Real-time monitoring & review
Continuous improvement innovatively
Quality Efficiency Throughput Environment & Safety Innovation
• Objective to be high • Target driven • Ensure consistent, • To set bench marks • Protect and build IP
quality producer • Ownership at sub- reliable delivery • Address at source
• Control all processes functional level • Continuous • Safety first culture
that impact quality de-bottlenecking
of the end product • Automation
Q4 & FY21 Earnings Presentation 19PI EXTERNAL
Differentiated domestic distribution model
Driven by unique solutions thru global partnerships, brands building capabilities and market reach
More than 50 years Creating Market Leading Brands
Significant revenue from Brands Ranked No 1 or 2 in the market, Some brands are more than a decade old
Strong Partner Strong Pipeline Farmers & Extensive Distribution Network
40+ years experience Molecules based on crop 28 stock points; 10K+ distributors; 70K+ retail points
solutions and Indian needs FOCUS ON
20+ Global Innovators
INNOVATION
• Extension & product development & stewardship (team • Crop solution approach focussing farmer & using
experience in handling complex new-age premium ICT (Information, Communication and Technology)
chemistries) UNDERLYING PRINCIPLES • Organization structure empowered with digi tech
RESPECT FOR IP DEVELOPMENT to support and demonstrate value delivery to
• Strong relationship with stakeholders farmers
• Policy level by participation • Online analytics tools for farmers and employees
PROCURE REPEAT BENEFITS OF CROSS
BUSINESS SELLING • Innovative Ideas and branding for enhancing
OPPORTUNITIES product life cycle
PI EXTERNAL
REPUTATION OF TRUST & RELIABILITY • Experience of successfully managing transition of
Domestic Business – Brands FORGE RELATIONSHIP products from patented to generic
Evaluation & Regulatory services Marketing & • Application services for development &
Trials & Registrations Distribution engagement
Digi-tech @Core
Engagement Efficiency Excellence
Crop
Farmers Channel Enablers
Solutions
Q4 & FY21 Earnings Presentation 20Custom
PI EXTERNAL
Synthesis & Manufacturing (CSM) model is centered around our technological
capabilities, high sustainability quotient and world class infrastructure
To be the lifelong Partner of Choice for the Global Chemicals Industry by building innovative, knowledge based solutions through speed,
efficiency, straightforwardness & just dealings, respect for intellectual property, society & environment
OUR FOCUS
Partner of Choice Solutions
Who Service Lines Characterized by In
High value Niche player / boutique industry – leading supplier
Low - Mid volume
• Research & Development • Specifications with control • Technology
Process technology • Analytical Research & limits
How • Process
Complex chemistry Services • Reliability & predictability
• • Repeatability • Commercial operations
IP (generation / protection) • Longevity of meaningful engagement Process Development
• Engineering • Supply chain customer
• A marriage of competent equals
High Potential • Process Scale up • End applications
• Consultative solution rendering &
PI as 1 or 1 of 2-3 sources • Commercial Production
outsourcing process
Customer as innovators • Reliability of services
Knowledge
Partnership
On-patent On-patent
PI has all that is required to be growing mature
Off-patent
the Pre-launch Early-to-market Late-to-market
“Partner of Choice” Focus on the early stage novel molecules Continuous innovation for process and operational improvement.
Q4 & FY21 Earnings Presentation 21PI EXTERNAL
Global tailwinds offering opportunities for aggressive and
multi-pronged growth strategy
• Asset
Market • Customer relationship
• Expansion Management
• Creation Build • Process
• Segments • Customers Value-chain
Customer
• Operation excellence Intimacy ― Add Explore
Productsand exploit
• Brands Product & untapped chemistry
― Digitization
Customer-centric
services ― Strategic
areastie ups De risk… Create…
approach • Manufacturing • Process Innovation
concentration • Biological process
Organic • New formulation of development
Grow Smart existing products • Formulation Combinations
• Biological with Partners
Go low on capital • New formulations -
Investment
IP Process • Digital Customer
Inorganic… • Chemistry engagement
• Value added Technolgy De risk & Create • Block Builders
• Products Assets • Process engg
• Niche vertical with a future • Flow
Pharma / Specialty chemical Digital
• High growth application areas Inorganic • Information
having synergy integration
Value creation
• Disruptive technologies in • Decision tools
chemistry & process Deepening our technological capabilities
engineering
to open new horizons..
Prudent financial management in place to ensure that long term shareholder value creation remains at the
heart of the strategy…
Q4 & FY21 Earnings Presentation 22PI EXTERNAL
Domestic agri input market is expected to grow fast and PI is well
positioned to capitalize this opportunity..
8-10% projected CAGR between
2020 to 2025
Ingredients in place for PI to capitalize this
opportunity
Strong novel offerings
with focus on in-licensing 3 / 4 exclusive launches • Extensive Distribution
Dedicated verticals for
horticulture crops through Network
• 25+ products in the
pipeline Jivagro • Robust brand building
• >20% CAGR growth capabilities
• Supported by new product
launches estimated over next 4-5 • Leadership position in
years key crops
Source: FICCI Report on Indian Speciality Chemicals Industry
Q4 & FY21 Earnings Presentation 23PI EXTERNAL
With Indian gaining good market share of the global Specialty Chemical market, PI is
consolidating its position with diversification into adjacencies….
Indian Specialty Chemicals Industry size (USD bn) Global Specialty Chemicals Industry size (USD bn)
1,171
64
805
610
32
18
2015 2019 2025 2015 2019 2025
Factors that will elevate growth for Indian Companies Advantage PI Industries
Focus on
green
India’s Increase in Leadership Benefits Complete control
chemistry Relationship based Significant Proven
emergence as outsourcing position in accruing out position and
through approach built on investments in manufacturing
an export hub manufacturing select niche of supply visibility around
adoption of trust and IP technological capabilities and
for global activities to molecules and chain scale-up of
sustainable protection advancements expertise
innovators India chemistries diversification molecules
manufacturing
practices
Source: FICCI Report on Indian Speciality Chemicals Industry
Q4 & FY21 Earnings Presentation 24PI EXTERNAL
Our CSR efforts have focused on Community welfare &
Environment
PI’s CSR strategy focuses on: Key Programmes and Initiatives
• Creating a positive impact for marginalized communities via environmentally • Water conservation through
sustainable approach sustainable agriculture practices &
• Interventions align with several Sustainable Development Goals (SDG) farm engagement activities
• Continuous life cycle evaluation of products and product stewardship to minimize eco- • SWASTHYA Seva Initiative - Aim to
impact provide access to preventive,
promotive & curative health
Implementation care to underprivileged
• Learning enhancement
Sustainable Agriculture 700K+ Hectares of Farmlands benefitted by DSR technique programmes for government
Practice thereby saving 1.6 trillion litres of Water annually school children in 135 schools
• Certified vocational training &
Healthcare, Hygiene and 100K+ Lives impacted using Mobile Healthcare Vans under employability linked skill
Sanitation Interventions PI’s ‘Swasthya Seva” Initiative and Blood Bank services enhancement program for
underprivileged youth
15K+ Women across 82 villages in Bharuch Area benefitted • Entrepreneurship development &
Women Empowerment livelihood promotion through
through PI’s women empowerment program
sustained agriculture, dairy value
chain & skill training for rural
18K+ Govt. school children across 125 Schools benefitted
Education Interventions women
through PI’s Learning Enhancement Programmes
• Community Drinking Water
Initiative and construction of
1.8K+ Youth employed through large scale Skill Development
Skill Development school toilets
Programmes
Q4 & FY21 Earnings Presentation 25PI EXTERNAL
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