Camson Bio Technologies Limited

(BSE: 538858)

Investor Presentation
March 2016

Cautionary Statement

This presentation contains statements that contain forward looking statements including, but
without limitation, statements relating to the implementation of strategic initiatives, and other
statements relating to Camson Bio Technologies Limiteds (Camson Bio Technologies) future
business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning
the development of our business, a number of risks, uncertainties and other unknown factors could
cause actual developments and results to differ materially from our expectations. These factors
include, but are not limited to, general market, macro-economic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us, legislative
developments, and other key factors that could affect our business and financial performance.
Camson Bio Technologies undertakes no obligation to publicly revise any forward looking statements
to reflect future / likely events or circumstances.

Contents

Company Overview

5 - 11

Industry Dynamics

13 - 15

Strategy: Path-to-Value

17 - 19

Business Operations

21 - 24

Financial Performance

26 - 27

Company Overview

Camson: At a Glance
Pioneer in zero residue biocide products, supported by scientific research spanning over two decades

Camson Bio Technologies Limited (Camson or the Company) is India's first integrated IPR driven
agricultural biotechnology company
Founded in 1993, Camson is headquartered in Bangalore, with primary focus on biotech R&D
Pioneer in zero residue farming products, which uses secondary metabolites (biological origin) of microbes
to kill / inhibit pathogens, with no use of chemicals
Recently filed patents for its discovery of Natural Fertilizer
Recognized by Deloitte as one the fastest growing technology companies in 2015 and conferred the
Technology Fast 500 award and awarded Leaders of Tomorrow Award by ET Now & Indiamart 2014-15

(Bangalore, Aligarh and

Hyderabad)

2.7 mn litres per

annum capacity

Product Type

4000+ microbes library

3 Research Centers;

Production

R&D

Long standing relationship with its institutional investors such as CLSA and SBI

22 Bio pesticides
7 Bio fertilizers
4 Water Soluble
Natural Fertilizers

Corporate History
Among Forbes Asias
best 200 companies
under a billion
Launched Zero
Residue line of farm
produce

Technology Fast 50
India 2010 award from
Deloitte
Best Green SME
award from Yes Bank

1993-2000

2008

1993: Started
operations
1995: IPO and went
public
2000: Launched
Calphomil, Camsons
first product based on
microbial extract

2010

Land procured for

the second
production unit at
Nangal, Himachal
Pradesh
Research begins
at Aligarh, UP

2011

Operationalized new
R&D centre at
Doballapur; investment of
Rs. 300 mn

Signed MOUs with: 1) Kerala

Cardamom Processing and Marketing
Co., 2) Vazhakkulam Pineapple
Growers, 3) Coconut Development
Board and 4) Zuari Agri Sciences Ltd.

CLSA committed an
investment of US$ 10 mn

First company globally to patent

Natural Fertilizers

Camson Agri Ventures

commenced operations

Demerger of Seeds Business; Record

date of 22-Sep

2012

2013

Tie-up with HDFC Bank to

advance HDFCs BC
initiative

Awarded top 100

mid sized company
by Inc. India

Organic certification by
USOCA, Dehradun

Most innovative
award at SIAL, Abu
Dhabi

Capacity increase started

for the R&D unit in
Doballapur, Karnataka

Indira Gandhi
Excellence Award

2014 2015

Awarded
Leaders of
Tomorrow
award by ET
Now &
Indiamart
Filed patent for
Natural
fertilizers
6

Geographical Presence and Distribution Network

Geographical Presence and Key Markets
Manufacturing Facilities
R&D Centres

Sales & Distribution Network

Marketing Mechanism:
Has clearing & forwarding agents across the country for
storage and handling

Sales & Marketing

Officers
Authorized
Dealer

Target Markets

Currently having pan-India

presence
Intends to enter in the International
markets

Target Farmers

Headquartered in Bangalore,
has a 50 acre R&D centre
and production facility in
Dodaballapur, Bangalore

Category A: Export oriented

farmers
Category B: Farmers looking for a
remedial solution for a particular
pest/disease
Category C: Farmers who are
aware of environmental cons from
chemicals

Retail

Product
Development
Officers

Product
consultancy &
Demos

Farmers

Also, employs Field Assistants at local level on a temporary basis

during sales promotions

Key Strengths and Core Competencies

R&D capabilities driving operational excellence and market positioning

Highly Specialized
R&D Capabilities

Operational Excellence

First mover advantage in the

Zero Residue biocides market

Technologically advanced
manufacturing process

Developed an in-house
proprietary technology platform
consisting of 4,000+ microbes
database, screening technology
and a natural compound library

Camson products uses secondary

metabolites with no live micro
organisms, thereby leading to
much higher shelf lives

Scientific results driven by stateof-the art technology platform

Two company owned and two

contracted production facilities

Well Established
Market Reach
Facilitate sales via two way
process: One of direct sales to the
retail shops and second is to
derive demand via product
demos and consultancy to the
farmers
Has a strong network of 2,600+
dealers, 300 distributors and
300+ marketing personnel spread
across India

Significant knowledge base of

microbes study
Recently filed patents for its
discovery of Natural Fertilizer

Camson Differentiating Factors

Proprietary
Technology
Platform
(R&D)

Production
Facilities

Biocides
USP

Entire Biocides research process

takes about 9 - 12 years

Has competitive advantage in the Zero-residue bio inputs

With already established over 4,000 select microbial
library, has very low threat from new entrants

Future Scope: Wide Range of

Applications across the Industries

Recognition

In-house R&D Units recognized by Ministry of Science and

Technology, Govt. of India

Real-time market access

Have set up production facilities in North India as well as

South India, in order to cater to the diverse demand and
easy access to the markets

Waste Water Management

Waste Management
Life Sciences
Power Generation

Camson biocides are target specific, bio degradable, high yielding and does not harm soil productivity
Longer shelf life and Pests/insects do not develop resistance to biocide even after multiple uses
Offer higher protection period
Zero-residue product
9

Key Management and Board of Directors

Sound management team backed with years of experience and a mix of technical & financial skill set
Dhirendra Kumar
CMD & Chief Scientific Officer

Santosh Nair
WTD & Chief Executive Officer

Founded Camson Bio Technologies in 1993

A technocrat with passion for R&D, has led
Camsons pioneering research in Sciences like
Intragenics and Metagenomics
Spearheaded the development of zero-residue products, new
technological platforms and organically viable hybrid seeds.
Previous experience includes ITC, Coromandal and Ranbaxy
At ITC, he took over a loss making division and reworked the entire
product range, positioning and strategy to transform it into the fastest
growing and most profitable division at ITC

Having an experience of over 19 years in Banking

and Finance industry and previously worked with
organizations like Merrill Lynch and HDFC Bank
Prior to joining Camson, worked as Director, Global Wealth
Management, Merrill Lynch
At Camson, responsible for
strengthening backend systems

streamlining

processes

and

Introduced several stringent performance benchmarks to boost the

quality of Camson products

Board of Directors
A.N. Singh

Non-Executive Director

V.K. Singh

Non-Executive Director

Krishnaswamy Ramaswamy

Non-Executive, Independent Director

B.C. Madappa

Non-Executive, Independent Director

Anurudh Kumar Singh

Non-Executive, Independent Director

Reeta Gangwani

Non-Executive, Independent Director

Gulshan K. Khanna

Non-Executive, Independent Director

10

Recent Corporate Developments

Awards and Recognition

Camson recognized as one the fastest

growing technology companies in Asia
Pacific and received the Technology Fast
500 award

Camson wins 2nd Inc India

Innovative 100 Award under
the category Responsible
Business & Technology

Camson awarded ETNow

Leaders of Tomorrow

Key Developments

Received approval from Shareholders and Creditors for the Scheme of Arrangement (Demerger) of the Seeds Business to create a
separate entity Camson Seeds Limited ; record date of 22-Sep-2015; On 14-Nov-2015, Board of Camson Seeds approved
allotment of shares to all who are the shareholders of Camson Biotech as on the record date; Allotment done in Jan 2016

Filed patents for the discovery of natural fertilizers

Appointed Deloitte Haskins & Sells as the statutory auditor of the Company

MOU with Zuari Agri Sciences to market Camson products through Zuaris distribution network

MOU with the Kerala Cardamom Processing & Marketing Company to facilitate residue free farming for Kerala farmers

MOU with Vazhakkulam Pineapple Growers & Processors to advance the usage of biocide products in pineapple farming

MOU with the Coconut Development Board (a Government of India enterprise), to undertake research on secondary metabolite
based biocides to control red palm weevil infesting coconut plantations

11

Industry Dynamics

12

Industry Trends & Opportunities

Increasing
Food
Demand

World population projected to rise from 7.2 bn in 2014 to 9.6 bn in 2050E

Due to growing population, shifting diets and increasing purchasing power, the world will need to produce 69%
more food calories in 2050 than 2006
Expected shortfall of food grains globally is 27.7 mmt by 2020 and 14.0 mmt in India by 2017
Population Statistics (bn)
9.6

7.2

5.7

1.75%
1.69%

Current
1.3

0.9
1994

2014
World

Greenhouse Gas Emissions

(100% = 49 GT CO2)

Agri
Ecological
Footprint

24%

1.7
2050E
Indian

Earths Landmass Usage

(100% = 13.3 bn ha)

50%

70%
Required growth
by 2050

Water Withdrawal
(100% = 3862 km3 H2O)

37%

70%

Agri's Current Ecological Footprint

Reducing
Arable
Land

Global Agricultural Total Factor

Productivity (TFP) Growth

Global Middle Class by 2050E

Reducing arable land due to rapid industrialization

South Asia is currently using 94% of its potential arable land
Worldwide, over 0.5 mn tons of banned and unhealthy pesticides
are threatening the arable land

Current rate of
growth

Agri sector itself contributes majorly

to environmental degradation mainly
on account of unhealthy agri practices
Long-term sustainability demands a
large scale shift to biocides based
healthy agriculture

0.38 ha

0.23 ha

0.15 ha

1970

2000

2050

In Hectares (ha) / Person

13

Source: UN Population Report 2014, World Resource Institute Report on Global Food Challenges 2013, UN-FAO Agriculture Report

Global Market Size

Crop Protection Industry (US$ bn)

Organic Food Market (US$ bn)

Increasing consumption and farmers need for higher profitability are

driving the growth in crop protection industry

Asia, Latin Americas and South Africa are projected to have highest
demand for organic foods in the future

71

161.5

55

104.5

40

71.2

2008

2013

2018

Biocides Market (US$ bn)

47.2

7.3

73.8

9.6

2015

2018

Region Wise Growth in Bio-Pesticide Markets

Significant export potential backed by robust growth in Biocides
market

2018
2012

2012

Biocides
market to
grow at a
CAGR of
4.7% from
2012-2018

13%

14%

17%

12%
Biocides Market

22%

18%

Total Agri Input Market

Source: Lucient Report, Research & Markets Report 2014, BCC Research Report on Organic F&B 2014, Accenture Report 2013,
Transparency Market Report on Global Biocides Market 2015

14

India Market Size

Crop Protection Industry (US$ bn)
Rising middle class and increased health awareness to influence the
demand for biocides in the Indian market
6.8
3.8

2012

2017

Key Industry Highlights

Approx. 2.5% of all agricultural land to be certified organic

by end 2015

Organic (fruits & dairy products) market to grow at a CAGR

of 13-14% and 10-11% respectively from 2012-2017

Total Indian Bio Input (including Genetically Modified)

market estimated to reach US$ 37.0 bn by 2025

Approx. 18% of the crop yield worth US$ 19.6 bn is lost due
to pests every year in India

Bio-Pesticides Market (US$ bn)

0.35

Pesticide Consumption Pattern in India

37%

0.16

Cotton

2013

20%
Rice

Chilli

6% 6% 5%
Wheat

Vegetables

26%
Others

2018

Source: Tata Strategic Management Group, Care Report 2007, Dawn Magazine, SBI Cap, Technopak Organic Food Report 2012,
Camson Analysis

15

Strategy: Path-to-Value

16

Driving Long-term Growth

Focusing R&D efforts on developing

compelling technologies to continue
to deliver a sustainable pipeline of
new products

Clearly Defined Strategic Plan

o Focus on the institutional desk business, both in
domestic and international markets

Capitalizing on
our diverse
product range to
address the
farmer needs for
zero-residue
products, thereby
creating
sustainable
demand and
revenue stream

Pillars
of
Growth

o Optimize utilization of existing manufacturing

platform to enhance capital efficiency and
shareholder returns
o Continue to develop and patent the innovative
products
o New Hybrids: Further stress upon product
development

Continuous focus on optimizing

operational costs and further
streamlining processes to achieve
excellence

o Successful integration of recent corporate

MOUs which will bring scalability through a
larger research space and new customer base
17

Target Optimization Areas

To support the superior R&D capabilities, three target areas identified under the optimization plan

Simplifying
Business Segments

Enhancing Market Reach

Improving Support
Functions

Develop best-in-class Agri Biotech (Biocides)

products
Demerger of Seeds business; In line with the core
strategy and optimization plan

Deploy a mix of push and pull marketing strategy to

create demand and push sales
Deepen the product consultancy interaction with the
farmers

Improved
business
agility

Liberating
resources to
re-invest in
R&D to fuel
further
growth

Focus on receivable timelines

Ensure sustained compliance with global regulatory
standards

18

Demerger of the Seeds business

Camson Bio Technologies (CBTL)

(Pre Demerger)

Camson Bio Technologies

(CBTL)

To operate only in the Agri

Biotech segment, backed by
advanced R&D capabilities

(Post Demerger)
Agri Biotech
(Biocides)

Agri Biotech
(Biocides)
Segment

Seeds Segment
Seeds
Cultivation
Seeds Trading

Demerger Highlights

Application filed with Karnataka High court, for the Demerger

of Seeds business to form a new entity (Camson Seeds Limited)

Shareholding pattern of Camson Seeds to be same as of CBTL

Existing shareholders of CBTL allotted shares of Camson Seeds

ltd. in the ratio of 1:1

CBTL will continue to operate only the Agri biotech (Biocides)

business, focusing upon Zero-residue & eco friendly products

Spin off

Camson Seeds Ltd.

(New Entity)

Seeds Segment

Rationale for Demerger

Changing Business
Dynamics

Cultivating Future
Growth

Most dynamics
like risk, capital
requirements &
return ratios of
both businesses
begun to differ,
necessitating need
for the demerger

Enhance focus on
the rapidly growing
Agri-biotech
business, to further
scale it up

Enhancing
Market Position
Building brand
equity
Further
penetrating the
Indian agri market

In line with the

Companys longterm strategy
19

Business Operations

20

R&D enabled Product Development

A complex process developed over two decades of microbial research
Multi-Stage Process

Sub Stages
Identifying target pathogen

Identification

Literature/data mining

Process Description

Bio-medical facts are mined from scientific literature,

further to use in search for microbial sources

Microbe samples are sourced from various agro-climatic

zones

Camson uses in-house technology to facilitate the growth

and multiplication of cultures

Extraction of primary and secondary metabolites, from

the cultures

Camsons manufacturing process is continuously

optimized to suit a huge spectrum of temperatures

Helps in mass production of biocides and reduce

operational costs

Camson uses multi-component formulations to develop

products whose ingredients have multiple effects

Has in-house capability over 300 acres of land, where

agro-climatic field trials are conducted

Microbial source tracking

Isolation of microbes

Metabolite Research

Mass multiplication
Extraction of Sec Metabolites

Biocide testing

Testing and Production

Production optimization
Product improvement

Field Trials

Formulations
Field trails

21

Biocides Business
Ability to leverage its first mover advantage in a market with significant growth potential

Agri Biotech
Products
(Biocides)

Bio Insecticides

Produced using secondary metabolites of microbes,

suitable for killing pests
Maximize agricultural productivity while reducing the
environmental impact
Products are highly specific in their action, non
synthetic, economical and environmentally safe
Categorized into four product types: Bio Insecticides, Bio
Pesticides, Bio Fertilizers and Growth Stimulants

Bio Fungicides

Bio Fertilizers

Bio Stimulants

22

Product Range
Agri Biotech (Biocides)

Bio Insecticides
Help protect crops
and produce high
quality yield
Has unique mode of
action, less toxic and
organic

Bio Fungicides

Bio Fertilizers

Bio Stimulants

Help control fungi

and act as both:
Preventive and
Curative

Maximize farm
potential by
promoting plant
growth

Make farm operations

more efficient by
plant growth

Bio degradable

Improve productivity

Reduce the cost of

cultivation

Calgard

Calbahaar

Calobium

Calshri

Cal-mb

Calmonas

Calphorus

Calstim

Calhopp

Calderma

Calosphere

Caltika

Calmyte

Caltop

Calspiral

Camistrong

Calnova

Calphomil

Calzoto

Calhume

Calpaste

Calbase

Caltash

Calterm

23

Water Soluble Natural Fertilizers: New Segment

Natural Fertilizers enables effective mobilisation of nutrients to the plant
Camson is the First in the World to develop Water Soluble Natural Fertilizers
derived 100% from natural sources; recently filed patent
Natural Fertilizer technology certified by the Control Union, a major certifier of
organic agri produce and inputs globally
Camson is capable to manufacture this in commercial quantities to meet the
increasing demand
Performance Metrics Natural Fertilizers
Germination: Increase of 10%-20%

Product Advantages

Bio Available NPK: Easier for the plant to absorb the

nutrients

Do not leach or evaporate as in case of synthetic

fertilizers

Free from Sodium, Chloride and other harmful

chemicals

Completely and uniformly water soluble, 100%

Organic

Plant Height: Increase of 10%-12%

Girth: Increase of 5%

Yield: Increase of 10%-15%

Soil Microbe Count: Increase of 20%

24

Financial Performance

25

Select Financials: Biocides Business

Profit & Loss Statement1
(Rs. million)
Operating Revenue
EBITDA
(including other income)

Leverage Profile1

Q3 FY2016 Q2 FY2016 Q1 FY2016

45.5

122.6

142.4

(61.5)

28.9

39.1

EBITDA Margin

nm

23.6%

27.4%

Depreciation &
Amortization

23.9

27.0

27.7

(85.0)

1.9

11.4

EBIT
(including other income)

EBIT Margin

(Rs. million)
Short Term Borrowings2

358.4

Long Term Borrowings

99.5

Total Debt

457.9

Less: Cash & Cash Equivalents

(11.0)

Net Debt

446.8

Net Worth
Total Debt / Net Worth (x)
nm

1.5%

8.0%

30.09.2015

Capital Employed

1,413.9
0.32x
1,871.8

Note:
1.

During the year, the Company has received order from the High Court for the demerger of the seeds business of the Company with an appointed
date of 1st April, 2014. Accordingly the above results have been presented for the Agri Biotech business. Consequently, the Company operates in
a single segment, i.e. Agri Biotech and the results relating to previous quarter/period/year are not comparable

2.

Short term borrowings include: a) Current portion of long-term maturities and b) Interest accrued but not due on borrowings & security deposit

26

Capital Structure
Shareholding Pattern (Dec. 31, 2015)

51.66%

24.47%

2.83%
Promoters

Key Investors

Market Data (February 24, 2016)

Market Cap (Rs. mn)

990

Enterprise Val (Rs. mn)

1,437

52 Week H/L (Rs.)

127.73 / 31.20

Bloomberg

CBTL:IN

Reuters

CAMS.BO

Sector

Biotechnology

21.04%
FIIs

DIIs

Others

Shareholding Pattern
Shareholders

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

Promoters

24.47%

24.46%

24.46%

24.46%

24.46%

Foreign Institutional Investors (FIIs)

21.04%

21.20%

21.30%

21.67%

21.32%

Domestic Institutional Investors (DIIs)

2.83%

2.85%

2.85%

2.84%

2.84%

Others

51.66%

51.49%

51.39%

51.03%

51.38%

29.99

29.99

29.99

29.99

29.99

Total Shares (million)

Source: BSE

27

Camson Bio Technologies Limited

(CIN: L85110KA1993PLC014944)
C-7, 7th Floor, Corporate Block
Golden Enclave, Old Airport Road, Bangalore - 560 017
Phone: +91 80 4076 8900; Fax: +91 80 2520 2285
Email: info@camsonbiotechnologies.com
Website: www.camsonbiotechnologies.com

Neethi
Camson Bio
Technologies

Saket Somani
Churchgate Partners

ir@camsonbiotechnologies.com
+91 80 4076 8906

camson@churchgatepartnersindia.com
+91 22 6169 5988