Sales Review Meet - 2009-10

Integrated Business India

1
 Presentation Outline
Integrated 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 Structure
Punjab
Rajasthan
H.P & J & K
Haryana
Employee Strength - 381 Uttar Pradesh
Zonal Business Heads - 7
Regional Managers – 35
Chandigarh
Marketing Team – 37
SO/SE/SSE – 260
Depots – 24
Channel Partners – 4500 Delhi

Ahmadabad

Madhya Pradesh Kolkata

HO Pune West Bengal
Gujarat Bihar, Orissa
Chhattisgarh Hyderabad Assam & NE
States
N Maharashtra

Bengaluru Andhra
Pradesh

W E
Karnataka
Tamilnadu &
Kerala
S 4
5
UPL’s Products Strength (AF)

6
 UPL – Seed Product Profile (FC & VC)

Key field Crops (Advanta) Key Vegetable crops (Golden + Unicorn)

1. Paddy 1. Tomato
2. Cotton 2. Chilli
3. Maize 3. Brinjal
4. Sunflower 4. Bhindi
5. Jowar 5. Cabbage
6. Bajra 6. Cauliflower
7. Mustard 7. Cucurbits

7
 Integrated Business Snapshot
Period - H1(April - Sep 2009), Value - Rs. Cr.
Previous Budget Actual % %
Division
Year 2009 2009 Achievemen Growth
Agro Formulation 162 182 184 101 14
Field Crops 59 70 46 67 (22)
Vegetable Crops 29 38 31 82 6
Integrated Total 250 289 261 90 4

350 120
101 289 261 100
300 250
90
82 80
250
67
182 184 60
200 162
40
150
14 20
100 70 6 4
59 0
46 38
50 29 31
(22) -20
0 -40
Agro Formulation Field Crops Vegetable Crops Integrated Total

Previous Year Actual Budget 2009 Actual 2009 % Achievement % Growth

8
Agro formulation Journey (Net Sale Rs. Cr.)

300 277

250 Rs. Cr.

215
200 176 181

150 130
109 111
100

50

2006-07

2008-09
2002-03

2003-04

2004-05

2005-06

2007-08
9
 Key Products (AF)
2008-09 (% Contribution of Net sale)

Kaardon, 4 T otal, 3 Phoskill, 13

Lancergold, 4
Jhatka, 4

Lagaam, 4
Saaf, 13
Uthane, 7
Umet, 11

Brand Names Technical Name Brand Names Technical Name

Phoskill Monocrotophos 36% SL Jhatka Clodinafop propargyl 15% WP
Saaf Carbendazim 12% + Mancozeb 63 % Lancergold Acephate 50% + imidacloprid 1.8% SP
Umet WP
Phorate 10 G Kaardon Cartap Hydrochlorid 4G
Uthane Mancozeb 75% W.P. Total Sulfosulfuron 75% + Metsulfuran Methyl 5%
Lagaam Imazethapyr 10% SL WG

10
 H1 Sales Snapshot (Integrated)

Value - Rs. Cr.

2009-10 Q1 Q2 H1 Total
Budget (Sale) 158 131 289
Actual (Sale) 167 95 261
Sales Ach. (%) 105 73 90
Budget Contribution % 38 36 37
Contribution Actual % 44 39 42

11
 H1 Sales Snapshot (AF - All India)

Value - Rs. Cr.

2009-10 Q1 Q2 H1 Total
Budget (Sale) 88 94 182
Actual (Sale) 89 95 184
Sales Ach. (%) 101 101 101
Budget Contribution % 27 31 29
Contribution Actual % 37 39 38

12
 Sales Snapshot (FC – All India )

Value - Rs. Cr.

2009-10 Q1 Q2 H1 Total
Budget (Sale) 55 15 70
Actual (Sale) 62 -15 46
Sales Ach. (%) 113 -102 67
Budget Contribution % 52 52 52
Contribution Actual % 52 52 52

13
 H1 Sales Snapshot (VC – All India )

Value - Rs. Cr.

2009-10 Q1 Q2 H1 Total
Budget (Sale) 16 22 38
Actual (Sale) 16 15 31
Sales Ach. (%) 99 70 82
Budget Contribution % 47 47 47
Contribution Actual % 53 53 53

14
 Sales Outlook 2009-10 (Integrated All India)
Value Rs. Cr.
FY 09-10
Q1 A Q2 A Q3 F Q4 F
Outlook
Budget 158 131 98 48 435
Actual/Forecast 167 94 99 51 411
% Achievement 105 72 101 107 95

Budget Actual/Forecast % Achievement

500 435 120
105 411
450 107
101 100
400
350 95 80
300
72
250 60
200 158 167
131
150 94 98 99 40
100 48 51
20
50
0 0
Q1 A Q2 A Q3 F Q4 F FY 09-10
Outlook

15
 Sales Outlook 2009-10 (AF)
Value Rs. Cr.
FY 09-10
Q1 A Q2 A Q3 F Q4 F
Outlook
Budget 88 94 70 31 282
Actual/Forecast 89 95 75 36 295
% Achievement 101 101 108 116 104

350 Budget Actual/Forecast % Achievement 120

282 295
300 116
115
250
110
200 101 108
101
104 105
150 95
88 89 94
100 70 75 100
31 36
50 95

0 90
Q1 Q2 Q3 Q4 FY 09-10
Outlook

16
 Sales Outlook 2009-10 (FC)
Value Rs. Cr.
FY 09-10
Q1 A Q2 A Q3 F Q4 F
Outlook
Budget 55 15 14 6 90
Actual/Forecast 62 -15 3 6 55
% Achievement 113 -102 21 107 62

Budget Actual/Forecast % Achievement

100 150
113 90
80 107
62 100
55 55
60
50
40 21 62
15 14 0
20 3 6 6
-50
0
Q1 A Q2 A Q3 F Q4 F FY 09-10 -100
-20
-102 -15 Outlook
-40 -150

17
 Sales Outlook 2009-10 (VC)
Value Rs. Cr.
FY 09-10
Q1 A Q2 A Q3 F Q4 F
Outlook
Budget 16 22 14 11 63
Actual/Forecast 16 15 21 9 61
% Achievement 99 68 151 81 97

70 Budget Actual/Forecast % Achievement

63 160
151 61
60 140

50 120
99
100
40
81 97 80
30 22 21
16 16 68 60
15 14
20 11 40
9
10 20
0 0
Q1 A Q2 A Q3 F Q4 F FY 09-10
Outlook

18
 Q3 + Q4 Sales Outlook (AF - Key Products)
Budget (Cr.) Expected (Cr.)
S.No. Products Technical H2 H2
1 Jhatka Clodinofop 15% WP 12 12
2 Saaf Carbendazim 12 + Mancozeb 63 Wp 11 12
3 Uthane Mancozeb 75 % WP 11 12
4 Umet Phorate 10 G 10 12
5 Total Sulfo 75 + Metsulfo 5 WG 8 8
6 Phoskill Monocrotophos 36 SL 5 6
7 Kaardon Cartaphydrochlorde 4 G 4 4
8 Lancer Acephate 75 SP 4 5
9 Lancergold Acephate 50% + Imidacloprid 1.8% SP 3 4
10 Saathi Pyrazosulfuron 10 WP 3 3
11 Buprolord Buprofezin 25 SC 3 4
12 Ustaad Cypermethrin 10 EC 3 3
13 Kinadon plus Phosphomidon 40 SL 2 3
14 SF-10 Sulfosulfuron 75 WG 2 2
15 Uniquat Paraquatdicholride 24 SL 2 2
Total 83 89

19
 Q3 + Q4 Sales Outlook (FC - Products)

Budget (Cr.) Expected (Cr.)

S.No. Products H2 H2
1 Field Corn 8 1
2 Sunflower 7 3
5 Sorghum 2 2
3 Rice 1 1
4 Mustard 1 2
Total 19 8

20
Q3 + Q4 Sales Outlook (VC - Key Products)
Budget (Cr.) Expected (Cr.)
S.No. Products H2 H2
1 Hybrid Ca bba ge 4 4
2 OP Coria nde r 2 2
3 Hybrid Chilli 2 2
4 Hybrid Toma to 2 2
5 Hybrid Wa te rme lon 2 2
6 Hybrid Ca ulifolwe r 2 2
7 OP Bhindi 2 2
8 Hybrid Cucumbe r 1 1
9 Hybrid Bhindi 1 1
10 Hybrid Be e troot 1 1
11 Hybrid Brinja l 1 1
12 Hybrid Mus kme lon 1 1
14 Hybrid Bottle gourd 0 1
15 Hybrid Bitte rgourd 0 1
To tal 20 21

21
 Measures to Cash Opportunities & Improve Strength

1. Opening of New Markets/ Geographies

– Benefits 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 products

– Saaf, Saathi, Lancergold, Total & Lagaam

3. To cash maximum productivity from IPR department

– To get maximum patents for upcoming new products –
• UPH 206, UPH 203B, UPH 309
• ISK Products

4. Competitive advantage over competition

– Big integrated Distribution network
– Sales team equipped with strong & structured marketing team

22
 Strategies to Combat Threats & Weaknesses

1. Safeguarding Big Integrated customer base

– Farmers as well as Trade Partners
– Regular Contact with innovative marketing tools

2. New upcoming Strong pipeline products

– ISK 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 trends

– To have a best product fit,
– To be proactive to accept the changes & develop the strategy

4. To be a Farmer Centric Organization

– Focus on farmers, root level extension activities to compete from low cost
manufacturers/Local players
– To compete with new entrants like Makteshim, Sinochem, Devgen etc

23
 Registration outlook for the year

1. Key Registrations Obtained in H1

– Fipronil 5 % SC
– Fipronil 0.3 Gr
– Chlorpyriphos 50 + Cyper 5 EC

2. Key Registrations Expected in next two Qtrs

– Clodinofop 15% + Metsulfuron 1% WP

– Emamectin Benzoate 5% SG
– Ethion 40 + Cyper 5 EC

3. Key Registrations Planned in H2 Qtrs

24
 Competition for top 5 UPL Products

Volume – Kl/Mt
Industry UPL UPL Market Competition Suggestions to
S.No. Products Technical UPL Strength Competitors
Volume Volume Share Strength Maintain/Improve sale

Strategy to target Chemonova

Largest Manufacturing Cheminova Customers, Overall they are
1 Pho s kill Mo noc ro to pho s 36 S L 8600 1234 14 Big Brand,
Capacity, 2nd popular Brand, (1350 Kl) getting Weak in Product range,
Distribution & Team

Continue to focus on new

Brand Leader( 60% MS), segments, Seed Treatment,
Carbe ndazim 12 + Indofil Specilalized in
2 S aaf 1400 874 62 Patented Product, Developed Concept development like
Manc o ze b 63 WP (250 Mt) Fungicides
New Segments Saafilizer, contuation in
promotional activities

Benefit out of best services to

Integrated Big distrbibution
PI Industries Strong in farmers & Trade partners by
3 Ume t Pho rate 10 G 35000 7254 21 network, 2nd popular
(9000 Mt) Brand providing complete solution &
Brand
Customer relationship

Biggest Manufacturer, Benefits out of low cost of

Indofil (2100 Brand &
4 Uthane Manc o ze b 75 WP 8100 881 11 Improving penetration & production, biggest
Mt) Volume leader
reach in new geographies manufacturer, preplacement

Complete range in wheat Open Distribution Channel in

Syngenta (220
5 Jhatka Clo dino fo p 15 WP 560 98 17 herbicides, 2nd most Brand Leader North, Benefits from Pipeline
Mt)
popular brand product "Vesta"

25
 Top five Products (Industry - 2008 )

Value Value Value

S.No Herbicides Insecticides Fungicides
(Cr.) (Cr.) (Cr.)
1 Glyphosate 41 SL 134 Imidacloprid 17.8 SL 264 Mancozeb 75 WP 126
2 Clodinofop 15WP 108 Acephate 75 SP 245 Hexaconazole 5 EC 74
3 Imazethapyr 10 SL 87 Endosulfan 35 EC 226 Carbendazim 50 WP 63
4 Sulfosulfuron 75%WDG 80 Monocrotophos 36 SC 170 Tricyclazole 75 WP 59
5 Pretilachlor 50 EC 68 Spinosad 45 SC 150 Propiconazole 25%EC 52
Total (Top 5) 477 1054 374
Industry Total 984 3065 883
% Cont of top 5 Products 49 34 42

26
 Key Initiatives to sustain 20% growth for next three (3) years

1. Product Portfolio Strategy

– New 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. Talent
– Recruitment, Training & Development
– Leadership Development – ICCI

3. Customer Service >4500

– E- Custal
– SMS Service
– Business Processes to be more automated

4. Quality of produces especially Seed portfolio

– Revamp QC organization
– Induct best talent & revise quality management system

27
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 activities
Government Participation & Media Coverage

33
Crop Specific Activity – Coral Master Meeting

Coral Masters Meeting – Behrampur (Rajasthan)

34
Crop Specific Activities – Focus on Farmers

Media Coverage for Coral Masters Activity

35
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 counter

Results 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 Visit
Products -
1. UPI – 206 (Sucking Pests)
2. UPI – 106 (Lepidopteron)
3. UPF – 206 (Early & Late Blight)
4. 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 packets

66
 Integrated Promotional Inputs (AF +VC)
Saaf + Divyajyoti

Saaf Leaflet Saaf Poleposter

67
 Crop Specific Inputs (AF + VC)
Saaf + Vaisnavi

Saaf Handbill on Tomato

68
Crop Specific Inputs

Saaf + Other Veg

Saaf Handbill on Vegetables

69
 Crop Specific Inputs (AF +FC)
Mustard + Saaf + LG + Insulfgold

Saaf + Lancergold + Insulfgold Handbill on Mustard

70
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 Paddy

77
Product Specific Inputs

Sticker

Poleposter
78
 Product Specific Inputs

Dangler

Balloon
79
Saaf Balloons & Walkers

80
 Product Specific Inputs

Wall Painting
Integrated Inputs
Walker
81
 Product Specific Inputs

CUT OUT Carry Bag

CARRY BAG 82
 Product Specific Inputs

Banner
Demo Board

Poster
Wall Clock

Dangler
83
Product Specific Inputs

Display Canopy

Integrated Inputs
84
Product Specific Inputs
Dangler
Sticker

Integrated Inputs

85
Product Specific Inputs

Poster

Pole Poster

Integrated Inputs

86
Product Specific Inputs

Banner

Integrated Inputs

Field Board
87
Product Specific Inputs
Leaflet Front

Integrated Inputs

88
Product Specific Inputs

Walker

89
Product Specific Inputs

Integrated Inputs
90
Crops Specific Handbills

91
Saaf – lancergold Hoardings

92
Order Book

93
94
Crop Specific Complete Package of 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 School
An Educational Project dedicated to Indian Farming Community

OBJECTIVES

1. To equip the farmers with pest knowledge and their control

measures and techniques

2. To give them diversified knowledge of farming like –

Pisciculture, Animal Husbandry, Poultry etc.

3. To train the farmers on – Organic farming, ICM, IPM and

Sustainable Agriculture

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

Value (Rs. Cr.)

Value (Rs. Cr.) Year 2006 Year 2007 Year 2008
Portfolio Formulations Formulations Formulations Growth % in 07
Value Value Value
Category (No) (No) (No) over 06

Herbicides 39 710 38 842 40 984 17

Fungicides 50 607 56 773 59 883 14

Insecticides 75 2621 81 2693 82 3065 14

Total 164 3938 175 4307 181 4931 14

109
 Crop Market Share

Value - Rs. Cr.

% UPL Crop
SL. No. CROP Value UPL Value
Contri Contri
1 Rice 1231 25 88 32 Others
Ric e
25%
25%
2 Cotton 1002 20 40 14
3 Chillies 288 6 18 6 Sugarc ane
2%
4 Wheat 284 6 24 9
5 Soybean 225 5 21 8
Red Gram
6 Potato 152 3 13 5 2%

7 Tea 140 3 14 5 Grapes

Cotton
3% Tea
8 Grapes 134 3 2 1 3% 20%
Potato
9 Red Gram 103 2 8 3 3% Soy bean W heat Chillies
5% 6%
10 Sugarcane 93 2 12 4 6%

Others 1279 26 36 13
Grand Total 4931 277

110
 India – Land Usage

Area 329 M ha.

Arable Land 172 M ha.

Net Sown Area 141 M ha.

Gross Cropped Area 190 M ha.

Net Irrigated Area 45 M ha.

111
Source: Syngenta estimates
 Percentage of Operational Holding

Holding category 1960-61 1970-71 1980-82 1991-92 2002-03

Marginal(<1 ha) 39 45 56 62 69
Small (1 to 2 ha) 22 22 19 17 16
Semi Medium (2 to 4 ha) 19 17 14 12 9
Medium (4 to 10 ha) 14 11 8 6 4
Large (>10 ha) 4 3 1 1 0.8
Source : NSSO - 2003

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. Cooperative channel – State Cooperatives

2. Public distribution – Government Outlets

3. Private retail chains – Agri – Retail Stores

4. Private distributors – Associated with Organizations

113
 Distributors Role in support of Farmers

1. Finance to farmers
– Providing 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 inputs

– Provide the daily pricing & others details
– Purchase their final products directly from farmers

3. Technology Transfer
– Helps 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.)

40 35
30
30 24

20 16

10

0
2005

2006

2007

2008
115
 Kaardon (Cartap Hydrochloride 4G)

Kaardon(Rs. Cr.)

12 11

10 8
8 6
5
6
4
2
0
2006
2005

2007

2008
116
 Phoskill (Monocrotophos 36% SL)

Phoskill (Rs. Cr.)

40 36
35
30
24
25 19
18
20
15
10
5
0
2007
2005

2006

2008
117
 Umet (Phorate 10% G)

Umet (Rs. Cr.)

30
30 28
27
25
20
20
15

10
5

0
2005

2006

2007

2008
118
 Uthane (Mancozeb 75% WP)

Uthane (Rs. Cr.)

25
20
20

15
10
10 6 7
5

0
2006
2005

2007

2008
119
 Ustaad (Cypermethrin 10% EC)

Ustaad (Rs. Cr.)

10 9

8 7 7
6
6

0
2005

2006

2007

2008 120
Total (Sulfosulfuron 75% + Metsulfuron Methyl 5% WG)

Total (Rs. Cr.)

10 9 9
7
8
6
6

0
2005

2006

2007

2008
121
Lancergold (Acephate 50% + Imidacloprid 1.8% SP)

Lancergold (Rs. Cr.)

12
10
10
8
6
4
2
2
0 0
0
2005

2006

2007

2008 122
 Lagaam (Imazathapyr 10 % SL)

Lagaam (Rs. Cr.)

12
12

10

2
0.0 0.0 0.4
0
2005 2006 2007 2008

123
 SF -10 (Sulfosulfuron 75%WG)

SF-10 (Rs. Cr.)

12 11
10
8
6
4 3
4 3

2
0
2005

2006

2007

2008
124
Thanks

125