Eid parry presentation final
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EID PARRY- Enrich life by creating value from agriculture
Stronger… Greener… Bigger…
COMPANY OVERVIEW“ Ranked 51 amongst the Top 200 Companies in India” -Economic Times 2009 survey
• EID Parry Limited is a public company headquartered in Chennai, South India • In been in business for more than 225 years.• No.1 Sugar Producer in South India including Refinery.• Dominant player in sugar industry with interests in promising areas of bio-
pesticides and nutraceuticals.
Main States :-
• Tamil Nadu• Andhra Pradesh• Karnataka
PARRY’S PRESENCE
ECONOMIC SCENARIO2014-15
• The Global economy grew at 3.4%• GDP of India 7.3%• A global surplus of sugar production for 4 years, beginning
from 2011, continued to tilt the demand - supply equilibrium, sending sugar prices on a downward spiral• Sugar Prices trailed at Rs 22,000/ Mt ,lowest in the last six
years
ECONOMIC SCENARIO (CONTD…)
2015-16
• Global economy grew at 3.1 %• India grew at 7.6 %• According to the USDA estimate, because of :- - The growing demand for renewable energies, - Rising demand for global sugar consumption, - Supportive government policiesThe industry is expected to outperform in the next five years. Due to cyclicality, however, world price of sugar is still expected to remain highly volatile• Sugar prices are expected to rise, due to fall in production.
Production declined in India - drought impacting yields in Maharashtra, Karnataka and Andhra Pradesh and because of the floods in Tamil Nadu
FY 20
12-13
FY 20
13-14
FY 20
14-15
FY20
15-16
010002000
Chart Title
Sales Other Income
PRODUCTION ( Global and India )
Sugar Prices• Steady increase in the Fair and Remunerative Price (FRP)
stipulated by the Central Government• Sugarcane accounts for around 80 per cent of the cost of sugar
production. Consequently, leading to an increase in production costs, affecting operating margins
Acquisitions :-
• Increased the basic customs duty on raw sugar imports from 25% to 40%, to reduce imports• Extending soft loans to sugar
mills, to help them from the liquidity crunch• Export subsidy of 4,000/MT,
for raw sugar3.0
Government Initiatives :-
Sadashiva –Bagalkot (Karnataka)• 76% Shareholding, Investment
Rs. 496 Mn
Parrys Sugars Industries Ltd –(Haliyal, Ramdurg, Sankili) (Karnataka & Andhra)• 65% Shareholding, Investment
Rs. 988 Mn
PARRY PRODUCTS
• SEGMENTS : –- Sugar
• Confectionary Sugar• Beverage Sugar• Biscuits Sugar• Pharma Sugar
- Nutraceuticals- Ethanol (by Product)- Power (by product)- Bio- Pesticides
REVENUE CONTRIBUTION
PRODUCT- Sugar
• EID Parry has decided to focus on differentiated sugar-related offerings to boost market share.
• As a Brand, it has introduced Amrit- a 100% natural cane sugar.• R&D division is focused on developing sugarcane varieties having high yield,
better sucrose content
PRODUCT- Nutraceuticals• Parry Nutraceuticals’ products have
become an integral part of several major brands in more than 38 countries.
• The main markets being in North America, Europe, South East Asia and the Far East for many years now.
• The Nutraceuticals Division’s standalone turnover was at 72 Crore in 2015-2016
• On a consolidated basis the Nutraceutical Business registered sales of 235 Crore as compared to
PRODUCT - Bio- Pesticides
• The core of this business is the Neemazal range of products made from neem seed kernel at the Company's production facility at Thyagavalli near Cuddalore, Tamil Nadu.
• The Bio-Pesticides Division registered a turnover of 104 Crore in 2015-16
• New products from this company include AbdA, SpreadMax, Yieldsmor, and Beemax
MAIN COMPETITORS ( Financials)
NAME LAST PRICE
M-CAP NET PROFIT
TOTAL ASSET
EID Parry 250.85 4,411.72 -66.45 2,100.02
Balrampur Chini
112.80
2,763.68 99.42 2,731.54
Bajaj Hind 14.45 1,637.99 -114.28 8,741.67
Shree Renuka
13.40
1,244.61 -285.30 6,496.24
Sakthi Sugars
29.90 355.36 -55.07 1,178.06
Comparison is Based on -Market Capitalisation-Net Profit-Total Asset
FUNCTIONS
PRODUCTION• Domestic sugar production
upto March 31, 2016 stood at 23.7 million tonnes• Uses Production practices like
drip-irrigation, trash shredding, trash multching and inter-cropping.• Innovative Enviro-friendly
crop production solutions
OPERATION• Standalone Revenue of
your Company for the year was ` 2,265.04 Crore • Overall expenses for the
year was ` 2129.06 Crore, • Performance of the Bio
division and Cogen operations was better than the last year
FUNCTIONS (contd..)
Human Resource• Farm Labour Relations• Parry Service Kiosks
(PARRY MAYYAM)• Harvesting / Transport
Labourers Insurance• Company believes that
people are the key to success
Technology• Encourage Innovation• Co-generation concept• Additional stream of
revenue by Co-generation power• Substituting the
conventional thermal alternative.
Financial Performance
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-160
500
1000
1500
2000
2500
REVENUES
Sales Other Income
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-16
-200
-100
0
100
200
300
400
PAT
Axis Title
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-160
500
1000
1500
2000
EXPENSES
Expenses
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-160100200300400500600700
EBIT
Axis Title
FINANCIAL RATIOS
GROSS MARGIN = GROSS PROFIT
NET SALES
• ROCE = NET INCOMECAPITAL EMPLOYED
• ROA = NET INCOMETOTAL ASSETS
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-16
45.5%
-22.6%
18.2%
-23.6%
GROSS MARGINOPERATING MARGIN
FY 2012-13 FY 2013-14 FY 2014-15 FY2015-16
14.8
1.16
7.06
-3.46
9.120.69
3.8 -1.91
ROCE ROA
FINANCIAL RATIOS (Contd... )
FY 2012-13
FY 2013-14
FY 2014-15
FY2015-16
01 1.28 1.4 1.17
0.63
D/E RATIO
D/E
FY 20
12-13
FY 20
13-14
FY 20
14-15
FY20
15-16-5
51525
19.08
1.518.43
-3.78
Basic EPS (Rs.)
Basic EPS (Rs.)
DEBT/ EQUITY RATIO = DEBT
EQUITY
EPS = NET INCOME - PREFERENCE DIV
No. OF O/S SHARES
AFFECTING FACTORS :- Environment: • In order to reduce pollution hazards,• Implementing environment
management system (EMS). • To Improve economic and
environmental performance of sugar processing unit
Technology: • Advanced technologies in Indian
market made both product and production processes enhanced.
• R&D centers have been established for product innovation
Government: • The industry operates under strict
legal regulations.• Although in some cases it affects
the industry and producers.
Socio Economic: • It includes Income levels of
consumers.• Purchasing power of people.• Cost of plant setup.• Industry wage rates
SWOT ANALYSIS
STRENGTHS : - Farmers Loyalty- Portfolio has Bio pesticides and nutraceuticals.- Strong Management- Government friendly Policies
WEAKNESS : - Volatility in sugarcane prices - Supply at concessional price to the PDS- Labour Unavailability- Wheat/ Paddy crop competition
OPPURTUNITIES :- Technology upgradation- Opportunities in terms of export- Burgeoning Middle class- Lifestyle
THREATS :- Cheap sugar imports- Monsoons- Government Policy Changes- Sugar Surplus
SWOT
PARTNERS (GLOBAL)
CANE GROWING MILLING MARKETING
Mitr Phol –Thailand CTC –Brazil ICSB ISSCT
SPRI –USA SRI –Australia Mitr Phol –Thailand TLPT –UK Honeywell Tech IPRO –Germany ISSCT
Cargill Sucden Czarnikow
MAJOR STRATEGIES 2013-14
• Introduced drip irrigation and solar pumps to resolve the issues of water scarcity and power interruptions respectively.
• Developed an in-house steam conservation process that consumes 3% less steam for every ton of cane used.
• Introduced an innovative “Parry Roller” design which helps us in recovering more sugar from every ton of cane used.
• Through the “Bon Sucro” initiative, farmers are educated on several best practices in farming.
MAJOR STRATEGIES (CONTD….)2014-15• Parry pioneered the programme of introducing Trichogramma, a bio-control agent, for
eliminating the use of chemical pesticides in the sugar industry. • It sees farmers not as suppliers of raw material but as customers.• Helping key stakeholders is a forward-looking corporate strategy, as it helps build
managerial capabilities by promoting stronger employee involvement with farmers, and reduces the uncertainty due to the decontrol of the sugar industry.
2015-16• In September 2015, the company has announced plans to adopt portfolio diversification and
invest in brand development as a means of notching up better revenues.• In line with future strategies of growth, capacity augmentation and plant modernization were
carried out at the plants at Haliyal and Bagalkot. Together these two plants at Karnataka crushed a total 15.27 LMT of cane, an increase of 3.37 LMT over the same period of 11.89 LMT for the previous year.
THANK YOU