ShreeOswal Seeds & Chemicals Ltd. - chittorgarh.com · Disclaimer. This Investor Presentation has...
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ShreeOswal Seeds And Chemicals Limited
Investor Presentation
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DisclaimerThis Investor Presentation has been prepared by Pantomath Capital Advisors Private Limited in consultation with ShreeOswal Seeds &Chemicals Limited (SSCL) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. Thispresentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute anoffer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only currentas of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward lookingstatements”, including those relating to the general business plans and strategy of SSCL its future financial condition and growth prospects,future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. Theseforward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities andgrowth potential to differ materially from those suggested by the forward-looking statements. Further, no representation or warrantyexpressed or implied is made nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information.Also, no representation or warranty, express or implied, is made that such information remains unchanged in any respect as of any date ordates after those stated herein with respect to matters concerning any statement made in this Investor Presentation. SSCL may alter, modifyor otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. Thispresentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to make anyrepresentation not contained in and not consistent with this presentation and, if given or made, such information or representation must notbe relied upon as having been authorized by or on behalf of SSCL . This presentation is strictly confidential. The earlier versions of thispresentation, were in draft form, and should not be circulated or referred to by any person.
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Company Overview
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Company Overview• ShreeOswal Seeds & Chemicals Ltd. was incorporated in the year 2002 as a
partnership concern at Neemuch, Madhya Pradesh.
• The Company is engaged in production, processing and sale of different kind ofagricultural seeds like wheat, mustard, soybean, blackgram, isabgol & maize.
• The Promoters of the Company are Mr. Sanjay Kumar Baigani & Dr. Anil KumarNahata.
• The Company was converted from partnership concern into public limited in theyear 2017.
• Company is involved in the research of all kinds of seeds.
• The Company processes various kinds of seeds which includes 5 varieties ofWheat seeds, 5 varieties of Soybean seeds, 3 varieties of Mustard seeds, 1 varietyof Black gram, 1 variety of Corn seeds and 1 Variety of Isabgol/Psyllium.
• The products are sold under the brand name of “OSWAL”.
• The majority of the sales are through our own brand name which contribute85.32% in the year 2016 and 95.25% in the year 2017 respectively.
• The Company has a diversified customer base covering states like Bihar,Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh and Punjab.
• The subsidiary Company ShreeOswal Psyllium Export India Limited, is engagedin the business of manufacturing, processing and sale of psyllium husk andpsyllium husk powder.
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Milestones
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2017
Awarded most promising MSME in MP leadership series, presented
by Union Bank Of India.
2017
Conversion from partnership firm to
public limited Company in the
name and style of “ShreeOswal
Seeds and Chemicals Ltd”
2017
M/s Oswal Psyllium Exports
in which our Company was a
partner was converted into
public ltd co. and later on became
our wholly owned subsidiary
2018
ISO 22000:2005 Certification for
Food Safety Management
System
2015
The Company increased the production
capacity from 1000 tonnes to 22,500
tonnes2002
Commencement of the business under
the Partnership firm
Industry Overview
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Industry Overview
157.35 160.8 140.77 132.71
244.74 252.82
FY11 FY12 FY14 FY15 FY16 FY17
GDP by value added – size of agriculture and allied activities (US$ billion)
128 124 128 126 126 137
131 132 129 126 125 139
FY12 FY13 FY14 FY15 FY16 FY17
Production of food grains(million tonnes)
Rabi Kharif
• Gross Value Added by agriculture, forestry and fishing combined was US$ 252.82 billion in FY17 at constant
prices.
• According to the advanced estimates of MOSPI, agriculture and allied sector recorded a CAGR rise of 7.09 per
cent during FY07-17.
• Quarterly Gross Value Added (GVA) by Agriculture, forestry and fishing increased 1.7 per cent in Q2 2017-18.
• Agriculture is the primary source of livelihood for about 58 per cent of India’s population.
• Cotton production in India is expected to increase 9.3 per cent to 37.7 million bales in 2017-18.
• Kharif season lasts from April to September (summer); Rice (paddy) is the season’s main crop
• Rabi season lasts from October to March (winter); Wheat is the season’s main crop
• Total food grain production in the country was 275.68 million tonnes in FY17.
• As of December1 2017, total area sown with Rabi crops in India crossed 54.6 million hectares.
• India imported 2.7 million tonnes of wheat in FY17 (till January 16, 2017) and an additional 1.2 million tonnes
are to be imported by February 2017. India is expected to import up to 4 million tonnes of wheat in FY18.
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Business Overview
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Product Profile
Black Mustard
Wheat Soybean Hybrid Maize
Black gram Isabgol Yellow Mustard
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Manufacturing Unit
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Network Presence
Currently the Company has entered into the contracts with 752 farmers, there by giving access to around 2680 hectares of land.
4%
34%
36%
18%
7%
1%
State-wise Revenue Breakup (FY17)
Bihar
Maharashtra
MP
Rajasthan
UP
Jharkhand
(INR in lakhs)
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Business Process
•Nucleus Seeds•Breeder Seeds•Foundation Seeds•Certified /Research Seeds•Hybrid Seeds•High Quality Seeds•Truthful Seeds
Seed Production
•Crop (Field)Testing •Grow Out Testing •Insect Test •Germination Process•Purity Test•Moisture Test•Seed Health Test•Physical Purity Test
Quality control in Seed Process •Seed Cleaning
•Grader•Gravity Separation•Destoner•Spiral Separator•Milling Separator•Sortex Cleaning
Seed Processing
•Packaging under Our Own Brand
•Packaging for third party supplier
Packaging
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Psyllium/Husk Manufacturing Process
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Raw Material
Cleaning Unit
Other particles, foreign matters, sand
etc
Destoner Kice Aspirator Cleaned Seeds Dehusking (Grinders) Clearning by Blowing/Winnowing
Sand Dust (waste Particles)
Repeated Winnowing & Aspirator
Raw Material (Isabgol)
Lali & Powder
Finished Product (Psyllium Husk)Mixing to StandardPacking for DeliveryReady for Export
Pulverised Room for Powder
Fumigation, ETO or GAMMA RAYS
Organization Structure
ShreeOswal Seeds And Chemicals
Limited
Sanjay Kumar Baigani (Managing Director)
Anjali Bamboriya(Company Secretary)
Ashok Dhakar(Chief Financial Officer)
Dr. Anil Kumar Nahata(Director & CEO)
Krishna Kumar Sankhla
(Quality Controller)
Ram Patidar(Chief Production
Officer)
Arvind Jain (Plant Head)
Mahesh Bhatt(Chief Marketing
Officer)
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Key management
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Sanjay Kumar Baigani, Promoter, Chairman and Managing DirectorSanjay Baigani aged 45 years is associated with the Company since Incorporation. He has practical and handson experience in field related with taxation, accounting and computers. He has work experience of more than 10years with Anil Kumar Sanjay Kumar. He is the guiding force behind strategic decisions of the Company andhas been instrumental in planning and formulating the overall business strategy and developing businessrelations of our Company. He majorly looks after accounts department and finance department of our Company.
Dr. Anil Kumar Nahata, Promoter and CEO Dr. Anil Nahata aged 42 years is associated with the Company since Incorporation. He looks after the overallbusiness affairs majorly taking care of sales department, purchase department, production department andmarketing department of our Company. He has work experience of more than 9 years with M/s. NahataBrothers. He has also participated in many conventions related with Agri-Industry, ICAR- National ResearchCentre on seed spices and India Expo, which was held in Karachi Expo. Center, Pakistan.
Continue to expand & diversify our product portfolio & widen
our customer base
Promotion of our brand recognition
Expansion of our production capacity
Leveraging our Marketing skills & Relationships
Continue to improve operating efficiencies
Business Strategy
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Financials Highlights
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Financial Performance Chart
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140210
303 348
598
FY14 FY15 FY16 FY17 FY18
EBITDA (INR in lakhs)
CAGR 43.74%
18 31 32
102
229
FY14 FY15 FY16 FY17 FY18
PAT (INR in lakhs)
CAGR 89.71%
3,350
5,860
3,887 4,300
7,819
FY14 FY15 FY16 FY17 FY18
Revenue (INR in lakhs)
CAGR 23.60%
Figures of FY18 are as per Consolidated Basis and other financial as per Standalone Basis
Key Ratios (Standalone)
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ParticularsFor the half year ended 31st Mar,
2018
For the half year ended 30th Nov,
2017FY17 FY16 FY15 FY14
EBITDA Margin 12.95% 7.94% 8.09% 7.81% 3.59% 4.18%
PAT Margin 6.85% 2.51% 2.38% 0.83% 0.53% 0.53%
EPS 1.23 1.44 1.66 0.52 0.50 0.29
NAV 10.64 11.95 9.81 7.90 8.19 5.03
RONW 8.03% 12.02% 16.92% 6.61% 6.13% 5.71%
ROCE 6.74% 15.39% 15.61% 13.54% 8.54% 9.60%
Debt Equity Ratio 1.06 1.24 2.31 3.31 3.57 3.26
Our Company was converted from partnership to public limited Company wef Dec,2017
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Particular As at 31st Mar, 2018 As at 30th Nov, 2017 FY17 FY16 FY15 FY14 FY13
EQUITY AND LIABILITIES
Shareholders Funds:
Share Capital 1,066.90 755.31 605.06 487.49 505.09 310.28 265.57
Reserve & Surplus 102.36 - - - - - -
Non Current Liabilities:
Long Term Borrowings 18.57 6.27 59.00 122.46 132.91 109.79 106.21
Deferred Tax Liabilities 0.25 0.87 2.62 5.34 2.23 1.73 1.57
Long Term Provisions 3.97 3.79 3.66 2.74 1.77 1.32 1.15
Current Liabilities:
Short Term Borrowings 1,218.54 926.62 1,329.99 1,479.91 1,660.31 889.42 300.72
Trade Payables 50.08 137.48 10.24 7.55 11.17 19.45 7.93
Other Current Liabilities 660.52 23.63 681.89 382.38 692.61 1,508.64 795.20
Short Term Provisions 11.52 30.71 42.42 2.01 3.07 3.35 1.60
Assets
Non Current Assets:
Fixed Assets 150.80 157.58 186.99 209.71 129.99 115.58 109.60
Non-current Investments 353.16 3.17 - - - - -
Long Term Loans & Advances - 332.76 - - - - -
Current Assets:
Inventories 1,759.28 291..87 1,491.10 1,948.26 2,574.25 2,550.72 1,273.28
Trade Receivables 493.65 971.74 619.61 134.08 85.21 21.40 29.82
Cash & Cash Equivalent 68.46 71.24 398.84 60.16 184.99 31.62 32.20
Short Term loans & Advances 230.37 36.25 38.34 137.67 34.71 124.62 35.05
Other Current Assets 76.99 20.07 - - - - -
Total 3,132.71 1,884.68 2,734.88 2,489.88 3,009.15 2,843.94 1,479.95
Balance Sheet (Standalone)
(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017
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Particular For the half year ended 31st Mar, 2018
For the half year ended 30th Nov, 2017 FY17 FY16 FY15 FY14 FY13
Revenue from Operations 1,294.26 3,520.06 4,284.24 3,878.02 5,853.62 3,342.94 2,252.71
Other Income 36.59 10.10 15.88 9.02 6.63 7.17 1.62
Total Revenue 1,330.85 3,530.16 4,300.12 3,887.04 5,860.25 3,350.11 2,254.33
Expenses:
Cost of Materials Consumed 1,628.40 2,845.65 3,548.30 3,366.27 5,317.09 3,533.54 2,307.30
Changes in Inventories (519.26) 328.22 262.42 40.20 109.33 (435.87) (204.56)
Employees Benefit Expenses 18.88 18.10 22.95 25.58 28.76 24.70 25.64
Other Expenses 30.52 57.93 118.77 151.58 194.18 87.70 58.76
EBITDA 172.31 280.26 347.68 303.41 210.29 140.04 67.19
Depreciation and amortization expense 9.72 20.47 34.82 18.93 13.13 13.25 1.18
EBIT 162.59 259.79 312.86 284.48 197.16 126.79 66.01
Finance Cost 50.37 127.22 159.59 237.96 152.34 101.15 47.92
Profit Before Tax 112.22 132.57 153.27 46.52 44.82 25.64 18.09
Tax expense:
(1) Current tax 21.70 45.71 53.59 11.20 13.34 7.78 4.02
(2) Deferred tax (0.61) (1.76) (2.71) 3.11 0.50 0.15 1.57
Profit (Loss) for the period 91.13 88.62 102.39 32.21 30.98 17.71 12.50
Profit & Loss Statement (Standalone)
(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017
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ParticularFor the half year ended 31st Mar,
2018
For the half year ended 30th Nov,
2017FY17 FY16 FY15 FY14 FY13
Cash Flow From Operating Activities:Net Profit before tax as per Profit And Loss A/c 112.19 132.58 153.30 46.51 44.80 25.66 18.10 Adjustments for:Depreciation & Amortisation Expense 9.72 20.48 34.81 18.93 13.13 13.24 1.17 Provision for Gratuity 0.19 0.11 0.95 0.99 0.46 0.18 0.25 Finance Cost 50.38 127.21 159.58 237.97 152.35 101.15 47.92 Interest Income (36.59) (10.10) (15.88) (9.01) (6.63) (7.17) (1.62)
Operating Profit Before Working Capital Changes 135.89 270.29 332.77 295.39 204.11 133.07 65.83 Changes in Working Capital (731.77) 240.70 421.48 159.56 (821.58) (631.97) (129.74)
Net Income Tax (paid) / refunded - - (61.55) (11.43) (13.76) (7.75) (4.17)Net Cash Flow from/(used in) Operating Activities: (A) (595.87) 510.99 692.70 443.42 (631.22) (506.65) (68.08)Cash Flow From Investing Activities:Purchase of Fixed Assets (including capital work in progress) (2.93) 8.91 (12.08) (98.65) (27.54) (19.20) (106.90)Interest Income 36.59 10.10 15.88 9.01 6.63 7.17 1.62
Investments (made) / sold (349.99) (3.17) - - - - -Long Term Loans & Advances Given 332.76 (332.76) - - - - -
Net Cash Flow from/(used in) Investing Activities: (B) 16.42 (316.91) 3.80 (89.64) (20.91) (12.03) (105.28)Cash Flow from Financing Activities:Net Increase/(Decrease) in Short Term Borrowings 291.92 (403.36) (149.92) (180.40) 770.88 588.72 300.72 Net Increase/(Decrease) in Long Term Borrowings 12.29 (52.73) (63.46) (10.44) 23.12 3.57 (267.23)Net Increase/(Decrease) in Share Capital / Partners Capital 322.84 61.62 15.14 (49.80) 163.86 26.97 211.84 Interest paid (50.38) (127.21) (159.58) (237.97) (152.35) (101.15) (47.92)Net Cash Flow from/(used in) Financing Activities ( C) 576.68 (521.68) (357.83) (478.61) 805.51 518.11 197.41
Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) (2.78) (327.60) 338.68 (124.83) 153.37 (0.58) 24.04 Cash & Cash Equivalents As At Beginning of the Year / Period 71.24 398.84 60.16 184.99 31.62 32.20 8.16 Cash & Cash Equivalents As At End of the Year / Period 68.46 71.24 398.84 60.16 184.99 31.62 32.20
Cash Flow Statement (Standalone)
(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017
23 (INR in lakhs)ShreeOswal Psyllium Exports India Ltd. became subsidiary Company in the FY 2017-18 wef 6th Dec, 2017
Particular FY18
Revenue from Operations 7,775.30
Other Income 43.27
Total Revenue 7,818.57
Expenses:
Cost of Materials Consumed 7,248.95
Changes in Inventories (191.04)
Employees Benefit Expenses 43.04
Other Expenses 119.73
EBITDA 597.88
Depreciation and amortization expense 33.47
EBIT 564.41
Finance Cost 249.68
Profit Before Tax 314.73
Tax expense:
(1) Current tax 87.70
(2) Deferred tax (2.38)
Profit (Loss) for the period 229.41
Profit & Loss Statement (Consolidated)Balance Sheet (Consolidated)Particular FY18
EQUITY AND LIABILITIES
Shareholders Funds:
Share Capital 1,066.90
Reserve & Surplus 121.53
Minority Interest 0.05
Non Current Liabilities:
Long Term Borrowings 139.26
Long Term Provisions 3.97
Deferred Tax Liabilities 0.24
Current Liabilities:
Short Term Borrowings 2,341.86
Trade Payables 740.83
Other Current Liabilities 684.41
Short Term Provisions 19.33
Assets:
Non Current Assets:
Fixed Assets 344.34
Less: Accumulated Depreciation 112.40
Non-current Investments 3.17
Current Assets:
Inventories 3,281.96
Trade Receivables 1,107.66
Cash & Cash Equivalent 94.01
Short Term loans & Advances 218.56
Other Current Assets 181.09
Total 5,118.38
IPO Highlights
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IPO Highlights
Details Particulars
Issuer ShreeOswal Seeds And Chemicals Limited
Issue Type Book Built Issue
Issue Price Rs. 25-26 per equity share
Issue Size Upto 45,76,000 Equity Shares of Rs. 10 through Fresh Issue
Bid/ Offer Opens On 7th June, 2018
Bid/ Offer Closes On 12th June, 2018
Lot Size 4000 Equity Shares
Exchange NSE Emerge
Issue Structure
Market Maker Portion Upto 2,32,000 Equity Shares
Non-Retail Portion Upto 21,72,000 Equity Shares
Retail Portion Upto 21,72,000 Equity Shares
Book Running Lead Manager
IPO Structure
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Particulars Pre Issue Holding (%)
Post Issue Holding (%)
Promoter & Promoter Group 100 69.97
Others - 30.02
Particulars No. of Equity Shares Aggregate Nominal Price (INR In Lakhs)
Issue, Subscribed and Paid up capital before the Issue 1,06,69,000 1066.90
Fresh Public Issue 45,76,000 457.60
Issue, Subscribed and Paid up capital after the Issue 1,52,45,000 1,524.50
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Object of IPO
Sr. No. Particulars Amount(INR in Lakhs)
1. Purchase of Machinery 162.95
2. Working Capital Requirement 625.00
3. General Corporate Purposes [●]
Net Proceeds from the Issue:
• Purchase of New Plant & Machinery
• Funding of Working Capital Requirement
• General Corporate Purposes.
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Competitive Strength
Competitive Strength
We have developed a diverse portfolio of seed
products
We have a distribution network across various
geographies
Our experienced management and dedicated
employee base
Quality certifications
Established Brand
01
02
03
04
05
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SWOT Analysis
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Strength• Location of our
manufacturing unit• Experienced promoters• Established brand
Weakness• Seasonal nature of
business • Absence in foreign
market
Opportunity• Expanding to
geographical markets• Enhancing functional
efficiency• Expanding product
portfolio
Threat• New competitors
entering into market• Increased regulation
Peer Comparison
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Comparison CMP EPS PE Ratio RONW (%) NAV(per Share)
Face Value
Total Income (INR in lakhs)
ShreeOswal Seeds and Chemicals Limited 26 2.66 9.77 15.83% 10.64 10.00 4,861.01
Peer Groups
Kaveri Seed Company Limited 493.90 11.36 43.48 7.83 145.14 2.00 70,424.00
Mangalam Seeds Limited 99.70 5.98 16.67 13.27 42.86 10.00 3,023.66
Monsanto India Limited 2770.40 85.48 32.41 27.86 306.79 10.00 65,416.00
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Lead Manager
Pantomath Capital Advisors Private Limited406-408, Keshava Premises, Behind Family Court, BKC, Bandra East, Mumbai – 400051, Maharashtra
Issuer Company
ShreeOswal Seeds And Chemicals Limited"Oswal House”, Opposite Balkavibairagi
College Nasirabad Highway, Village Kanwati, Neemuch- 458441 , Madhya Pradesh, India
Thank you