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Investors Presentation

27, June 2011

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Disclaimer

This presentation contains forward-looking statements which may be identified by their use of words contains “plans,” “expects,” “will,” “anticipates,”“believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements.

Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise

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Global Fertiliser Industry Overview 7Global Fertiliser Industry Overview 7

Indian Fertiliser Scenario & New Policy 11Indian Fertiliser Scenario & New Policy 11

Coromandel’s Journey 20Coromandel’s Journey 20

Specialty Nutrients Business 30Specialty Nutrients Business 30

Strategic Direction – Farm Inputs Business 24Strategic Direction – Farm Inputs Business 24

Retail Business 44Retail Business 44

ContentsCompany Snapshot 4Company Snapshot 4

Crop Protection Business 36Crop Protection Business 36

Financial Performance 49Financial Performance 49

Annexures 53Annexures 53

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Coromandel Share in Murugappa Group

Coromandel Share in Murugappa Group

Snapshot of Coromandel• Coromandel International Limited,

established in 1961 is the flagship

company of the 3.8 Billion USD

Murugappa group, contributing 45% of

the group turnover and 51% of EBITDA

• Coromandel is India’s second largest

producer of Phosphatic Fertilizers

• In FY2011, Coromandel reported PAT of

Rs.6,945 million on a turnover of

Rs.77,161 million.

• E.I.D. Parry (India) Ltd. holds 62.86% of

Coromandel’s equityShareholding PatternShareholding Pattern

64%

15%

21%Murugappa Group

Institutions

Others

Turnover

EBITDA

45%

55%

Coromandel

Other group companies

51%

49%

Coromandel

Other group companies

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CoromandelCoromandel

Phosphatic Fertilisers

Phosphatic Fertilisers

Crop ProtectionCrop Protection

RetailRetail

Specialty Nutrients & Compost

Specialty Nutrients & Compost

DAP

Complex Fertilisers /SSP/MOP

DAP

Complex Fertilisers /SSP/MOP

Technicals

Formulations

Technicals

Formulations

G-Sulphur

Water Soluble Fertilisers

Organic Manure

G-Sulphur

Water Soluble Fertilisers

Organic Manure

Business Structure

Agri Inputs

Agri Services

Agri Inputs

Agri Services

Life Style ProductsLife Style Products

+

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Financial Performance

835 1,007

2,098

4,964 4,682

6,945

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

CAGR –32.78%

CAGR –52.75%

CAGR – 53.65%

Sales and Subsidy (Rs. Million)Sales and Subsidy (Rs. Million) PBT (Rs. Million)PBT (Rs. Million)

EPS and DPS (Rs.)*EPS and DPS (Rs.)*PAT (Rs. Million)PAT (Rs. Million)

*Adjusted for share split from Rs.2/shareTo Rs. 1/share in 2010-11

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Industry Overview

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EU Fertiliser Market

3% 18%

12%

43%

18%6%

DAP/MAPNPKUANNitratesUreaOther

China Fertiliser Market5% 7%

27%59%

2%DAP/MAPNPKABCUreaOther

Brazil Fertiliser Market

11%

15%

14%9%

51%

DAP/MAP

NPKASNitratesUrea

USA Fertiliser Market

7%14%

26%26%

20%7%

DAP/MAPNPKUANAmmoniaUreaOther

USA uses Ammonia, Brazil uses UAN, China uses ABC, India use UREA

World Fertiliser Map

52%

1%9%5%

19%

14%UreaAS/CANMOPSSPDAPNP/NPK

India Fertiliser Market

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"N" World Market

4%

52%

5%9%

11%

6%13%

AmmoniaUreaUANAN/CANNPKDAP/MAPOthers

"P" World Market

48%

27%

17%6% 2% DAP/MAP

NPKSSPTSPOthers

"K" World Market

70%

29%1%

MOP/SOPNPKOthers

“N” Market is 100 Million MT

“P” Market is 39 Million MT

“K” Market is 29 Million MT

Global Fertiliser Industry:

Consumption is growing at 2.0 - 2.2% p.a.World nutrient production increased by 11% in 2009 and sales by 13% mainly due to potash salesIndia and China account for 40% of global consumption

Bulk availability of nutrient fertilisers is concentrated in certain regions

•‘N’ nutrient in Middle East, USA & FSU•‘P’ nutrient in North/West Africa, USA & Jordan•‘K’ nutrient in Canada, FSU & Middle East

World N,P,K Fertilizer Market

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International Raw material Price Movement

20-30% Fertiliser raw material price

increase happened in last 4 months

Outlook:

Prices expected to remain on

high side;

Prices risingsteadily(~10%) in 2011

Rise of 200 $(~25%) sinceDecember

Prices on therise in April

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Indian Fertiliser Scenario

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India’s Nutrient Consumption and Crop Productivity

Crop Productivity (Mt/ha) Crop Productivity (Mt/ha)

Nutrient Consumption among the Asian Countries

Nutrient Consumption among the Asian Countries

133170

135 106

333

India Bangladesh Pakistan Srilanka China

Kg/HaIndia’s Nutrient consumption

(Kg/Ha) is lower than countries

like China (333), Bangladesh

(170) and Pakistan (135).

World India

Sugarcane 74 67

Wheat 3 2.8

Rice 4.2 2.3

Corn 5 2.2

Soybean 2.2 0.9

Rapeseed 1.9 1.1

Peanut 1.6 0.9

India’s Crop productivity is below

world average

To enhance the crop productivity, Nutrient

consumption in India has to go up.

To enhance the crop productivity, Nutrient

consumption in India has to go up.

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India’s Food Production and Nutrient Consumption

•Food grain consumption crosses 234 million MT –challenge to produce more from the shrinking arable land

•Increased demand of food grains to drive nutrient consumption - to go up from 25 million MT to 29 million MT

•Increasing yield key for future sustenance

•N:P:K ratio currently @5.1:2:1 – balanced ratio is critical for enhancing yield

•NBS policy calls for prudent use of nutrients to improve yield

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India’s NPK Demand (Million Mt)India’s NPK Demand (Million Mt)

3.00

5.00

7.00

9.00

11.00

13.00

15.00

17.00

2002-032003-042004-052005-062006-072007-082008-092009-102010-112011-12

1.001.201.401.601.802.002.202.402.602.80N (LHS) P2O5 (LHS) K2O (RHS)

India’s Fertiliser Outlook

Nutrient Demand growth rate:

•N is growing at a rate of 3%

•P is growing at a rate of 6%

•K is growing at a rate of 5%

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• Fertiliser consumption – India contributes 16% of the Global consumption

• The year 2010-11 saw an unprecedented increase in import of fertilisers

Fertilisers – The emerging scenario in India

From2010-11 Million MT

Urea 28.2

DAP 11.3

Complex 10.2

SSP 3.5

Potash 5.8

Total 59.0

2012-13 Million MT

Urea 30

DAP 14

Complex 12

SSP 6

Potash 7

Others 1

Total 70

To2012-13 Million MT

Specialty Zinc Sulphates 0.3

Water Soluble Fertilisers 0.1

Sulphur 0.1

Other Micro Nutrient 0.1

Organic Compost Un Limited

Fertilisers – The potential of Indian Market

16%

84%

2010-11

India Rest Of World

Million Mt 2009‐10 2010‐11% IncreaseDAP/SSP/TSP 5.8 7.4 28%Urea 5.2 6.6 27%MOP 5.2 6.3 21%Other Phosphatic Grades 0.2 1.2 500%Total Import 16.4 21.5 31%

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Fertiliser Subsidy Scenario

• Nutrient Based Subsidy (NBS) policy introduced in April’10 has been received well by all

stakeholders- farmers/Industry/Govt

• Ensured timely availability of fertilisers through out the year supplemented by imports

• Subsidy reimbursement reasonably on time to meet the liquidity ( delay in last qtr of

FY 11)

• International prices were stable throughout the yr

• MRP revised to offset the cost increases

Sl No

Nutrients Dollar/mt 2010 -11

Rs. Per kg for 2010 -11

Dollar/mt 2011-12

Rs. Per kg for 2011-12

% increase

1 Urea (N) 310 23.227 350 27.153 17%2 DAP (P) 500 26.276 612 32.338 23%3 MOP (K) 370 24.487 420 26.756 9%4 Sulphur (S) 190 1.784 180 1.677

-6%

New Nutrient based Subsidy PolicyNew Nutrient based Subsidy Policy

NBS for FY 11-12NBS for FY 11-12

• Govt announced new rates in Nov 2010 , much lower as compared to then prevailing

international prices ; Revised again in April and final rates are as follows

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2011-12 2010-11 % Change

DAP 988 813 22%

20:20:0:13 606 507 20%

10:26:26 904 776 16%

12:32:16 894 756 18%

14:35:14 943 794 19%

Subsidy in Rs. per 50 kg bag of fertilisers

Subsidy rates for 2011-12

Due to sharp rise of international raw material prices , Govt increased

the subsidy rate for FY 12 for all the Phosphatics fertilisers

Relaxation in road freight – direct delivery allowed upto 700 Km

MRP – market linked - Prices revised 3-4 times in tune with input

prices

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Output prices have grown more than input prices

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NBS policy – Advantage Coromandel

• Strong Brands in the highly irrigated and Agricultural dominated Southern

states – Consistent agriculture

• Very good infrastructure with port facility/captive jetty

• Flexibility to produce wide range of complexes: low P to high P; Crop & soil

specific grades;

• Highly focused player in Phosphatics; Presence in 8 large states

• Ability to introduce new products in short notice – strong technology

• Dynamic scenario – ability to manage price fluctuations and exchange risks

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Coromandel’s Journey

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Key Milestones in Coromandel’s Journey

2003

Merger of Farm Inputs Business of EID Parry with Coromandel. Create focused entity for Farm Input Business

Acquired Godavari fertilisers

Business Assistance for FOSKOR

2005

JV with GCT, Tunisia

2006

Consolidation of Agrochemical Business Acquisition of FICOM and Jammu Unit

2007

Merger of Godavari with Coromandel

Enhancing stake in FOSKOR under BAALaunch of Rural Retail and set up 423 centers

Latin America presence for Agro Chemical

Tie up with SQM,Chile for WSF

2008

20092003

2006

• In the last 48 years Coromandel has evolved as a strong Agri player serving

the Indian farmers by supplying quality Agri inputs and providing timely

advice

• 2nd largest player in Phosphatics segment

• Strong operational focus & higher efficiencies

• Grown 5 times over the last 7 years

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Key Developments in 2011-12

Adding a new granulation train to increase the production capacity by 8 lac mt

Turn key order placed with Uhde India Pvt Ltd

Project progressing on brisk pace

Over 50% of piling work completed

Project is expected to be commissioned on schedule by Q2 2012-13

C Train in Kakinada C Train in Kakinada

Coromandel entered into a definitive agreement to acquire 42.22 % stake from the

promoters

Coromandel is also in the process of filing for open offer to acquire up 31% from public

Post acquisition, Coromandel will move in to the top 5 players in Indian Agro Chemical

market

Sabero AcquisitionSabero Acquisition

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State of The Art Manufacturing Facilities

Coromandel – Lowest cost producer of complex fertiliser in the countryCoromandel – Lowest cost producer of complex fertiliser in the country

• Plants are strategically located in highly irrigated southern Indian states and in heart of fertilizer consumption market –low freight cost

• Plant Facilities – State of art with good infrastructure support and robust systems

• Phosphate – lowest cost manufacturer in India

• Captive jetty at Vizag, Own storage tanks and pipeline for raw materials: Ammonia & molten sulphur (Vizag & Ennore) - Lower handling and associated costs

• Captive power plants at Vizag & Ennore – saves power costs

• Captive desalination plants at Ennore –ensure water supply at low cost

• High capacity utilisation levels & continuous modernisation of facilities

• Backward integration into manufacturing the intermediate -phosphoric acid from rock

Visak

Kakinada

Ennore

Ranipet

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Strategic Direction

Farm Inputs BusinessFarm Inputs Business

Cost Leadership

Cost Leadership

Dominance in FertilisersDominance in Fertilisers Non Subsidy Businesses

Non Subsidy Businesses

SourcingSourcing

Strategic Alliances inSourcing –• Long Term tie-up with

Foskor, South Africa and Group Chemique, Tunisia

• TIFERT JV in Tunisia• Supply agreement for

Ammonia and Sulphur with Mitsui

• Potash from Canpotex

• Low cost manufacturer of Phos acid - Visak and Ennore

• Kakinada - High Efficiency and Very low conversion cost

• Ex Plant/Rail deliveries - Low Freight Cost

• Low cost of borrowing

Marketing Strength

Marketing Strength

• Wider reach and penetration

• Strong brand image in the home market

• Wide Product Range - Low ‘P’ to high ‘P’

• Direct contacts with farmers - Mana Gromor Centers

• Extensive field promotions

• Specialty Nutrients/ Water Soluble Fertilisers/Micro Nutrients and Organic compost

• Crop Protection –Technicals and Formulations

• Retail • Farm

Mechanization Services

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Strategic Alliances for Key raw materials

Strategic Stake in FOSKOR

TIFERT JV -

Tunisia

JV with SQM, Chile

0.61 Million Mt Ammonia,

0.30 Million Mt Sulphur- Mitsui, Japan

Potash-Canada

0.50 Million Mt

0.9 Million MT Israel , Togo

Algeria

Rock Phosphate

WSF and MAP

MOP

Ammonia and Sulphur

0.25 Million Mt Arab Gulf

Urea

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Tie ups for Phosphoric Acid

Million MT

Captive Production 0.23

Supply contracts with FOSKOR, ICL , GCT and Sterlite 0.60

New JV TIFERT 0.20

Spot Buying 0.20

Total 1.23

Acid tie up of 1.2 million Mt can cater to 4 million Mt Production of fertilisers

Coromandel has successfully concluded Business Assistance Agreement (BAA)

with FOSKOR in 2008 and picked up Sweat Equity in FOSKOR.

Current equity holding in FOSKOR:

•Coromandel International Limited:2.18%

•CFL Mauritius Limited: 11.82%

Coromandel holds 15% stake in TIFERT – JV for Phos acid venture in Tunisia

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Captive Phos Acid • Continuous de-bottle necking to increase production levels• Value gap - imported Vs own acid• Increased Gypsum generation• Use of various sources /grades of rocks• New belt filter technology- to use low grade rocks

Sulphuric Acid• Consistent production performance – operating at 100% + capacity• Air pre heater technology – Total avoidance of LSHS/Furnace oil• Increased Power generation

Cost Leadership

Very High Efficiency• N – 99% P – 98% K – 94%

Low Conversion Cost• Availability of Natural Gas• Increased through put of all trains

Logistic Cost• Increased rail dispatches – minimizing freight cost

to be in line with subsidy

Logistic Cost• Ex Plant Deliveries – minimizing freight cost

Kakinada Production (Million Mt)

Visak Production (Million Mt)Visak PlantVisak Plant

Kakinada PlantKakinada Plant

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Visak

Kakinada

Ennore

Ranipet

PDOPDO

FactoryFactory

Wholesaler/ Distributor

Wholesaler/ Distributor

Semi Wholesaler /

Dealer

Semi Wholesaler /

Dealer

Retailer / Sub Dealer

Retailer / Sub Dealer

FarmerFarmer

West Bengal (WB)

Orissa (OR)

Andhra Pradesh (A.P)Karnataka (KN)

Maharashtra (MH)

Madhya Pradesh (MP) & Chattisgarh

Tamil Nadu (TN)

Marketing Network

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Plant Volume (Million MT) Product

Visak 1.30

•28:28:0

•14:35:14

•20:20:00

•10:26:26

Kakinada 1.50

•12:32:16

•14:35:15

•DAP

•10:26:26

Ranipet 0.12 •SSP

Ennore 0.33•20:20:00

•16:20:00

Total 3.25

Production Capacity

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Specialty Nutrient Business

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SPECIALITY NUTRIENTS DIVISION (SND)

G-SULPHURWSF Micronutrients

GROMOR SULPHURGROMOR SULPHURGROMOR SPRAYGROMOR SPRAY

GROMOR POWERGROMOR POWERZincZinc

SulphozincSulphozinc

BoronBoron

Organic Compost

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What is Water soluble fertilizers?What is Water soluble fertilizers?

Why Water soluble fertilizers?Why Water soluble fertilizers?

•To enhance fertiliser use efficiency

•High cost benefit ratio in Horticultural Crops

•To improve crop quality and Crop Productivity

How to use Water soluble fertilizers?

How to use Water soluble fertilizers?

•Foliar application

•Fertigation (with Drip)

Conventional Fertilisers

(%)WSF (%)

Nitrogen 30-50 95

Phosphorous 20 45

Potassium 30 80

•100% water soluble

•Available in double and multi nutrient combinations with or without secondary elements or micronutrients.

•Available in the Powder or liquid form and can be used for fertigation and foliar application.

Basics of Water Soluble Fertilisers

Fertiliser use efficiency Comparison

Fertiliser use efficiency Comparison

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0

0.5

1

1.5

2

2.5

3

3.5

2008-09 2009-10 2010-11 2011-12 2012-13

• Global WSF Business – 5.6 Million MT

• Global giants like Yara, SQM, Haifa, ICL increasing their capacity and spread across the globe

• New capacities increasing in China (est. 0.3 Million Tonnes)

Global TrendGlobal Trend

Middle East

AfricaAsia

America

Europe

Global WSF Consumption (Mio Mt)Global WSF Consumption (Mio Mt)

• Increase in area under horticultural crops

• Govt aggressively promoting Micro irrigation

• Increase in acreage of Bt cottons / Hybrid paddy

• Wide spread deficiency of Sulphur and, Zinc and Boron

Indian TrendIndian Trend

SND Industry Trend

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• Separate focussed SBU

• Tie up with international players like SQM, Yara, Rio tinto for key materials

• Early mover advantage for sulphur

• Pan India operations

• Integrated WSF plant

• Strong brand promotion and excellent distribution net work including MGC’s in A.P.

Specialty Nutrients Business Case

Coromandel’s StrengthCoromandel’s Strength

Coromandel’s Strategy - Increase the share of Non Subsidy businessCoromandel’s Strategy - Increase the share of Non Subsidy business

• Current market Size – 30,000 Mt

• Projected market Size(2012-13) – 0.1 Million Mt

• Key Players: Coromandel, Chambal, Deepak, Tata Chemicals

• Coromandel’s Market Share - 60%

• Current market Size – 50,000 Mt

• Projected market Size (2012-13) –0.1 Million Mt

• Key Players: Coromandel, Nagarjuna, Zuari, Deepak.

• Coromandel’s Market Share - 20%

G-Sulphur MarketG-Sulphur Market

Water Soluble Fertilisers Market

Water Soluble Fertilisers Market

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Organic Manure Business Case

Global Scenario

• Globally very large market – US, Europe and China nearly 50-60% of the total fertiliser used in the form of compost

Indian Scenario

• Highly unorganized sector - with

numerous vendors selling small quantities.

• Only 15-20%of the compost being marketed in India is branded.

• Govt is encouraging use of Organic Manure to improve soil productivity

Organic Manure MarketOrganic Manure Market

•First Mover Advantage

•Introducing variants

Volumes (Lac Mt)Volumes (Lac Mt)

Coromandel’s StrategyCoromandel’s Strategy

0.2

0.8

1.2

2008-09 2009-10 2010-11

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Crop Protection Business

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Crop Protection - Industry Scenario

• The total global agrochemical market

was USD 38 Billion in 2010.

• Global markets are projected to grow at

5-10% in coming years.

• China is estimated to account 40% of

World’s manufacturing capacity of CPP.

• Ag-Bio segment would continue to be

fastest growing segment

• MNCs continue to invest on R & D/

Acquisitions for GM crops

• More off patent products likely to be

available from China

• Generics nearly constitutes 70% of the

market – scope for growth

• Indian Crop Protection Market is Valued at 55 Billion INR

• Paddy continued its dominance in crop protection market with Bt II cotton adoption brought down pesticide consumption in Cotton.

• Co-marketing or Import registration expected to play bigger role in bringing in new chemistry molecules

• With increased focus on Ag inflation/Food production, high MSP of food crops would be maintained by Govt – likely to boost demand for crop protection

• Per capita consumption in India is one of the lowest in the World

• Industry dominated by Insecticides;

• New chemistry molecules catching up

Global ScenarioGlobal Scenario Indian ScenarioIndian Scenario

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• Coromandel is one of the top 15 companies in Pesticides .“Coromandel pesticides product range includes

– Insecticides : 27

– Others : 8

Pan India presence

• Introduced new technicals –Profenophos (high quality) & Phenthoate( II co to produce)

• Acquired Ficom Organics in 2007 – Entry into Public health segment – Malathion & Temephos

• Set up formulation unit in Jammu – Excise & IT benefits

• Acquired 2nd unit in Jammu

Australia

New Zealand

Malaysia

ThilandBangladesh

Vietnam

Korea

IranTurkey

Germany

BelgiumSpain

MexicoGoetmala

Ecuador

BoliviaUruguay

Argentina

Coromandel Products & Markets -Crop Protection

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Initiatives

• Expansion of technical plant capacity at Ankleshwar

• Export to more countries & increase the reach• Focusing on high margin super specialities • Leveraging on retail network in AP & Accelerated

growth plan in all states

• Exploring Acquisition possibilities – domestic / abroad

• Co-Marketing with MNCs – Access to new molecules – Tie up with BASF, Syngenta, Dupont

• R&D Initiatives & registraton capabilities• Alternate sourcing from China• New Products Introduction• Foray into Latin American market – Set up office

in Brazil

JammuJammu

RanipetRanipet

Operational InitiativesOperational Initiatives

Strategic InitiativesStrategic Initiatives

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Recent Developments - Ban on Endosulfan

• The April 2011 meeting of the Conference of parties to the Stockholm convention

unanimously approved phasing out of endosulfan, a product listed as Persistent Organic

Pollutants (POP), with exemptions for India (5 years initially – extendable by additional

5 years)

• In April 2011, the Supreme Court of India (SC) took up a Public Interest Litigation (PIL)

filed by the Democratic Youth Federation of Kerala and applying precautionary principles

issued ad-interim ban on production and usage of endosulfan in India for 2 Months

• The SC also appointed a committee headed by Indian Council for Medical Research

(ICMR) to the study the affects of usage of Endosulfan on Human health and submit a

report to it within 2 months

• Impact on Coromandel - Endosulfan contributes 15% of the crop protection SBU’s

revenue

• Alternative strategies–

o Coromandel has several new technicals under development and implementation

stage to replace Endosulfan

o Sabero manufactures Monocrotophos, Acephate and DDVP which are key

substitutes of endosulfan

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Sabero is a Gujarat based Agro Chemical

Product manufacturer with strong export

base

Coromandel entered into a definitive

agreement to acquire 42.22% promoter

stake @ INR160 per share

Coromandel is also in the process of filing

for open offer to acquire up 31% from

public

Expected payout for Sabero’s acquisition

- Rs. 450 Cr – funded out of internal

accruals

Post acquisition, Coromandel will move in

to the top 5 players in Indian Agro

Chemical market

Recent Developments – Sabero Acquisition

(Rs. Mio) 2008-09 2009-10 2010-11

Turnover3670 4300 4130

EBITDA520 860 480

% of Revenue 2009-10 2010-11

Fungicides 56% 43%

Insecticides 35% 41%

Herbicides 5% 8%

Others 5% 9%

% of Revenue 2009-10 2010-11

Domestic 42% 51%

Exports 58% 49%

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• Sabero has a manufacturing facility in

Sarigam Industrial Area, District Valsad,

Gujarat.

• The plant is ISO9001 and ISO14001

certified

• Expansion of Chloropyrophos and

Monocrotophos facilities along with

construction of a new Propineb facilitiy is

underway and is expected to be

completed in FY12

• The company is constructing a synthetic

Pyrethoids technicals plant at Dahej with

a capacity of 3,300TPA. The construction

is expected to be complete by end of

FY12. The project is located in the Dahej

SEZ II and has IT and excise

exemptions

Manufacturing Facilities

Dahej Ankleshwar Sarigam

Strengths

• Market leader in the products which it produces; Is amongst top 3 players

in its top 4 products

• Sabero has over 240 registrations in 50 countries

• International presence with subsidiaries or affiliates present in 5 countries

viz, Australia, Europe, Brazil, Argentina and Philippines.

• The company also has tie-ups with MNCs for supply of its key technicals.

• Fully backward integrated in manufacturing of its key products

• Low cost supplier of many off patent generics

• Coromandel can leverage on its Retail outlets for increasing branded

formulation business

43

44

Mana Gromor Centers (MGCs) - Retail

45

MGC Retail Model

The centre is located at Mandal HQ. (One Mandal for 20-25

villages)

Each centre covers 30-40 villages having 5,000 farm families in a

radius of 20 km

Model envisages repetitive interaction between the centre and the

farmer

Primary focus is on technology transfer and providing services

Convenience to the farmer and reliability will be the guiding

factors

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Retail Business - Rationale

• Develop Distribution Channel for Coromandel

• Reduce Dependency on Distributors

• Capture opportunities in Rural Areas

• Providing Lifestyle Products at nearest Location

• Supply Products and Solutions to improve earning capabilities of farmers

• Thereby improve their lifestyle

Viable AlternativeViable Alternative

Opportunities in Rural Areas

Opportunities in Rural Areas

Earning CapabilitiesEarning Capabilities

•Provide Marketing Solutions for farm Produce

Marketing SolutionMarketing Solution

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Rural Retail - Verticals

Lifestyle Products•Durables, footwear, apparels, non durables

Lifestyle Products•Durables, footwear, apparels, non durables

Insurance•Life & Non life insurance•Tie up with Chola MS

Insurance•Life & Non life insurance•Tie up with Chola MS

Veterinary Services•Cattle CareCattle feed

Veterinary Services•Cattle CareCattle feed

Agri Products - Fertilisers•Products-SSP/DAP/NPKs/Urea•Micronutrients/Municipal Compost•Water Soluble/MOP•Soil Testing & Recommendation

Agri Products - Fertilisers•Products-SSP/DAP/NPKs/Urea•Micronutrients/Municipal Compost•Water Soluble/MOP•Soil Testing & Recommendation

Agri Products - Pesticides•Diagnosis and Solution•Spraying•Entire Range of Pesticides•Spray Equipments

Agri Products - Pesticides•Diagnosis and Solution•Spraying•Entire Range of Pesticides•Spray Equipments

Rural Retail

Farm Mechanization

Services

Farm Mechanization

Services

48

Expansion Plans

Currently 423 stores in operation in AP

Achieved Breakeven at EBITDA level for FY 11

Stabilizing LSP operation

21 stores opened in Karnataka in Q4 in FY 11

Addition of 200 stores planned for 2011-12 : 75 centers in

Karnataka and 125 centers in AP

Farm mechanization:

o Covered over 5000 Acres in 1st year of launch

o New services like laser leveling, harvesting and power

spraying

o Targeting 1 lac Acres by FY14.

49

Financial Performance

11,344

8,430

4,554

1,586

1,7652,181

14.7

9.410.5 12.0

9.8

12.9

1,200

3,200

5,200

7,200

9,200

11,200

13,200

'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

(Rs. mio)

7.0

9.0

11.0

13.0

15.0

17.0

(%)

EBITDAEBITDA %

50

Financial Performance

18,747 20,842

38,001

96,678

65,26877,161

'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

4,682

2,0981,007

835

6,945

4,964

9.0

7.2

5.15.6

4.94.5

5001,5002,5003,5004,5005,5006,5007,500

'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

(Rs. Mio)

2.03.04.05.06.07.08.09.010.0

(%)PATPAT Margin

36.5

41.6

32.1

21.220.5

51.7

31.124.6

36.8

26.417.216.7

10.0

20.0

30.0

40.0

50.0

60.0

'05-06 '06-07 '07-08 '08-09 '09-10 '10-11

(%)ROEROCE

One time exceptional income from Foskor

Turnover ( RS. Million)Turnover ( RS. Million) EBIDTA (Rs. Million) & EBIDTA %EBIDTA (Rs. Million) & EBIDTA %

ROE & ROCE (%)ROE & ROCE (%)PAT (Rs. Million) & PAT %PAT (Rs. Million) & PAT %

7,904

51

2006 2007 2008 2009 2010 2011

Revenue (INR m) 18,747 20,842 38,001 96,678 65,268 77,161

EBITDA (INR m) 1,765 2,181 4,554 9,490 8,430 11,344

PBT (INR m) 1,154 1,464 3,334 8,082 7,084 9,884

PAT (INR m) 835 1,007 2,098 4,964 4,682 6,945

EPS (Rs.) 3.29 3.97 7.50 17.74 16.72 24.69

Debt / Total Capital (%) 45.4% 48.5% 54.3% 58.8% 55.8% 42.6%

LT Debt / Total Capital (%) 16.0% 20.3% 14.0% 4.2% 2.1% 4.23%

Income Statement

52

2006 2007 2008 2009 2010 2011

Equity 4,380 5,124 7,944 11,271 14,350 19,041

Debt 4,263 5,490 10,429 17,199 19,178 14,712

Deferred Tax Liability 752 713 825 795 855 815

Sources of Funds 9,394 11,327 19,198 29,265 34,382 34,567

NFA 3,637 3,824 7,354 7,918 8,173 8,532

Investments 1,618 1,741 723 1,633 2,110 2,123

Cash 243 1,695 1,072 3,415 8,099 9,020

Bonds* - - 2,790 8,803 8,600 4,300

Other CA 9,455 10,042 15,614 25,046 16,923 28,383

CL 5,559 5,974 8,355 17,550 9,524 17,791

Net CA 4,139 5,762 11,121 19,714 24,099 23,912

Application of Funds 9,394 11,327 19,198 29,265 34,382 34,567

INR mnBalance sheet

* GOI bought back 50% of O/S bond FV of 499 Cr on 31st Mar, 2011

53

Annexures

54

Annexures

Fertiliser Technology Center

Rural Girl Child Education Assistance Programme

State of the Art Plants

External Recognition...

Coromandel’s Firsts

Nutrient Based Subsidy Policy

55

Nutrient Based Subsidy Policy

56

-

20,000

40,000

60,000

80,000

100,000

1999

-200

020

00-0

120

01-0

220

02-0

320

03-0

420

04-0

520

05-0

620

06-0

720

07-0

820

08-0

9

Decontrolled fertilizer Subsidy

Imported (Urea) Fertilizer

Indigenous (Urea) Fertilizer

0

500

1000

1500

2000

1999

-0020

00-01

2001

-0220

02-03

2003

-0420

04-05

2005

-0620

06-07

2007

-0820

08-09

05

1015

2025

30Yield (Kg/Ha)

Nutrient Consumption (Million MT) Fertiliser Use Efficiency :

For the last 10 yrs, Crop yield growth

rate has been only 1.20% where as

Nutrient consumption has grown by

3.6%. Fertiliser use efficiency is the

major concern in the Indian Agriculture.

Galloping Fertiliser Subsidy Bill:

Fertiliser Subsidy grew at a CAGR

of 21.53% over the last 10 years

Indian Fertiliser Industry Overview

Though Fertiliser Subsidy Bill has

gone up efficient usage of Fertiliser

remains a major area of concern

57

Nutrient Based Subsidy Policy - Rationale

•Right Nutrient balance for

optimum farm productivity

•Encourage usage of other Micro

nutrients

•NBS policy will help Govt of

India to contain Fertiliser

subsidy Bill

•Fertiliser Subsidy Bill is

expected to decrease

Indian AgricultureIndian Agriculture Fiscal ConsolidationFiscal Consolidation

58

Main features of the NBS • Primary Nutrients viz. Nitrogen ‘N’, Phosphate ‘P’ and Potash ‘K’ and Nutrient

‘S’ will be eligible for NBS.

• Any variant of the fertilisers mentioned above with secondary and micro-

nutrient (except Sulphur ‘S’) as provided for under Fertilisers Control Order

(FCO) are also eligible for subsidy.

• Secondary and micro nutrients in such fertilisers attract separate per Mt

subsidy to encourage their application along with Primary Nutrients

• NBS paid on each nutrient viz., ‘N’, ‘P’, ‘K’ and ‘S’ is decided annually by the

Government.

59

• Import of all fertilisers covered by NBS including 15 grade of complex fertiliser is

placed under open General License (OGL)

• Urea will not be covered under NBS and Import of Urea will continue to be

channalised during the first phase.

• Fertiliser Companies have flexibility to determine the MRP of the decontrolled fertilizers

covered by NBS.

• Customized fertilisers are eligible to source subsidized fertilisers as inputs for

manufacture.

• Subsidy under the NBS to be released through the industry during the first phase.

• 20% of the decontrolled fertilisers covered by NBS will be within the movement control.

DOF will have authority to regulate movement of these fertilisers to bridge the supplies

in under-served areas.

• Freight subsidy for movement of fertilisers covered by NBS by rail will be allowed on

actual basis and for road movements upto 500 kms, subsidy at the prescribed rate or

actual whichever is lower, will be allowed.

Main features of the NBS

60

Products under NBS • Di Ammonium Phosphate (DAP, 18-46.0)

• DAP Lite ( 16-44-0)

• Muriate of Potash (MOP)

• Mono Ammonium Phosphate (MAP, 11-S2-0).

• Triple Super Phosphate (TSP, 0-46-0)

• 15 grades of Complex fertilisers.

• Ammonium Sulphate (AS – (caprolactum grade by GSFC and FACT)

and

• Single Super Phosphate (SSP).

61

Govt of India

CompanyFarmers

NBS

• Certainity in Subsidy amount• Reduction in Subsidy outgo

• Access to new productsand technologies

NBS will help companies with• Strong Brand image • Intensive Extension activities

NBS -“Win-Win” Proposition for all Stakeholders

Industry

62

Commodity Price

DAP IPP Price – 500 $ per Mt

Farm Gate Price203 $ per Mt

Subsidy Amount297 $ Per Mt

DAP Price – 500 $ per Mt

Farm Gate Price235 $ per Mt

Subsidy Amount377 $ Per MtVariable

Fixed

-

Pre NBS NBS

Variable

Fixed Minus

Subsidy Computation – Pre Vs. Post NBS

Under NBS, Farm Gate Price has increased by 15.76% and Subsidy has increased by 26.94%

• Product Based Subsidy

• Fixed MRP and Floating Subsidy

• No import of complex fertilisers

• Input prices calculation- 1 Month lag for

raw materials and 2 Month lag for

finished product

• Exchage rate average of Daily RBI rate

• Subsidy is on despatch basis

• Nutrient Based Subsidy

• Fixed Subsidy and Floating MRP

• Import of complex fertilisers allowed

• Input prices fixed for the year to be

reviewed for any update at the end of

every season

• Exchange rate fixed at Rs. 45.65

• Subsidy is on despatch basis

Pre NBSPre NBS NBSNBS

63

Particulars Urea (N) DAP (P) MOP (K) Sulphur

IPP (U.S $/MT) 310 500 370 190

Total delivered cost @ Rs.46/$ 15,994 25,618 19,147 8,920

Less: MRP (Rs. Mt) 5,310 9,350 4,445

Subsidy (Rs. Mt) (A) 10,684 16,268 14,692 1,784 (20%)

Nutrient Content (B) 46% N 18%N and 46% P 60% K

Subsidy/Nutrient (Rs/KG) 23.227 26.276 24.487 1.784

Subsidy for 20:20:0:13 (100 Kg )

Unit INR/Unit

“N” Component 20 464.54

“P” Component 20 525.52

“S” Component 13 23.192

Total Subsidy for 100 Kg 1,013.25

Total Subsidy for 1 Mt 10,132.52

Subsidy Calculation under NBS – 2010-2011

DAP Subsidy Amount (Rs/Kg) (A) 16.26

N Content (B) 18%

N Subsidy in DAP ( 18%*23.23) (C) 4.18

P Content (D) 46%

Subsidy/Nutrient (Rs/KG) (A-C)/D 26.27

Illustration of 20:20 Product Subsidy Calculation

64

Subsidy Calculation under NBS – 2011-2012

Illustration of 20:20 Product Subsidy CalculationDAP Subsidy Amount (Rs/Kg) (A) 19.76

N Content (B) 18%

N Subsidy in DAP ( 18%*27.15 (C) 4.89

P Content (D) 46%

Subsidy/Nutrient (Rs/KG) (A-C)/D 32.34

Particulars Urea (N) DAP (P) MOP (K) Sulphur

IPP (U.S $/MT) 350 612 420 180

Total delivered cost @ Rs.45.65/$ 17,800 30,513 21,109 8,386

Less: MRP (Rs. Mt) 5,310 10,750 5,055

Subsidy (Rs. Mt) (A) 12,490 19,763 16,054 1,677

Nutrient Content (B) 46% N 18%N and 46% P 60% K

Subsidy/Nutrient (Rs/KG) 27.15 32.34 26.76 1.68

Subsidy for 20:20:0:13 (100 Kg ) Unit INR/Unit “N” Component 20 543.04 “P” Component 20 646.77 “S” Component 13 21.80 Total Subsidy for 100 Kg 1,212 Total Subsidy for 1 Mt 12,116

65

State of the Art Plants

66

State of the Art Plants

Kakinada● 700 acres of land

● Located 2.7 kms from Kakinada, an AP sea port

● Flexible Production Facility Capable of producing upto 1.5 mtpa

● Adequate land for further major capacity expansion in future

● Adequate Power (co-owned), water and other infrastructure facilities

● Low conversion cost /highly efficient operation

● Large Railway siding, also well connected by road

● Skilled, experienced workforce

Vizag Plant● Captive phos acid /Sulphuric acid plants

● One of the low cost producers – highly energy efficient

● Captive Jetty

● Technology – Pilot plants for rock trials and granulation

● Cleaner production technologies – low emission levels and environmental friendly

● High Safety standards and ISO 9001 certified

67

State of the Art Plants

ENNORE● Certified for ISO 14001 for Environment

● Ammonia submarine pipeline for unloading ammonia – first of its kind in Asia

● Captive phos acid/sulphuric plants

● Captive power plants/ water desalination plant

Ranipet● First in Asia to install a fertilizer plant

● SSP unit in 1906 Modernized in 1997

68

Fertiliser Technology Center

69

Fertiliser Technology Center

1. Phos Acid pilot plant

2. Granulation Pilot plant to study

•New product formulations

•Optimizing the granulometry (granule size, strength)

•Efficacy of new defoamers, anti-caking agents, granulation aids, etc.

•Developing new grades of customised fertilisers

First in India One among few in the world

FTC - Phosphoric acid& complex pilot plant

FTC - Phosphoric acid& complex pilot plant

70

Rural Girl Child Education Assistance Programme

71

Objectives:

• To empower Rural Women

• To encourage the Rural Girl Child for higher education

Programme launched in 2005

Landmarks: 1320 Schools 2640 Students Rs. 5.9 million worth of Scholarships

Going An Extra Mile……………

Rural Girl Child Education Assistance Programme

72

Coromandel’s Firsts

73

Coromandel’s Firsts • First fertiliser factory in India (1906) – Ranipet Plant

• First Integrated Complex fertiliser plant in private sector (1963) – Ennore Plant

• First in India (1967) to commercially manufacturer UAP 28:28:0, a high-analysis complex

fertiliser with highest nitrogen-phosphate content in 1:1 ratio

• First in India (1975) to install a Sulphuric Acid Plant based on DCDA technology to control

sulphur-dioxide emission

• First in India (1987) to successfully implement modern anodically protected acid coolers in

the Sulphuric Acid Plant, replacing conventional trombone serpentine coolers

• First in India (1988) to successfully implement total recycling of seawater for its effluent re-

circulation system to the Phosphoric Acid Plant

• First in India (1997) to install a terminal for handling Molten Sulpur that is environmentally

safe, conserves energy and minimises pollution

• First in India (2003) to install state-of-the -art screw-type ship unloader at the captive jetty

• First in India (2003) to install automatic bagging facilities

• First in Indian Fertiliser Industry (2006) to use steam-based air pre-heaters in the the

granulation plant, instead of fuel

• First in India (2007-08) to set up pilot plants for the study of fertiliser technology

applications

74

External Recognition

75

• D&B – Rolta Corporate Award

• DMA-Erehwon National Award for Innovation in HR

• CNBC Award for the Most Engaged Workforce

• FAI Best Production Performance Award for the Phosphoric Acid Plant at

Vizag, for the 10th time.

• FAI Best Production Performance Award for Complex (P2O5) Fertilisers,

Kakinada Plant

• FAI Environment Protection Award for Complex (P2O5) Plant, Vizag.

• FAI Award for Best Video Film for the 6th time.

• CII-EXIM BANK Business Excellence Award for ‘Strong Commitment to

Excel’ for Vizag & Kakinada Plants

• Public Relations Society of India National Award for Best House magazine,

The VOICE, for the 4th time.

External Recognition...

76

• International Award for The VOICE magazine from IAVA, New York.

• National Energy Conservation Award (Commendation Certificate) for efforts in

Energy Conservation from Ministry of Power, New Delhi, for Kakinada Plant.

• Ranked among the Top 20 Best Employers to work for by MERCER-TNS

Business Today.

External Recognition...

77

THANK YOU