PUNJAB CHEMICALS & CROP PROTECTION LIMITED

CONTENTS

About PCCPL

Industry structure

Business model

Agro Chemicals Divisions

Two key acquisitions & benefits

Business structure post acquisition

Other division highlights

Competitive landscape

Future strategy

Financial highlights

Shareholding pattern

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ABOUT PCCPL

From manufacturing basic chemicals such as oxalic acid, PCCPL is a fast-growing agrochemicals & formulations company with synergistic pharma, industrial chemicals & international trading divisions.

PCCPL has a comprehensive product portfolio, strong brand presence & a wide distribution network.

PCCPL’s products are well accepted in the domestic retail market & are also exported to large MNCs & brands across 60 countries covering 5 continents.

Acquired two companies in the last two years : Sintesis Quimica SAIC based in Argentina and Agrichem based in Netherland.

The company’s shares are listed in BSE, Ludhiana and Delhi Stock exchanges.

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19th November, 1975 in joint collaboration with Excel Industries Ltd, Mumbai and PSIDC under the name of Punjab United Pesticides & Chemicals Ltd

1993- 1994 : Focus on agrochemicals & spl chemicals.

2003: Separate manufacturing facility for pharma sector Alpha Drug India taken over from DSM

3 decades of moving up the value chain

1983 : Diversified into diethyl oxalate & specialty products

2006: Amalgamation of all group companiesADIL / IA & IC / STS / PAURAJ

2006: Formation of SDAG Chem. Belgium

2006: SDAG Chem. 85% stake in SQ Argentina

2007: Acq. Of AgrichemNetherlands (SD Agchem)

2007: Stake in Source Dynamic PLC, US

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Our presencePCCPL has 7 state-of-the-art manufacturing plants at strategic multi-locations. All plants are ISO 14000 and ISO 9001 certified.

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ABOUT PCCPL All products are manufactured in compliance with current Good Manufacturing

Practices (cGMP's) for both domestic and international markets.

The plants are situated at different locations which ensures that the production process is never hindered due to vagaries of climate, supplies, markets or labour problems.

Strategic location: Formulation plant at Chiplun which is in close proximity to major horticulture farms in Maharashtra & also cater to the southern tea gardens.

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INDUSTRY STRUCTURE

In terms of vertical levels of business, the market can be segmented into three types:

PCCPL is present in all three segments across all vertical levels of business

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o Insecticides

o Herbicide

o Fungicides

o Plant Growth

Regulators

o Bio Products

o Sulphur Range

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ALL SEASON BUSINESS, DE-RISKED, DIVERSIFIED

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Agrichem has a good portfolio of registered crop protection products in Europe.

Sintesis Quimica has a comprehensive biological products & formulations range.

FULLY INTEGRATED

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MAIN DIVISION

I. Agro Chemical Division (ACD). Manufactures a variety of basic chemicals, chemical intermediates, Agro chemicals and specialty

chemicals. Agro Division – Derabassi is DNV ISO 14001 & ISO 9001 Certified

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I. OXALIC ACID & DERIVATIVES

Sales of oxalic acid & derivatives accounts for nearly 25% of the Agro Chemicals Division Revenue.

PCCPL has an installed capacity of 12000 MT per year of oxalic acid & 3850 MT per annum of oxalic acid derivatives.

PCCPL is the world largest producer of oxalic acid.

Moved up the value chain to produce derivatives.

Oxalic acid is used in the production of various agro chemical bulks, textile processing, leather finishing , metal treatment & in the manufacture of various chemical derivatives.

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Insecticides Pesticides Fungicides Herbicides Biological agro products

Basic use Kills insects Kills pests Prevents / treats growth of fungus

Soil nutrients.Prevents growth of weeds

Nutrients for the soil. Non-chemical based

Main Crops Seeds - Wheat, Paddy, Cereals, etc.

Seeds – Wheat, Paddy, Cereals, etc.

Fruits (grapes, mango, banana, oranges, citrus, apples), Tea, Vegetables (peas, beans, chilli, onion, groundnut),Paddy, wheat.

All crops, sugar & beet products

Wheat & Paddy

40+ Branded products

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Key Regions & seasons

All India, all seasons (Kharif & Rabi)

All India, all seasons (Kharif & Rabi crops)

Western (horticulture belt), South (tea), north (apples).

Western & all-India

Environment – friendly. Growing

CAPACITY IN FUNGICIDES INCREASED FROM 800 TONS to 2000 TONs P.A. to cater to the increasing domestic demand.

II. FORMULATIONS PRODUCT RANGE

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OPPORTUNITY MATRIX: STRONG DEMAND ON THE HORIZONIndia Agrochemical industry in India is the fourth largest in the world (after US, China and

Japan) estimated to be Rs 6,000-crore.

In last 5 years, demand has picked up (11% CAGR) due to better monsoons.

Exports account for nearly half of the revenue has been growing at about 25%.

India has one of the lowest use of chemical fertiliser per acre of arable land estimated at 75 kg as against 470 kg in Egypt, 430 kg in Netherlands, 270 kg in China, 180 kg in Bangladesh.

Prices of agrochemicals in India are one of the lowest in the world.

Strong agro boom has lead to the entry of large Indian corporate houses like ITC, Reliance Retail, Godrej, Cadbury India, Himalaya Drugs, etc. which has lead to large corporate & contract farming projects.

Several agricultural sectors like horticulture, floriculture, development of seeds, cultivation of vegetables, mushroom under cultivated conditions have been thrown open to 100 % FDI.

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OPPORTUNITY MATRIX

Agrochemicals has an enviously strong industry outlook.

Indian food grain production (rice, wheat, coarse cereals and pulses) has grown at a CAGR of 1.3% while population growth is estimated at 1.6%. The per capita consumption is also fast increasing.

Hence to be self-sufficient production needs to grow at 3.3% p.a.

It is estimated that India will face a food grain deficit of 56 mn tons by by 2018 (&140 mn tons by 2030)* if growth stagnation is not reversed.

For this crop yield has to improve dramatically. Use of the agrochemicals in India needs to increase.

(*Source Economic Survey, Kotak Securities)

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World wide Estimated global agrichemical market size is USD 40 billion

Estimated Global Agrochemical sales (2006)

By Region By Category

Strong agro commodity prices underlines the need for higher crop yields. Immense potential for the branded formulation business.

OPPORTUNITY MATRIX

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* Rest of the world

Export: Agro technical/Intermediates Indian exports of agrochemicals have shown an impressive growth over the last five years.

The key export destination markets are USA, UK, France, Netherlands, Belgium, Spain, South Africa, Bangladesh, Malaysia and Singapore.

The size of the global market is estimated to appx. USD 30 billion & even 0.5% share of the global market fetches a turnover of USD 150 million range.

The competition in the global market is mainly restricted to MNC’s (which are the originators & creators of various agro chemical molecules), Indian & Chinese players.

Not many other countries have necessary technology & processing capabilities, infrastructure, ability to adhere to stringent quality & environmental policies required for the exporting agro technical / intermediates, hence provides an opportunity.

PCCPL supplies to several large global originators & creators across 60 countries with large quantities exported to Israel & Europe.

OPPORTUNITY MATRIX

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TWO KEY ACQUISITIONSIn Netherlands and Argentina

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PUNJAB CHEMICALS acquisition in Latin America

SINTESIS QUIMICA S.A.I.C. is an Argentine company devoted to manufacturing special

chemicals & biological products for industry and agriculture. It was founded in 1951 by a group of

Chemical Sciences graduates.

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ACQUISITION 1: SINTESIS QUIMICA SAIC

In FY06, PCCPL acquired Sintesis Quimica SAIC, a leading Argentine agrochemical & formulation company for USD 10 million.

Comprehensive product range.

Two state-of-the-art manufacturing facilities in Argentina.

Strong distribution network in South America.

Services global agro formulation companies like Nufarm, Syngenta, etc.

Domestic sales account for 70% of the total revenue; balance is exports.

Export to: Latin America, Bolivia, Brazil, Chile, Colombia, Ecuador, Peru, Uruguay, Venezuela, China, Thailand, Singapore, Taiwan, Turkey, USA & Canada, etc.

Company’s revenues appx.: USD 20 million with EBITDA margin of 12-13%.

Revenue target is USD 35 million in next 3 years.

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ACQUISITION 1

COMPREHENSIVE PRODUCT RANGE

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KEY BENEFITS TO PCCPL

ACQUISITION 1

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PUNJAB CHEMICALS acquisition in Netherlands

Founded in 1934, Agrichem is mainly focused on formulating generic crop protection products & is one of the leading companies with regulation data

(EU basis)

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ACQUISITION 2 Acquired Netherlands-based, agrochemical company Pegevo Beheer BV (AgriChem)

for Euro 39.5 million.

Euro 25 million has been paid for acquiring portfolio of registered products.

Core activities include:

Products are registered in the Netherlands, Belgium, the UK, France, Germany, Ireland, Denmark, Italy, Slovakia, Czech Republic, Belarus and Switzerland.

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Undertakes substance formulation for crop protection with a product range of herbicides, insecticides and fungicides.

Main crops: Beets, Cereals, Potatoes, Flower bulbs, Fruit dipping & Rapeseed.

Key export markets: Belgium, Denmark, Ireland, Netherlands, Switzerland, Germany, England, France,

Greece, Austria, Poland, Slovakia, Czech Republic, etc.

AgriChem has a crop protection registration department, in-house R&D and quality control facilities & its own formulation facilities.

Revenue: Apprx Euro 26 million. EBITDA margin appx. 13 %.

Target: Euro 36-40 million in next 3 years.

ACQUISITION 2

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Agrichem’s GLP Laboratory

Advantages:

Analysis of all incoming & outgoing products

R&D (for product registration purposes)

Quality asurance

Results

Continous quality assurance

Decreased timelines with regards to productsdevelopment

ACQUISITION 2

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ACQUISITION 2

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KEY BENEFITS TO PCCPL

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ADVANTAGES OF TWO ACQUISITIONS

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PCCPLPCCPL

SD AGCHEM EUROPE N.V.100 %

SD AGCHEM EUROPE N.V.100 %

SINTESISQUIMICA

85 %(Argentina)

SINTESISQUIMICA

85 %(Argentina)

SD AgrichemNetherland B.V.

100 %

SD AgrichemNetherland B.V.

100 %

PSDLLC

40 %(USA)

PSDLLC

40 %(USA)

SOURCEDYNAMIC

20 %(USA)

SOURCEDYNAMIC

20 %(USA)

AGRICHEMB.V.

100 %

AGRICHEMB.V.

100 %

PG CROPPROTECTION

LTD100 %

(England)

PG CROPPROTECTION

LTD100 %

(England)

N.V.AGRICULTURAL

CHEMICALS100 %

(Belgium)

N.V.AGRICULTURAL

CHEMICALS100 %

(Belgium)

AGRICHEMHELVETIA

GMBH100 %

(Switzerland)

AGRICHEMHELVETIA

GMBH100 %

(Switzerland)

NEDABAPS50 %

(Denmark)

NEDABAPS50 %

(Denmark)

KAPCHEMLTD50 %

(Ireland)

KAPCHEMLTD50 %

(Ireland)

STS UK LTD100%

STS UK LTD100%

FLOWCHART OF SUBSIDIARY COMPANIES OF PCCPL

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COMPETITIVE POSITIONING

PCCPL’s Indian infrastructure is more inclined towards fungicides & herbicides which supports the company’s long-term retail forward integration strategy & growth plan.

Since insecticides is the largest segment in India, it is more competitive while herbicides & fungicides is less competitive being a new (niche product).

Overseas also the growth potential is immense. Example in developed countries: environmentally friendly herbicides are preferred (account for nearly 65% of the market share) while use of insecticides is declining (barely 20%). Share of fungicides is fast growing and is estimated to be about 15% of the market.

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Insecticides

Agro chemicals technical –

oxalic acid & derivatives

Niche-Sulphur-based formulations &

herbicides

Rela

tive

m

ark

et

share

Future – Biological agro

products

Phosphorous based

chemicals

Low

er

en

dM

id-l

evel

Hig

her

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Unorganisedsector

Others

PCCPL

PCCPLPCCPL

PCCPL

PCCPL

Rallis India

Excel Crops

United Phosphorous

Ballarpur Inds. , GACL

Excel Industries

OTHER BUSINESSES

Pharma Chemicals Division (PCD) (10% of total revenue)

Manufactures anti-bacterial bulk drugs & intermediates of penicillin based antibiotics, Trimethoprim (TMP), Gallic Acid & its derivative products.

Trimethoprim, the premium flagship product of the company is a bacteriostatic antibiotic manly used in the prophylaxis and treatment of urinary tract infections (Cystitis).

Key clients include: GSK, Ranbaxy. Also undertake contract manufacturing for MNCs like GSK & Ranbaxy. This division comprises of the business of erstwhile Alpha Drugs Ltd. which has

merged with PCCPL under a scheme of merger. The manufacturing facilities are located on the Chandigarh – Ambala highway.

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The Pharma Division -Alpha Drugs – Lalru (near Chandigarh) is ISO 9001 certified.

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Industrial Chemicals Division (ICD) (10% of total revenue) Manufactures Phosphorous based chemicals like Phosphorus Trichloride,

Phosphorous acid, Phosphorous Oxychloride, Phosphorus Pentoxide, Phosphoric Acid etc.

This division comprises of the business of erstwhile STS Chemicals Ltd. which has merged with PCCPL under a scheme of merger.

The manufacturing plants are located at Pimpri (near Pune) and Tarapur (Thane District, Maharashtra)

Key Clients: Dr Reddy, GSK, Ranbaxy, Pepsi, Coke, IPCA Industrial Chemical Division - Pune & Tarapur are DNV ISO 9001 certified.

International Trading Division (5 % of the total revenue) Explores opportunities in local trading i.e. importing products for local sales. Using

inherent market understanding and market trend to identify product in high demand and importing to different domestic players.

OTHER BUSINESSES

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FUTURE STRATEGY

Value addition by forward integration for various agro chemical and industrial chemicals.

Unlike other agro pharma companies, PCCPL is not foraying into seeds rather it is adopting the branded retail formulations route & is focusing on next-generation environmental friendly biological agro products.

Through Sintesis develop biological agro product range. Tie-up also in place with a local company in Hyderabad. Tremendous potential – environment friendly. Product has great potential in US & Canada.

Through acquisition consolidate presence in formulation market of Europe, South America, North America and foray into Africa & South East Asia.

Major thrust is value-added agro chemical products in the international market particularly in Europe, US & Canada.

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Continuous R&D to introduce latest herbicides and bio products in domestic and international markets (after obtaining registrations).

Explore contract manufacturing opportunities.

For USA market, PCCPL has formed a JV with local partner & is planning to spend USD 10 million over a period of next 3 years to get its products registered in USA.

Exploring opportunities to acquire product portfolio in USA.

Evaluating opportunities to backward integrate into phosphorus space.

FUTURE STRATEGY

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SHAREHOLDING PATTERN

(As on March 31, 2008)

BSE Code: 506618; NSE Code: Punjabchem; Share outstanding: 6.6 million.

Free Float: 3.5 million shares. Face Value: Rs 10.

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Registered office: SCO 417 – 418, Sector 35-C, Chandigarh – 160 022. Group Corporate office: Plot No. 645 – 646, 4th/5th Floor, Oberoi Chambers II, New Link Road, Andheri (West), Mumbai – 400 053.

DisclaimerThe information contained in this document is intended only for private use during the

presentation and should not be distributed to parties outside the presentation. Punjab Chemicals and Crop Protection Limited accepts no liability whatsoever with respect to

the use of this document or its content. Statements in this “Presentation” describing the company’s objectives, estimates, expectations or predictions may be “forward looking

Statements” within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a

difference to the company’s operations including demand supply conditions, cyclical nature of the company’s principal markets, changes in government regulations, tax

regimes, economic developments within India and factors such as litigationnegotiations. The company assumes no responsibility to publicly amend, modify or revise any

forward looking statement, on the basis of any subsequent developments, information or events, or otherwise.

THANK YOU

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