Company Snapshot - Sep 2008. - Advanta India

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Oct 22, 2013 (3 years and 1 month ago)

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Welcome to

India’s First Multi
-
National Seed Company

September 2008

Advanta
-

A Global Company

Subsidiaries of Advanta

Countries where
Advanta products are
used

Board of Directors

JAI R. SHROFF (42)

Chairman


CEO of United Phosphorus Limited


Managing new projects & ventures

Dr.VASANT GANDHI
(54)

Independent Director


Alumnus of IIM Amedabad and Stanford University


Worked with NDDB, Stanford University, the World Bank and the
International Food Policy Research Institute


Currently Professor at IIM Ahmedabad

VINOD SETHI (46)

Independent Director


Alumnus of IIT Bombay & Stern Graduate School of Business


Served as CIO at Morgan Stanley for 12 years

V. R. KAUNDINYA
(52)

Managing Director


Graduate in Agriculture, and IIM (A) alumnus in Agri
-
business


Over 26 Years of experience in agriculture industry

VIKRAM R. SHROFF
(35)

Non
-
Executive
Director


Graduate in Chemistry and Harvard Business School alumnus


Responsible for human resource planning, purchase, commercial,
marketing & production at United Phosphorus Limited


Alumnus of Kellogg School of Management


Ex
-
chairman of Cargill India


Currently on the Board of Punjab Tractors Ltd

HARDEEP SINGH
(54)

Independent Director

A World Class Advisory Board of Advanta

Name

Background

Felipe Osorio

Colombian citizen
-

20 years experience with agricultural input
industry in USA, Latin America and Asia


last 14 years with
Monsanto


now heads Alianza TEAM in Colombia

Dr. Ganesh Kishore

US Citizen

former Chief Biotechnology Officer at DuPont
-

Former Chief Biotechnologist and President, Nutrition Sector,
Monsanto Company
-

27 years experience in biotech & seed
industry and inventor of major Ag traits.

Sam Dryden

US citizen


investor and developer of Life Sciences ventures with
particular application, scale & commercialization of early stage
technologies
-
currently Managing Director of Wolfensohn & Co
focusing on private equity investments in biofuels and alternate
energy technologies


CEO of Emergent Genetics LLC

Jonathan Malkin

US Citizen


20 years experience in Ag germplasm


Founder &
Managing General partner of ATP Capital LP, a private equity fund


Global Organization Structure

Board of Directors




Jorge
Moutou
s

Business

Head

Argentina

Pacholk
Pongpanic
h

Business

Head

Thailand

Howard
Morris

Strategy &
Business
Developme
nt

Chris
Bazley

Business
Head
Australia

Alberto
Leon

Business

Head

NUTRISUN

Business

Head


India

Sateesh

Hegde

Business
Head

Vegetables

TBH

Supply
Chain
Head

Legal Head

HR Head

Chief
Financial
Officer

Research
Head

International

PM
Nanjap
pa

Manoj
Gupta

Jocelyn Davey

Alan Scott

Ravi Reddy

Regional
Business
Managers

CEO

V.R. Kaundinya

Our Geographies



We have operations in 4 continents & 5 countries



Our exports go into 25 other countries


Country


%

Australia

26

India

25

International

16

Thailand

12

Argentina

11

USA

10

Total

100

Country
-
wise Contribution
2008

Our

Core

Crops


Global

: Sorghum, Sunflower, Tropical Corn and Vegetables


Regional

: Rice, Cotton and Brassicas





%

Sorghum


29

Sunflower


21

Vegetables


18

Corn


13

Canola


11

Others


08

Crop
-
wise Contribution
2008

Total


100

Success Strategy

Research & Development



Depth



Variety

Germplasm



Quality



Experience

Breeding Program

Biotechnology



Traits



Molecular Markers



Techniques

Production, Brand & Distribution

+

Convergence of Technologies

Demand + Available Land

Yield

Genetic Potential

Preservation

of Yield

Increasing income levels &

Growing Awareness

Characteristic

Output Traits

Technology

+

+

Cost Effectiveness


Optimum use of resources

-

Water


-

Nutrients


-

Land


-

Manpower


Desired Characteristics

-

Quality

Sorghum in Advanta



Currently the largest crop in Advanta



Total tonnage about 20000 tons



USA, Argentina and Australia contribute 25% each



Major breeding programs in USA, Australia and Argentina



Molecular marker facility



Recently entered US markets through Garrison & Townsend acquisition



Bio
-
energy initiative launched with sweet sorghum

Sunflower in Advanta



Currently the second largest crop in Advanta



Total tonnage about 5500 tons



Argentina (40%) and International (30%) : major contributors



Major breeding programs in Argentina, Australia and India



Molecular marker facility in Argentina



Nutrisun project

N
utrisun

Breakthrough Non Genetically Modified technology in Sunflower

Hybrids developed by Advanta


Combines mutagenesis, plant breeding and molecular marker know
-
how


Sunflower hybrid seed products with a highly beneficial oil profile


Fatty acids in SUNSAT oil (stearic, oleic and linoleic acids) have the propensity to lower


“bad” cholesterol (LDL) and to be neutral or increase “good” cholesterol (HDL)



Solid fat at room temperature


Global application

with
full control of the intellectual property


Currently under the pre
-
commercial stage



Extremely favourable reaction from major food producers across the world



Hybrids are currently being produced in Argentina

Commercial introduction expected by 2009

Nutrisun is expected to find application in
margarines, spreads, frying oil, cooking,
baking, confectionery, and cocoa butter alternatives


Corn in Advanta



Total tonnage about 9000 tons



India contributes 40% & Thailand 20%



Major breeding programs in Thailand, India and Australia



Molecular marker facility



Expansion planned in Latin American markets



BT Corn introduction in Argentina



2 new hybrids registered each in Indonesia and Brazil

Rice in Advanta



Strong product portfolio in India


-

PAC 801 & PAC 832 well accepted in the market


-

Swarna
-
1 & Swarna
-
2 launched last year


-

Pac 807, PAC 809 & PAC 837 launched in 2008




PAC 807 registered in Vietnam




Registration trials initiated in Indonesia, Philippines,


Bangladesh, Burma and Pakistan



Research facilities established in Vietnam & Indonesia



Member of the IRRI’s HRDC Consortium

Advanta had an eventful year 2007



First full year of operations since acquisition by UPL



Now a 100M$ company



Successful IPO



Significant organizational changes



3 acquisitions



First entry into vegetables sector



First sale of transgenic crops: corn & cotton



Hybrid Mustard introduction in India



Enhanced research investments



Excellent growth in all markets



Nutrisun on its way to 2009 launch:


-

Two MOUs signed during the year



Major progress with China, US and Brazil

Advanta : Acquisitions

Total investment of 65M$


Company


Country


Crop


From

1

Longreach

Australia

Wheat

Syngenta

2

Golden

India

Vegetables

Promoter
s

3

Unicorn

India

Vegetables

Promoter
s

4

Garrison
Townsend

USA

Sorghum

Promoter
s

Completed FIVE acquisitions in last two
years

5

Acquired Sunflower business from Limagrain In USA

Financials

Financials

Mutual Funds / UTI

4.70%

Bodies Corporate

3.22%

Foreign Institutional

Investors

21.90%

Indian Public

4.10%

NRIs / OCBs

6.03%

Promoter

59.94%

Debt


Equity
Ratio

Financials

11.0

16.9

Net profit / Sales (%)

0.70:1

3.94:1

Debt
-

Equity Ratio

269.25

130.9

Book Value Per Share

28.17

29.0

Diluted Earnings Per Share of Rs. 10/
-

4532.7

1099.6

Net Worth

5221.9

3950.5

Net Fixed Assets

5990.6

4620.1

Gross Fixed Assets

453.8

483.9

Profit after Tax and Minority Interest

818.8

560.0

EBDITA (Excluding Extra


Ordinary Items)

818.8

793.0

Earnings Before Depreciation, Interest, Amortization and
Tax (EBDITA)

5131.3

3217.0

Total Income

4242.4

2916.3

Sales/ Income from Operations

Jan
-

Dec

2007


Jan
-

Dec

2006


Accounting Year

CONSOLIDATED FINANCIAL HIGHLIGHTS AT A GLANCE FOR LAST
2 YEARS

Rs. in
Millions

Financials

Advanta : Biotech Traits Access

Company

Country

Crop

Traits

1

Monsanto

Australia & Argentina

Canola & Corn

RoundupRead
y & YieldGard

2

Nath/Chinese

India

Cotton

Fusion Bt

3


BASF

Australia , Thailand &
Argentina

Canola, Corn &
Sunflower

Clearfield

Sweeping Changes in the world


The World of agriculture is undergoing major changes



Biotechnology Traits



Value Added Crops



Value transfer between agrochemicals and seeds



Global Consolidation of industry



IP protection laws


Technologies that are likely to come to India in the next ten years



Herbicide Tolerance



Drought Tolerance



Nitrogen Use Efficiency



Healthy Oils



Higher Yield



Feed Nutrition enhancement



Value Transfer into Seed

SEEDS

Human

Health

Water

& Soil

Nutrients

Crop

Chemicals


Animal

Nutrition


Challenges for
A
gri
I
nput
I
ndustry



Increased seed prices due to enhanced value



Enforcement of new IP Laws



Delivery of product to farmer (Channel)



Value Capture



Contract farming models



Consolidation in industry



Technology Stewardship


-

Stakeholders’ education on new technologies


-

Management of risk for farmer


-

Procurement system & trait tracking

Advanta has a Promising Agenda for 2008



Expected revenue growth of 35%



New products: RR Canola in Australia



New geographies: Brazil, China, US, Indonesia



Nutrisun to forge commercial links



Global supply chain function



Expansion of Vegetable seed business



Bioenergy project with sweet sorghum



Biotech investments



Exploring Synergies with UPL in India and some other countries

Regional Business Growth driven by Select Crops

Future Business Strategy

Continue investment in breeding and Technology

International Expansion : Asia / Latin America / CIS

Leverage low cost strengths of India in production and research

Selective acquisitions in core crops and geographies

THANK YOU