1. PUNJAB CHEMICALS & CROP PROTECTION Limited

2. 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

3. 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.

4. 3 decades of moving up the value chain
2007: Stake in Source
Dynamic PLC, US
3 decades of moving up the value chain
2007: Acq. Of Agrichem
Netherlands (SD Agchem)
2006: SDAG Chem. 85% stake in SQ
Argentina
2006: Formation of SDAG Chem. Belgium
2006: Amalgamation of all group companies
ADIL / IA & IC / STS / PAURAJ
2003: Separate manufacturing facility for pharma sector Alpha Drug India taken over from DSM
: Focus on agrochemicals & spl chemicals.
1983 : Diversified into diethyl oxalate & specialty products
19th November, 1975 in joint collaboration with Excel Industries Ltd, Mumbai and PSIDC under the name of Punjab United Pesticides & Chemicals Ltd

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

6. 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.

8. Agro chemical industry
Industry structure
Insecticides
Herbicides
Fungicides
Agro chemical industry
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
Intermediates for technical
Technical & their bulk formulations
Small pack branded formulations

9. 75% of Revenue 10% of Revenue 5 % of Revenue
PCCPL
Agro chemicals
Division
75% of Revenue
Technical Bulks Mainly exports
Formulations
Retail market
Insecticides
Pesticides
Fungicides
Herbicides
Biological agro products
Intermediates for technical oxalic acid derivatives
Industrial Chemical
10% of Revenue
Pharma Division
International Trading
5 % of Revenue

10. Insecticides
Herbicide
Fungicides
Plant Growth Regulators
Bio Products
Sulphur Range

11. World’s largest producer of oxalic derivatives K E Y S T R N G H
World’s largest producer of oxalic derivatives
Forward Integration – niche herbicides & biogradable
Wide product basket & in house R&D for new molecules
Robust local distribution network
Export to 60 countries
All seasons revenue
2 key acquisitions
Immense growth potential in the industry

12. All Season business, De-risked, Diversified
First 6 months of fiscal excellent domestic market sales (formulations)
Next 6 months is an excellent season for agro technical business abroad.
Exports to
nations where agriculture is important
Israel & Europe Netherlands, Belgium, Holland).
Key acquisitions will enable the foray into the international formulation segments.
Strengthen product pipeline & biological agro product range.

13. Fully integrated Oxalic acid & derivatives Agro chemical bulks
World’s largest producer.
40% for in house i.e. raw material for agro bulks.
Will also be used as raw material by the 2 newly acquired companies.
Agro chemical bulks
In house raw material for formulation
Export: Europe, Israel, South East Asia, Latin America, USA.
Clients: Syngenta, Agan, Dow Chemicals, etc.
Will also supply to Agrichem & Sintesis.
Formulations
Sulphur & Phosphorous based.
Did not focus on competitive area of pesticides & insecticides .
Developed environmentally friendly & niche segments.
Biological crop.
Future: Regulated markets.
Agrichem has a good portfolio of registered crop protection products in Europe.
Sintesis Quimica has a comprehensive biological products & formulations range.

14. 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 & ISO 9001 Certified

15. 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 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.

16. II. Formulations Product RAnge
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 13 8 7 4
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.

17. Opportunity matrix: Strong demand on the horizon
India
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.

18. 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 (&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)

19. World wide Opportunity matrix
Estimated global agrichemical market size is USD 40 billion
Estimated Global Agrochemical sales (2006)
By Region By Category
* Rest of the world
Strong agro commodity prices underlines the need for higher crop yields. Immense potential for the branded formulation business.

20. Opportunity matrix 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.

21. Two key Acquisitions
In Netherlands and Argentina 21

22. 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.

23. 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.

24. Comprehensive Product Range
Acquisition 1
Biological
Inoculants for soya, wheat and corn.
Agro based products & formulations
Soil disinfectants
Sprout suppressants in potatoes, onions, garlic
Fungicides
Insecticides
Herbicides.
Industrial and formulation based products
Leather industry
Wood preservation

25. Key benefits to PCCPL Acquisition 1
Entry into regulated market of Latin America – BRAZIL (BRIC nation) & Argentina
Provide a thrust to the development of biological products
Cross sell products.
Service reputed brands.
Widen product basket

26. 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) 26

27. Acquisition 2 Own brand sale & distribution Obtaining & defending
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.
R&D
Obtaining & defending
Product registrations
Formulations
Own brand sale & distribution
3rd parties generics

28. Acquisition 2
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 million in next 3 years.

29. Acquisition 2 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 products development

30. Acquisition 2

31. Key benefits to pccpl Entry into regulated market; access to data
Save on registration cost.
Immediate and direct access to the market instead of waiting period of 3-5 years.

32. Advantages of two Acquisitions
Entry into regulated formulation markets of Europe + South America
Access to technical data of registered products which also helps enter into the US market
Cross selling of products
Provide thrust to biological product range
Overall margin improvement of PCCPL due to forward integration

33. FLOWCHART OF SUBSIDIARY COMPANIES OF PCCPL
STS UK LTD
100%
PCCPL
SD AGCHEM EUROPE N.V.
100 %
SINTESIS
QUIMICA
85 %
(Argentina)
SD Agrichem
Netherland B.V.
100 %
PSD
LLC
40 %
(USA)
SOURCE
DYNAMIC
20 %
(USA)
AGRICHEM
B.V.
100 %
PG CROP
PROTECTION
LTD
100 %
(England)
N.V.
AGRICULTURAL
CHEMICALS
100 %
(Belgium)
AGRICHEM
HELVETIA
GMBH
100 %
(Switzerland)
NEDAB
APS
50 %
(Denmark)
KAPCHEM
LTD
50 %
(Ireland) 33

34. 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.

35. Relative market share United Phosphorous Rallis India PCCPL PCCPL
Higher
PCCPL
PCCPL
Excel Crops
Ballarpur Inds. ,
GACL
Excel Industries
PCCPL
Others
Relative market share
Mid-level
PCCPL
PCCPL
Unorganised sector
Lower end
Insecticides
Phosphorous based chemicals
Agro chemicals technical – oxalic acid & derivatives
Niche-
Sulphur-based formulations & herbicides
Future – Biological agro products

36. 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.

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

38. Other Businesses
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.

39. 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.

40. Future strategy
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.

41. Shareholding pattern
BSE Code: ; NSE Code: Punjabchem; Share outstanding: 6.6 million.
Free Float: 3.5 million shares. Face Value: Rs 10.
(As on March 31, 2008)

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