I am in the midst of detailed research on the co. and as soon as I am done I will be coming out with detailed report on the same soon.
In case u want annual reports of the company I can mail u them…just for a quick update, in Jan2011 Sony has signed a coll.R&D agreement with PI as also the MD of PI is presently Co-Chairman, CII National Council on Agriculture… recently PI had a concall post Q3FY11 numbers and broad takeaways from that were :
(1) Co.'s agri-input business has grown by 36 % in first nine months of FY11 which is the highest growth achieved amongst its listed peers.
(2) Its Nominee Gold herbicide which was launched last year is doing extremely well and is expected to become a blockbuster brand in few years in respective category.
(3) In-licensing molecules currently constitute 30-35 % of the agri business which is expected to rise to 50 % in 2 years which will enable the co. to improve margins further.
(4) In Fy12, Co. is going to launch two molecules in agri segment (insecticides).
(5) In agri segment all its business is from retail and has no institutional contribution which is a unique model in the listed peer space.
(6) Agri segment is going to do very well in Q4FY11 as because of rains the season has got shifted to Q4.
(7) At present Insecticides contribute 50 % to the agri business, 30 % is contributed by herbicides while other agri-inputs contribute 20 % to the agri segment revenue.
(8) In custom synthesis space (CSM), PI is following a unique no-conflict business model which is somewhat similar to Divis.
(9) In the CSM space it is the only or one of the only two suppliers to its clients.
(10) Its CSM business has the provision to pass on raw material increase to the customer.
(11) In CSM, majority of its clients are from agrochemicals space at present but the mix is shifting to other sectors like imaging, electronics& pharma.
(12) 95 % of CSM business accrues from patented products and that too in their early lifecycle which makes PI the only company with such business model in India.
(13) Order book position at the end of Dec.2010 stands at 250 mn. US$ which is to be executed in 2-3.5 years.
(14) Its new plant for CSM business is expected to get operational by December 2011. With the existing capacity and the new plant, PI will be able to serve orders worth 700-750 cr. per year in CSM business at 100 % utilisation.
(15) CAPEXfor the new plant is put at Rs. 125 cr.by FY12 & FY13 out of which 16-18 cr. has already been spent and initial works have started and the entire CAPEX requirement is to be met by internal accruals as well as out of the proceeds of sale ofpolymer business which will get concluded by 31st March 2011.
contd… in next post…