Rallis India Ltd

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Co pyright Ra llis Ind ia Limited . All rights reserve d

Welcome!

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RALLISACQUIRES SEEDS ENTITY

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V Shanka r9th Dec ember 2010


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The Strategic Context


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Rallis Poised : The Path to Grow


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Why Seeds? : The Strategic Fit

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Seeds: a key agri input need of farmers: drives produc tivity

improvement

A high growth opportunity; va lue c rea ting - c losest to adjacent

businessconnect.

Strengthensour RKK farmer bonding program me

Meets composite portfolio needs

Glob ally m ore tec hnology foc us on seed s towa rd s susta ina bleagriculture

Increasing spend of farmerstowards traits & seeds


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Why Inorganic?

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Technology

Exclusive &

Pipeline of

Hybrids

Seeds

Infrastructure

Rallis needs a combination of good pipeline of hybrids,

b iotechnology and seeds infrastruc ture to grow its Seeds Business

Inorganic route is effec tive and exped itious


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The Seed Industry


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The Seeds Industry : Connec t to Agriculture

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Large opportunity

Indian seed market is > 6500 Cr

6th largest in the world

A high growth opportunity: Value c rea ting

Indian Seed Industry g rowing @12-13% pa

Sourc e: International Seed Fed eration; Aug ,2010Industry Sourc es & Rallis Analysis, Nov, 2010



Seeds A Growing Industry

Industry Sources & Rallis Analysis, Nov, 2010

* Commerc ia l Seeds - Accounts for 25% of tota l potentia l. Rest 75% - own seeds

Seed industry > 6500 Cr* (CAGR 12%)

1200, 18%

850, 12%

900, 13%2300, 34%

1000, 15%

Commerc ial Seed sValue in Cr, %



Changes in Indian Seed Industry

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Private sector contributing signific antly in field c rops too

Moving from unorganised to organized

Consolidation is taking place

Focus on Research & Product Development

Market growth led by Research based Companies

Agri-innovations have been succ essful in India

High adoption rate for new technologies: hybrids

More than 90% area under Bt cotton



The Acquisition



Metahelix



q Metahelix an R&D led organization

Ag-b iotec h Company headq uartered in Bangalore, India

Distinc tive ability to deve lop p rop rietary Biotec h produc ts

q Dhaanya Seeds - Hybrid Seed Business

Commercia lizes the hybrid seed and trait produc ts developedby Metahelix.

q International Presence

Expanding into South & East Asia

Business BackgroundBusiness Background



Competent TeamCompetent Team

o Gautham Nad ig, Ph.D.

Executive Director

o K.K.Narayanan, Ph.D.

Managing Direc tor

o S. Ravi Krishna, M.Sc ., PGDM

Chief Executive Officer, Dhaa nya Seeds & Direc tor

o Ganesh Kishore, Ph.D.

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Have Considerab le Experience and Expertise in Seed business



q Strong Research & Development Program

q Crop genetic s, molec ular markers and biotec h tra itdevelopment

q First Indian Company to ha ve prop rietary Bt trait; Cry1C in BtCotton.

q Portfolio of important c rops, such as Rice, Maize, Cotton, Millet,Tom ato, Okra, Hot Pep per

q Biotech Traits:

Insec t & Weed Protec tion technology in Cotton, Rice and Maize

Viral and Funga l disease p rotec tion in rice , co tton and vege tables

q Developed and introduced many high performance hybrids inkey c rops in India

q Obtained approva ls for rice and c orn hybrids in Indonesia,

Thailand; approvals in Vietnam and Philipp ines in pipeline

about Metahelix



about Metahelix

o People (Research oriented Manpower)

Promoted by 5 scientists

Tea m of 50 sc ientists (20 PhDs) in p lant b iotec hnology (genomics andinforma tics) and c rop genetics

Trained Tea m for Sc ientific Produc t Testing ac ross the country

o Research Fac ilities:

Research farms at Bangalore, Hyderabad & Aurangabad

Biotec h Lab & Green houses at Bang alore

Country wise produc t testing locations

Research Software

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about Metahelix

o Seed Produc tion Fac ilities

About 3000 contract growers

Seed processing plant and ware house at Hyderabad

Bio-mass based cob -d rying fac ility o f 1800 MT/ year cap ac ity

o Dhaanya Seeds

120 people in Sales, Market development ,Produc t development

~1000 distributors ( Ma inly in Paddy, Ma ize & Pea rl millet belts)

o Has taken rice & ma ize produc ts Internationa lly withregistrations

Entering Vietnam, Thailand , Indonesia, Philippines

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The Business Fit



MetahelixMetahelix -- A good strategic fit for Rallis Growth in SeedsA good strateg ic fit for Rallis Growth in Seeds

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Rallis streng th is

customer intima cyRallis owns farmerrelationship.

Rallis has wid eand deep marketpenetration

Rallis doe s nothave its own seedproducts.

Seeds business in India is a high g rowthand value c reating opp ortunity

Important segment in d riving RKK farme rbond ing programs

Metahelix hasgood technologybase

Dhaanya has

competitiveproducts

Opportunity for Significant Growth

Globally technology focus on seeds



Rallis +Rallis + MetahelixMetahelix will bring in significant capabilities in Seeds Playwill bring in significant capabilities in Seeds Play

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Biotech

Breeding

Good qua lity andproprietarygermplasm

ProductDevelopment

Licenses

Future Traits

Production Sales andDistribution

Rallis Leverag e of

ex isting systems

Good People, Systems and Processes

RegulatoryResources /Experience

Good

ProductionPrograms


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The Rallis synergyThe Rallis synergy

1. Leverag ing the Tata-Rallis brand na me, distribution strength andmarketing ab ility

2. Using the Rallis Kisan Kutumba customer base for enhanc ing sales

for hybrid rice, ma ize, millet and veg etab les.

3. Tata Kisan Sansar network a ccess the Northern region of UP andPunjab for hybrid rice and m aize

4. Bring in new business through seed protec tion (seed treatment) andparticipate in government prog ram s jointly.

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Ac quisition detailsAc quisition details

o Ac quisition of 53.5 % stake from existing investors for 99.5 c rores

o To go upto 100% in five years time

o Promoters and key employees will continue

o Ac quisition financ ed mainly through internal acc ruals

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AcquisitionAc quisition Value CreationValue Creation

o Rallis brand prowess and Me tahelix promising p roduc ts will c rea teunique differentiation

o Metahelix has own tec hnology/ IP, good production c ap ab ilities andsuccessful p roduc t c ommercialization

o Potential to generate cumulative revenues of 1000 c rores by 2015

o Valuation of seed business is linked to R&D, Strateg ic & Cultural fit andcontrol

o Valuation at 2x next year revenues

o Will be EPS acc retive

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Looking Ahead


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Trends in Ind ian Seeds BusinessTrends in Ind ian Seeds Business

o Inc reasing dem and for Branded / Quality Seeds

o Biotech Traits:

Bt Cotton (Approved )

New Traits in p ipeline

o High adoption rate for new tec hnolog ies

~ 90% area under Bt cotton

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The Indian OpportunityThe Indian Opportunity

o Opportunity in Quality Seeds

Maize: Ranked 5th in produc tion (2MT/ Ha in India vs 5 MT/ Ha World Av)

Rice: Area under hyb rid Rice ( 50% in China),

Vegetable seeds: Varieties to Hybrids

Bt Cotton: single gene to stacked gene

o Seed rep lac ement Rate:

Wheat, Paddy, Oilseed, Pulses, etc

o Export Opportunities:

Hyb rid Maize, Paddy , Bt Cotton, Vegetables, etc

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Rallis India Ltd

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