SABERO ORGANICS GUJARAT LIMITED - ACE Analyseraceanalyser.com/Analyst Meet/124446_20090731.pdf ·...

SABERO ORGANICS GUJARAT LIMITED

CORPORATE PRESENTATION, JULY, 2009

- 2 -Private & Confidential

VIEW OF SABERO’S MANUFACTURING FACILITIES AT GIDC SARIGAM, GUJARAT


SABERO

Background

Management

Environment, Safety & Health

Products & Capabilities

Financial Summary

Future Plans


SABERO HAS AN ESTABLISHED TRACK RECORD AND IS LED BY AN EXPERIENCED MANAGEMENT TEAM…..

The Company began operations in 1994 with the vision of building a strong agrochemicals businessPromoted by the Chuganee family, which has more than 3 decades of experience in the business

• Manufacturing facility located in Gujarat

• Recognised export house with more than 65% of its revenues coming from exports

• Amongst the lowest cost producers in the world for its main products

• ISO 9001 and ISO 14001 certified

• R&D department recognized by the Government of India

• Employs 525 people

• Pioneer Industry title by Government of Gujarat

Chairman, H J Chuganee• More than 4 decades of experience as a technocrat

• CEO, Rohm & Haas, India for 15 years.

• Post Graduate Engineer, University of Surrey, UK in 1960

• Advanced Management Programme, Harvard in 1987

• Has been associated in leadership positions with trade organisations/associations such as President, Indian Chemical Manufacturer's Association; Indo-American Chamber of Commerce.


SABERO HAS AN ESTABLISHED TRACK RECORD AND IS LED BY AN EXPERIENCED MANAGEMENT TEAM…..

Vice-Chairman & Managing Director (MD), Mohit Chuganee• Involved with the company since inception

• Extensive work experience in USA & Europe with multinationals

• Bachelor of Engineering, Virginia Tech, USA in 1988

• MBA, Thunderbird, USA in 1989

Joint MD, Sumit Chuganee• Involved with the company since inception

• Extensive work experience in USA with multinationals

• Bachelor of Engineering, Virginia Tech, USA in 1988

• MBA, Duke University, USA in 1991

They are supported by an able team of CFO, COO, VP’s in charge of international marketing, domestic B2B marketing, formulation branded marketing, Supply Chain & Purchasing, Manufacturing and Operations, Research & Development /Q.A., Corporate Affairs.

Shareholding of the Chuganee family and Associates at 42% of equity of Company (post warrantconversion).


EVOLUTION OF THE COMPANY

In the early 1990’s, with the liberalisation of the Indian economy, Mohit Chuganee & Sumit Chuganeereturned back to India from the USA and with the active support of Hero Chuganee, their father and then CEO of Rohm & Haas/Indofil Chemicals, the three founded Sabero Organics Gujarat Limited.

The Company first started manufacturing Organo Phosphorous Pesticide Intermediates, Phosphorus Trichloride (PCL3), Tri Methyl Phosphite (TMP) & Di Ethyl Thio Phosphoryl Chloride(DETC), in 1994.

In 1998, the Company forward integrated into the manufacture of active ingredients, Acephate and Glyphosate.

In 2000, the Company started production of Mancozeb and also forward integrated into branded formulations, building an all India distribution network.

Commenced exports to Asia, Australia and Europe in 1999 onwards. Formed Subsidiaries in Australia & Europe.

Started manufacturing Monocrotophos and Dichlorovos in 2002.

Expanded the international export business to Latin America, USA & Africa in 2002 onwards. Formed Brazilian & Argentina subsidiary in 2006.

Started manufacturing Chlorpyriphos in 2005.

De-bottlenecked Acephate & Monocrotophos plants in 2008.

Undertook a major expansion to expand Mancozeb, Chlorpyriphos & Glyphosate capacities with majority of the capital investment in Mancozeb, in 2008-2009.


Sabero operates in the agri-inputs industry …

The segments of the market that the Company operates in are:

• Intermediates: PCL3, TMP and TEP;• Technicals: Acephate, Mancozeb, Maneb, Propineb, Zineb, Monocrotophos, Glyphosate, DDVP and Chlorpyriphos; and• Formulations: 13 different products sold under different brand names based on own and 3rd party technicals.• Planning to introduce:

Insecticides: Fipronil.Herbicides: Trichlopyr, Clodinafob Propargyl

Bispyribac SodiumThe installed manufacturing capacities based on 330 day working cycle per year, on active ingredient/technical basis.

Product TPAPCL3 20,000

TMP/ TEP (multipurpose plant) 6,000 / 5,200

DETC/DMTC Amide- product discontinued – but may restart 2000

Monocrotophos 1,980

Chlorpyriphos 2080*

Mancozeb Technical/Wettable Powder/ other liquid formulations/Propineb/Zineb/Maneb/WDG 30,000*

Dichlorovos 1,500

Glyphosate Tech/ 41% SL (MT/KL)/WDG 5,000*

Acephate Including WDG

* TOTAL CAPACITY INCLUDING THE EXPANSIONS COMPLETED IN MARCH, 2009

2,600


… General Marketing Export - Domestic

The Company is geared to exploit export markets through:• its portfolio of molecules and its diverse international customer base and;• additional product registrations in new and existing markets in Latin America, USA,

Europe, Asia & Africa.The Company has obtained comprehensive registration dossiers with 5-batch analysis, toxicity, physicochemical properties, field trials, etc. of its products from European & Indian GLP laboratories.The Company and its subsidiaries have 240 product registrations in 50 countries and are selling their products in these countries, including those where importers have their own registrations.Registrations are granted by the EPA /Dept. of Agriculture in respective countries and is a barrier to entry into that market and prerequisite to selling in that market.Depending on local requirements, registrations may take from 3 months to 3 years and costs vary from few thousand dollars to many hundred thousand dollars. Registrations in countries such as Brazil, Europe, Argentina, USA, for example take longer and are more expensive to obtain. Have obtained first registration of Chlorpyriphos in Brazil in April, 2009 ( after three years of process) and expect to obtain three more registrations of Mancozeb, Acephate & Glyphosate in Brazil in the current financial year. Brazil is the second largest Agrochemical market in the world. Also obtained Glyphosate registration in Europe in 2008.While China is a competitor in some products, in a majority of the products manufactured by the Company, China is not a main competitor either due to poor quality or have less / no installed capacity, or are not very cost competitive, or provide no registration support /registrations.


General Marketing Export - Domestic

Raw material prices have come down and then stabilized after going to an all time high in 2008. Similarly, finished goods prices have also gone up and now come down and stabilized while margins have been more or less maintained in most products.Marketing:The Company sells its products either as technical/active ingredient, bulk formulations, small pack formulations in customer brand name, small pack formulations in own brand name.About 65% of sales was international/ exports and 35% was sold in the domestic market in 2008-09. In 2009-10, it is expected that 70% of sales is international and 30% domestic.Around 35% of the Company’s business is to Multinational Companies such as Syngenta, Dow, Bayer, Nufarm, Arysta, Makhteshim, Dupont. Another 50% is to strong independent domestic companies (in their respective countries, eg. India: Rallis, Meghmani, Nagarjuna, Excel, USA: Amvac, Brazil: DVA Brazil, Nortox, CCAB) and balance through dealer distribution network.


General Marketing Export - Domestic

The Company has 6 subsidiaries in Australia, Europe, Brazil (two), Philippines and Argentina. The subsidiaries have been set up with the initial purpose of obtaining registrations in the relevant countries / continents. These subsidiaries would later be the vehicle for building a strong distribution network in the relevant regions. In Brazil, one of the JV subsidiaries has already started local distribution using 25 local field staff and offices in Belo Horizonte and Sao Paulo, with revenues of US$ 5 Million in 2008-09. The Company has a wide network of overseas distributors and agents in over 50 countries.Recently completed an expansion of Mancozeb plant to 30,000 TPA (more than double old capacity) making Sabero the second largest producer of Mancozeb in the world. ( After UPL)The Company produces products in each of the main segments of agrochemicals, namely Fungicides, Insecticides & Weedicides. The main products namely Acephate, Mancozeb, Chlorpyriphos, Glyphosate are the largest selling generic products in their respective segments with markets in most regions of the world.Segment wise percentage break up of Sales in 2008-2009:Herbicides: 20%Fungicides: 39%Insecticides: 34%Pesticide Intermediates / Speciality Chemicals: 7%The Company’s portfolio of products in different segments of Fungicides, Insecticides and Herbicides have different selling seasons through the year as also exports constituting a majority of sales to countries in the Northern & Southern hemispheres ( with opposing climatic seasons) has ensured that the Company has fairly stable and uniform sales throughout the year to overcome the historical seasonality of the business.Export sales have grown from Rs.94 Crores in 2006-07 to Rs.240 Crores in 2008-09 and expected to grow to Rs.350 Crores in 2009-10.


AustraliaArgentinaAlgeriaAustriaBangladeshBelgiumBrazilBolivia ChileColombiaCosta RicaCyprusCameroonDenmarkDominican RepublicEcuadorEgyptEl Salvador FranceGreeceGuinea

GermanyGhanaGuatemalaHungaryHollandHaitiHondurasIndonesiaIsraelItalyIndia IrelandIvory CoastJordanKenyaKoreaLebanon

MalaysiaMalawiMexicoMoroccoMyanmarMozambiqueMauritius NigeriaNew ZealandPanamaPakistan ParaguayPeruPhilippinesPortugalRussiaSpainSouth Africa

Sri LankaSwitzerlandTaiwanTunisiaThailandTrinidad & TobagoTurkeyTanzaniaUgandaU.K.U.S.A.UruguayUkraineVenezuelaVietnamZambia

We have product registrations, and sales presence in over 50 countries :

GLOBAL REGISTRATIONS AND PRESENCE


MACRO AGRICULTURE SCENARIO

• The world’s population is currently 6.7 billion and 750 million people are born every year. Population projected to reach 9 Billion by 2050.

• FAO reckons that to keep pace, the amount of food available in developing countries will have to double by 2050.

• The right way is for farmers to boost their yields. For example, cereal yields in Africa are around one tonne/hectare compared to three to four tonnes in Europe.

(Source: The Economist, July 2nd, 2009, economist.com, “Whatever happened to the Food Crisis; It crept back”)

• Hence the demand for Agrochemicals will be very strong in the coming years, being one of the key inputs to increasing yields.


SAFETY, HEALTH & ENVIRONMENT (SHE)

• ISO 14001 certified company.

• Internal system of Quehst (Quality, Environment, Safety, Health, Technology) based on Dow Chemicals practice in place with regular audits being conducted.

• Has extensive facilities centered on various methods of treatment & mitigation with redundancy including a biological effluent treatment plant, chemical treatment plant, incinerators, by-product recovery plant and multiple effect evaporators. All the facilities were extensively upgraded and expanded in 2008- 09.

• Compliant with all statutory permissions / approvals.


Sabero is well placed to take on competition: Intermediates …

Some Product Highlights include :-Tri-ethyl phosphite ('TEP'):

• Sabero is the sole supplier globally of this product as the only other manufacturer, Bayer, has shut down its production in Germany since December 2003. It is a niche product but with good margins.

Mancozeb:• This is one of the star products of the company; it is the largest selling fungicide globally with a

market of USD 500 million.• Recently expanded its capacity to 30,000TPA which can deliver a sales value of USD 125 Million

at full capacity.• Dow AgroSciences closed down their largest plant of 25,000TPA in France in October, 2008 due

to high costs in Europe, thereby creating an opportunity due to changed demand-supply scenario.• Globally, Dow is trying to move the business from the traditional wettable powder formulation to

the new environment friendly water dispersible granule ('WDG') formulation; Sabero has successfully commissioned its plant for the WDG formulation which has potential for the future although it is currently a niche product

• The company is the one of the only two manufacturers of specialised liquid formulation of Mancozeb, namely Oil Suspension, Suspension Concentrate, Suspo Oil Emulsion and has gained a significant market share in the Banana segment in the Philippines, Ecuador, Guatemala, Cameroun, Costa Rica, Colombia.

• Main Global competitors: United Phosphorus (UPL), Indofil Chemicals• Contributes 35%+ of Sales of Company.


Sabero is well placed to take on competition – Pesticides …

Glyphosate:• Glyphosate is the world's largest selling herbicide at a blockbuster US$ 4 billion and growing• It is the most widely used herbicide and promoted heavily for use on genetically modified ('GM')

crops such as soyabean, maize, etc• Completely backward integrated starting from Yellow Phosphorous.• Recently obtained registrations for Glyphosate in Europe.• Manufacture an environment friendly Soluble Granule (SG)• Focus on higher margin markets for Glyphosate in Europe, Africa, Brazil (registration expected

2009 end)• Main competitors: Monsanto, Excel Crop Care.

Monocrotophos:• Among India's largest selling insecticide at Rs 2 billion• Sabero is backward integrated by virtue of its TMP and PCL3 production.• The Monocrotophos plant being multipurpose can produce other new products in addition to

Monocrotophos during part of the year.• Minimal competition in domestic market (Sabero & UPL)• Export markets in Latin America & Africa.• Main competitors: United Phosphorous.


Sabero is well placed to take on competition – Pesticides …

Acephate:• It is the third largest insecticide in India at Rs 200 crores and a major product in USA, Brazil, Argentina, Paraguay

and Japan.

• This is the least toxic of the organophoshorous pesticides and with a bright future

• Registered as source with three multinationals for the USA market and is a major supplier to the USA market to these three MNC companies.

• Introduced a Soluble Granune (SG) formulation in 2009, an environmentally friendly formulation.

• Main Competitors:United Phosphorous, Rallis, Meghmani.

Chloropyriphos:• It is the worlds largest selling insecticide with a global sales of US$ 500 million.

• Recently expanded capacity to 2080 TPY.

• Obtained registration in Brazil in early 2009, a large market for Chlorpyriphos. Orders for 800MT equivalent technical obtained from Brazil alone for 2009-2010.

• Main competitors:Dow, Gharda, Meghmani, Makhteshim Agan.

Dichlorovos:• Completely backward integrated from Phosphorous

• Used in both agriculture and domestic use

• Main competitor: UPL


Sabero is well placed to take on competition – Formulations

This is a newer segment that the company ventured into five years ago, with a view to build brands and add value

The foray was conservative, owing to the working capital intensive nature of the business

The Company's strategy focused on building brands of formulations based on its own technicals such as Mancozeb (Emthane M-45), Glyphosate (Glyweed), Acephate (Acehero), Monocrotophos (Mophos) and Chloropyriphos (Robust), DDVP (Lava)

The Company has established the brands of Mophos, Acehero and Glyweed, among the top 5 brands domestically and will continue to build other brands expeditiously.

The business also includes sale of eight other formulations based on technicalsbought from other companies in barter with technicals supplied by Sabero to them

This business will be grown to over Rs 200 crores in the next 3 years

Current year business plan for domestic formulation is Rs.75 Crores.

The company has expanded its operations to over 15 States in India with renewed focus on development work at the farmer level in order to develop its brands, and has over 50 sales force in various States.


FINANCIAL SUMMARY


FINANCIAL SUMMARY

Profit & Loss AccountParticularsParticulars FY07FY07 FY08FY08 FY09FY09 FY10(PROJECTED)FY10(PROJECTED)

Sales & O.ISales & O.I 1546415464 1984719847 3682236822 5051950519

RMCRMC 90199019 1276512765 2480824808 32837

Other V. CostOther V. Cost 2286 1852 2480 3668

EmpEmp. Cost. Cost 782 980 1208 1507

Other Other F.CostF.Cost 1515 1520 3041 3919

EBITDAEBITDA 18631863 27302730 52845284 8588

EBITDA (%)EBITDA (%) 12%12% 13.75%13.75% 14.35%14.35% 17%17%

DepreciationDepreciation 503 528 567 1190

InterestInterest 1225 1483 1714 1905

PBTPBT 135 720 3003 5493

PATPAT 41 529 2179 3854

EPS ( IN RS.)EPS ( IN RS.) 0.14 1.81 7.46 12.13

Owned Funds 4385 5107 7286 11576

Borrowed Funds 6216 5161 7581 8971

Paid up Capital ( Cr.) 29.19 31.7

Fixed Assets ( Net Block) 6062 5963 9232 9030

*Note: Long term debt as part of borrowed funds is Rs. 27 Crores in FY09 and expected to be brought down to Rs.19 Crores in FY10. Gross fixed assets as on 31/3/09 is Rs.143 Crores.


Unaudited Financial Results For the Quarter Ended 30th June 2009

NOTES :

1 The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors in its meeting held

on 31st July 2009.

2The net sales of the company increased to Rs. 12126.43 Lacs

from Rs.7965.36 lacs

in the period of the previous year, i.e. 52% increase. The exports of the company increased to Rs. 8049.38 lacs

from Rs. 3933.32 lacs

in the same period in the previous year,

3 Exports contributed to 66% of the total sales of the company for

the quarter.

4 The Company has implemented SAP ERP R/3 System and has gone live

in May 2009

5The Company has only one segment of activity viz

Crop protection chemicals & inputs.

6 Status of Investors' Complanints

during the quarter

Beginning -

NIL, Received -

10, Resolved -

10, Pending -

NIL .

7 The figures of previous quarter/year have been regrouped/rearranged wherever considered necessary.

For and on behalf of the Board of Directors of

Sabero Organics Gujarat Ltd.

Sd/-

Place : Mumbai SUMIT H. CHUGANEE

Date : 31st July 2009 Executive Vice Chairman



Unaudited

Financial Results

For the Quarter/Period Ended 30th September 2009STANDALONE CONSOLIDATED

Quarter Ended Six Months Ended Year Ended Quarter Ended Six Months Ended Year EndedSr

.Particulars

N

o. 30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08 31-Mar-09 30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08 31-Mar-09

Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited

1 Gross Sales 11,122.04 10,697.99 24,075.32 19,463.64 39,943.55 11,122.04 11,326.24 24,143.35 20,335.00 41,012.33

Less: Excise814.58 696.85 1641.43 1,497.14 3,277.47 814.58 696.85 1641.43 1,497.14 3,277.47

Net Sales/Income from operations 10,307.46 10,001.14 22,433.89 17,966.50 36,666.08 10,307.46 10,629.39 22,501.92 18,837.86 37,734.86

2 Other Income75.34 23.54 152.50 38.74 153.81 75.34 31.12 160.06 49.70 186.76

3 Total Income (1+2) 10,382.80 10,024.68 22,586.39 18,005.24 36,819.89 10,382.80 10,660.51 22,661.98 18,887.56 37,921.62

4 Expenditure

(a) Decrease/(Increase) in stock in trade and Work in progress 258.88 354.00 559.67 846.66 212.16 258.88 354.00 559.67 846.66 212.16

( b ) Consumption of Raw Materials / traded goods 5,995.06 6,189.73 13,411.81 11,159.73 24,596.24 5,995.07 6,730.19 13,466.55 11,886.49 25,436.35

( c ) Employees Cost323.70 275.51 670.30 516.20 1,208.46 323.70 274.74 696.04 523.00 1,286.73

( d ) Depreciation186.35 137.44 368.01 270.87 566.73 186.35 137.41 368.01 271.16 569.72

( e ) Other expenditure 1,524.76 1,720.76 3,403.81 2,641.56 5,521.33 1,526.53 1,782.43 3,413.67 2,759.27 5,703.83

( f ) Total 8,288.75 8,677.44 18,413.60 15,435.02 32,104.92 8,290.53 9,278.77 18,503.94 16,286.58 33,208.79


SABERO ORGANICS GUJARAT LIMITEDUnaudited

Financial ResultsFor the Quarter/Period Ended 30th September 2009

STANDALONE CONSOLIDATED

Quarter Ended Six Months Ended Year Ended Quarter Ended Six Months Ended Year EndedSr

.Particulars

N


Unaudited Unaudited Unaudited Unaudited Audited Unaudited UnauditedUnaudite

d Unaudited Audited

5 Interest 492.68 405.70 970.12 825.54 1,714.11 492.77 433.75 1,020.40 884.08 1,847.03

6 Exceptional items- (0.13) (1.96) - - (0.13) (1.96)

7 Profit / (Loss) from Ordinary Activities before tax (3) -

(4+5+6) 1,601.37 941.54 3,202.67 1,744.81 3,002.82 1,599.50 947.99 3,137.64 1,717.03 2,867.76

8Tax Expenses

588.55 140.00 1,069.30 280.10 823.79 588.55 148.78 1,069.30 283.28 823.85

9 Net Profit / (Loss) from Ordinary Activities after tax (7-

8)

1,012.82 801.54 2,133.37 1,464.71 2,179.03 1,010.95 799.21 2,068.34 1,433.75 2,043.91

10Extraordinary items

- - - - - -

11Net Profit / (Loss) for the period (9-10) 1,012.82 801.54 2,133.37 1,464.71 2,179.03 1,010.95 799.21 2,068.34 1,433.75 2,043.91

12 Paid-up Equity Share Capital (Face Value: Rs. 10/-

each) 2,918.24 2,918.24

13 Reserves excluding Revaluation Reserves 4,367.87 4,357.33

14 Earnings Per Share (EPS) -

Basic & Diluted

(a) Before Extraordinary items (Not annualised) 3.47 2.75 7.31 5.02 7.47 3.46 2.74 7.09 4.88 7.00

( b) After Extraordinary items (Not annualised) 3.47 2.75 7.31 5.02 7.47 3.46 2.74 7.09 4.88 7.00



Unaudited

Financial Results

For the Quarter/Period Ended 30th September 2009STANDALONE CONSOLIDATED

Quarter Ended Six Months Ended Year Ended Quarter Ended Six Months Ended Year

EndedSr

.Particulars

N


Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited

15 Public shareholding

( a ) No. of Shares17,930,549 17,868,059 17,930,549 17,868,059 17,868,059 17,930,549 17,868,059 17,930,549 17,868,059 17,868,059

( b ) Percentage of Holding 61.42% 61.20% 61.42% 61.20% 61.20% 61.42% 61.20% 61.42% 61.20% 61.20%

16 Promoters and Promoter group Shareholding

a) Pledged/ Encumbered

Number of Shares- - - - - - - - - -

Percentage of Shares (as a % of the total shareholding of promoter and promoter group) - - - - - - - - - -

Percentage of Shares (as a % of the total share capital of the company) - - - - - - - - - -

b) Non-encumbered

Number of Shares 11,263,451 11,325,941 11,263,451 11,325,941 11,325,941 11,263,451 11,325,941 11,263,451 11,325,941 11,325,941

Percentage of Shares (as a % of the total shareholding of promoter and promoter group) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Percentage of Shares (as a % of the total share capital of the company) 39% 39% 39% 39% 39% 39% 39% 39% 39% 39%



Unaudited

Financial Results

For the Quarter/Period Ended 30th September 2009

NOTES :

1 The above results have been approved by the Board of Directors at its meeting held on 31st October 2009 and have been subjected to a "Limited Review" by the Auditors.

2 The net sales of the company for the six months increased to Rs. 22434 Lacs

as against Rs. 17967 Lacs

for the same period in the previous year. The exports for six months increased to Rs. 13835 Lacs

as against Rs. 9359 Lacs

for the same period in the prev

3 The Company's manufacturing location in Gujarat experienced heavy flooding in the first half of September, 2009 and the plant was inoperational

for almost 10 days due to water logging and damage to the central electrical system.

4 The Company has started distributing its insecticide under its own brand in Brazil, during the quarter under review, consequent to getting the product registration.

5 The company has two joint ventures in Brazil which are being restructured. Sabero

Organics Americas Ltda

is the majority owned subsidiary under the management control of Sabero

while the other joint venture, Markan

Agroqiomicos

is under the management con

6 The company has received Rs. 207.32 Lacs

towards advance against prefrential

issue of Optionally Convertible Warrants till 30th September 2009 and the same have been utilised

for working capital purposes.

7 The Company has only one segment of activity viz

Crop protection chemicals & inputs.

8 Status of Investors' Complanints

during the quarter

Beginning -

NIL, Received -

4 Resolved -

4, Pending -

NIL.

9 The figures of previous periods/years have been regrouped/rearranged wherever considered necessary.

For and on behalf of the Board of Directors of

Sabero Organics Gujarat Ltd.

Place : Mumbai SUMIT H. CHUGANEE

Date : 31st October 2009 Executive Vice Chairman


Mission:To be a global player in Crop Protection and Specialty Chemicals.

To produce the highest quality products with continuous improvement and innovation by garnering our innate creativeness, with a complete commitment to safety, health and environment.

To constantly upgrade and optimize the use of financial, material and human resources in our operations and to continuously strive for excellence in all fields of activities.

To have ethical and fair business practices and strive to work for the benefit of all our stakeholders - customers, community, employees, suppliers and shareholders and to explore new avenues by sheer determination and creative solutions.

PRINCIPLES:

Have a positive attitude.

Make commitments not promises.

Do smart work not just hard work.

Always be ready to take responsibilities and be accountable.

Have a burning desire to succeed.

Always be a part of the solution not the problem.

Motivate and stay self-motivated.

Always take the initiative.

Be a empathic listener.

Always be a team player.

Be a winner.

SABERO MISSION & PRINCIPLES


The current fixed assets in place on the ground can deliver a topline of Rs. 725 Crores ( with small investments of Rs. 5 Crore/year in upkeep/optimization of assets). With an increasing sales pipeline, due to new registrations received and in process, the Company hopes to achieve this sales of Rs.820 Crores in 2011-12 and Rs.1010 Crores in 2012-2013.

Objective for 2009-2010 is to get OSHAS18001 certification (Occupation Health) and Good Laboratory Practice (GLP) certification for its in-house laboratory.

Project for expansion completed in Q1, 2009 at cost of Rs. 35 Crores. Next capital expansion for new products to be undertaken only in 2010-2011 at planned cost of Rs. 50 Crores, which will deliver additional sales of Rs.200 Crores subsequently.

Company plans to look for attractive acquisitions outside India, in the year 2010-11 to grow inorganically. Planned size of organization is USD 30 Million topline which can be digested easily.

Company will fully integrate SAP in its operations in the current year and has gone live in May, 2009.

Dividend Strategy: The Company intends to distribute around 10% of its profit after tax as dividend to its shareholders, henceforth.

FUTURE PLANS

Thank you

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