From the company lister in the Super 100 Company Magazine, A Marketing analysis of both the public sector fertilizer manufacturer giants and concluding with who is a better performer.

1. 1
Vs

2. Two Fertilizer Manufacturing companies
Coromandel International
and
Chambal Fertilizers & Chemicals
are competing with each other in their
marketing strategies.
Examine their performance
2

3. Overview
• Introduction
• Marketing
• Financial
• Conclusion
3

4. Introduction
4

5. Chambal Fertilizers and Chemical Ltd
• Largest private sector fertilizer
• Late founder Chairman Dr. Krishna Kumar Birla
• K. K. Birla Group foray into Fertilizer Business in 1967 through Zuari
Industries Limited
• Founded in 1985
• Two hi-tech nitrogenous fertilizer (urea) plants
• Uttam' umbrella brand
5

6. Product Offering
• Fertilizer
• Shipping
• Textile
6

7. Coromandel International Ltd
• Company Started in 1961
• company worth Rs. 269 billion
• India's second largest Phosphatic fertilizer
• market leadership in SSP, Specialty nutrients, Organic manure product
segments
• R&D facility in Hyderabad, Vizag, Sarigam and Ankaleshwar
• Production Capacity 47 lac MT
7Source: Annual Report, 2014-15

8. Product Offering
• Fertilizers
• Crop Protection
• Seeds
• Veterinary Feed
• SND
• FMS Other Agro Services
8

9. Subsidiaries
Chambal
• CFCL Technologies Ltd, USA
• Other Shipping and Textile
subsidiary
Coromandel
• Foskor (Pty) Ltd. of South Africa
• Groupe Chimique Tunisien (GCT)
and CPG of Tunisia
• Sociedad Quimicay Minera
9

10. Area of Operation
• Northern, eastern, central and western regions of India
• Marketing network
• Manufacturing units
10

11. Production Facility
• Gadepan 1 - 1993
• Gadepan 2 – 1999
• Nitrogenous fertilizer (urea) plants
• Total Capacity of Urea - 2 Million MT
11Source: Annual Report, 2014-15

12. Area of Operation
• Plants are strategically located in highly irrigated southern Indian
states and in heart of fertilizer consumption market – low freight cost
• Andhra Pradesh – Visak, Kakinada
• Tamil Nadu - Ennore, Ranipet
• Primary Market – South India – Maharashtra, Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu
• Secondary – Madhya Pradesh, Orissa,
• Tertiary – Himachal Pradesh and Eastern Market
12Source: Company Investors presentation, 2014-15

13. Research and Development
• Revenue expenditure of Rs 478.91 Lakhs
• Capital expenditure of Rs. 58.93 Lakhs
• Various Global Laboratories Tie – ups
• Develop new grades of customized fertilizer
• Soil and Crop Specific Grades
13Source: Annual Report, 2014-15

14. Production Facility
• Vizag & Ennore
• Low cost Phosphate manufacturer
• Save Power
• Kakinada
• High Efficiency
• Low Transportation Cost
• Ranipet
14Source: Annual Report, 2014-15

15. Chambal Fertilizers & Chemicals Ltd Share Holding (Fy.15)
Category No. of Shares Percentage
Promoters 236,312,783 56.78
General Public 79,285,166 19.05
Financial Institutions 34,446,394 8.28
Foreign Institutions 24,935,515 5.99
NBFC and Mutual Funds 22,887,574 5.50
Other Companies 10,614,524 2.55
Foreign - NRI 6,072,226 1.46
Others 1,653,560 0.40
Foreign Promoters 110 0.000000000222
15
Source: Annual Report, 2014-15

16. Coromandel International share Holding (Fy.15)
Category No of Shares Percentage
Promoters 18,09,17,087 62.11
Financial institutions
1,23,915 0.04
Foreign Institutions
1,58,72,381 5.45
Other Institutions 2,22,36,719 7.64
Foreign- NRI 47,06,347 1.62
Non-institutional investors 6,74,19,748 23.14
16Source: Annual Report, 2014-15

17. Performance Highlight (Fy.15)
Name
Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
Coromandel International 4,882.16 11,285.26 403.14 4,264.74
Chambal Fertilizer 2,492.94 8,882.14 236.78 5,976.51
17Source: Annual Report, 2014-15

18. Marketing
18

19. Brands Profile
• Chambal
• Inorganic Fertilizers - Uttam
19

20. Brands Profile
• Inorganic - Gromore
• Organic
• Godhavari Gold
• Phos Gold
• Nrich
• Kash
20

21. Promotion
• Uttam
• Farmer: Meetings during
• before starting of Karif
• Rabi Season
• Audio visual programs
• Jeep Campaigning
• Wall paintings
• Gift Distribution
• Retailers: Lucrative offers and cash discounts and seasonal rebates
21

22. Market Analysis
• Products Urea & SSP
• Urea price is fully controlled by the Government of India (GOI)
• Distribution is partly controlled
• Market saturated by small and unethical practices by local business
22

23. Promotion
• Direct contacts with farmers - Mana Gromor Centers
• Extensive field promotions
23

24. Market Analysis
• Complete portfolio of agri-inputs
• Low cost of Manufacturing & Supply
• Total market share of 26%
• Divisional Marketing officers expected to decision making and
customer servicing will improve
• Brand equity through umbrella branding “Gromor Suraksha”
24Source: Annual Report, 2014-15

25. Initiatives And Programs
• Environment Protection
• Sustainable Development
• Waste Management
• Green belt Development
• Water conservation
25

26. Initiatives And Programs
• Mana Gromor Centers (MGCs) - Retail
• Positioning Retail as a complete “Farming Solutions” platform
• Gromor Suraksha
26

27. Gromor Sampoorthi
• Advisory Program for Farmer
• Crop based promotion approach
• Providing complete crop specific nutrition solution
• Aimed to maximize farmer’s yields through adoption of Specialty
fertilizers
27

28. Strategic Alliance
• Indo Maroc Phosphore S. A., Morocco (IMACID)
• Partners i.e. Tata Chemicals Limited and OCP, Morocco.
• Produced 368,294 MT of P2O5 against a design capacity of 430,000 MT of
P2O5.
• Sales 2012 - 254,919 MT
• Sales 2013 - 351,480 MT
• Revenue 2013 - Rs. 1471.35 crore
28Source: Annual Report, 2014-15

29. Strategic Alliance
• Long Term tie-up with
• Foskor, South Africa
• Group Chemique, Tunisia
• TIFERT JV in Tunisia
• Supply agreement for Ammonia and Sulphur with Mitsui
• Potash from Canpotex
• Sabero Organics Gujarat Limited
29

30. Events and Exhibition
• Krishi Vikas 2015- Madhya
Pradesh
• Agriculture and dairy Trade Fair -
AP
30

31. Retail Strategy
• Spread across Andhra Pradesh, Telangana and Karnataka
• Retails in Andhra Pradesh - 800
• Retails in Karnataka – 690 (2013-14)
• Mass media Campaign for Gromore
31Source: Annual Report, 2014-15

32. Quality Control
• Internal controls
• Effective internal audit system
32

33. Quality Control
• Total Quality Management (TQM)
• Lean Six Sigma program
• Pool of certified Business Excellence Assessors to facilitate the Business Excellence
journey
• Quest-2015, share the best practices and exhibit creative potential of employees and is a
source of motivation and recognition
• Employees across various levels & locations participated and competed for awards like
best ideas, kaizens, 5S Plant, SGAs, Innovation, Six Sigma Projects and overall Best TQM
Plant 33Source: Annual Report, 2014-15

34. CSR conducted by Coromendel
Mana Gromor
 Started in 2007 with outlets in Andhra-Pradesh.
 Each retail centre has catchment area of 30-40 villages
 Service provided:
free soil testing
field visits by trained experts
 Key person:
G.M (marketing) G.V. Subba Reddy.
Other CSR activities
 In support of the local community
 Rural Girl Child Education scheme
 Mega Medical Camps
34

35. CSR conducted by Chambal
Other CSR activities
• Uttam Roshini
• Education
• Healthcare
• Livelihood
Uttam Bandhan
Farmer meets
training programs
Crop seminars
Hello Uttam
Soil and water
analysis
Uttam Krishi.com
Animal care camps
35

36. Finance
36

37. Debt Equity Ratio
Ratio Formula 2011 2012 2013 2014 2015
Chambal
Debt/
Equity
1.58 1.98 2.45 1.89 1.44
Coromandel 0.97 0.62 1.03 1.02 0.72
37Source: Annual Report, 2014-15

38. Current Ratio
38Source: Annual Report, 2014-15
Ratio Formula 2011 2012 2013 2014 2015
Chambal
C.A/ C.L 0.66 0.70 0.88 0.91 0.88
Coromandel
0.96 0.99 1.18 1.12 1.23

39. Net Sales (Fy.15)
Year
Coromandel
( in Cr)
Chambal
( in Cr)
2011 7639.26 4654.10
2012 9823.27 6461.29
2013 8560.24 7340.82
2014 9380.52 7981.89
2015 11285.26 8882.14
7,639.26
9,823.27
8,560.24
9,380.52
11,285.26
4654.1
6461.29
7340.82
7981.89
8882.14
2011 2012 2013 2014 2015
Amount(cr)
Year
Net sales(in Cr)
Co…
39Source: Moneycontrol.com, motilaloswal.com

40. PAT (Fy.15)
Year
Coromandel
( in Cr)
Chambal
( in Cr)
2011 694.46 325.18
2012 693.27 247.26
2013 443.99 305.61
2014 344.85 303.07
2015 403.4 236.78
694.46 693.27
443.99
344.85
403.4
325.18
247.26
305.61 303.07
236.78
2011 2012 2013 2014 2015
Amount(cr)
Year
PAT (in Cr)
Coromandel Chambal
40Source: Moneycontrol.com, motilaloswal.com

41. Net Profit Margin (Fy.15)
Year
Coromandel
( in%)
Chambal
( in %)
2011
9.09
6.98
2012 7.05 3.82
2013 5.18 4.16
2014 3.67 3.79
2015 3.57 2.66
9.09
7.05
5.18
3.67 3.57
6.98
3.82
4.16
3.79
2.66
2011 2012 2013 2014 2015
Percentage(%)
Year
Net Profit Margin (in %)
Coromandel Chambal
41Source: Moneycontrol.com, motilaloswal.com

42. Dividend Per Share (Fy.15)
Year
Coromandel
(₹)
Chambal
(₹)
2011 7.00 1.90
2012 7.00 1.90
2013 4.50 1.90
2014 4.50 1.90
2015 4.50 1.90
7 7
4.5 4.5 4.5
1.9 1.9 1.9 1.9 1.9
2011 2012 2013 2014 2015
Amount(Rs)
Year
Dividend Per Share (₹)
Coromandel Chambal
42Source: Moneycontrol.com, motilaloswal.com

43. Conclusion
43

44. Conclusion
• Both are market leaders
• Product offering differs
• Compete with Public Sector
• Operates in different Geographic Zones
44

45. Thank You
45