Rallis India Ltd

BSE: 500355 | NSE: RALLIS | ISIN: INE613A01020 
Market Cap: [Rs.Cr.] 3,247 | Face Value: [Rs.] 1
Industry: Pesticides / Agrochemicals - Indian

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Management Discussions



Industry Structure:

Agriculture production capability has to cope up with the ever-growing worldpopulation. Based on evidences, in 1900 there were 1.6 Billion people on the planet; in1992 this had risen to 5.25 billion and by the year 2050 it may reach over 9 billion1.This increase in world population is mostly in developing countries, where the need forfood is the gravest and starvation threatens human life.

Civilization has been combating weeds, insects, diseases and other pests throughouthistory. Agrochemicals which can be classified into three major categories, namelyInsecticides, Fungicides and Herbicides, are an unavoidable part of modern life, used toprotect everything from flower gardens to agricultural crops from specific pests. As perFAO reports, without agrochemicals, food production would decline, many fruits andvegetables would be in short supply and prices would rise. Some 20 to 40 percent of theworld's potential crop production is already lost annually because of the effects ofweeds, pests and diseases2. As per research estimates, in India annual croplosses on account of poor and inadequate use of crop protection chemicals exceedRs.100,000 Crores3.

Continuous innovation has led to development of crop protection products with lowerusage rates and better degradability, leading to lower environmental loading, improvedhuman safety profile for farmers, workers and consumers, high biological efficacy,selective control of target pests and increased safety to specific beneficiaries,naturally occurring insects and organisms.

World Agrochemical Market:

The global crop protection industry has registered a growth of 6% p.a. since 2005 toreach USD 47.3 Billion in 2012. This market is expected to grow further, owing to theincreasing food, fiber and fuel needs, at 4% p.a. to reach USD 54 Billion in 20154.

The crop protection chemicals market is mainly concentrated in the major developedcountries such as United States and Western European nations. Europe has the largest sharein the agrochemical market followed by Asia, Latin America and North America4.

Herbicides are the most widely used agrochemical products globally, followed byinsecticides and fungicides. Fungicide is the highest growing segment as it helpsincreasing yield, improving quality and in seed treatment. Fungicides are used in almostall agriculture markets of the world due to favorable climatic conditions for the fungalgrowth. Herbicides are used in most of the regions of the world, though the major marketsare North America and Europe due to favorable climatic conditions there. Insecticides aremore prevalent in Asian countries. This is due to higher growth of cotton, cereal, fruitsand vegetables, which have higher incidence of insect attacks4.

Indian Crop Protection Market:

India accounts for approx 4% of the global agro chemicals market estimated at USD 1.8Billion. With the introduction of newer molecules and the increasing awareness amongfarmer community, the industry is witnessing high growth rates in recent times. The cropprotection industry in India is dominated by molecules which are off-patent. Hence, astrong distribution network and brand presence acts as a competitive advantage5.

As per published reports, consumption of crop protection products in India is among thelowest in the world. Per capita consumption of crop protection products in India is 0.6kg/ ha compared to 13 kg/ ha in China and 7 kg/ ha in USA. Some of the reasons for lowconsumption in India are low purchasing power of farmers, lack of awareness among farmers,limited reach and lower accessibility of products5. This presents an immenseopportunity for the crop protection industry to grow in India.

Market Trends:

Increasing focus on development and production of environmentally safepesticides by the industry as well as the Government.

• Focus by larger companies on brand building by conducting awareness camps forfarmers and providing complete solutions.

• Increase in strategic alliances among large players for greater market reach andacquisitions of smaller domestic companies by global players to penetrate growing Indianmarket.

• Emphasis is on yield and quality output by the farmers. With increasingdisposable income, farmers are willing to spend more to gain high yield and qualityoutput. Preference for high quality products is on the rise.

• Usage of herbicides and fungicides is on the rise due to increased awareness,unavailability of labour and increased focus on fruits and vegetables.

Non-Pesticide Portfolio:

With an increase in the disposable income, Indian agriculture has three needs viz.increase production, increase productivity and increase quality of produce. All theseneeds can be addressed by use of modern agricultural practices which include Seeds, PGNand Agri-services.

Plant Growth Nutrients (PGN)

All the twenty-one nutrients required by the plant, including Macronutrients,Micronutrients and Secondary Nutrients must be balanced so that the plant maintains goodhealth to defend unfavorable environmental conditions. Indiscreet agriculture practices inmany parts of the country have led to increasing removal of secondary and micronutrientsfrom the soil and multiple nutrient deficiencies, which are becoming a major constraint toincreasing production.

A significant drop in the yield and quality of crops in the country has brought intofocus the need for promoting balanced use of fertilization and educating the Indian farmerabout the deficiencies of secondary and micronutrients in the soil.

Your Company has introduced a range of Specialty Nutrient products and to addresssustainable agriculture, is focused on greener and cleaner products. These products notonly will act as a vehicle for building relationship in fast growing fruits andvegetables, but also facilitate catering to small and marginal farmers. The current Indianmarket of Plant Growth Nutrients and specialty fertilizers is estimated to be Rs.1,800Crores6.


Seed is the basic and most critical input for sustainable agriculture. The response ofall other inputs depends on the quality of seeds to a large extent. The global market forseeds for the year 2012-13 has been USD 37.5 Billion growing at a CAGR of 8% for last 10years. Indian seed industry has grown at the rate of 15% over the last five years and isestimated to be USD 1.6 Billion for the year 2012-137.

Soil Conditioner

Health of the soil is very important for optimizing crop production as also for goodhealth of people and animals consuming farm produce. Soil conditioners are used to improvepoor soils and to rebuild soil structure to improve the plant capacity to absorb water andnutrients from the soil. A wide variety of products are used as soil conditioners, such asbone meal, compost, farm yard manure, etc. There is a big need for soil conditioners ofgood quality which are organic in nature.

Agri Services

With the changing technologies and improved solutions available, the farming communityis increasingly looking for services to support them in farm activities. The Governmenthas also recognized this and provided for incentives for agricultural extension services.These will include educating farmers on right usages of crop protection products, seeds,PGN and propagate good agricultural practices.

Rallis Response:

Your Company launched Rallis Poised growth agenda in May 2007, targeting asustained profitable and balanced growth. Since the launch of Rallis Poised growthagenda, your Company has recorded 16% CAGR in gross revenues. The Rallis Poised growthagenda has seven growth drivers, viz. Contract Manufacturing, Brand Premium, ValueEnhancement (known as "DISHA' initiative), Overseas market expansion (named"Apollo'), Agri Services, Sustainability and Accelerating Growth. This is supportedby three enablers, viz. Process orientation, infrastructure support in manufacturingUnits, fields and offices and a committed and competent team of engaged employees.

Initiatives such as acquisition of a stake in Metahelix Life Sciences in December 2010,setting up a new manufacturing facility at Dahej in Gujarat, operating since June 2011,grow More Pulses programme, Samrudh Krishi, TRAITS and initiatives of current yearincluding the acquisition of a stake in Zero Waste Agro Organics and investment at newR&D facility RICH at Bengaluru has further strengthened the Rallis Poised growthagenda. These initiatives are not only to drive growth but also towards balancing itsbusiness portfolio by focusing on its core business of crop protection as well asnon-pesticide portfolio of Seeds, PGN, Agri Services, Contract Manufacturing, etc.

Business Environment 2012-13:

The global crop protection market for the year 2012 was up 6.4% over 2011. While allregions showed good level of growth over the previous year, the strongest growth was seenin Latin America on account of strong crop prices and increase in demand for maize,soybean and sugarcane.

The Indian Crop Protection industry is estimated to have recorded low growth for2012-13. The Kharif season was delayed by over three weeks in western, central and thesouth central part of India. Cotton and paddy sowing were severely impacted in these areasleading to change in the usage pattern of the crop protection molecules. Paddy in AndhraPradesh during harvesting was impacted by Neelam Cyclone. Rabi was characterized by lowpest and disease occurrence in key crops, especially paddy and pulses. Area under pulses,wheat and soya was higher than last year, but there was a drop in the acreage of cotton,paddy and coarse cereals. Overall, the year was challenging for the industry in India withinventory and margin pressures.


Consolidated Results:

Your Company's gross sales for the year 2012-13 crossed the key milestone of Rs. 1,500Crores, reflecting a growth of 16% over the previous year. The Company's profit before taxduring the year at Rs. 172.29 Crores, grew by 15%. Net profit after minority interest rose20% to Rs. 119.01 Crores.

Standalone Results:

The gross sales for the year 2012-13 were Rs. 1,401.14 Crores, a 13% rise over theprevious year. Profit before tax was higher by 15% at Rs. 173.35 Crores while net profitfor the year stood at Rs. 119.38 Crores, recording a growth of 18% over the previous year.


(1) Crop Protection:

(a) Domestic Formulations Branded Business:

The Domestic Branded Business of the Company registered a growth of 8% during thecurrent year, driven by a sustained performance of the key brands. During the year theCompany intensified activities under its market expansion programme EAGLE (Expansionand Aggressive Growth through Leadership and Excellence). Thelatest brand recall survey carried out by an independent agency has reported animprovement in the brand recall among farmers, with seven out of top ten brands being thatof Rallis.

Your Company continued to strengthen its long standing relationship with the Indianfarmers through the farmer relationship building platform RKK - Rallis Kisan Kutumba. RKKtouched a new milestone during the year with the farmer base crossing a million farmers.RKK is a unique initiative, enabling farmers to imbibe and use knowledge and share thesame across the farmer community to increase productivity. The key activities with the RKKfarmers are regular contacts throughout the crop cycle, organizing crop seminars, productdemonstrations, Farmer exchange programmes (Prerna), Focused Group Discussions (FGDs) andAdvisory services. Your Company has added more value added services such as sms alerts oncrop prices, weather and possible disease outbreak through Samrudh Krishi programme.Farmer helpline call centres have been strengthened and have become an important tool inservicing the farmers. Rallis currently offers helplines in fifteen vernacular languages.

TATA Rallis brand stands for reliability and trust in the minds of the Indian Farmers.We pride on this relationship being a major strength of Rallis. The core strength inRallis is to build sustainable brands. Old Brands such as Rogor (currently Tafgor), Asatafand Contaf which were established by Rallis many years ago, continue to find a place inthe minds of the farmers and are ruling strong and the new brands such as Applaud, Ergon,Takumi and Ralligold are steadily rising in brand equity and finding their leading placein the industry. The Company adopts several marketing methods to build brands, such as -

• Systematic product segmentation, such as megabrands approach and various focusedcampaigns to build awareness wherein the entire sales force is engaged in contacting andeducating the farmer and creating awareness.

• 4 S campaigns - a distinctive approach where farmers across the country arecontacted at regular intervals by a cross functional team from Rallis to create greatercustomer centricity across the Company. The four stages in the campaign are to contact thefarmer (Sampark), build a relationship (Sambandh), create higher productivity (Samrudhi)and ensure customer delight (Santushti).

• Innovative bouquet of activities like crop seminars, field demonstrations,Prerna programmes, Advisory Centers, quizzes are part of the activities conducted on aregular basis.

(b) International Business:

The International Business Division showed consistent performance during the year, witha growth of 9% over the previous year. The Company's strategy is towards maintaining agood share of international business of its total revenue pie and this stood at above 30%.

The increase in revenues over the previous year was led by Contract Manufacturing andalliance based sales in Latin America, a key market for crop protection. The last quarterof 2012-13 also saw an additional contract gained for a new Active Ingredient product forthe US market. South East Asia and Africa continued to grow on account of newregistrations received for key products.

(2) Non-Pesticide Portfolio

(a) Seeds:

After acquiring a majority stake in Metahelix Life Sciences, a research-led SeedsCompany in December 2010, this year the Company focused its efforts on establishing seedbrands in various segments. The high potential segments along with geographies wereidentified and suitable products were selected based on the competitive environmentanalysis. During the year, extensive field activities were conducted to establish the newbrands.

(b) Plant Growth Nutrients:

As a move towards sustainable agriculture, your Company is increasing its focus ongreener and cleaner products. Tata Uphaar, a 100% organic growth promoter and Gluco Beta,a unique blend of carbon, proteins, primary nutrients (N and K), secondary nutrients (Caand Mg) and micro nutrients (Zn, Fe and B) in organic form is a move in that direction.Ralligold, a Plant Growth Nutrient, which partially reduces fertilizer consumption byenabling crops to better utilize the applied phosphorus, will not only help the famerincrease his income, but will also help in arresting soil deterioration due to imbalanceduse of chemical fertilizers.

(c) Agri Services:

Initiatives such as the Samrudh Krishi services started by the Company atNasik for grape farmers and at Gujarat for cumin farmers have received an encouragingresponse from the farmers. Grow More Pulses (MoPu) programme of the Company,where the Company is actively engaged with the farmers in increasing the productivity ofpulses, and also helping them in marketing the produce, aims at embracing the entire valuechain of products and services in growing pulses.


Pulses Productivity programme of Rallis has received acclaim from MaharashtraGovernment, during a recent World Economic Forum organized meeting. Under this initiative1,60,000 farmers were covered during the year, supporting them to improve cropproductivity and returns. The Public Private Partnership Project (PPP) between MaharashtraGovernment and Rallis, for Pulses, was executed, guiding the farmers deploying the RallisPackage of Practices. The other States where MoPu continued were Karnataka and Tamilnaduand during the year it was also extended to Madhya Pradesh.

Samrudh Krishi:

Farmer advisory services deployed in grapes, chilli and cumin crops has completed fullyear of operations. The farmers have reported reduction in input costs, improved yields,and better quality of produce which resulted in better prices, following Rallis' advisorysupport. In grapes, the share of exportable produce went up, giving the farmers betternetbacks. Advisory services for chilli crop was launched during the year in Andhra Pradeshand the results are encouraging. Your Company has also piloted SK activities for paddy inOdisha.

Tata Rallis Agri Inputs Training Scheme (TRAITS):

In order to build necessary field force competencies your Company had launched TRAITSinitiative in 2011-12 whereby non-graduate, rural youths with a farming background weretrained in Agri-marketing and crop advisory activities. Two new centers for TRAITS havebeen opened at Bhubaneswar in Odisha and Nalanda in Bihar during the year.

ZWAOPL Soil Conditioner: organic compost business:

After the acquisition of stake in Zero Waste Agro Organics Private Limited (ZWAOPL),your Company has introduced the product GeoGreen, a scientifically prepared organiccompost for key cash crops such as grapes, banana, vegetables, pomegranates, sugarcane,arecanut, ginger, potato and apple and the product is well accepted by the farmers.


Total Shareholder Return (TSR), is the yearly rate of return of an investment madeconsidering capital appreciation plus dividends over time. The TSR of an investment madein your Company in March 2004 kept till the last trading day of March 2013 works out to bequite attractive at 47% per annum. This means that if one had invested Rs. 100 in Rallis'stock in March 2004, the total value that the investment would have earned would be Rs.2,537, if one had sold the stock on the last trading day of March 2013.

The dividend payout of the Company has improved over the years, from Rs. 1/- per sharein 2005 (on Equity Shares of Rs. 10/- each) to Rs. 2.20 per share in 2012 (on EquityShares of Rs. 1/- each). Along with the recommended final dividend of Rs. 1.30 per share,the dividend payout of the Company in 2013 will be Rs. 2.30 per share.

Rallis' stock price has significantly out-performed the BSE Sensex during the past 10years. If both the Rallis stock price and Sensex were indexed to 100 as on the lasttrading day of March 2004, the y-o-y performance of the Rallis stock and Sensex till FY2013 is shown in the chart.

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Rallis Share Price 71 233 330 248 335 392 1,255 1,321 121 115
Sensex 5,591 6,493 11,280 13,072 15,644 9,709 17,528 19,445 17,404 18,836


The fundamentals of the Agriculture sector continue to be robust and will drive growthin the years to come. The remunerative produce prices for most of the key crops areexpected to continue and will lead to increased investments by the farmers on agri inputsand improving overall productivity.

The enterprise value creation programme, DISHA (Drive Innovative Solutionswith Hyper Achievements) which aims at re-engineering various processes andactivities across the Company to generate value and the International Business growthprogramme, APOLLO are also expected to contribute well to the overall growth agenda of theOrganization in the coming year as well.

The EAGLE (Expansion & Aggressive Growth through Leadership& Excellence) initiative will continue to assist the business to achieve itstargets for 2013-14.


The performance of the crop protection industry and other agri inputs is dependent onmonsoons, pest and disease incidences on crops. Major fluctuations in total rainfall andits distribution affect the crop acreages and overall productivity and have a directcorrelation with sales. Farmers' willingness and ability to spend will be an importantdriver to demand generation. Strong support produce prices and better availability ofcredit will ease the pressure on the farming community. Tightening regulations can belooked upon as an opportunity by committed enterprises.

Exchange rate fluctuations between Dollar and Rupee could also impact revenues as wellas costs in the foreseeable future. The rising crude prices could have an impact on thecosts and prices of various products.


A major highlight has been the setting up of RICH (Rallis Innovation Chemistry Hub) inBengaluru during the year. RICH is a state of the art R & D centre, comprisingChemistry, Product Development and Registration Departments. The Chemistry Departmentfurther comprises Process Chemistry and Development, Formulation Development andAnalytical Research sections. Bioscience laboratories have also been set up for quickevaluation of new products.

The Company's Research and Development efforts are focused on new and saferformulations for better efficacy, improved value and services to the farmers. A number ofregistration dossiers have been submitted during the year for supporting domestic andinternational business.

Process Chemistry and Development focused on developing cost effective processes formolecules that are off-patent, in the areas of crop protection and having relevant marketpotential. Six patents were filed during the last year. Some of these are also being filedfor world patents in relevant areas of interest. Process improvement projects wereundertaken for improving product quality, yields and productivity of manufacturingprocesses. Process developments for contract manufacturing opportunities were also takenup as a major activity. Environment, Health and Safety (EHS) considerations were givenspecial emphasis.

Product Development of new formulations in areas of Crop Protection, PGP/ PGR,Micronutrients was also undertaken with help of field trials in different areas, so as toassess their bio efficacy, effective dose and ensuring that these formulations are safe touse.


During the year 2012-13, your Company has been awarded use of the Responsible Care Logoby Indian Chemical Council (ICC). This is testimony to the strong Environment, Health& Safety systems in the Company, which go beyond statutory norms. This recognition hasan international recognition and there are only sixteen chemical companies in India whohave received this recognition so far.

As in previous years, the Company has "Zero lost time accident at theworkplace" as its long term strategic goal. Barring one minor fire incident, therewere no reportable accidents during the year, with more than 80% reduction in Frequencyrate of Non reportable (medical/ minor/ first aid) accidents. There were no occupationalhealth illness cases or major emergencies across the Organization. This has been achievedwith commitment from senior leadership and supported by all levels of workforce across theOrganization. Behavior Based Safety training & observations, Emergency Responsetraining, RC Management system, Quantitative Risk Assessment, near miss identification& analysis and contractor safety were the key focus areas, among many others, duringthe year.

Since the Company's new plant at Dahej has been developed as a model in EHS systems,the same are now being deployed in other Units, including QRA, Risk Assessment, Layer ofProtection Analysis (LOPA), Process Safety Management, Visual management, pre-startupreviews and rigorous training to employees and contract workers since inception.

Utility management and energy conservation initiatives continued to be focus area inall manufacturing Units. This has helped in improving the "Greening Index" ofthe Company.

All Units of the Company are certified for IMS (Integrated Management System) whichincludes ISO-9001, OHSAS-18001 and ISO-14001 and are maintaining the standards withregular review at various levels and aligning the system with the Company's EnterpriseProcess Management. The new plant at Dahej is recommended for IMS certification by DNVwhich includes ISO-9001, ISO-14001, OHSAS-18001 and ISO-50001 (Energy Management system).

Product stewardship, transportation and warehouse safety continued to be strengthenedby providing resources, standardization to match benchmark practices, training to driversand warehouse workers for safe transportation, storage and loading/ unloading andemergency plan for road accidents.

The Company's efforts and performance in the area of EHS have been recognized acrossthe manufacturing Units, through receipt of several awards. These awards include:

• Responsible Care Logo by ICC

• NSC Maharashtra Chapter Award for Akola Unit

• Two Awards for Dahej Unit in Green Environment Contest by Baroda ProductivityCouncil:

• Category : Food, Agro & Pharma - Winner

• Overall winner in Safety Vertical - Winner


The Company's internal audit systems are geared towards ensuring adequate internalcontrols to meet the size and needs of business, for safeguarding the assets of theCompany, evaluating reliability of financial and operational information, identifyingweaknesses and areas of improvement and to meet with all compliances.

The risk based annual internal audit programme focuses primarily on such system andprocess checks and controls, monitoring compliances and continuous upgrade of controls.

This process enables reporting of significant audit observations to the AuditCommittee. The Audit Committee reviews the audit observations and monitors theimplementation through action taken reports. Suggesting value add ideas is also one of thekey focus areas.

The scope and authority of the Corporate Audit Department is derived from the AuditCharter approved by the Audit Committee. Internal Audit reviews are performed by anin-house team of multi-disciplinary professionals comprising chartered accountants, CISAand a technical resource.

Additionally, the departmental performance is rated through feedback obtained fromprocess/ function owners/ auditees to gauge and assess the effectiveness of the internalaudit process and use it as an improvement mechanism.

The development and use of e-platform will continue to be a prime initiative in thecurrent year, with the objective of covering a larger volume of audit data to provide amore meaningful assurance in addition to the regular reviews, thus raising the bar ofcontrol effectiveness.


Risk management includes implementing systems to identify risks, report them and takemeasures to mitigate them. The Company has laid down procedures to inform the AuditCommittee of the Board of Directors about risk assessment and minimisation procedures.

This risk management process covers risk identification, assessment, analysis andmitigation, along with providing necessary updates to the Audit Committee of Directors andto the Board of Directors. The risk structure comprises risk owners, who define themitigation plans for all categories of risks including responsibilities and timelines andthe activity owners who are responsible for taking action on the risk mitigation plans.

During the year, the key business risks of the Company covering all the functions wereupdated. Currently, there is a repository of 11 key risks which are evaluated based on theprobability and impact of each risk.

Further, the major risks forming part of Enterprise Risk Management are linked to theaudit universe and are covered as part of annual risk based audit plan.

The overall objective of this process is directed towards optimum utilization of theresources of the Company and to promote and enhance the stakeholders' value.


The Company, in its journey to enhance the efficiency and effectiveness of its HumanResources, undertook several initiatives during the year to improve sourcing of talent,enriching the talent, ensuring better employee satisfaction, talent retention and skillsdevelopment. The Company revisited some of the employee policies and revised them to keepthem in line with the changing scenario. Manpower appropriation studies were carried outat Ankleshwar and Dahej factories. The reports are being studied for implementation.

The Company carried out an Internal Customer Satisfaction Survey to look foropportunities to enhance the satisfaction of internal customers. The satisfaction scoreshave improved over last year.

Alignment of goals of the entire Organization was carried out through the deployment ofStrategy Deployment Matrix (SDM) and Balanced Scorecard (BSC).

During the year, the Company has organized training programmes for all categories ofemployees. Customized training was provided in various areas, including functional,behavioral, Business Excellence, Customer orientation, Safety, Code of Ethics, ClimateChange, Product Training, competency assessment. Company specific Leadership DevelopmentTraining Programmes were also undertaken as a part of the overall plan to create apipeline of future Leaders. A new web based e-learning initiative called 'eVidya' waslaunched in collaboration with Harvard Business Publishing and Tata Management TrainingCenter. Employees can complete the training modules from any place and at any time on thise-learning portal.

This year, the Company participated in Employee Engagement Survey conducted by AonHewitt. Employee Engagement Score for Rallis is 80%, which is higher than the AverageScore for Manufacturing Industries and Aon Hewitt Best Employer India score. This year,the Company also participated in a survey conducted by 'Great Place to Work Institute'.The score is 82%, which is equal to the average of top 50 companies which participated inthe survey this year.

As on 31st March, 2013, the employee strength was 843, as compared to 857 as on 31stMarch, 2012.


The year 2012-13 was an eventful year for Rallis. Your Company was declared the winnerof the CII-EXIM Bank Prize at the National Quality Summit of CII (Confederation of IndianIndustry) held in Bengaluru on 2nd November, 2012. This honour is given to theOrganization that exhibits highest standards of excellence based on the CII-EXIM BankBusiness Excellence Model which is adapted from EFQM (European Foundation for QualityManagement) model. This Prize, following the coveted JRDQV Award of Tata BusinessExcellence Model won by the Company during 2011, is a cause for celebration, while alsoplacing the onus on the Company to continue on the journey of excellence for a better andsustained growth.

These coveted Awards acknowledge the sustained efforts and strong commitment of allemployees of the Company to excel, sustain and grow together. Winning the JRD QV Award andthe CII-EXIM Bank Prize has energized the Organization to continue on the BusinessExcellence (BE) path with renewed vigour.

Some highlights of the Business Excellence journey this year are:

• Six entries from the Company qualified for Tata Innovista Regional NetworkForum, with four of them winning the regional rounds. One project - "The Product P -A Customer's Delight" achieved the Global Recognition in the "Dare to Try"category.

• One project - "EAGLE" got accolades at the QIMPRO Convention onInnovation.

• LASER (Learn, Apply, Share, Enjoy & Reflect)drive continued in all factories. Significant changes in the workplace conditions wereachieved through implementation of 5S.

• More than 300 employees participated in training programmes on "PracticingBusiness Excellence" (PBE).


In line with its overall growth objective, your Company continues to investsignificantly in Information Technology (IT), with a view to leverage it for optimumbusiness value.

Considerable progress has been made with regard to the utilization of ERP (EnterpriseResource Planning) and BIW (Business Intelligence Warehouse) systems from SAP. This hashelped the Company in aligning of new business segments and simplification of businessprocesses, particularly in the areas of logistics management comprising sales distributionand materials management, along with production planning and financial control; to improveagility and customer service. BIW continues to provide analytical reports and key businessMIS at the right time through the system.

Investments are being continuously made in IT infrastructure to support businessapplications. A robust virtual private network using MPLS technology is in place. YourCompany continues to leverage the growing telecom network in the country to provide highbandwidth terrestrial links to all its operating Units. This has enabled effectivecoordination of activities across geographically dispersed locations. It has alsoimplemented video conferencing facilities at six of its major offices to have instantmeetings, reduce travelling time and costs and improve the quality of communication whilelowering the Company's carbon footprint. Furthermore, to handle e-waste in a propermanner, your Company has chosen Government approved vendors who specialize in disposal ofe-waste in an environment friendly manner.

'Tarang' - The intranet for Company employees is a strong medium for knowledge sharingand employee self-service. New functionalities have been added to enrich the knowledgesharing experience.

This year, your Company has also implemented "eBandhan'', the dealer portal forbetter dealer connect and online interaction with dealers.

Information Security and reliable disaster recovery management is a critical focusarea, especially as most of our business processes become fully IT-enabled. Your Companyhas an active Disaster Recovery facility in a different seismic zone to ensure businesscontinuity in case of a disaster.


Your Company believes that sustainable business is founded on Corporate Governance(business principles), with triple bottom line i.e. economic, environmental and socialperformance together creating sustainable value for all stakeholders through businessprocesses and continued growth. Business risk assessment with appropriate risk mitigationplans in full compliance ensures protection from internal and external business hazards.The key focus area in sustainability are water management (recycling, reusing andconservation), water shed projects for community, carbon foot printing and reduction ofspecific CO2 generation, enhanced safety for all employees and associates. The Company isalso planning to use renewable source of energy in steam and power generation in differentUnits.

Being a signatory to Global Compact Principles, the Company files a Communication onProgress (COP) to the Global Compact Society every year on the Company's efforts inprotecting human rights and promoting the conservation of environment.

As a part of its commitment towards climate change initiatives, your Company hasstarted monitoring a "Greening Index" consisting of carbon footprint, greeningthe premises, reduction in hazardous waste & solvent losses and water conservation. Asa part of greening the product initiative, the Company has already phased out its redtriangle (Extremely toxic) products and is giving emphasis to green triangle (Slightlytoxic) products. In line with this, the Company is constantly increasing the greeningindex of its product portfolio.

Participatory Sustainable Development is an integral part of the Company's CommunityDevelopment Policy, which focuses on involvement of all in the community developmentprocess. Your Company believes in care and concern for all people and is committed toimprove the quality of life of every member of the community, especially theunderprivileged.

The Company's Community development efforts have resulted in expanding the communitybase to over 1,416 events and benefitting over 48,000 people.

The Key Themes inspiring CD (Community Development) initiatives as per the CD Policyare Leveraging competence in the field of agriculture, Improving quality of life throughwater conservation and Empowering women & children. The foundation of these key themesis Volunteering by enthusiastic employees of Rallis.

The focused initiatives under these Key themes, which are carried out by Rallis'Employee Volunteers Saathis are:

• Leveraging Competency in Agriculture

• Improve Quality of Life through water conservation

• Women empowerment (TARA initiative)

• Children empowerment

Rallis CD initiatives have created positive impact on the community and at the end ofour various programmes, communities have shared their positive feedback. Some of theimpacts of above initiatives are:

• Awareness related to safety precautions to be taken while handling pesticides.

• Enhanced employability, improvement in agri output and generating ruralemployment.

• Increase in green belt.

• Increase in ground water level.

• Increase in confidence level of students.

• Clear understanding on various career options available, along with theirpotential. o Women motivated to start their own business and be financially independent. oIncrease in self confidence and self image of girls and women.

Besides these CD initiatives, your Company also focuses on working towards upliftmentof SC/ ST communities through its Affirmative Action (AA) initiatives. Of the four themesunder AA initiatives, viz: Employment, Employability, Entrepreneurship and Education, yourCompany focuses on Employment and Employability, along with working in the other twoareas.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Company'sobjectives, projections, estimates, expectations may be "forward- lookingstatements" within the meaning of applicable securities laws and regulations. Actualresults could differ materially from those expressed or implied. Important factors thatcould make a difference to the Company's operations include climatic conditions, economicconditions affecting demand/ supply and price conditions in the domestic and overseasmarkets in which the Company operates, changes in the Government regulations, tax laws andother statutes and other incidental factors.

1. http://www.census.gov/population/international/data/idb/worldpopgraph.php

2. http://www.fao.org/fileadmin/templates/wsfs/docs/expert paper/How to Feed the Worldin 2050.pdf

3. Estimated by the Standing Committee on Petroleum and Chemicals 2011-12.

4. The Global Agrochemical and Seed Markets Industry Developments Phillips McDougallLtd

5. Conference on Agro chemicals 2011 - Dept of Chemicals & Petrochemicals Govt ofIndia and FICCI

6. Independent market research agencies

7. http://seednet.gov.in/Material/Structure.pdf


Peer Comparison

Company Market Cap
(Rs. in Cr.)
UPL 9,518.11 29.30 2.83 12.54 6.1 7.4 0.53
P I Inds. 3,488.24 21.57 6.67 10.31 22.9 25.2 0.56
Rallis India 3,247.45 24.11 5.23 10.62 20.3 26.1 0.17
Dhanuka Agritech 1,298.00 14.66 4.94 7.04 27.0 28.9 0.17
Excel Crop Care 561.00 9.51 2.35 4.06 9.3 12.6 0.46
Sabero Organics 415.17 12.18 5.75 10.94 13.9 12.2 3.71
Insecticid.India 313.77 8.63 1.48 10.31 17.9 16.5 0.94
Meghmani Organ. 228.11 11.35 0.43 8.24 1.1 4.0 0.66
Bharat Rasayan 136.85 7.00 2.19 6.79 16.6 14.3 1.58
Nag. Agrichem 98.68 0.00 0.51 5.66 -6.3 3.0 0.99
Jubilant Inds. 78.86 0.00 0.30 0.00 -0.2 -0.2 0.00
Astec Life 67.17 6.48 0.62 3.51 5.8 8.0 0.68
Paushak 58.23 5.52 1.53 1.76 22.5 29.5 0.06
Bhagiradha Chem. 16.08 8.56 0.35 4.77 4.3 8.2 0.71
Agrimas Chemi. 15.19 5.75 0.77 0.00 3.3 6.7 0.05

Futures & Options Quote

Expiry Date
Instrument: NA
Expiry Date: NA
Strike Price: NA
Open Price: NA
Average Price: NA
No. of Contracts Traded: NA
Open Interest: NA
Underlying: NA
Option Type: NA
Market Lot: NA
Previous Close: NA
Day’s High | Low: NA | NA
Turnover (Cr.): NA
Open Int. Change: NA | NA
View detailed F& O quotes >>

Key Information

Key Executives:

R Gopalakrishnan , Chairman  

B D Banerjee , Director  

P S Meherhomji , Company Secretary  

E A Kshirsagar , Director  

Company Head Office / Quarters:
156/157 Nariman Bhavan,
15th Floor 227 Nariman Point,
Phone : 91-22-66652700
Fax : 91-22-66652827
E-mail : investor_relations@rallis.co.in
Web : http://www.rallis.co.in
TSR Darashaw Ltd
6-10 Haji Moosa
Patrawala Ind.Estate
DrEMoses Rd Mahalaxm
Mumbai - 400 011

Fund Holding


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