AGRI BUSINESS Mahindra Agri Business

Contents AGRI BUSINESS Micro Irrigation Need for Micro Irrigation Industry size & opportunity EPC Industriè ltd. EPC Product & Service Portfolio Financial Performance F-14 Financial Performance for QIII & YTD Dec 2014 Future Plans The Mahindra Group Mahindra Agri Business Copyright 2013 Mahindra Agri Business. All rights reserved. 2

Micro Irrigation Industry 3

Need for Micro Irrigation India a water stressed economy ; will be water scarce by 2050 70% of the water available used for agriculture Need for water efficient methods of irrigation Benefits of Micro Irrigation: Water saving: 30% - 40%; Labour saving: 30% - 50%; Power saving: 20% - 40%; Fertilizer & Nutrition saving: 30% Productivity improvement: 10% - 30%. 4

Area (x1000 Ha) Industry Size & Opportunity Strong potential for growth Almost 60% of cultivable land is still Rain fed in India. 70 million Hectare Irrigated; Only 6 Million is under MIS 12,000 10,789 10,000 8,000 6,000 6,391 5,658 Potential 4,000 2,000 0 0.2% 2.2% Uttar Pradesh 13% 3,378 3,278 0.7% 9% 2,714 2,390 26% 22% 1,850 0% 1,442 1,232 28% 12% MP Rajasthan Punjab Gujarat Maharashtra Haryana Bihar Karnataka West Bengal Andhra Pradesh 1,117 51% Source: Raman 2010 5

Industry Size & Opportunity The industry growing at 15% CAGR 5000 4000 3000 2000 1000 0 Strong Customer Pull F '09 F '10 F '11 F '12 F '13 F '14 Revenue in Rs. Cr. Reasons for Micro Irrigation Purchase Subsidy Reduced Labour Dependency Access to Credit Long Term Cost Reduction Higher Productivity 4 6 11 14 63 0 10 20 30 40 50 60 70 Source: AlphaWise 6

Industry Size & Opportunity Industry becoming more structured & streamlined Gujarat & AP Project markets; use Tripartite agreements Use of IT to streamline application to subsidy disbursal cycle Bank support Banks Financing MIS systems aggressively. SBI, DENA, ICICI & IDBI initiators Loan availability has increased business potential 7

EPC Industriè ltd. Pioneered Micro-Irrigation Systems (MIS) in India in 1986 Registered in 15 states under subsidy program in India More than 600 channel partners; 11 regional offices. M & M Ltd. holds majority stake & Management Control Revenue 200 150 100 87.7 127.17 164.17 177.29 50 0 F '11 F '12 F '13 F '14 Revenue in Rs. Cr. 8

Strong All India Network Open Markets Project Markets* Newly Opened Markets 9

Product & Service Portfolio 10

Strong Presence in Various segments Drip irrigation System: Targeted, intelligent application of water, fertilizer, and chemicals directly to the plant roots Sprinkler Irrigation System: Suitable for modern farming as they offer quality, high yield and cost efficiency 11

Product Portfolio Superior Product Quality Good Brand Equity in Indian market. All the products comply to Indian Standards. 12

Product Portfolio: Drip Irrigation Online Drippers Inline Drippers Round Inline drippers Flat Inline drippers Irrigation laterals 13

Product Portfolio: Drip Irrigation Drip Fittings Drip Filters Filters 14

Product Portfolio: Drip Irrigation Fertigation Equipment 15

Product Portfolio: Sprinkler Irrigation Sprinkler Irrigation pipes Pipe fittings Sprinkler Nozzles 16

Field Services Survey: Surveys of individual farms to collect data on crops to be irrigated, its water & fertilizer requirements and agronomical practices to be followed Design: Complete designing of drip / sprinkler Irrigation layouts for individual farms as well as for large plantation projects Installation & Commissioning: Installation & commissioning of micro-irrigation (drip & sprinkler) systems by trained and experienced team 17

Field Services Agronomy service Demo Plots to explain & establish best practices Soil and water testing Crop Suitability recommendation Fertigation & Irrigation schedules as per crop need Farmer & Dealer training for Operation & maintenance of irrigation systems Fertigation Suitable chemical treatments 18

Field Services Agronomy training Demo Plots 19

Sales & Marketing 20

Sales & Marketing Farmers Training Program Van Campaign Rural Exhibition Participation Demo Plot 21

Performance at Glance F-14 Figures in Rs. Cr. Revenue Capital Employed 190.0 160.0 164.2 177.3 130.0 120.0 119.3 129.4 130.0 110.0 100.0 F-13 F-14 100.0 F-13 F-14 EBIDTA PAT 16.0 12.0 10.4 12.9 8.0 6.0 5.3 7.7 8.0 4.0 4.0 2.0 - F-13 F-14 - F-13 F-14 23

Performance at Glance Q-III Figures in Rs. Cr. Revenue Capital Employed 43.6 39.0 111.9 114.1 Q-III F-14 Q-III F-15 EBIDTA 2.4 1.5 Q-III F-14 Q-III F-15 PAT 1.2 0.8 Q-III F-14 Q-III F-15 Q-III F-14 Q-III F-15 25

Performance at Glance YTD Dec F-15 Revenue Capital Employed Figures in Rs. Cr. 86.8 84.6 111.9 114.1 F-14 F-15 6.5 EBIDTA F-14 F-15 4.3 PAT 2.8 0.4 F-14 F-15 F-14 F-15 26

Q3 Industry Environment Due to change from NMMI to NMSA there was some confusion at the state level Few states have now announced their policy, as a result, business had virtually come to a standstill in these states As per industry estimates, H1 industry has dropped by 15 to 20% over last year It is expected that in QIV, since few markets policies have been cleared the upcoming quarter will be promising 27

Future Plans 28

Customer Centricity: Enabling increased customer reach Agri Helpline 29

New Allied Businesses Greenhouse Pumps 30

Reducing Subsidy Dependence Large Community Projects Landscaping Exports 31

The Mahindra Group 32

The Mahindra Group Founded in 1945 as a steel trading company Diversified into manufacturing Willy s jeeps India s 7 th Largest Group - From Automotive to Defense to Construction to IT to Agriculture Recognised as a global leader in Utility Vehicles and Tractors J.C. Mahindra K.C. Mahindra More than 120,000 people across 110 subsidiaries, 6 JVs and 11 Associates, in more than 100 countries 33

Mahindra Rise: House of Mahindra CORE PURPOSE We will challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world, to enable them to Rise. Accepting No Limits Alternative Thinking Driving Positive Change CORE VALUES : Good Corporate Citizenship Professionalism Customer First Quality Focus Dignity of the Individual 34

Mahindra Agri Business 35

BHAG: Big Hairy Audacious Goal 36

Agri Business Performance: Revenue 500 400 300 200 100 0 F '11 F '12 F '13 F '14 In Rs. Cr 37

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