Motilal Oswal Financial Services

Sector Update | 27 May 2021

AGRICULTURE

Rising commodity prices to maintain demand

momentum for Agri inputs

We hosted Mr. Sameer Goel – Managing Director, Coromandel International & Mr. Balram

Singh Yadav – Managing Director, Godrej Agrovet, to get their individual perspectives on

the inflation in agricultural commodities (as per the World Bank, prices in Apr’21 increased

83% YoY for Maize, 64% YoY for Soybean, 76% YoY for Palm Oil, 58% YoY for Sugar, and

43% YoY for Cotton). Furthermore, we wanted to understand the implication of this

inflation – driven by supply-side disruptions, stockpiling, and speculation – on various

stakeholders (farmers, corporates, and the economy) as well as the current situation on

the ground. Here are the key takeaways:

CMr Sameer Goel – MD,

Coromandel International

During his career, spanning

more than 28 years, he has

held various roles in India, the

UK, the UAE, and West and

South Africa; he was Vice

President for Africa when he

moved from GSK. He has

extensive experience in

managing businesses, driving

sales across multiple

geographies, and building B2C

businesses.

Key takeaways from our meeting with Mr Sameer Goel – Managing

Director, Coromandel International

Agricultural industry



Increase in Food Price Index:

As of Apr’21, the Food Price Index posted a rise for

the 11

consecutive month and was at the highest levels since May’14. Growth

was largely driven by vegetable oils and cereals, lower output and decline in

inventory levels, and stockpiling in China.

The monsoon forecast for CY21 remains normal, and reservoirs in South and

West India are at good levels; these factors bode well for acreages.

RM prices:

Since Nov’20, prices have surged across DAP, phos acid, ammonia,

and sulfur. This is largely attributable to a sharp increase in commodity prices,

leading to a rise in RM prices. Moreover, increased demand, coupled with lower

availability from Brazil, China, the US, and India, contributed to the price rise.

NBS rates:

The government has increased the subsidy on phosphorous by 204%

to INR45.3/kg, keeping the subsidy rate constant for NKS. This led to a fall in

DAP prices (for farmer) to INR1,200/bag (from INR1,900/bag).

Specific to Coromandel International (CRIN)



Backward integration:

CRIN has increased focus on backward integration and

fully integrated its Vizag and Ennore plants. The company is increasing capacity

in Vizag and also installing an evaporator at the plant, which would help

transport concentrated acid to the Ennore plant.

Capital allocation:

Going forward, the major focus and investment would be

toward crop protection chemical plants (new MPP installations). It would also

focus on backward integration to reduce the number of imports.

The company is also looking at inorganic expansion opportunities – as CRIN has

fully repaid its long-term and short-term debts.

Research Analyst: Sumant Kumar

(Sumant.Kumar@MotilalOswal.com)

Darshit Shah

(Darshit.Shah@motilaloswal.com) /

Yusuf Inamdar

(yusuf.inamdar@motilaloswal.com)

21 November 2017

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Agriculture

Key takeaways from our meeting with Mr Balram Singh Yadav – Managing

Director, Godrej Agrovet

Industry concerns



Mr Balram Singh Yadav,

MD, Godrej Agrovet

He is also MD of Godrej Tyson

Foods and Former Chairman of

the Compound Livestock Feed

Manufacturers Association of

India. Additionally, he serves

as Director on the boards of

ACI Godrej (Bangladesh),

Creamline Dairy Products, and

Polychem Hygiene

Laboratories. In the last 19

years, he has handled

positions of increasing

responsibility, including

Deputy Sales Manager

(Khanna), Factory Manager,

and Operations Manager.



Rural consumption:

Rural consumption slowed in FY21, largely due to a rise in

the number of COVID cases in rural areas and consequent lockdowns. GoI has

introduced various initiatives to revive rural demand, such as subsidizing all the

fertilizers (namely urea, DAP, and P&K). Another INR190b has been allocated to

95m farmers under the PM Kisan Samman Nidhi (of which 45m farmers have

received the funds). The drop in consumption is expected to be temporary, and

demand is expected to bounce back faster than expected.

Commodity prices:

The surge in agri-commodity prices is expected to be

corrected shortly – as prices are not sustainable at this level (15–20% decline

may be expected) and reflect the change in global prices. Cereal prices are

expected to remain elevated on increased demand from the Bio-Diesel segment.

Agri sector:

India’s domestic sector saw a bumper rabi season, thereby paving

the way for robust growth in FY22. Food grain production for the year is

expected to be north of 307mmt.

Specific to Godrej Agrovet (GOAGRO)



Animal Protein:

Post the lifting of the lockdown, a surge in demand is

anticipated for chicken, eggs, and fish, potentially leading to a shortage in the

market. 2Q/3Q/4QFY22 performance is expected to be considerably good v/s

1QFY22 and would thereby support annual growth for FY22.

Palm Oil:

At the current price level, farmers make ~INR200k/ha, the highest for

any crop in the country. Palm oil prices are expected to remain high and are

linked to bio-diesel demand, which also remains high. However, prices may

correct by 10–15%, but would not return to previous levels (would be 25–30%

higher than 2Q/3QFY21 levels).

Aqua Feed:

The Fish Feed business faced major headwinds as labor availability

was an issue due to the lockdown. Shrimp feed demand continues to be robust,

driven by global demand, leading to an increase in shrimp prices. With the

impact of COVID gradually subsiding, the Shrimp business is expected to

perform well in the current financial year.

27 May 2021

Agriculture

Detailed notes – Mr Sameer Goel – Managing Director, Coromandel

International

Agricultural sector



Increased global demand:

Globally, a steady increase in population is observed,

along with a rise in wealth. This is in turn expected to lead to an increase in the

calorie intake per capita, supported by hunger/poverty eradication. Australia,

Africa, Southeast Asia, India, etc. are expected emerge as the world’s largest

food suppliers. India has higher irrigated land than China and could emerge as

the largest agri supplier in the world.

GVA:

Gross value added (GVA) by the Agri sector in India increased to INR171t

over CY2008–18. The value add is expected to increase 2x to INR230t over

CY19–29.

Challenges in India Agri sector: (i) Decline in per capita land holdings:

The

average land holding size fell from 2–2.5ha to ~1ha over 1970–71 to FY16.

Recent government initiatives, such as contract farming, have led to the

consolidation of land by large farmers to maintain supply.

(ii) Imbalanced

nutritional usage:

The ideal ratio of NPK is 4:2:1, which increased sharply to

6.1:2.5:1 in FY18 (v/s 4.7:2.3:1 in FY11).

(iii) Lower mechanization:

According to

the World Bank, the level of mechanization in India stands at 40% (v/s the US /

Brazil / China at 95%/75%/48%).

(iv) Low crop protection consumption:

India’s

crop protection consumption stands at 0.6kg/ha (v/s the US/China 7kg/ha /

13kg/ha).

Eight global agri trends and impact on India: (i) Rising pressure on natural

resources:

Pressure on natural resources is driving the need for micro-irrigation

in India.

(ii) Changing dietary preferences:

Dietary patterns are evolving as

demand for fruits, vegetables, and pulses continues to post a 6–8% CAGR v/s

cereals (1%).

(iii) Evolution of farm holdings:

Declining avg. farm holdings.

(iv)

Farm labor shortage:

Issues with labor availability are driving a 10% p.a. rise in

the cost of cultivating major crops.

(v) Continued importance to political

economy:

Additional government interventions in the form of higher MSP and

Direct Benefit Transfers would support farmers.

(vi) Rise of digital farmers:

Increasing mobile penetration would provide a unique opportunity to use

personalization to build a deeper farmer connect.

(vii) Farm tech

advancements:

Data-driven agricultural and precision farming are changing the

landscape of Agri and would continue to do so in the future.

(viii) Evolution of

logistics:

The Logistics sector is evolving in India, with 42 mega food parks

planned across the country.

Opportunity for agri companies:

Balanced nutrition, specialized nutrition,

precision farming/ag-tech farming, and micro-irrigation are some of the major

opportunities for agri companies going forward.

Impact of COVID on agriculture:

Agriculture was the only sector to report 3.4%

GVA growth in FY21. Government spend – through MGNREGA, Social Assistance

Program, etc. – increased to INR7,900b in FY21 (from INR4,400b in FY20). Also,

the government procurement of paddy/wheat under MSP saw volume growth

of 14%.

Farm mechanization has also improved during the COVID period – tractor sales

increased 28% YoY in FY21.

27 May 2021

Agriculture



The monsoon forecast for CY21 remains normal, and reservoirs in South and

West India are at good levels; this bodes well for acreages.

Increase in Food Price Index:

As of Apr’21, the Food Price Index posted a rise for

the 11

consecutive month and was at the highest levels since May’14. Growth

was largely driven by vegetable oils and cereals, lower output and decline in

inventory levels, and stockpiling in China.

Indian Fertilizer industry



RM prices:

Since Nov’20, prices have surged across DAP, phos acid, ammonia,

and sulfur. This is largely attributable to a sharp increase in commodity prices,

leading to a rise in RM prices. Moreover, increased demand, coupled with lower

availability from Brazil, China, the US, and India, contributed to the price rise.

NBS rates:

The government has increased the subsidy on phosphorous by 204%

to INR45.3/kg, keeping the subsidy rate constant for NKS. This led to a fall in

DAP prices (for farmer) to INR1,200/bag (from INR1,900/bag). The government

disbursed an additional INR650b in 4QFY21.

Phos acid:

India’s phos acid demand is pegged at 4.2–4.5mmt. Of the tradable

~4.5mmt phos acid available globally, India consumes more than 50%.

Prices:

DAP prices are currently lower. NPK sales are expected to increase; a

shift can be seen to NPK from DAP. NPK is better for the soil and has other

minerals and added benefits.

Company-specific



Backward integration:

CRIN has increased focus on backward integration and

fully integrated its Vizag and Ennore plants. The company is increasing capacity

in Vizag and also installing an evaporator at the plant, which would help

transport concentrated acid to the Ennore plant.

New products:

CRIN is gearing up on the Nutritional and Crop Protection fronts.

Currently, ~25% of sales come from new products introduced last year. Going

forward, CRIN plans to continue to invest in R&D. A similar approach would be

adopted in the Nutritional biz as well.

Capital allocation:

Going forward, the major focus and investment would be

toward crop protection chemical plants (new MPP installations). It would also

focus on backward integration to reduce the number of imports. By Jun’21,

capacity would increase to 1.5x that of current levels.

The company is also looking at inorganic expansion opportunities – as CRIN has

fully repaid its long-term and short-term debts.

Subsidy:

As of Apr’21, an INR650b government subsidy is pending across the

industry, largely due to the surge in COVID-19 cases, coupled with budgetary

cuts from the finance department.

Organic farming:

CRIN is the largest player in the Organic Farming segment in

both the Nutritional and Bio-Pesticide sub-segments.

27 May 2021

Agriculture

Exhibit 1: Challenges in Indian Agricultural sector

Source: Company, MOFSL

Exhibit 2: Firming up raw material prices – Nov’20 onwards

Source: Company, MOFSL

Exhibit 3: Revised subsidy under NBS

Nutrient

FY21

18.789

14.888

10.116

2.374

NBS (INR per Kg of Nutrient)

FY22

18.789

45.323

10.116

2.374

% ch.

204%

Source: Ministry of Fertilizer, MOFSL

27 May 2021

Agriculture

Exhibit 4: Fertilizer-wise revised subsidy

Name of Fertilizers

DAP 18-46-0-0

MOP 0-0-60-0

SSP 0-16-0-11

NPS 20-20-0-13

NPK 10-26-26-0

NP 20-20-0-0

NPK 15-15-15

NP 24-24-0-0

AS 20.5-0-0-23

NP 28–28–0-0

NPK 17-17-17

NPK 19-19-19

NPK 16-16-16-0

NPS 16-20-0-13

NPK 14-35-14

NPS 24:24-0-8

MAP 11-52-0-0

TSP 0-46-0-0

NPK 12–32–16

NPK 14-28-14

NPKS 15-15-15-09

NP 14-28-0-0

NPK 8-21-21

NPK 9-24-24

NBS Rates (in INR/MT)

FY21

10,231

6,070

2,643

7,044

8,380

6,735

6,569

8,082

4,398

9,430

7,445

8,321

7,007

6,292

9,258

8,082

9,809

6,848

8,637

8,215

6,783

6,799

FY22

24,231

6,070

7,513

13,131

16,293

12,822

11,134

15,387

4,398

17,951

12,619

14,103

11,876

12,379

19,910

15,387

25,635

20,849

18,377

16,737

11,348

15,321

13,145

14,996

% ch.

137%

184%

86%

94%

90%

69%

90%

69%

97%

115%

90%

161%

204%

113%

104%

67%

125%

Source: Ministry of Fertilizer, MOFSL

Detailed notes – Mr Balram Singh Yadav – Managing Director, Godrej

Agrovet (GOAGRO)

Animal Feed



Animal Protein:

Chicken and egg prices have been extremely low in May’21.

Chicken prices have plunged from INR110/kg to INR45–50/kg in May’21, post

the announcement of recent lockdowns across the country (whereas the cost of

production stands at INR80/kg). Egg prices have also followed suit and dropped

30–40% during the month. Milk prices have also corrected by 15–20% in certain

parts of the country. The decline in milk prices was slow as the lack of demand

was accompanied by lower production across the country.

According to the management, Post the lifting of the lockdown, a surge in

demand is anticipated for chicken, eggs, and fish, potentially leading to a

shortage in the market. 2Q/3Q/4QFY22 performance is expected to be

considerably good v/s 1QFY22 and would thereby support annual growth for

FY22.

Aqua Feed:

The Fish Feed business has faced major headwinds due to lockdown.

However, the Shrimp Feed business has seen good demand (driven by global

demand), with domestic production lower than previous levels. Also, shrimp

prices are rising owing to increased demand from foreign countries. The Shrimp

business is expected to perform well in the current financial year.

Poultry:

Poultry production is low across India. Compared with Jan’20,

production levels of egg/chicken/milk/fish/shrimp have reached

80%/80%/90%/80%/85–90% levels. Post the lifting of the lockdown, demand

across segments is expected to surge rapidly. Food inflation is likely to be driven

by animal inflation.

27 May 2021

Agriculture



Animal Feed:

Animal Feed business margin growth was muted (for GOAGRO)

due to the pandemic. However, on a sequential basis, margins are improving, as

R&D benefits have started to flow in. Margins are expected to surge in FY22.

Palm Oil



Area under cultivation for palm oil in India is ~2m-ha and the area covered is

~350k-ha. Farmers enjoy subsidies of INR50–60k/ha from the government and

also gain 78–80% of the oil price. With this, and at current prices, domestic

farmers make ~INR200k/ha, the highest among the crops in the country.

Palm oil prices are expected to remain high as long as bio-diesel demand

remains high. However, prices may correct by 10–15%, but would not return to

previous levels (would be 25–30% higher v/s 2Q/3QFY21).

Oil prices have remained high for the past six months. Palm oil prices were up

62% YoY, and sunflower / soya / groundnut / mustard oil prices were up

59%/55%/35%/48% YoY, respectively, at the retail level.

GOAGRO has 35,000–40,000ha of oil palm plantations in AP (under contract

farming); every hectare is geo-tagged and the company is able to access

harvesting info, plant growth, fertilizer deficit, etc. and all the other necessary

information. Furthermore, an infrared photographic system has enabled the

company to analyze the oil content from fresh fruit bunches, which would aid

the better and timely harvesting of fruits.

Others



Agri sector:

India’s domestic sector saw a bumper rabi season, and food grain

production for the year is expected to be north of 307mmt. Global cereal prices

remain high, leading to 13mmt exports of paddy, 0.5mmt of basmati, and 2mmt

of wheat.

Plants:

Unlike the previous lockdown, all factories of GOAGRO are operational

for 2–3 shifts across locations.

Labor unavailability remains concern:

Currently, there is huge demand for

shrimp in the international market. India is unable to meet demand as shrimp

harvesting is a man-power intensive job and labor availability is currently a

major concern. Lower labor supply has led to a shortfall in meeting shrimp

demand.

Owing to an increase in mobile penetration, there is no information asymmetry

anymore. Farmers are well-connected and well-informed via mandis and

government websites. Increased digitization has led to GOAGRO or the

government (post procurement) making direct payments to farmers.

Food supply chain:

Despite the pandemic, the food supply chain has not

suffered. Although logistic operations have been affected, food supply and

availability have been given priority.

Contract farming:

80% of the INR700b Chicken industry is integrated.

Integrators supply the feed, chicks, medicines, and vaccines and also transport

the chicken from the poultry for sale in the market. Farmers enjoy contract

farming charges and see up to 17–18% returns on investment. This model has

worked successfully for the domestic Chicken industry – the per capita

consumption of chicken increased to 4.5/kg in CY20 from 1/kg in CY’00. The

GOAGRO management believes a similar business model should be applied to

27 May 2021

Agriculture



other crops, resulting in higher returns for farmers and the streamlining of the

entire process.

Commodity prices:

The surge in agri-commodity prices is expected to be

corrected shortly – as prices are not sustainable at this level (15–20% decline

may be expected) and reflect the change in global prices. Cereal prices are

expected to remain elevated on increased demand from the Bio-Diesel segment.

Rural consumption:

Rural consumption slowed in FY21, largely due to a rise in

the number of COVID cases in rural areas and consequent lockdowns. GoI has

introduced various initiatives to revive rural demand, such as subsidizing all the

fertilizers (namely urea, DAP, and P&K). Another INR190b has been allocated to

95m farmers under the PM Kisan Samman Nidhi (of which 45m farmers have

received the funds). The drop in consumption is expected to be temporary, and

demand is expected to bounce back faster than expected.

eNam:

Maintaining quality control is one of the initial challenges faced by the

buyer. The eNam platform is expected to prove effective for inter-state

buying/selling.

27 May 2021

Agriculture

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.

MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on

www.motilaloswal.com.

MOFSL (erstwhile Motilal Oswal Securities Limited - MOFSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading

Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity

& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository

Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &

Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate entities of Motilal Oswal Financial Services Limited are available on the

website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and

buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other

compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have

any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should

be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant

banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental

research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from

MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or

use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong

Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst

Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of

research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity

to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these

securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not

located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"

and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and

investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for

distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional

investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document

relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule

15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order

to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities

International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public

appearances and trading securities held by a research analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets

services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and

Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in

respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of

which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the

SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and

inform MOCMSPL.

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

********************************************************************************************************************************

27 May 2021

Agriculture

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company

- received compensation/other benefits from the subject company in the past 12 months

- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the

company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not

consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the

research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Terms & Conditions:

This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and

may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of

MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.

The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,

representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The

report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial

instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as

customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,

in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose

and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report

constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities

discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,

financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document

should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including

the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be

suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial

risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions

contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as

endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and

alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect

or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment

banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and

independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already

available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the

views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other

person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of

or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject

MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category

of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,

employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may

arise from or in connection with the use of the information.

The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any

and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold

MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person accessing this information due to any

errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website

www.motilaloswal.com.CIN

no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,

Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:

INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company

Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management

Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of

Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a

group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory

services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee

of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj

Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.

* MOFSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National

Company Law Tribunal, Mumbai Bench.

27 May 2021