UPL 2023 Investor Day Highlights and Analysis
Highlights from Bank of America 2023 Global Agriculture Materials Conference Presentation, Capital Markets Day Presentation and their 2022 Annual Report
UPL is a uniquely interesting company to breakdown.
UPL is essentially a pure-play agriculture company, however, they do have a lot of emphasis on their business in the company’s home country of India.
Here is their corporate structure with their unique ownership structure for reference:
UPL has four different business segments:
UPL Corp. which is their global crop protection business minus India.
UPL India which includes their traditional crop protection business in India and agtech platform (nuture.farm)
Advanta Enterprises which is their seed business, primarily in India, LatAm and some other geographies like Thailand.
Manufacturing and Specialty Chemicals Business which actually is the manufacturing arm of their crop protection business.
Note: Given the complexity of the UPL business in combination with the fact I am pulling from three different UPL public documents I will do my best to keep some of the nuance of their business together. For example, some information they share is broken out specific to the global crop protection business and some has the entirety of their business integrated into the data.
We can see that the Global Crop Protection business makes up almost 80% of their total revenue.
UPL has a March year-end and across the aggregate of their business segments for 2023, their revenue was about $6.5 billion USD:
Note on currency: UPL primarily reports in “crore”. One crore is the equivalent of 10 million rupees, the Indian currency. There may be some rounding errors and Fx variability on my end. I am primarily relying on Stratosphere.io for conversion information.
UPL’s EBITDA margins have been consistent in the low 20’s with 2023 coming in at 22%. Overall, they are in the middle of the pack when it comes to the six largest input providers with the highest grouping being around 25% or above (Bayer Crop Science, FMC) and the lowest coming in around 20% (Corteva):