Inculcating strategic adaptability to strengthen endurance in times of market
disruptions
Dear shareholders,
It has been a quarter since I have had the honour of becoming Chairman of your Company.
The year under review presented unexpected challenges and structural changes marked by
economic uncertainties and market disruptions that tested our strategic and operational
resilience, impacting our revenue and profitability. The Market conditions in the vitamins
segment led to reduced sales volumes and lower margins, putting a pressure on our topline
and bottomline. Additionally, the global economic uncertainties led to fluctuating raw
material costs and operational inefficiencies, straining our financial performance.
Despite these difficulties, we remained committed to address these issues through
strategic adjustments and operational improvements.
The global macro-economic scenario during the year resulted in subdued growth due to
high inflation and interest rates, geo-political tensions, and recession concerns.
However, inspite of global uncertainties, India's micro-economic fundamentals remained
strong and India remained on a trajectory of higher growth. Inflation began to moderate
and post-Covid challenges like supply chain constraints began to gradually ease which
augur well for your Company.
Upholding core values and strong governance
Fermenta's journey of seven decades stands as a testament to its adaptability, which
equipped it with the endurance to navigate through market cycles. It is this deep-rooted
legacy that continues to guide as we confront and overcome economic uncertainties.
At the heart of Fermenta's success are our values of discipline and perseverance. These
principles have been the cornerstone of our resilience, enabling us to maintain
operational integrity and strategic focus even in the face of adversity. Our commitment to
these values and principles ensures that we remain steadfast in our pursuit of long-term
growth and stability.
Your Company is committed to maintain highest standards of corporate governance. A
strong emphasis on transparency, accountability and integrity guides its philosophy. Our
governance framework is designed to ensure that we uphold ethical standards / practices,
comply with regulatory requirements, and foster a culture of responsibility throughout the
organization.
This year, we continued to honour our commitment to Corporate Social Responsibility
(CSR). Our initiatives reflect our dedication to create positive social impact. Our CSR
activities have focused on health, education, and community development, reinforcing our
role as a responsible corporate citizen.
Strategic focus and investment impact
Our Vitamin D business remains the cornerstone of our strategy. Despite market
challenges, our focus on expanding and optimizing this segment is crucial as we anticipate
a resurgence in demand. We are positioned to leverage our expertise and investments in
Vitamin D to capitalize on growth opportunities in the animal and human nutrition markets.
Moreover, the investments we made during periods of strong revenue and profitability
are beginning to yield results.
Positive outlook
With a competent and talented leadership team and dedicated employees, I am hopeful
that we will emerge successfully from the current volatile scenario, stronger. We will
drive success and profitable growth to create sustainable value for all our stakeholders.
I take this opportunity to extend my gratitude and appreciation to our Board of
Directors, employees, valued customers, bankers, partners / associates, Central and State
governments, regulatory authorities, other stakeholders and society at large for their
valuable support.
I also thank all our shareholders for their trust and support.
With best wishes,
Pradeep M. Chandan,
Chairman