Punjab Chemicals & Crop Protection Ltd

Dear Shareholder,

It is my absolute privilege to present to you the Annual Report of Punjab Chemicals and Crop Protection Limited (PCCPL).

The past year presented a blend of challenges and opportunities for PCCPL. However, as we share our journey, it gives us immense joy in highlighting our story of the year gone by. These achievements are a result of our resolute commitment to quality, inherent strengths and expertise in traversing an evolving and complex business landscape.

Within these pages, you will find details of our performance, our guiding values and our aspirations for the path ahead.

The agrochemical industry continued to remain in a challenging phase due inventory phasing out and excess capacity. -While prices have now stabilised after a prolonged period of decline, export demand remains subdued due to adverse weather, market oversupply and price uncertainties. Demands for fungicides and insecticides remain healthy, while herbicides are seeing a sluggish performance. Forecasts of normal monsoon in India is expected to bring some upside for Agrochemical companies.

For FY 2024-25, our revenue from operations stood at INR 901 Crores. There was a marginal decrease, primarily due to changing market dynamics. Nevertheless, we successfully maintained consistent volumes and capacity utilisation. We successfully change market mix by increasing domestic share of business to 62% of total revenues, contributing INR 556 crores, while the international market contributed INR 346 crores.

Leveraging our core competencies Our strength lies in our deep expertise and consistent track record of delivering high-quality products. Our robust manufacturing and R&D capabilities, combined with a technically skilled workforce and cost-effective strategies, enable us to meet growing demand. We continue to introduce new products servicing both local and International markets. We have earned a reputation of trust and excellence, forging longstanding associations with both multinational and domestic clients.

The growing trend of reducing dependency on China presents a structural shift and we are prepared to capitalise on it. By embracing new technologies, expanding our integrated supply chain and building a robust network, we are poised to unlock new avenues for the Company.

We are ardent believers of devoting our resources to building a greener tomorrow. With sustainability at the core of our operations, we adhere to the best Environmental, Health and Safety (EHS) practices.

Under our stewardship, A new Common Effluent Treatment Plant will be commissioned in FY 2026 in Derabassi Industrial area. This is a part of our long term commitment to not only ensure our compliance but also to improve compliance by all other smaller industry in our vicinity.

The safety of our workers also remains our foremost priority. We continue to invest significant capital in safety system upgradation, asset renewal and new technology. Our plants are equipped with occupational health facilities, professional staff and governed by robust safety protocols to foster a culture of responsibility and well-being.

As we navigate uncharted waters, we are consistently undertaking initiatives to grow from strength to strength. We continue to expand our business portfolio and research and development efforts are more focussed on developing specialty chemicals with a focus to build strong presence in specialty segment and get into new chemistries.

We are strengthening our infrastructure, working to our production capacities and focusing on upgrading our talent pool. We are also pursuing strategic expansion into new geographical markets, including Latin America, South Asia and the European Union. Further, we are focused on optimising asset utilisation, embracing backward integration and capitalising on emerging opportunities to sustain our momentum.

Our new products are getting very positive response from market and these products will add to our performance in coming years. These are encouraging signs and gives us confidence that effort of the management team and focus in capability building is yielding good results, We anticipate launching further new products in the upcoming financial year.

Finally, as I conclude, I believe this quote can best encapsulate our vision for the future- ‘The best preparation for tomorrow is doing your best today'. The management team is working to build a strong foundation for future, working tirelessly to be a leader is safety, sustainability and innovation. The word ‘tomorrow' holds immense promise for us, a future brimming with endless possibilities, remarkable milestones and limitless growth.

The business environment will undoubtedly continue to evolve but we need to nurture our innovative spirit, ignite our resilience and pursue sustainable growth. We continue to track market very closely, work aggressively on new products, introduce technologies which are giving us competitive advantage. We will remain agile in adapting to the changes in market forces and will equipped to with R&D, operational excellence and market diversification.

I extend my heartfelt gratitude to our shareholders, employees, customers and partners for their continued trust and support. Your confidence in our vision and capabilities motivates us to push boundaries and strive for excellence.

As we move forward, we remain committed to creating sustainable value and reinforcing our position in the industry. Let us continue our journey of growth and success together.