Dear Shareholders,
Reflecting on the past year, FY 2023-24 has presented its fair share of
challenges and opportunities. Throughout this period, we have consistently focused on
indigenous development and worked to enhance the prospects of the domestic agrochemical
industry. As a 'Make in India' company, we remain committed to offering a diversified
portfolio of niche and specialized products tailored to the needs of modern farming.
Sectoral Outlook
Despite a tumultuous global landscape, the resilience of the Indian
economy has been evident. Prudent monetary policies, strong consumer demand, and a robust
macroeconomic framework have helped mitigate adverse effects, maintaining a cautiously
optimistic outlook for the Indian agrochemical industry. We anticipate a strong rebound in
the industry, with an estimated CAGR of about 9% from FY25 to FY28, according to NITI
Aayog. This growth is expected to be driven by sustained government support, technological
advancements, and a growing export market. By FY28, the industry is projected to be valued
at USD 14.5 billion.
Macroeconomic Factors: The international market has faced significant
challenges, including volatility in raw material prices, decreased demand, and high
channel inventory. The ongoing conflict in the Red Sea region has led to increased freight
expenses and longer transit times, impacting our revenue.
However, the China Plus One strategy has been advantageous for us, as
India continues to gain prominence as a leading global sourcing destination.
Despite these global economic headwinds, we have maintained
profitability and positioned the company for continued growth. By leveraging our robust
pipeline of innovative products, we are poised to enhance our market presence and meet the
demand for superior-quality products in the agrochemical industry.
Performance Highlights: During FY2024, we reported a total revenue of
INR 696 Cr. Our EBITDA stood at INR 102 Cr, reflecting a healthy margin of 14.6%. We
achieved a profit after tax (PAT) of INR 60 Cr. With cash and bank balances amounting to
INR 132 Cr, our balance sheet remains robust. Our strong cash flow further strengthens our
net cash position, providing us with the resources necessary to pursue future growth
opportunities. Our focus on R&D and backward integration has been instrumental in our
success.
Strengths and Strategies: Our strengths are rooted in robust R&D
and product development capabilities, a diversified portfolio of high-quality niche
products, and experienced leadership steering the company toward success. With a steadfast
focus on expanding our product range and enhancing manufacturing capacity, we aim to
capitalize on emerging opportunities. Our strategic approach to overcoming challenges and
fortifying our core has enhanced cost efficiency, reduced import dependency for raw
materials, and aligned our growth strategies with the evolving needs of the agrochemicals
market.
Towards a Sustainable Future:
We are deeply committed to the well-being of the farming community.
Through active engagement with farmers during exhibitions and various CSR projects, we
work to empower them, foster knowledge sharing, and educate them about modern agricultural
practices. These initiatives have not only improved farm yields but also significantly
enhanced the economic conditions of numerous farmers across the country.
Our approach to societal impact is guided by our motto, "Care for
the World with Care." We prioritize both the environment and the communities where we
operate. Our environmental initiatives include transforming unused spaces for rainwater
harvesting, developing urban forests on wastelands, sustaining biodiversity in ponds,
creating open gyms for social well-being, upgrading WASH facilities, conducting health
camps for marginalized communities, and establishing skill development centers for village
youth.
We have achieved Zero Liquid Discharge certification and used the
Miyawaki technique to enhance greenery around our manufacturing sites. Additionally, we
have implemented the 5Rs—Refuse,
Reduce, Reuse, Repurpose, and Recycle—into our operations to
minimize environmental impact.
Through these efforts, we demonstrate our commitment to caring for the
world we live in and operate within.
Acknowledgment:
In conclusion, I would like to extend my heartfelt gratitude to all our
stakeholders for your unwavering support. We have faced challenges with resilience and
emerged stronger, positioning ourselves for sustainable business growth. As we look ahead,
we are confident in our long-term prospects and are eager to seize new opportunities to
drive the Company forward.
Warm Regards,
Dr Madhu Dikshit
Chairperson & Independent Director
Founder and Promoter Director's Message
Dear Shareholders,
It is with immense pleasure that I bring to you our Annual Report for
FY 2023-2024. Driven by our vision to be a partner for the farming community, we seek to
leverage our innovative crop care solutions to improve agricultural productivity while
minimising our impact on the environment.
The Indian agrochemical industry faced significant headwinds in FY2024.
However, we have resiliently weathered difficulties and leveraged our core strengths to
carve a sustainable growth trajectory. Despite challenges, the Indian agrochemical
industry is poised for future growth owing to favourable government policies and improved
capacity to sustain the demand for innovative agrochemicals.
At IPL, we prioritise innovation to develop new-age products. In
FY2024, we have obtained registration of 21 new products, including formulations and
technical solutions. It continues to bolster our market position and further improve our
export footprint to over 25 countries.
Equipped with state-of-the-art equipment and technology, our
manufacturing facilities in Lucknow and Hardoi districts of Uttar Pradesh supports our
efforts to produce superior quality products for a global clientele. We source
approximately 65% of our raw materials locally, contributing to supply chain efficiency,
cost optimisation and the country's emphasis on driving 'Make in India' products. Besides,
the strength and expertise of our experienced leadership team and approximately 950
dedicated employees are instrumental in ensuring business continuity amidst difficulties
in the operating landscape.
At IPL, we prioritise a customer-centric approach. We continue to
nurture relationships with our clients in different geographies and anticipate their needs
to offer products specifically designed to meet their crop care requirements. Moreover,
our extensive global presence has earned us the leverage to retain a competitive edge.
With an emphasis on adhering to quality parameters and regulatory guidelines, we continue
to improve our R&D capabilities. It continues to bolster a steady pipeline of
innovative products that cater to the evolving needs of the agricultural sector.
Strong financial performance and strategic growth drivers have been
imperative in guiding us towards sustainable growth. Realising the need to fulfil the
emerging demands of customers, we are increasing our manufacturing capacity and have
planned a substantial capex for increasing our production capacity.
As a responsible corporate, we also believe in giving back to
communities and prioritise meaningful change.
With a focus on education, healthcare, rural development and
environmental sustainability, we seek to strengthen the foundation for the society and the
environment for an equitable and ecologically viable future.
Driven by our commitment to customer satisfaction, operational
excellence and social responsibility, we will navigate uncertainties and emerge stronger,
with the wholehearted support of all our stakeholders.
Thank you once again for your continued trust and support.
Sincerely,
Anand Swarup Agarwal Founder and Promoter Director's
CEO's Message
Dear Shareholders,
India has predominantly been an agro-economy. Even today, millions of
people depend on agriculture for their livelihood. The country's agrochemical industry has
played an integral role in shaping the growth and development of the farming community as
a whole. At India Pesticides, we remain at the forefront of the agrochemical market,
relying on our innovative product range and a constant thrust to align ourselves with
evolving customer demands.
Fiscal Year 2024 presented a unique set of challenges for the Indian
agrochemical industry. Global headwinds, including decreased demand and high channel
inventory levels, created significant pressure.
The conflict in the Red Sea region further exacerbated these issues,
leading to a surge in freight expenses and extended transit times, impacting both our
revenue and profitability. These obstacles during the year boosted our agility, to
strengthen our communications with relevant stakeholders and bring mitigation measures on
time.
On the path of strategic growth
As we step into a new fiscal year with renewed vigour and enthusiasm,
we seek to leverage our strong pipeline of innovative and novel products to further expand
our reach and presence. Our relentless pursuit of innovation, coupled with cutting-edge
technology, has allowed us to develop high-quality products that sustain our competitive
edge. We are a customercentric company and it has not only enabled us to adapt to changing
market conditions but also allowed us to mould our offerings in line with market &
Customer demand.
During the year gone by, we have taken several important steps that are
expected to carve our onward trajectory. We have commenced commercial production from the
first block of our 100% subsidiary, Shalvis Specialties. Additionally, we entered into a
three-year contract with a prominent Japanese company to supply an intermediate. Through
this partnership, we are strengthening our presence in the global market.
We have also incorporated a new subsidiary, Amona Specialties, which
operates under an asset-light business model. which allows us to capitalise on new market
opportunities worldwide.
As a testament to our stringent focus on regulatory compliance, we have
successfully received the technical equivalence certification from the European Union for
three of our advanced herbicide technical products. It not only improves our business
prospects in the European Market, but also reiterates our ability to meet the stringent
regulatory guidelines of various countries internationally.
We have also taken significant steps to bolster our production
capabilities by increasing our present installed capacity of technical and intermediates
to 24,200 metric tons. To further support our growth aspirations, we acquired land
adjacent to our Sandila plant. This strategic move provides us with room for further
expenses.
Eyeing opportunities for sustainable development
Keeping our growth path intact, we have allocated a capital expenditure
of Rs. 110 crores for FY25 as planned. These investments are anticipated to strengthen our
core capabilities and the infrastructure for producing speciality products.
It is our endeavour to support the Government of India's vision of
"Atamnirbhar Bharat" by reducing our dependence on imported intermediates by
backward integration of our processes. This initiative is also perfectly aligned to the
"Make in India" Mission.
India Pesticides recognises the crucial role farmers play in our
society. We actively engage with the farming community to combat the threat of emerging
diseases affecting crops.
In closing, I would like to appreciate the trust and support we have
received from the farmers, our valued customers, dedicated employees, trusted partners and
committed shareholders. Your encouragement gives us the confidence to take the leap
forward and aspire for greater achievements in the years to come.
Jai Hind Sincerely,
Dheeraj Kumar Jain
Chief Executive Officer