Dear Shareholders,
During the year, your company achieved a turnover of Rs 1006.40 crores
and a net profit of Rs 42.41 crores. The consolidated income from operations and net
profit for the year was Rs 2,151 crores and Rs 52.77 crores respectively.
The export of Castor oil for the year 2023-24 were at 6.23 lac Mt
compared to 6.1 lacs Mt. for the previous year. Even as we are recovering from the
Ukraine- Russia conflict, the Israel - Hamas war or the Gaza war as it is often referred
to, has escalated the disturbance to the global peace. The ripple effect of this effected
the passage of ships passing through Red Sea disrupting the supply chain and forcing the
cargo ships to take the longer route through the Cape of Good Hope increasing the transit
time and cost of shipment.
Under the current situation, although the demand for Castor Oil remains
stable with expectation of modest growth coupled with spurts and ebb in demand due to
geopolitical events disrupting supply chain remain leading to short term fluctuation in
demand.
India was once again the fastest growing economy in 2023. India's trade
performance for the fiscal year 2023-24 has been noteworthy. India's overall exports are
estimated to have reached USD 776.68 billion, slightly surpassing the previous year's
record. Organic chemical sector continues to evolve as a global player in the industry.
In 2024, at least 64 countries representing more than 2 billion people
have scheduled elections. More than a Billion people are expected to vote to select their
leader. India the largest democracy in terms of population has already concluded its
elections and voted for continuity, albeit with a lower mandate. United Sates of America,
the largest economy in the world, will select its leader in November this year. The impact
of 2024 elections will reflect in the policies and performance of these economies in the
following years.
Your company continues to focus on sustainability. The company's
Pragati project has jointly been extended by its sustainability partners - Arkema, BASF
& Solidaridad (A Dutch NGO). We are proud to state that the project has now
successfully certified more than 7000/- farmers under the Sustainable Castor Caring for
Environment & Social Standards SuCCESS?. The total seeds certified under the project
are more than 75000 Mt., making your company the first company in the industry to ship
certified castor oil and its products.
The farmers are at the heart of your company's existence, growth and
prosperity. Besides the supply of hybrid seeds and educating farmers in sustainability, we
have along with Arkema, been involved with the children of farmers through "THE
Eranda Scholarship Program".
The "Eranda Scholarship", is an initiative of Arkema
supported by Ihsedu Agrochem Pvt Ltd, their local Joint Venture. It is an education
program involving school children of farmers. Various inter-school competitions are held
like art, projects, essays, sports etc. In addition to prizes for the winning students,
the schools are supported with infrastructure for the benefit of the students. These
competitions also create awareness of climate change and sustainability amongst the
students, besides encouraging them for sports and education.
As time goes by, the urgency to address the issues relating to climate
change is more and more apparent. The Research & Development centre of your company is
a cradle for the development of sustainable products. Your company will intensify its
efforts in search of innovative sustainable products to meet the needs of renewable and
biodegradable product and provide "Sustainable Solutions" for myriad
applications for a host of industries and consumers.
We continue to work together with the agronomists and agricultural
scientists along with the dedicated castor farming community to increase the availability
of this non-foods, non-feed gift of nature. Your company continues to focus on carrying
business in a sustainable and responsible manner. The details of this are available in the
Business Responsibility and Sustainability Report (BRSR) Report.
I would like to thank our internal and external team members for the
unwavering support from all our valued stakeholders including our customers, farmers,
local communities, Sh areholders, the State and Central Governments bodies and personal.
With Best Wishes, |
Abhay V. Udeshi |
CHAIRMAN |