Message from the Chairman & Managing Director
Dear Valued Shareholders
I hope this letter finds you in the best of times.
Your Company having started with a vision to make the world environmentally safe and adisease-free society has emerged stronger with each passing year and has created strongbrand equity for itself in the industry. I am pleased to inform that the years ofdedicated research and innovation has helped the Company pioneer Zero-Residue Bio-Agriinputs; developing a state-of-the-art proprietary technology platform. Camson s offeringshave been revolutionary for the agriculture sector and the Company believes to be a partof the society s ongoing journey towards healthy living.
In recent times the turbulence in the global economy has decreased and it is making agradual recovery. As per the IMF s World Economic Outlook global economy expanded at amodest rate of 3.4% during CY2014. Among the developed economies the US has beenperforming well and expected to grow by 4% in CY2014. However most of the emerging anddeveloping economies except India demonstrated a slowdown during the year.
In this backdrop Indian economy has witnessed a recovery during FY2015 displaying agrowth of 7.4% during the year as compared to 6.9% in FY2014. During the year ConsumerPrice Index (CPI) gradually declined and remained within desirable levels. This declinewas primarily due to fall in global crude oil prices food prices and on account ofinitiatives taken by the government to curb inflation. However amidst the enthusiasmagriculture sector failed to meet the expected growth rate of 4.0% during the year. Indianeconomy is largely thriving on agriculture and our country continues to face one of itsformidable challenges of widening of food demand-supply gap and reducing soil fertility.
Indian agriculture is majorly dependent on the rainfall which was just 88% of thehistorical average during the year; leading to tough times for the agri market and theIndian farming community. Your Company believes that in such tough times agriculturalbiotechnology has a vital role to play and Camson is well positioned to serve the needs ofthe sector through its indigenously developed bio agri inputs and hybrid seed varieties.Agri biotechnology yields much better results than traditional techniques whilemaintaining the fertility and stability of the soil.
Furthermore Indian agriculture sector has been quick in adopting biotechnologysolutions both at the ground level and at the government level. The state of Kerala hadrecently proposed switching to 100% organic farming by 2016. Given the importance oforganic farming and the need for developing a sustainable alternative for the traditionalagriculture methods other state government may also follow the suit. This opens upsignificant opportunities for Camson given already strong market position in the agribiotech space. The Company is positioned strongly to achieve scalability and superiorbusiness performance and deliver significant value to all its stakeholders.
FY2015 has been a year of continued transformation for the Company. Over the course ofthe year we strengthened our presence across the North East states of India in particularArunachal Pradesh Assam and Sikkim. Camson s focus on providing its customers with a widerange of products has resulted in the requirement of a strong marketing and distributionnetwork. The Company currently has a network of over 3100 dealers of which over 200 arePlatinum dealers. Camson continues its focus on adding Platinum dealers to its network andstrives to build a flexible supply chain to ensure requisite delivery volumes in a timelyand cost efficient manner.
As a sign of the underlying strength of our business the Company recorded MOUs withthree different farming communities which are of strategic importance to the business inthe long-run. FY2015 was the first year of operations for the institutional desk and whatwe have achieved in such a short period of time is remarkable. In addition to these beinga testament to the Company s R&D capabilities these MOUs also serve as a case studyfor other associations and government organizations. We expect the institutional businessto provide a strong platform and add a new dimension to the overall growth of the Company.We are also in advance stages of discussion with a farmer s community in Abu Dhabi withregards to carrying out agri bio research for them.
Despite these operational achievements last financial year has been challenging forthe Company on account of unfavourable rainfall conditions. Rainfall adversely impactedthe farmers not leaving much liquidity in their hands to drive the product sales.
Additionally in line with the Company s core business strategy Camson in FY2015 filedan application for the Scheme of Arrangement (Demerger) of seeds business to form a newentity Camson Seeds Limited with the Honorable High Court of Karnataka. The Company hasalready received the observation letter from SEBI and BSE in this regard and the finalapproval from High Court of Karnataka will see the formal launch of a separate Seedsbusiness entity. The demerged entity will undertake production and cultivation of qualityseeds for enhancing farming in the country. Most dynamics of the seeds and biocidesbusiness had begun to differ necessitating the need for the demerger. Also the Companyforesees a period of rapid growth for the Biocides business.
In context of the current domestic and international economic environment Camson BioTechnologies remains cautiously optimistic for the near term prospects of the Agri Bioindustry. We are confident that the long term dynamics of the Indian agriculture are veryattractive. We at Camson are committed to leveraging the growth prospects in thedomestic and global markets. Our strengths in the biocides and hybrid seeds businessbacked by robust performance of CAV to reach out "Zero Residue" products to theconsumers in India and internationally; will place your company in the vantage position toscale new heights. To further enhance our technology platform we are strengthening ourR&D team by adding more research scientists with significant knowledge in the field ofmicrobial study. Also with plans in the near future to expand internationally theCompany believes that we are very well placed to embark upon the next stage of growth andstakeholder value creation.
I am also proud to announce to my shareholders that your company has taken theinitiative to contribute Re. 1/- from the sale proceed of every pack for the welfare ofwar widows and Re. 1/- will be contributed towards girl child education. This initiativewill be routed through our NGO for CSR activities- SARTHI and the same will also beprinted on the packs of our products.
I would like to put on record our sincere appreciation to all our employeesshareholders customers vendors bankers and all stakeholders for their unwaveringsupport that helped us meet industry standards and set new benchmarks. We look forward toa bright future of your Company in the year to come.
Chairman and Managing Director Chief Scientific Officer