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Coromandel International Ltd.

BSE: 506395 Sector: Agri and agri inputs
NSE: COROMANDEL ISIN Code: INE169A01031
BSE LIVE 15:40 | 23 Aug 422.65 0.90
(0.21%)
OPEN

426.90

HIGH

426.90

LOW

415.55

NSE 15:31 | 23 Aug 421.35 0.95
(0.23%)
OPEN

424.00

HIGH

427.70

LOW

415.05

OPEN 426.90
PREVIOUS CLOSE 421.75
VOLUME 8341
52-Week high 467.50
52-Week low 229.50
P/E 22.65
Mkt Cap.(Rs cr) 12,350
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 426.90
CLOSE 421.75
VOLUME 8341
52-Week high 467.50
52-Week low 229.50
P/E 22.65
Mkt Cap.(Rs cr) 12,350
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Coromandel International Ltd. (COROMANDEL) - Chairman Speech

Company chairman speech

FROM THE DESK OF THE CHAIRMAN

Dear Shareholders

The year 2016-17 has been a dynamic one for India with the economic activities shapedby tax reforms normal southwest monsoon after two preceding drought years globally weakcommodity prices and demonetization drive. It is heartening to see Agriculture sectorreturning to higher growth numbers as policy push and near normal monsoons boostedsowings and consequent consumption. Agriculture being the mainstay of Indian societyclosely drives the fortunes of around half a billion livelihood. As we stand today theUrban-Rural economic divide though less distant is still evident. Government's ambitioustarget towards doubling the farmer income by 2022 is a positive step forward and we atCoromandel firmly believe and practice this vision of enhancing prosperity of our farmers.We constantly endeavour and partner towards driving the agrarian shift from subsistence tocommercial nature of farming.

On the Policy front Direct Benefit Transfer (DBT) in fertilisers was introduced on apilot basis in 16 districts across India with pan India roll out likely to follow in2017-18. We welcome this initiative aimed at promoting balanced nutrition practices andimproved subsidy targeting. Though finer details are yet to evolve we foresee DBT beingbeneficial in propagating balanced nutrient application as per soil health status of thefield. In the longer time horizon DBT may overcome the distortion between N P K usagewhich currently is highly lopsided towards nitrogenous fertilisers. Goods & ServicesTax (GST) slated to be introduced in early 2017 will bring transparency in operationsbenefiting organized players like Coromandel. Further seamless movement of products andservices across the state boundaries will create a common market for the products. On‘Make in India' front Phosphatics industry has seen few interventions in terms ofgetting marketing access to newer geographies for domestic manufacturers over importsthough lot of issues still need to be addressed to make indigenous production attractive.Government's drive towards making India self-sufficient in Urea through revival of defunctunits and improving nutrient use efficiency through neem coating has been a positive stepforward and the same needs to be replicated in Phosphatics as well. Further reformstargeting improvement of farm output realization crop insurance agri infrastructuredevelopment resource use efficiency and soil health bodes well directionally towardsenhancing farmer's real income. Your Company has been expanding its products and services- our integrated farming solutions extending from seed to harvesting services have beenadding value to the farmers lives providing sustainable yield improvement and qualityoutput. During the year your Company's initiatives primarily spanned around driving thetwin objectives of Nutrient Security and Soil Security. Coromandel introducedtechnologically superior solutions in Phosphatics Water Soluble Fertilisers and CropProtection space by partnering with its global alliances which have received positiveresponse from the farming community. In line with the Government's call for developingModel Retail outlets to improve soil and seed testing facilities for the farmersCoromandel has transformed its 450 retail outlets as Krishi Suvidha Kendra providingbalanced nutrient recommendations to the growers as per soil and crop needs. Our RetailMana Gromor Centers directly connect with around 2.8 million farmers offering extensionservices through undertaking integrated nutrient trials scientist connect and technologyinterventions. As the younger workforce enters into farming we are aligning our solutionsto drive this enterprising shift away from the conventional means. Farm Mechanizationthough still nascent is seeing traction as the farmers are realizing the need ofimproving productivity and managing costs. Your Company is making gentle stride in thisdirection partnering with the Government towards offering cost effective farmmechanization solutions.

On the operational front Coromandel improved its performance driven by CropProtection business and higher agri nutrients uptake on account of normal monsoons. Thesoft commodity price trend in the international markets reduced overall sourcing costs andyour Company on its part passed on the benefits of a benign raw material environment tothe farming community. Coromandel maintained its market share in Phosphatics segmentinspite of weak North East monsoon in Southern India markets affecting consumption duringRabi season. Our unique fertiliser offerings have been doing well balancing crop and soilneeds and accounts for close to one-third of sales. Specialty nutrients and Organicmanure businesses expanded its product offerings targeting pulses and horticulturesegments. During the year your Company moved closer to the farmers by developing anintegrated nutrient structure ably supported by team of agronomists. Going forward weexpect this shift to significantly contribute towards strengthening our commitment andconnect with the farming community.

As Indian agriculture stands at the cross roads we at Coromandel firmly believe inpartnering with the farming community to drive this growth story. We hope that ourintegrated crop solutions extension services and close connect with the farmers will helpin realizing the inherent potential of Indian agriculture. We are proud to be part ofnation's growth story and continue our commitment towards empowering the farmingcommunity.

A. Vellayan

Chairman