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Aries Agro Ltd.

BSE: 532935 Sector: Agri and agri inputs
NSE: ARIES ISIN Code: INE298I01015
BSE 00:00 | 27 May 122.25 -1.15
(-0.93%)
OPEN

121.00

HIGH

123.00

LOW

118.70

NSE 00:00 | 27 May 122.20 -1.20
(-0.97%)
OPEN

120.00

HIGH

123.20

LOW

118.80

OPEN 121.00
PREVIOUS CLOSE 123.40
VOLUME 6253
52-Week high 193.75
52-Week low 108.40
P/E 8.36
Mkt Cap.(Rs cr) 159
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 121.00
CLOSE 123.40
VOLUME 6253
52-Week high 193.75
52-Week low 108.40
P/E 8.36
Mkt Cap.(Rs cr) 159
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aries Agro Ltd. (ARIES) - Chairman Speech

Company chairman speech

TO SHAREHOLDERS

Dear Members

It is with great pleasure that I present to you the 51st Annual Report ofyour Company Aries Agro Limited.

The Year 2020-21 was a landmark year. Before the end of the FY 2019-20 we saw ‘TheGreat Pandemic Pause'. Agriculture Inputs were classified as ‘essential' commoditiesduring the Covid 19 pandemic.

We took immediate steps to restart manufacturing at our various locations and units.Automation of operations in the factories for manufacturing and packaging ensured thatoperations could restart with limited workforce as prescribed by the Government guidelinesfrom time to time. A core team was set up and this team ensured follow up in all regionsand locations on a war footing to ensure that production and business continuity was notaffected even for a single day. Occupational health and safety protocols were detailed andenforced very strictly to ensure safe and secure work environment. We introducedfacilities for temperature scanning full body sanitization tunnels periodic fumigationand all required health and hygiene measures including 100% testing of factory workersusing rapid test kits and contract tracing. With a forced reboot of plans it was agilitycreativity and resilience that reigned supreme. With a series of tough and timely choicesAries evolved - stronger versatile spirited and vibrant we are indeed ‘AriesUnstoppable'.

During the year under review the monsoon was at 109% of the LPA (Long Period Average).3 out of the 4 Kharif season months received above normal rainfall viz June (107%) August(127%) and September (105%) while July recorded deficient rainfall. Even Rabi season hadfavourable water and weather conditions and the Company was able to perform well even inthis season.

On a standalone basis the Company's gross revenue increased by 27.72% from Rs.371.50Crores to Rs.474.50 Crores.

The total capacity utilization currently stands at 67.33% of the total installedcapacity of 95400 MT p.a. in India. The manufacturing unit at Fujairah UAE began theprocess of installing the power connection for the machinery to manufacture our products.However due to lockdown conditions the commencement of production is expected tocommence operations in H2 of Financial Year 2021-22. Increased focus on the strengtheningof the Indian manufacturing base has been extremely beneficial to improve theprofitability of the Company.

The Year 2020-21 has been monumentally special. It was a very different celebration ofour Jubilee. What we demonstrated as a collective was not the exuberance of festivitiesbut the exceptional excellence created by hard work and the unstoppable Aries spirit. TheFinancial Year 2020-21 punctuated by the Pandemic lockdowns and uncertainties saw Ariesrevenues grow by 27.72% with increase in profitability by 45.02% working capital cyclereduced by 35 days debt reduced by Rs.15.71 crores.

Our Jubilee moments also included being recognized as one of India's most innovativebusiness models emerging during COVID-19 the category of ‘Innovation in CustomerInterface' by the Confederation of Indian Industry's Food and Agriculture center ofexcellence (CII- FACE) NABARD & the Ministry of Fertilizers Government. of India.The Aries Marketing team was also declared the Asian ‘Marketing Team of the Year' bythe ACEF Leaders Forum and Fortune India featured Aries as ‘A Brand trusted bymillions of farmers'. These accolades served as a capstone to this extraordinary year ofwork. For Sixteen consecutive years Aries Quality Management System was audited andcertified as ISO 9001:2015 with zero noncompliance report showing complete adherence tointernational quality standards.

Stringent cost control measures strengthened with a continued focus on domesticmanufacturing showed increase in profitability (PAT) by 45.02%. Orders received during theannual booking bazaars have assisted in better working capital management. Aries flashsales were conducted for the fourth year running in April - May 2020. On a consolidatedbasis consolidated PAT showed an improvement in line with domestic business.

The lockdown months were used for product ideation identification of new suppliers andtrials on new product lines. During FY 202021 period 07 new / upgraded products wereintroduced vis. Arisoft Aripotash Fertimax HD - 13:00:45 Fertimax HD - 00:52:34Paraakram (CPPU) Zinc HD Tablets and Aries Garden Care kits.

International clients are located in Kenya Nigeria Nepal and Taiwan. Sales werebooked for Kenya Nepal and Taiwan. Registration process started in Nigeria andBangladesh. Distributors in Nepal have put up their own manufacturing unit to support andincrease sales and distribution network throughout Nepal. Your Company endeavours toexpand export market in the coming years.

Aries continues its tradition of carrying out a range of activities that spreadknowledge and adoption of farming best practices in the markets that Aries functions in.During the year we continued to emphasize more on Covid-19 Relief Programme and create asustainable environment. We distributed Mask Sanitizer Swab & Antigen Test KitsFace Shield and Immunity boosters. Also distributed PPE kits for Hospital workers Policein Gujarat and Lucknow. We also put up Sanitisation tunnels in community market place.

To mark the momentous completion of our 50th year Aries Shubham a mammothnational campaign was executed on our Foundation day on 27 November 2020. This includedCSR activity of Annadanam which helped feed 10988 people at 108 different locations inIndia and an innovative m-coupon scheme based flash sale that incentivized farmers anddealers across the nation who patronized the Aries range of products on this specialoccasion. A record breaking 326 farmer meetings were conducted in 20 states on a singleday having an attendance of 11730 farmers. The most important element of doubling farmincome through Integrated

Nutrition Management using Aries products were discussed. A new record of Rs.13.07Crores Sales and 13.59 Crores collection was also achieved as a perfect culmination to ourJubilee year.

In addition to the above Aries' extension team continues to strongly advocate goodagricultural practices in all states of India. The activities are conducted under thesupervision of Agronomists and Agricultural Research Institutions throughout the year.Aries' extension team continues to strongly advocate good agricultural practices in allstates of India.

During the year under review with the lack of face to face contact with externalstakeholders our company initiated Farmers meeting and training programs on a digitalplatform. The Aries social media channels Agromax - our You Tube Channel TwitterInstagram and Facebook feeds sprung to life. Aries Fasal Sabhas built a weekly knowledgesharing dialogue on select crops. Technical aspects of the Company's products werecommunicated digitally through a series of 12 Fasal Sabha sessions on various crops. AnAverage reach of 20000 audience per session was recorded on Facebook application.

The Company also provided fees and scholarships to students in addition to series ofawards to meritorious students.

The Company's Call Centre based in Vijayawada continued to provide answers to farmers'queries on integrated nutrient management pest management soil health and post harvestmanagement. The Company also organized soil testing camps in 3 major consuming statesusing Mobile Soil Testing Kits.

The year 2021-22 is our 52nd year of operations and the Company continued tohave robust plans for growth and expansion. This second year of Covid lockdowns hasseverely affected rural areas and the virus has spread far and wide into the remotestparts of the country. This unlike last year is affecting the movement of people to meetwith customers and farmers. However the flow of material continued uninterrupted underessential services. The Company is looking ahead to face these challenges using digitalmeans of communication better supply inventory control and continuous attractive timebound trade schemes. The 2021-22 Annual Booking was once again conducted online with 1426dealers in 22 states booking using our Booking App. The total booking of Rs. 574 - Croreshas been recorded. This is expected to achieve Gross revenue of Rs.525/- Crores in FY2021-22. In the current year we will be introducing few products in the Pesticides andOrganic range and also extension of our crop specific nutrition products and also somefisheries and micronutrient complexes.

In addition 18 Aries' products have been certified organic by UK Cert and the processof taking additional Indian Organic Certification is also under way. The manufacturingoperations at Amarak Chemicals FZC Fujairah UAE is expected to restart operations in H2of FY 2021-22.

Aries is also the first Indian Company to receive DGCA License for agriculture droneoperations. A 100 days Campaign will be launched between August and October 2021 toexhibit the accurate use of Drones for crop nutrition sprays.

The Phase III of the Hyderabad Unit for packing operations will be functional in Q2 ofFY 2021-22 and Phase I of the Raipur packing and warehousing Unit will be operational inH2 of FY 2021-22.

The Company has already incorporated a wholly owned subsidiary M/s. Mirabelle AgroManufacturing Pvt. Ltd. whose manufacturing unit will be operational in Q2 of FY 2021-22and the Company will commence bulk B2B business in India and overseas during the year.

Through its products and passion Aries continually demonstrates that it is aresponsible corporate citizen working hard to retain the delicate balance of nature andthe development of communities where it works and grows.

Sincerely
Dr. Rahul Mirchandani
Chairman & Managing Director

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