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Coromandel International Ltd.

BSE: 506395 Sector: Agri and agri inputs
NSE: COROMANDEL ISIN Code: INE169A01031
BSE 10:17 | 28 Nov 925.25 4.60
(0.50%)
OPEN

930.00

HIGH

930.00

LOW

918.60

NSE 10:04 | 28 Nov 926.55 6.20
(0.67%)
OPEN

921.35

HIGH

928.60

LOW

917.45

OPEN 930.00
PREVIOUS CLOSE 920.65
VOLUME 5500
52-Week high 1094.40
52-Week low 709.55
P/E 15.13
Mkt Cap.(Rs cr) 27,202
Buy Price 925.30
Buy Qty 113.00
Sell Price 926.35
Sell Qty 38.00
OPEN 930.00
CLOSE 920.65
VOLUME 5500
52-Week high 1094.40
52-Week low 709.55
P/E 15.13
Mkt Cap.(Rs cr) 27,202
Buy Price 925.30
Buy Qty 113.00
Sell Price 926.35
Sell Qty 38.00

Coromandel International Ltd. (COROMANDEL) - Chairman Speech

Company chairman speech

3. Leadership Messages

3.1. Chairman's message11

Dear Shareholders

The past year 2021-22 was a period of recovery and new uncertainties inequal measure for both the Indian and the global economies. The period saw a broad-baseduptick in investments and demand revival followed by the vagaries of a global commodityshock due to war in Europe and supply chain disruptions in China. These supply- sidebottlenecks and a stronger- than-anticipated rebound of demand have resulted in majorcommodities experiencing a significant price surge during the year. While the demandrevival was in part supported by strong fiscal stimulus measures across the world itremains to be seen how the governments respond to the resultant increase in inflationarypressures. As we look forward the monetary tightening due to inflation pressuresgeopolitical uncertainty covid-19 flare- ups and high commodity prices can impact thespeed of a global economic recovery in the coming year with the World Bank forecastingthe developing economies to grow at a modest 2.9% and India to grow at 7.5% in 2022.

A fourth consecutive year of normal monsoon should hold Indianagrisector and Coromandel in good stead

The year 2021-22 witnessed normal monsoons leading to increasedacreage under sowing for the period. Despite the heatwave in central and north Indianregions dampening the harvest food grain output was expected to grow by 1% to 315 milliontonnes over the previous year. Forecasts of a well-distributed and normal monsoon for theupcoming Kharif season has enabled the government of India to set a new record target of328 million tonnes of food grain production for the year 2022-23 a 4% increase over theestimated output of 315 million tonnes in 2021-22. Despite the fact that the globalgeopolitical instability has put pressure on the availability and price of key rawmaterials catering to the agri-inputs sector the government has assured of takingsufficient steps to ensure availability of agri-inputs for the upcoming season.

As far as the fertiliser industry was concerned 2021-22 was achallenging year as a surge in raw material prices and constrained supply chain impactedfertiliser availability and led to a sharp increase in prices of finished products. As perIMF the fertiliser price index rose by 114% during the year. Many countries increasedtheir self-sufficiency efforts in the second half of the year and placed restrictions ontrade of agricultural inputs. In 2022-23 Fertiliser affordability and availabilitygeo-political situation and Government subsidy support are likely to have significantinfluence on the demand and supply dynamics of fertilisers. However higher agri commodityprices focused approach from the government to increase farm output and a normal monsooncoupled with sufficient reservoir levels present an year of positive outlook for Indianagriculture.

Coromandel is looking forward to unlocking its growth potential in itsadjacencies with a growth-focused team to deliver on the emerging opportunities.

Coromandel is poised to tap into the emerging growth opportunities

Coromandel recorded strong growth numbers despite the marketuncertainties. The Company registered revenue of INR 19111 Crores for the year 2021-22 asignificant growth of 35% over the previous year. The Company's EBITDA was at 2154Crores a growth of 8% over the previous year. On the strategic front the fertiliserbusiness had successfully completed a significant backward integration deal recently inaddition to ramping up its manufacturing capacities through sustained de-bottleneckingefforts. The crop protection business has significantly invested in revamping itsinfrastructure and organisational capabilities during the past year. This shall reflect inthe upcoming new product launches and new geography expansions in the coming years.Despite the challenging environment on the sourcing front Coromandel's specialitynutrients and bio businesses too have managed to grow during the past year. With renewedgrowth aspirations in place we expect these relatively smaller businesses to be the faceof Coromandel's growth story over the next few years. In addition to these businessspecific growth prospects Coromandel is also looking forward to unlocking its growthpotential in its adjacencies with a growth-focused team to deliver on the emergingopportunities.

Welcoming the new members to Coromandel Board

I would like to welcome Mr. Sudarshan Venu to the Board of Coromandelhe joined us during the past year. With his diversified expertise set includingmanufacturing technology and financial services Mr. Sudarshan would be a great asset tothe Coromandel Board.

Thank you all...

I would like to thank the Members of the Board for their continuedsupport and guidance throughout the year. On behalf of the Board of Directors I wouldlike to thank all our stakeholders including our customers shareholders bankingpartners channel partners and the government for supporting us in our journey. I wouldlike to wholeheartedly thank my fellow colleagues at the factories and offices ofCoromandel for ensuring yet another year of successful business operations. With all yourcontinued support and the blessings of the almighty I eagerly look forward to theupcoming year.

A. Vellayan

Chairman

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