tRansFORMIng tO next gen agRIcultuRe cOMPanY
The year 2020-21 has been a very challenging year for India as a Country. Our overalleconomy has degrown by 7.3% due to the challenges caused by the COVID-19 pandemic.However in this situation the agriculture sector has shown an impressive growth of 3.6%for the year 2020-21. We are fortunate as a Company to be largely operating in this sectorand this has helped us to show an overall good performance for the year 2020-21 despitethe prevailing risks and challenges posed by a devastating pandemic.
Against this backdrop of positive growth there are many challenges facing theagricultural sector too. India is a Country with the second largest farm output. Butshrinking farmland rising population shifting food patterns and increased per capitaconsumption of farm produce are necessitating higher agricultural yields. In additionthere is also a growth in demand for better quality and higher nutritional food productsdue to shifts in food consumption patterns.
Keeping pace with this growth in demand and consumption pattern requires a considerableshift from the traditional ways of farming. Both the State and the Central Government havebeen proactively and rightfully focusing on several policy measures and implementationprograms to boost farm sector. Soil health card schemes consumption-based subsidies cropinsurance corpus for special irrigation fund more crop per drop approach sustainableground water management unified agricultural marketing e-platforms Pradhan Mantri KisanSammann Nidhi etc. are only a few of the many interventions from our Government to theagri community.
As a responsible Company operating in the Agri-inputs sector Coromandel too hasstrived to play an active role in bringing about adoption of modern agronomic practicesover the years. Providing effective and affordable nutrition and crop protection solutionsto our farmers needs is critically important. Coromandel is committed to bring inthe right products and agri technologies to help the farmers achieve the best possibleyields. We firmly believe that there is a tremendous opportunity and an unsaidresponsibility for Coromandel to bring the best of technological advancements from theworld of agri research to the doorsteps of our Indian farmers.
some of the companys activities to fulfil the foresaid agenda include:
Ensuring seamless and efficient supply of nutrient and crop protection products andservices to farmers through multiple channels including private trades Governmentinstitutions and MGC stores.
Continuedinvestmenttostrengthen in-house R&D with an endeavour to introducedifferentiated products like GroSmart GroPlus Gromor Ultra GroShakti etc. to helpfarmers grow their yield.
Tie-ups with agri universities IITs and other agri agencies to pass on benefits of newproducts and farming practices to farmers.
Providing agri extension services like soil Testing satellite imagery crop advisoryservices.
Extending access for Government welfare schemes like POSHAN abhiyaan (PrimeMinisters Overarching Scheme for Holistic Nutrition).
Conducting crop and farmer specific workshops through Gromor Nutri-clinics.
As a responsible Company committed to preserving the soil health of the nationCoromandel will continue to offer the best organic and biological solutions in addition tothe traditional chemicals-based fertiliser and crop protection solutions.
The financials of Coromandel continued its strong trajectory despite a pandemic year.The EBITDA and net profits for the Company clocked impressive double-digit growth rates of17% and 25% respectively on top of a 8% revenue growth as well. The consolidated totalincome reached Rs.14257 crores during the year 2020-21. However as weenter the year 2021-22 we are witnessing serious challenges in terms of availability andprices of our key raw materials. Although Government of India has rendered timely help byannouncing a higher subsidy for the phosphatic sector the situation is quite challenging.
Built over its 60 plus years of existence the strong fundamentals of the Company willensure Coromandel will continue to perform well in the future. However there is a growingneed for the Company to embark on a transformative journey to imbibe new capabilities. Thecurrent leadership team at Coromandel is fully cognizant of this and is making a dedicatedeffort to spend disproportionate time and effort towards building an agile next-genagriculture Company. I am confident the output of these efforts will manifest itself inthe coming years in the form of innovative new product launches geographical outreachesdigital and technology adoption to the Companys manufacturing and supply chainenhanced customer service models and fringe ecosystem plays.
Welcoming the new members to coromandel Board
I would like to welcome Mr. Arun Alagappan and Mr. Ramesh K. B. Menon who joined on theBoard of the Company during 2020-21. My congratulations and best wishes to Mr. ArunAlagappan on his subsequent appointment as the Executive Vice Chairman of the Company aswell.
thank you all...
On behalf of the Board of Directors I would like to thank our customers shareholdersbanking partners channel partners and the Government for reposing faith in us andsupporting us throughout. I would like to whole heartedly thank my colleagues acrossfactories and offices at Coromandel for going above and beyond their call of duty tosupport the business during the pandemic. With your continued support I eagerly lookforward to the upcoming year.