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Deepak Fertilizers & Petrochemicals Corp Ltd.

BSE: 500645 Sector: Industrials
NSE: DEEPAKFERT ISIN Code: INE501A01019
BSE 00:00 | 14 Feb 99.85 0.30
(0.30%)
OPEN

102.00

HIGH

103.85

LOW

99.20

NSE 00:00 | 14 Feb 99.95 0.50
(0.50%)
OPEN

103.10

HIGH

103.85

LOW

99.15

OPEN 102.00
PREVIOUS CLOSE 99.55
VOLUME 54469
52-Week high 169.00
52-Week low 76.45
P/E 57.39
Mkt Cap.(Rs cr) 891
Buy Price 99.10
Buy Qty 101.00
Sell Price 99.85
Sell Qty 281.00
OPEN 102.00
CLOSE 99.55
VOLUME 54469
52-Week high 169.00
52-Week low 76.45
P/E 57.39
Mkt Cap.(Rs cr) 891
Buy Price 99.10
Buy Qty 101.00
Sell Price 99.85
Sell Qty 281.00

Deepak Fertilizers & Petrochemicals Corp Ltd. (DEEPAKFERT) - Chairman Speech

Company chairman speech

Dear Shareholders

In the financial year 2019 all that could go amiss did!

Over the last 40 years we have weathered many a storm impacting one or the othersector of our business. During these times our balanced risk mitigating and diverseproduct / market portfolio of Pharmaceutical Chemicals Mining Chemicals and Fertilisershas always come to the rescue. Rarely have we had destiny present us challenges on allsectors simultaneously:

• Unprecedented raw material price hike across all sectors

• Major supplier constraints

• Acute water shortages at manufacturing complex

• Drought hitting fertiliser markets

• Severe financial debt market crisis

• Massive volatility impacting trading arising out of USA-Iran relations threats

Our top management team converged into a think- tank evaluating each challenge andcreating various scenarios. This team then wind-tunneled each available option to puttogether a meticulous plan of action to mitigate this crisis. We reviewed and cut costswe moved to alternative supply points we reworked better logistics sharpened our productmix recast trading basket and innovated our water management....

Our single-minded focus and resilient determination bore visible and valuable results.Some of these I wish to share with you include:

• A significant jump of 27% of TAN revenue growth over previous year

• A rise of 18% in the Acid business revenue over last year

• Reduction of over Rs. 1000 crores in working capital from high octanecollection drive and consolidation of trading portfolio

• Debt reduction of Rs. 500 crore and achieving zero commercial paper

• Our overall product basket now reflected 65% tilt towards the more profitableChemical sector

• Uniquely Differentiated Performance fertiliser crossing 43% of the commodity NPKbasket

• Commencement of the new Acid Complex at Dahej with accelerated plant capacityutilisation

• Over 50% savings in demurrage from proactive management of port-plant logistics

• 800 KL per day savings from better water conservatism

With a larger vision to become future-ready and future- relevant we have embarked on ajourney of transformation from:

• Product to Solutions

• Customer to Consumer

• Commodities to Brands

As part of this transformation we have already started to shift from:

Generic Fertilisers to Crop Specific Performance Nutrients

• Technical Ammonium Nitrate products to Mining Solutions

Commodity Chemicals to End-use Certified and Customised Chemicals

Our transformation strategies and growth plan have been strongly validated byInternational Financial Corporation Washington who have joined us as strategic alliancepartners bringing invaluable global sectorial knowledge and experience.

Our strategic transformative drive has likewise caught the attention of SectorialGlobal Leaders who have shown keenness in associating with us as they embark on theirjourney into India.

The next few years will see us radically transform from a Commodities mindset tocreating Customised Solutions and Brands. This will in turn see us move from Competitionpricing to Value pricing. This shift will be bolstered by our capacity enhancement andbackward integration capex plan cementing a solid foundation for sustained returns in themedium and long term. Moving ahead our financial game plan will see monetization ofnon-core assets equity infusions from the promoters strategic partners and capitalmarkets along with the next level of restructuring to reflect sectorial focus.

With faith and conviction we need to dare!

Warm Regards

S. C. Mehta

Chairman & Managing Director