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Godrej Agrovet Ltd.

BSE: 540743 Sector: Agri and agri inputs
NSE: GODREJAGRO ISIN Code: INE850D01014
BSE 00:00 | 25 Jan 519.45 15.90
(3.16%)
OPEN

500.00

HIGH

523.50

LOW

493.85

NSE 00:00 | 25 Jan 519.85 17.65
(3.51%)
OPEN

504.75

HIGH

523.80

LOW

493.30

OPEN 500.00
PREVIOUS CLOSE 503.55
VOLUME 8728
52-Week high 746.80
52-Week low 469.70
P/E 32.75
Mkt Cap.(Rs cr) 9,979
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 500.00
CLOSE 503.55
VOLUME 8728
52-Week high 746.80
52-Week low 469.70
P/E 32.75
Mkt Cap.(Rs cr) 9,979
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Godrej Agrovet Ltd. (GODREJAGRO) - Chairman Speech

Company chairman speech

Dear Shareholders

I hope you and your families are safe and healthy.

Financial Year 2020-21 was one of the toughest years due to theCOVID-19 pandemic and has led to many challenges for the corporate sector. It forcedcompanies to run differently along with testing the resilience of the business to theunprecedented disruptions. However your Company swiftly adapted to changing situationsand executed operations ensuring limited interruptions.

The COVID-induced lockdown is expected to result in a 7.3% contractionin India's Gross Domestic Product for the Financial Year 2020-21. The agriculturesector was the only silver lining and is expected to grow at 3.6%. Agricultural goods andservices were categorised as essential in nature which makes the sector relativelyresilient vis-a-vis others. Further macro indicators for the sector were also positivewith the second consecutive year of normal monsoon sufficient water reservoir levelsgood soil moisture and remunerative crop prices.

For Godrej Agrovet it was an outstanding year in terms ofprofitability as consolidated profit before tax (excluding non-recurring and exceptionalitems) grew by 59.7% year-on-year. Growth was led by strong performances in our AnimalFeed business segment our subsidiaries - Astec LifeSciences Limited Godrej Tyson FoodsLimited and our joint venture - ACI Godrej Agrovet Private Limited Bangladesh. TheCompany was able to achieve stellar profit growth because of the relentless efforts of ouremployees and the management team. Our manufacturing plants became operational within afortnight of the lockdown after obtaining all the necessary approvals and the teams acrosslocations ensured an uninterrupted supply of goods and services. Strong focus was given oncost optimisation and technology was leveraged for seamless execution. However totalincome (excluding non-recurring income) declined by 8.5% due to lower volumes and sales inthe Animal Feed and Creamline Dairy Products Limited. Lower demand of the dairy andpoultry products from the HoReCa (Hotels restaurants and catering) segment and lowerout-of-home consumption impacted volumes and sales in the two businesses.

Segment-wise also our performance was significantly better than theprevious year in most businesses in which we operate. In Animal Feed segment profits grewby 24.1% as R&D initiatives yielded results and this coupled with favourable rawmaterial prices supported profitability. For Astec LifeSciences Limited it was anotheryear of robust performance as profit before tax grew by 45.2%. Godrej Tyson Foods Limitedperformed extremely well and clocked profit before tax of Rs 22.7 Crore compared to a losslast year. ACI Godrej Agrovet Private Limited also witnessed strong volume and salesmomentum resulting in growth in profit before tax of 43.8%. In Crop Protection ourefforts were on increasing collections which grew by 27.0% though the profitability wassimilar to that of the previous year. However in the Oil Palm segment profits wereimpacted by a white-fly attack which lowered fruit bunch arrivals as well as oil content.

We continued to enhance our product offering through new productlaunches and by increasing the distribution reach of our existing products. We launched‘Samruddhi' a cattle feed product in the western markets and it has seensignificant volume pick-up within a few months of the launch. We have also introduced newvegetarian and non-vegetarian ready-to-cook processed food products under the‘Yummiez' brand which serve as an excellent snacking alternative to dining out.In the Dairy segment we re-branded the product portfolio under the new ‘GodrejJersey' logo and have also started selling Jersey ghee in parts of Maharashtra. InCrop Protection we have partnered with other large agrochemical companies to increase thedistribution reach of our in-house and in-licensed products.

The construction of new manufacturing facilities has been delayed by afew months due to the lockdown however projects are expected to commercialise in theFinancial Year 2021-22. The new herbicide plant in Astec LifeSciences Limited will help usdiversify into new products and the new R&D lab will enhance our capabilities toundertake new projects. We are also setting up a fish feed plant in Uttar Pradesh to caterto the northern and eastern markets. We continue to invest in other R&D projects whichwill help us improve our product offering and also contribute to profitability.

For the Financial Year 2021-22 despite the initial disruption causedby the second wave of COVID-19 India is expected to grow at a healthy rate albeit on alow base. Expectation of revival in consumption and pick-up in the business activity isexpected to drive growth. Sector-wise the agriculture sector is expected to be the keycontributor to growth. Initial macro indicators of the sector look promising with goodRabi harvest a third consecutive year of normal monsoon and remunerative crop prices.This is expected to benefit our Crop Protection and Oil Palm segments. Further with theopening of the economy demand from the HoReCa segment is expected to pick-upsignificantly which will support volumes and sales in the Animal Feed and the Dairysegments.

Before concluding I would like to thank all the employees for theirsupport and commitment towards the Company. I also express my gratitude to allstakeholders for believing in the Company and supporting us in these difficult times.

Yours sincerely

Nadir Godrej Chairman

Godrej Agrovet Limited

.