Driving Sustainable Growth Through Innovation
“Our stable balance sheet and strong cash reserves give us
flexibility for strategic investments.
As we move 80 percent utilization, from 55 to 60 percent, we anticipate
further capacity expansion and acquisition opportunities. ”
V.L. Rathi, Chairperson
Dear Stakeholders,
It is with pride and optimism that I present the Integrated Annual
Report of Advanced Enzyme Technologies Limited for FY 2024-25. The health and wellness
landscape continues to evolve rapidly, demanding innovation and sustainable solutions.
At Advanced Enzymes, we believe today's choices shape tomorrow's world.
We remain committed to building a better future for generations to come.
The past year placed the global economy at a pivotal point amid policy
shifts and uncertainty. Yet, we remained resilient—leveraging innovation and
strategic focus to deliver consistent performance and maintain our growth trajectory.
Navigating Uncertainty with Focus
Global growth in 2024 was stable but subdued.
While moderating inflation offered a positive signal for monetary
policies, optimism was tempered by unpredictability—particularly from evolving U.S.
trade policies and tariffs that could restructure global markets.
The enzyme and probiotics industry saw modest growth, with companies
experiencing varied outcomes. Intense competition from well-funded players with strong
R&D and market reach challenged many companies, including us. However, by leveraging
our expertise in enzyme-based solutions and targeting niche opportunities, we maintained
our competitive edge. Our robust product pipeline positions us well to deliver ongoing
value to our consumers.
Financial Performance
Delivering on strategic goals requires sound financial discipline. Our
performance in FY 2024-25 reflects our resilience and positions us for future growth. As
of March 31,2025, we recorded consolidated revenue of Rs.6,369 million-a two percent
year-on-year increase.
Our Animal Nutrition vertical grew 12 percent, contributing 12 percent
of total revenue. The Bioprocess vertical, particularly the food business, grew 4 percent.
Human Nutrition, contributing 64 percent, remained our largest vertical. Our specialized
manufacturing business saw a 30 percent revenue increase, reflecting the success of our
diversification efforts.
Subsidiaries played a crucial role in our growth. Scitech Specialities
reported a 30 percent revenue increase. JC Biotech and evoxxTechnologies GmbH advanced our
capabilities, with evoxx's protein engineering strengthening our R&D capabilities.
Our stable balance sheet and strong cash reserves give us flexibility
for strategic investments. As we move 80 percent utilization, from 55 to 60 percent, we
anticipate further capacity expansion and acquisition opportunities.
Driving Innovation
Innovation is our foundation and key differentiator.
In FY 2024-25, we invested Rs.248 million in R&D (four percent of
revenue), up from Rs.197 million the previous year, representing four percent of revenue.
This enabled the development of 15 to 16 new molecules at different stages, many nearing
commercialization.
Our strategic R&D focus on biocatalyst enzymes and advanced protein
engineering through our German subsidiary evoxx Technologies enables us to create enzymes
that function effectively under harsh commercial conditions.
We developed extensive enzyme libraries for diverse applications,
including sugar, weight management and digestive wellness. In the food business, we
introduced bakingsolutions reducing gluten and sugar use, enhancing fiber and
nutrition-meeting the demand for healthier, clean-label products.
Our branded and clinically studied nutraceutical ingredients support
carbohydrate metabolism and gut health. Future clinical studies will explore enzyme and
probiotic applications to meet evolving health needs.
Our U.S. subsidiary established Starya Labs, an independent facility to
meet a growing need for third-party testing of enzymes and probiotics. It will serve the
increasing demand for regulatory compliance and independent testing certifications for
brands in North America.
We also deployed high-throughput and Al-based screening tools,
improving enzyme identification and optimization. These technologies enhance product
quality, profitability, and health benefits for consumers-empowering innovation-driven
growth and exploration of untapped opportunities.
Building a Roadmap for Sustainable Growth
We are deepening our presence in the U.S. nutraceutical market,
focusing on high growth sectors such as gut health, protein powders, and pet supplements.
Strong brand recognition and targeted marketing are increasing inbound sales and loyalty.
To scale further, we are expanding our salesforce and distributor network, prioritising
partners with market influence and financial strength.
Strategic acquisitions are key to our growth strategy. With carefully
considered acquisitions, we intend to expand our customer base, acquire valuable patents
or technology and enhance manufacturing capabilities. Our acquisitions of evoxx and
Scitech have proven instrumental in strengthening our reach-ensuring value-aligned
expansion.
A new R&D facility under development in Nashik, spanning 1,00,000
square feet in its first phase and having already incurred a Capex of Rs.469 million
(including land acquisition cost), will consolidate research efforts, reduce turnaround
time, and accelerate innovation.
Committing to a Greener Future
Sustainability is integral to our ethos. Our enzyme-based solutions
replace chemical catalysts across industries, advancing eco-friendly alternatives in
healthcare, agriculture, and bioprocessing.
We are proud to have received the Zero Hazardous Discharge Certificate
3.0, reaffirming our commitment to environmentally responsible practices. Our 510 kW solar
plant contributed 10% of our electricity in fiscal 2025, marking a major step in our clean
energy strategy. We aim to further increase our reliance on renewables.
Our sustainability initiatives also encompass the development of
enzymatic solutions for API intermediates, offering cleaner alternatives to chemical
methods and helping reduce environmental treatment burdens. These initiatives align with
global sustainability goals and promote efficient resource use. We continue to invest in
green technologies for biomass hydrolysis and vegetable oil extraction—further proof
of our commitment to environmental stewardship and a greener future.
Guided by Vision
Advanced Enzyme Technologies is well-positioned to capture
opportunities in the enzyme and probiotics space. Our business model, innovation pipeline,
and strategic investments provide a strong foundation for sustained growth.
We recognize global uncertainties and competitive pressures will
persist. Our core strengths, innovation and sustainability, coupled with a unwavering
focus on market expansion and operational excellence, will continue to drive progress.
With our dedicated team, visionary leadership, and stakeholder trust, I
am confident we will continue to deliver science-backed, eco-safe solutions.
My heartfelt gratitude to our dedicated employees, loyal customers, and
valued partners and shareholders for their continued support. As we enter the next phase
of our journey, we are confident and ready to lead with clarity and purpose.
| Sincerely, |
V.L. Rathi |
| Chairperson |