Dear Shareholders,
I hope this letter finds you and your families well and safe.
FY 2021-22 was a year of revival for Indian economy from Covid-induced disruption. The
country made rapid progress in vaccination and closed the year with majority of the adult
population vaccinated with both the doses. India's GDP growth rebounded to an estimated
8.7% in FY 2021-22 from contraction in the previous year, fastest in the world. India's
merchandise exports reached a record high of $418 billion in FY 2021-22, a 40% growth over
the previous year.
Another Year of Stellar Performance For your Company, it was another of stellar
performance, with the growth of 22.1% in total income and 38.1% in profit after tax,
year-on-year, respectively. Your Company achieved its highest ever total income and
profits primarily driven by higher realisations from exports, favourable product mix and
operational efficiencies.
During the year, your Company commissioned a new herbicide plant and started production
of CDMO products with satisfactory results. The construction of a new state-of-the-art
R&D centre is on track and is expected to be completed in FY 2022- 23. Your Company
launched two new CDMO products in FY 2021-22.
We care
Our Environment, Health and Safety (EHS) team continued to work with highest level of
dedication and commitment to safety standards. Our safety record was excellent and we had
no lost time injuries. Our Corporate Social Responsibility (CSR) activities continued in
line with the Godrej Group's Good and Green philosophy and positively impacted our
communities. We worked on projects in the area of agriculture and rural livelihoods, women
empowerment, water security, education and community development. Under our Grameen Vikas
initiative, we organised trainings for farmers in 9 villages in animal husbandry leading
to visible improvement in yield and income levels. We also facilitated drip irrigation
facilities, community seed bank and kitchen gardens for rural households. As a part of
community education programme, we expanded our support for digital education to 978
students and 15,000+ hours of education content.
Business Overview
We continued our work on COVID-19 relief programme during the year and facilitated
vaccination of 16,787 community members spread over 16 villages.
Way Forward
Going forward, your Company will continue to work towards expanding contract
manufacturing business and also focus on diversification into other chemistries. Your
Company's newly commissioned herbicides plant and new R&D centre, once completed, will
provide a solid launchpad for achieving these targets.
We have our eyes set on the opportunities that the future holds for the agrochemicals
sector of India owing to the factors such as China plus One Strategy and Atmanirbhar
Bharat, to capitalize on the opportunities of tomorrow.
Note of Thank
To conclude, on behalf of the Board and management team, I would like to express our
sincere appreciation and deep gratitude to all our employees, business partners,
customers, vendors, shareholders, investors and other stakeholders for their continued
trust, efforts and contribution to the Company.
I would also like to thank Mr. Ashok Hiremath for his immense contribution and guidance
during his tenure as the "Managing Director" of the Company. Mr. Hiremath
retired on 31st March, 2022 post completion of his term and he shall continue
to act as a "Non-Executive (NonIndependent) Director" of the Company. Mr.
Hiremath founded Astec LifeSciences in 1994 and provided tremendous leadership for the
past 28 years. We look forward to benefit from his insights as a member of the Board.
Regards,
Anurag Ray
Chief Executive Officer.