Dear Shareholders,
On behalf of Coromandel, I would like to compliment the indomitable spirit of our
Annadatas who withstood a tough agricultural environment and delivered yet another strong
crop output during the year. As a leading agrisolutions player, your company is proud to
partner with the farming community, providing quality farm inputs and services, expanding
its advisory practices and exhibiting a resilient performance.
Coromandel continued to strengthen its core agricultural businesses as it fortified its
position as a leader in the phosphatic nutrition space in India and took progressive
strides in growing its crop protection and bio businesses. With an eye on the future, your
company is closely nurturing growth opportunities adjacent to its core operations and is
stepping out into technology areas. These initiatives are poised to yield substantial
benefits over the long term, positioning the company favourably as it progresses into the
future.
The year gone by: Promising economic recovery & agricultural reforms
India continued its growth momentum during the year exhibiting strong fundamentals and
financial stability - moderation of headline inflation, higher fixed investment, improved
general government finances and robust tax collections- indicating sound progress with
economy expected to grow by 7.6% in FY24 and becoming the fastest-growing major economy.
While the agricultural growth tapered during 2nd half of the year due to seasonal
vagaries, the Government continued its policy push with reforms aimed at driving balanced
nutrition and efficient resource utilization. Schemes like PM-Pranam, Namo Didi drones,
PM-KSK were introduced and expanded during the year, indicating a strong intent towards
driving sustainable farming practices. Coromandel has been supporting these efforts and
provided training and distributed 200 drones to women self help groups. It continues to
foster strong partnerships with farmers and upholds its commitment to agricultural
excellence and prosperity of farming communities nationwide.
With the recently concluded Indian General elections, the world has witnessed the
largest democratic exercise leading to formation of a stable government at the Centre.
This bodes well towards strengthening the overall economic environment and drive policy
reforms to deliver growth in coming years. Further, the positive monsoon forecast for the
upcoming Kharif season combined with supportive policies are expected to improve the
agricultural scenario in FY25.
Fortifying resiliency: Strengthening the core businesses
We strongly believe that reinforcing our core business is pivotal for ensuring
long-term sustenance of Coromandel. In pursuit of this goal, we have implemented a series
of strategic measures aimed at enhancing our operational capabilities and expanding the
product portfolio.
Our commitment to bolstering infrastructure and achieving backward integration remains
unwavering. In Visakhapatnam, we successfully commissioned a state-of-the-art 1650 ton per
day sulphuric acid plant, further fortifying our fertilizer manufacturing capabilities.
Looking ahead, we are also progressing with the establishment of a 650 TPD phosphoric acid
capacity and 2,000 TPD sulphuric acid capacity at Kakinada, demonstrating our proactive
approach to expanding production capacities. In 2022, our acquisition of a mining company
in Senegal marked a significant milestone in solidifying our presence across the
phosphatic nutrient value chain. This strategic move not only enhances our resource base
but also strengthens our operational resilience in the global market.
In Crop protection, we have initiated infrastructure development on a newly acquired
50-acre site in Dahej, Gujarat, where we plan to establish multi-product plants for new
technicals to meet growing market demand. The business is expanding its exports presence
through improved customer relationships and is partnering with the innovator companies for
novel product introductions in the domestic markets. Bio products business is diversifying
its product offerings and has expanded into new plant based extracts, bio fertilizers and
microbial segments. Retail business plans to expand its footprint by 100 additional stores
in existing and new markets and is leveraging technology solutions in the areas of
precision advisory, e-commerce, drone spraying & diagnostics and delivery services.
In our pursuit to bring innovation at the forefront, we are strengthening the
Technology and R&D functions within Coromandel. We have established Coromandel
Nanotechnology Center at Coimbatore, Tamil Nadu, which will support our efforts towards
development of wide range of nano-enabled agri-inputs for plant nutrition and crop
protection. Over the past fiscal year, Coromandel has introduced thirteen new products
including our proprietary ‘Nano DAP' underscoring our leadership in integrating nano
technology into agricultural applications.
Furthermore, we are driving a robust digital transformation across our organization,
integrating advanced analytics to optimize processes and achieve operational efficiencies.
This digital push not only enhances our agility but also sets the stage for a new era of
growth and innovation at Coromandel.
Embracing sustainability at Coromandel
Sustainability lies at the heart of our operational ethos, influencing every facet of
our business practices and customer interactions. Our solutions are meticulously designed
with a steadfast dedication to environmental stewardship, ensuring sustainable outcomes
across all operations. As part of our ESG commitments, we have finalized the targets and
strengthened the governance mechanism. During the year, Coromandel set up a 6 million
litres per day desalination plant and installed waste heat recovery system from Sulphuric
acid plant for power generation at Vizag, ensuring responsible resource management.
Coromandel Reimagined
The theme "Coromandel Reimagined" encapsulates the strategic initiatives
undertaken by the company over the past year to expand its growth horizons. These efforts
include strengthening the core - enhancing backward integration, fostering product
innovation, expanding production capacities, and exploring new markets. Concurrently,
Coromandel has been proactive in identifying opportunities in adjacent and step out spaces
- developing businesses that complement its existing strengths and venturing into emerging
sectors. By embracing innovation and strategic diversification, Coromandel aims to
leverage opportunities and establish a resilient foundation for long-term success. This
forward-thinking approach underscores the company's commitment to sustainable growth and
positioning itself as a leader in emerging growth areas.
We are strategically tapping into emerging opportunities such as Specialty Chemicals,
CDMO and drone applications for Defence, Agriculture, and Enterprise domains.
Concurrently, investments in Agtech solutions underscore our commitment to driving
positive impact on the livelihoods of farmers and aligns with our vision of building a
smart and sustainable future. By continually evolving and adapting, we aim to deliver
sustained value to our stakeholders.
Thanking Directors who had recently stepped down from the Coromandel Board
I would like to thank Mr Sumit Bose, Mr. R Nagarajan, Mr. K V Parameshwar and Ms. Aruna
Advani, for their significant contributions as Independent Directors. I would like to
thank Mr. M M Venkatachalam for his guidance and contributions as Non-Executive Director
on the Board of Coromandel. The esteemed members had completed their term as Independent
Directors on the Board of Coromandel during the course of the previous fiscal, and during
their time on the Board of Coromandel, their valuable inputs and guidance were
instrumental in the company taking several strategic decisions.
Welcoming the new members to Coromandel Board
I am happy to welcome Mr. Aditya Himatsingka and Mr. Adnan Ahmad to the Board of
Coromandel, effective October 2023. Mr. Aditya brings with him a wealth of experience from
his role as head of one of the cherished Indian textiles houses, the Himatsingka Group,
having built up and grown brands in a truly Made in India for Global stories of our
generation. Mr. Adnan has served the Indian and Global chemicals sector well, with his
distinguished experience across several areas within the world of chemicals and his value
add to the Board of Coromandel will be immense.
I am also pleased to welcome Mr. Suresh Subramanian to our Board from April 2024.
Having worked with reputed accounting firms over the past forty years, he brings a strong
understanding of the complexities and requirements of accounting and corporate governance.
I am also pleased to welcome Mr. Arunachalam Vellayan and Mr. Narayanan Vellayan as
Whole-time Directors of Strategy & Planning and Strategic Sourcing respectively.
Chairman Emeritus
Mr. A Vellayan had retired from the position of Chairman in April 2024. I would like to
record my sincere appreciation and gratitude for his invaluable contributions to the
company during his Chairmanship. In recognition of Mr. A Vellayan's contributions to the
Company over the past several years and to continuously benefit from his rich experience,
valuable knowledge, and guidance from time to time, Mr A Vellayan has been designated as
Chairman Emeritus.
Thank you all
I express my sincere gratitude to the Board Members for their unwavering support and
invaluable guidance over the past year. On behalf of the Board of Directors, I extend
heartfelt thanks to all our stakeholders — customers, shareholders, banking partners,
channel associates, and the government — for their steadfast support throughout our
journey. I also want to extend my deepest appreciation to the leadership team and each and
every one of my colleagues at Coromandel - in our factories, in our offices and those out
in the field, whose dedication has been instrumental in achieving yet another year of
successful business operations. With the ongoing support from all of you and the blessings
we receive from the Almighty, I am looking forward to the exciting opportunities ahead.
Arun Alagappan
Executive Chairman