Dear Shareholders,
The year 2022-23 presented unparalleled challenges in the form of
global supply chain disruptions and subsequent inflationary pressures. Along with other
factors like rising input costs, including higher fuel and food grain prices, these
challenges forced policymakers to take proactive measures to stabilise their economies.
Central banks worldwide implemented synchronised policy tightening, which seems to have
yielded positive outcomes.
However, in the tumultuous year that went by, India showed remarkable
resilience in the face of global headwinds. The country achieved a solid growth rate of
7%, while the Reserve Bank of India (RBI) implemented well-calibrated and systematic
interest rate hikes to bring inflation rates back within the target range. Additionally,
swift action by the Government to secure India's food chain, coupled with average
rainfall ensured that the food prices are kept in check, thereby ensuring that no Indian
goes hungry.
India's food grain production reached 323.55 Million tonnes in 2022-23,
showing an increase from the previous year. The country has become a net exporter of
agricultural products, with agriculture exports reaching USD 50.2 Billion in the same
period. The kharif food grain production for 2022-23 was 149.9 Million tonnes, surpassing
the average production of the previous five years.
India's population growth requires increased food and agricultural
production, but available agricultural land is decreasing due to urbanisation and
industrialisation.
This leads to higher pressure on productivity per acre, resulting
in increased reliance on fertilisers. As a result, the demand for fertilisers is expected
to remain high. Initiatives like Aatmanirbhar Krishi and Aatmanirbhar Bharat have
reduced India's reliance on imported fertilisers and offer opportunities for domestic
fertiliser manufacturers to expand. Factors contributing to increased fertiliser
consumption include higher subsidies, improved rural incomes, better access to credit,
adoption of technologies like the Internet of Things (IoT), corporate farming, growing
farmer awareness of fertiliser benefits, and improved minimum support prices.
Fertilisers play a crucial role in agriculture by providing essential
nutrients to the soil in optimal quantities. However, the global challenge lies in
producing an adequate supply of sustainable fertilisers to meet the increasing
agricultural demands and effectively nourish the growing global population. To achieve
this, it is vital to enhance sustainable fertiliser production, which can improve industry
efficiency, while minimising harmful emissions.
At PPL, our steadfast commitment lies in achieving harmony between
human progress and environmental sustainability. We prioritise and actively engage in
mitigating water and air pollution, safeguarding the environment, and responsibly managing
waste. These endeavours reflect our resolute dedication to this cause. We
meticulously adhere to all applicable laws and regulations governing the discharge,
emission, storage, handling, and disposal of substances involved in our operations. By
doing so, we ensure compliance and demonstrate our commitment to environmental
stewardship.
We are actively engaged in promoting energy efficiency, embracing clean
technologies, adopting renewable energy sources, conserving water resources, and
implementing a zero-effluent discharge policy. These may be small steps, but they are
significant contributions towards creating a more sustainable future. By greening our
operations and embracing eco-friendly practices, we aim to play our part in building a
healthier and more prosperous planet.
As the second-largest manufacturer of phosphatic fertilisers in the
private sector, our primary focus is to ensure balanced fertilisation of the soil by
offering right nutrient blends. PPL specialises in manufacturing and distributing
essential macronutrients such as Nitrogen, Phosphorus, Potassium, and micronutrients such
as Sulphur, and Zinc. Additionally, we engage in the trading of Muriate of Phosphate, and
DAP and additionally sell Ammonia, Sulphuric Acid, Zypmite and Gypsum.
At PPL, we differentiate ourselves through a robust foundation of
engineering analysis and meticulous planning. This is reflected in all our operations and
is evident in the exceptional quality of our products. PPL boasts an extensive
distribution network that comprises over 21 regional marketing offices, over 450 stock
points, a network of 6,500 dealers, and more than 65,500 retailers. This expansive network
enables us to reach approximately 8 Million farmers throughout the country, providing them
with access to the renowned brands 'Navratna' and 'Jai Kisaan Navratna'.
To assist farmers in selecting the right fertilisers, PPL has
established a centralised agricultural development laboratory in Bhubaneswar and operates
a fleet of mobile soil testing labs. Moreover, the Company collaborates with the
Government of Odisha in a Public-Private Partnership to run the farmer's training school,
offering agricultural skills training to farmers in a classroom environment.
Our Goa plant produces a unique bouquet of NPKs like 19 and NPK 28. NPK
19 was solely produced by PPL's Goa plant in India until 2022-23, while NPK 28 was
produced only by two companies in India, including PPL's Goa Plant. The plant has also
allowed us to expand to developed agricultural markets like Maharashtra, Karnataka, Madhya
Pradesh, and Chhattisgarh.
Going forward, our brownfield backward integration plan aims to expand
our phosphoric acid capacity from 300,000 tonnes per annum to 500,000 tonnes per annum.
This will provide us with a competitive advantage and pave the way for further growth.
At PPL, we prioritise creating an empowering work environment for our
employees, fostering enduring relationships and maintaining a low attrition rate. We aim
to provide well-rounded experiences that contribute to personal and professional growth.
As a responsible corporate citizen, we recognise our duty to contribute
to the socio-economic development of surrounding communities. Through our initiative
called 'Navratna Prayas,' we positively impact the lives of approximately 50,000
individuals annually. We collaborate closely with 10,000 households near our plants,
addressing livelihoods, education, and health, with a focus on water, sanitation, and
hygiene (WaSH). We actively involve women and children in these endeavours, recognising
their role in sustainable development and community well-being. Through our initiatives,
we strive to make a significant positive impact, working towards a sustainable future for
millions of people.
I would like to extend my heartfelt gratitude to all our stakeholders,
including shareholders, Board members, employees, customers, suppliers, banks, regulatory
bodies, and governments. Your unwavering support has been instrumental in propelling the
progress of PPL. Without your invaluable contributions, we would not have achieved the
remarkable growth and success that we enjoy today. Thank you for your continued support
and trust in our Company.
Best regards,
S.K.Poddar
Chairman