WE will continue to develop future-relevant products that will improve
farmer resilience, contribute to environmental sustainability and have a positive
impact on food value chains across the globe
DEAR SHAREHOLDER,
It is a pleasure to address you through this Annual Report. Your
Company made encouraging progress despite the challenges imposed by COVID and rising
geopolitical instability.The pandemic has stressed and stretched our resilience in no mean
way. India, and every Indian, has fought back courageously to flatten the curve. Despite
this, however the loss of lives was colossal. My heart goes out to all the families who
have endured the pain of losing their loved ones.
This crisis has laid bare the lacunae in our ability to handle
pressures of this magnitude. It is necessary for all of us - to consider organisations,
industry and individuals - to come together and strengthen our ability to better handle
such unforeseen challenges.
India's farming community fights back
Rural India displayed exceptional resilience during the two years of
the pandemic. It remained the beacon of hope for India amid the dark shadows of the
pandemic. In FY21, when the entire economy contracted, the agriculture segment registered
a 3.6% growth which further improved to 3.9% in FY22. Our farming community ensured that
our granaries and warehouses remained adequately stocked at all times. We are proud of our
association with the Indian farming community and salute the spirit as well as the
conscientious and tireless efforts to ensure India's food security despite the trying
times.
NACL reports another good year
FY22 was a good year for NACL. The company recorded a 38% increase in
revenue over the previous year. Our Net Profit grew by 51 % over FY21. These growth
numbers showcase the dedication and sustained commitment of the entire team. I feel proud
to be a part of this energetic NACL family.
Crop protection market
The world's population is expected to grow to 9.71 billion by 2050.
Ensuring food security for 9 billion+ people is going to require a herculean effort owing
to the debilitating impact of Climate Change across the world, which has only intensified
in recent years. Further, geopolitical fractures have depleted and may have been disrupted
agricultural supply chains. The Russia-Ukraine war, for instance has not only
significantly affected the availability of wheat (being the 1st& 5th largest exporters
respectively in 2021), but also increased the cost of several key inputs such as potash
and nitrogen based fertilisers. This necessitates that we build more robust supply chains
and adopt agricultural practices that are more resilient.
In response to these challenges, the Indian government has launched a
range of policy initiatives to strengthen the Indian agriculture ecosystem. Most of these
programs are focussed transformative areas such as improving access to credit, widening
scope of crop insurance, mobilising essential Agri services and new age technologies. In
addition to this Cluster Based Business Organizations (CBBOs) such as Farmer Producer
Organisations (FPOs) are being deployed to allow farmers to better tackle price
uncertainty, improve processing and storage capacities, experiment on and deploy newer
farming methods.
At NACL, we will strive to contribute to this growth, by developing
futurerelevant products that will improve farmer resilience, contribute to environmental
sustainability and have a positive impact on food value chains across the globe.
Our efforts for society
We have further strengthened our outreach programs and our
collaborations to engage more meaningfully with the under-served in our society. For when
the roots are strong, the nation's resilience to take on challenges increases multi-fold.
Acknowledgement
I am pleased to bring to you the 35th Annual Report for NACL
Industries.
I wish to express my gratitude to all our stakeholders and thank every
Customer, Investor, Lender, Channel Partner, Vendor, Business Associate, Government
Agency, Employee and others, who believed in us and supported the Company in its mission
to built a strong enterprise to serve the farming community within its true potential.