It gives me immense pleasure to be a part of the Coromandel family that has shaped the
development of the Company over the last half a century with their focused energy and
commitment to serve the agricultural community.
During the year 2012-13, the Indian economy endured the effects of the global slowdown
and was also impacted by the slow pace of structural reforms which together dampened the
investment climate and its economic performance. Fiscal deficit, inflation and volatile
exchange rates have all been factors contributing to the extended downward pressure on the
India`s economy. The last year was a challenging one for the entire agricultural sector
and the fertiliser industry which were buffeted by headwinds from the economic slowdown,
the erratic monsoon which affected sowing patterns and the rising prices of raw materials/
rupee depreciation which affected the price of phosphatic fertilisers.
On the policy front, the growing disparity between urea and phosphatic fertiliser
pricing does offer significant challenges. The current subsidy policy has resulted in
artificially low urea prices relative to phosphatics and this has affected the application
levels. This not only adversely affects the Government in balancing the budget due to the
burgeoning subsidy bill but also the overall soil health due to suboptimal skewed
application of NPK fertilisers which affects agricultural productivity. The Government is
aware of these effects of the current subsidy policy and I am confident that a more
balanced policy will emerge in the not too distant future.
While the completed year offered some short-term challenges, the long-term demand
fundamentals that support the agricultural sector are strong. India is a young country
with 1.2 billion people that is rapidly urbanizing and this dynamics will continue to
support the growth of agriculture in India. The growing population and changing dietary
consumption patterns afforded by growing income levels will mean that Indian agricultural
practices will need to change and adopt higher and different types of agri-inputs to keep
pace with the demand.
With the acquisition of Liberty group of companies, the Company has accelerated its
planned entry into the Single Super Phosphate (SSP) segment. Liberty has the capacity to
manufacture over ten lakh tons of SSP that allows Coromandel to reach the farming
community in other parts of the country.
Continuing with the strong focus on building institutional capabilities to position the
organization to navigate the current and future business demands, the Company has
strengthened its talent pipeline and its ability to identify and mitigate risks. In
addition, the Company has also invested to upgrade and expand its operations facilities to
serve the long-term demand for agri-inputs in India.
Keeping our Vision firmly on the long-term and staying true to our founding principle
to help India maximize its agricultural productivity and self-sufficiency, we have
strengthened all aspects of Coromandel`s business. We are confident of our way forward and
are committed to delivering enhanced value to all our stakeholders. Your unstinted support
as shareholders keeps us focused in our mission to GROwMORe.