Indofil Industries Limited Unlisted Shares Annual Reports

Indofil Industries Limited Unlisted Shares

Indofil Industries Limited Annual Report 2023-24 Summary: **Company Overview:** Indofil Industries Limited is a leading agrochemical and specialty chemical company with a presence in more than 120 countries. They are dedicated to delivering innovative and sustainable solutions for crop care and serving the plastics, leather, textile, coating, and construction industries. Their vision is to become a global leader in growth with customer success. Their mission includes achieving leadership in growth rate, leveraging efficient R&D, and using collaborations and acquisitions. Indofil’s core values are Thinking, Knowledge, and Responsibility. **Financial Performance:** In FY2023-24, Indofil maintained a solid growth trajectory, reporting healthy revenue growth and strong profit margins. The revenue from operations was ₹3069 INR Crore, profit after tax was ₹332 INR Crore, and net worth was ₹3994 INR Crore. EBITDA stood at ₹492 INR Crore, with a 10% return on capital. The company achieved an 18% overall volume growth and a 38% overall international volume growth. **Strategic Initiatives and Developments:** * **Innovation and R&D:** Indofil is committed to innovation and has strengthened its R&D efforts, launching several new products including Metalaxyl-M. The company explores opportunities in the off-patent generics market, focusing on insecticides, herbicides, and biological solutions. They have received a patent for their insecticide formulation, Ceasemite. R&D expenditure in FY 2023-24 was INR 18.91 Crore. * **Digitization:** Indofil relies on digital processes to enhance operational efficiency and streamline functions, adopting technologies like SaaS, IoT, and SAP. * **Sustainable Development:** Indofil is committed to environmental, social, and governance (ESG) responsibilities and has implemented environmental management systems. * **Expanding Presence:** Indofil has expanded its presence in key markets like Brazil, Europe, and Asia-Pacific. In Brazil, the subsidiary has grown, expanding its distribution network and introducing innovative products. In Europe, they are launching three new products. **Product Portfolio:** Indofil manufactures and supplies agrochemicals including fungicides, insecticides, herbicides, bactericides, acaricides, plant growth regulators, and surfactants. They also expand into micronutrients and bio-stimulants. Key crops include paddy, cotton, potato, chilli, pulses, and onion. **Innovative Solutions Business:** The Indofil Innovative Solutions (IIS) business encompasses plastics, coatings, textiles, and leathers. They leverage advanced polymer chemistry, particularly emulsion polymerization and indigenous spray drying. **Supply Chain Management:** The supply chain is meticulously crafted to integrate procurement, logistics, and planning. They use digital tools like 09 Planning Platform, Ariba Procurement System, and Go-Comet for efficient bidding and allocation of shipping contracts. **Marketing Strategies:** They use digital platforms and strategic partnerships for targeted marketing, combining conventional methods with digital outreach. **Workforce and Social Responsibility:** Indofil prioritizes employee well-being, diversity, and inclusion, and has increased the participation of women in the workforce by 5.5% over the past two years. They have made efforts to make a positive impact on the communities, with CSR initiatives that focuses on the education of girls in rural areas and provide vocational training to ensure their financial independence (Project Khushi). 2.82 Cr was spend on CSR. **Governance:** Indofil believes in good corporate governance, emphasizing core values such as customer success, knowledge, prosperity, teamwork, and velocity. They have a risk management policy and a vigil mechanism policy. **Future Outlook:** Indofil is optimistic about the future, aiming to expand its portfolio, enhance its global footprint, and increase investments in innovation and technology. They strive to explore opportunities in new markets through strategic collaborations, particularly in the U.S. market. **AGM Information:** The Thirty-First Annual General Meeting of the Members of Indofil Industries Limited will be held on Monday, 14 October, 2024 at 11:00a.m.

Indofil Industries Limited Unlisted Shares

Thinking. Indofil Industries Limited is in the Agro Specialty and Innovative Solution Business for about six decades, committed to Environmental, Social, and Corporate Governance (ESG) and are committed to a sustainable business. The company focuses on farmers, crop chemistry, social issues, and channel partners, and has a global presence. **Corporate Overview (FY23):** * **Vision:** To be a global leader in growth with customer success. * **Revenues:** Consolidated ₹3,085.74 Crore, Standalone ₹2,877.35 Crore (as of March 31, 2023). * **Employees:** 916 across the globe. * **Patent Portfolio:** 59 patents (as of March 31, 2023). * **R&D Investment:** ₹23.35 Crore in FY23. Indofil has manufacturing plants in Dahej, SEZ, Gujarat (Units I, II, and III) and one plant in Thane, Maharashtra. The Dahej plants have capacities of 32,000 MT/year, 4,000 MT/year, 35,000 MT/year, and 35,000 MT/year for various products. It has 5 operating subsidiaries, 4 representative offices, and a global network spanning over 120 countries. **Chairperson's Message:** Dr. Bina Modi, Chairperson, noted the focus on controllable measures, cost optimization, exploring untapped opportunities, delivering sustainable solutions with higher margins, and enhancing market strategy for new products. Price revisions were implemented to address rising raw material and freight expenses. The company successfully navigated changing market conditions, ensuring adequate agrochemical supplies and meeting diverse specialty chemical demands. Digital transformation, improved employee welfare, and sustainable business practices were prioritized. Growth in the domestic agrochemical business was attributed to successful product launches and positive farmer responses, with strategic presence broadening reach across crops. A customer-centric approach was implemented, establishing local teams in new territories. International business expanded through new product approvals and B2B/B2C segment expansion. Strategic investments in Europe and the US yielded positive results, with presence extended to smaller African countries. The company remains committed to introducing innovative solutions tailored to unique market requirements and nurturing institutional business through strategic collaborations. The innovative solutions business achieved robust double-digit growth and its highest ever PBT, diversifying product offerings and enhancing technological capabilities through significant investments. Digitalization efforts across operations are enhancing efficiency and transparency. Backward integration is being strengthened, particularly in the innovative solutions business, to improve product quality and reduce external dependence. Indofil prioritizes employee well-being and growth, aiming for a thriving work environment. They aim to earn the trust of present and future generations through ethical business practices, environmental stewardship, and community engagement. The commitment to sustainability is exemplified by adoption of Scaleban technology, which has enabled them to transform all their manufacturing units into zero liquid discharge facilities. The company strives to find innovative solutions that empower farmers to maximize farm yield without compromising plant health, aiming to support farmers in their quest for successful crop cultivation and contribute to the sustainable growth of the agricultural industry. Planned capex to enhance manufacturing capacities, strengthen R&D, improve IT systems and advance digitization efforts. **Financial Highlights (Consolidated):** * **Total Income:** Increased to ₹3,086 crore. * **EBITDA:** ₹427 crore. * **PAT:** ₹241 crore. * **EPS:** ₹113. * **Net Worth:** ₹2,918 crore. * **Gross Fixed Assets:** ₹1,743 crore. **Product Portfolio:** Indofil's diverse product range caters to domestic and international markets, emphasizing innovation for sustainable solutions and superior yield. The company manufactures and supplies innovative solutions by leveraging advanced technology and our in-house product development capabilities. These products find applications across multiple sectors. **Agrochemicals (Domestic):** * **Fungicides:** Prevent fungal growth and improve yield quality. * **Herbicides:** Effectively target weeds in various crops. * **Plant Nutrition and Biostimulants:** Enhance nutrient absorption and utilization. * **Insecticides:** Protect crops from insects and minimize yield loss. * **Surfactants and Plant Growth Regulators:** Facilitate easy dispersion of liquids and increase pesticide efficacy. * **Acaricides:** Manage ticks and mites. **International Business:** The company has a strong presence across 120+ countries. Highest growth reported across South America and European countries. The 'China Plus One Strategy' is expected to create opportunities for key synthesis products. **Manufacturing Excellence:** The company focused on boosting manufacturing efficiencies to expand capacities, improve productivity, reduce costs and optimize processes to produce high quality products. Its fully automated and environmentally compliant processes and machines ensure optimal capacity utilization, increased throughput and safety at work. There are 4 ultra-modern manufacturing facilities that use PLC (Programmable Logic Control) and DCS (Distributed Control System) based systems and through multiple toll manufacturing units. Manufacturing facilities are located in Dahej, Gujarat (India). Stringent pollution control norms and the 'China plus one' strategy are anticipated to encourage global manufacturers to de-risk their supply chains. Government policies like Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy and Production Linked Incentive (PLI) schemes are further expected to boost the domestic specialty chemical sector. **Research and Development:** The company’s R&D capabilities were enhanced through targeted investments in manpower, equipment, technology, strategic collaborations. Focus on developing effective biological crop solutions. Through the R&D department, the company evaluates evolving farmer needs with the aim to increase their output and profitability and develop high-quality crop protection products in collaboration with various stakeholders. It has implemented backward integration to secure key materials for the manufacturing process. The company developed three off-patent generics to strengthen our market foothold and gain a price advantage. **Connecting with Farmers:** Millions of farmers in India rely on the company’s Demand Generation team's trusted crop advisory. The company also provides training to farmers on the safe and responsible use of plant protection chemicals. The company has established a strong presence across various social media platforms and gained a significant number of followers and subscribers. **Expanding Our Presence:** International Business faced external headwinds of supply chain issues, rising inflation, the drought situation in Africa and forex challenges that impacted our volumes. Led by our agility and adaptability, the company successfully navigated these challenges to deliver stable growth. The company prioritized higher margin sustainable solutions and strengthened our market approach for new products, which resulted in better revenue mix and focused on increasing registrations, tapping new geographies and establishing a robust distribution network for providing better service to its global customers. **Key FY 2022-23 Developments:** * Added new products in the international market to meet specific market needs * Started business in Burundi and Kazakhstan * Different cross-functional forums were created to support and improve business quality * Realigned the distribution network in the South American and African markets, * New product registrations are in process globally to expand our international outreach. **Environmental, Social and Governance (ESG):** Committed to ethical business, environmental stewardship and community engagement. The company has implemented an Environmental Management System and consistently undertakes various initiatives to lower the annual carbon emissions.

Indofil Industries Limited Unlisted Shares

The 29th Annual Report of Indofil Industries Limited for 2021-22 highlights the company's resilience and agility in navigating a dynamic environment. The company focuses on producing sustainable and innovative agrochemical and specialty chemical solutions, prioritizing customer demands, and minimizing environmental impacts. **Corporate Overview (Pages 4-37):** * **Indofil at a Glance:** Indofil focuses on sustainable, innovative solutions to meet customer demands while minimizing environmental impact, with a strong domestic and international presence and a portfolio of patented and co-branded products. Indofil aims to be a global leader with customer success. They are constantly evolving processes and procedures and leveraging research and development to create long-term value for stakeholders. They aim to be a preferred partner, helping stakeholders achieve their goals. * **Our Presence:** The company has manufacturing units in Dahej, SEZ, Gujarat, and a synthesis plant in Dahej, SEZ, Gujarat. There is an innovative solutions plant in Dahej, Gujarat and a EBDC Plant in Dahej, GIDC, Gujarat. Revenue mix by geography is broken down in percentage for FY2020-21 and FY2021-22, revealing India to be the largest revenue generator. * **Product Portfolio:** Indofil offers a diverse product portfolio of agrochemicals (fungicides, insecticides, herbicides, surfactants, plant growth regulators, acaricides, and plant nutrition/bio-stimulants) and specialty chemicals for leather, textile, paints, plastics, and construction. Brand names for each are given, as are key crops targeted by Indofil's products. * **Chairperson's Message:** Dr. Bina Modi emphasizes the company's focus on improving crop and soil health, assisting farmers in enhancing crop production, upgrading the product portfolio, and implementing digital transformations. She notes the benefits to domestic manufacturers from the "Aatmanirbhar Bharat" initiative. She expresses gratitude to stakeholders and looks forward to continued growth and transformation. * **COO's Message:** Narendra Rane highlights the need for agility and digitalization. He emphasizes serving key agricultural markets and ramping up R&D investments. He notes the payment of long-term debt and increased top-line. Expansion of manufacturing capacity and inorganic growth are also discussed. * **Financial Highlights:** Consolidated total income grew by 18% year-over-year, and consolidated PAT grew by 227% year-over-year. Consolidated EBITDA margin decreased by 8% year-over-year. Other financial metrics like cash flow from operations and EPS are included. * **Business Model:** The company leverages financial, manufactured, intellectual, human, natural, and social/relationship capital to achieve end-to-end process competence from manufacturing/formulation to research/development and customer engagement. * **Value Provided:** Indofil provides value through 18% YoY growth in consolidated income and 227% YoY growth in PAT. Capacity figures are given for the manufacturing units in tonnes. They offer a number of brands and have launched new products and have a number of registrations and countries that they are available in. **People First (Pages 20-23):** * **Motivated Workforce:** The company pivoted on an empowering workforce and initiated a change from hierarichal to a democratic model, encouraging diversity, and open communication while giving out awards and also focusing on a diverse work force and talent pipeline. **Strengthening Offerings (Pages 24-25):** * **Market Differentiation:** At Indofil, the company is committed at creating a differentiated portfolio of high quality and affordable products and solutions. 8 new products are introduced in India. **Increasing Market Penetration (Pages 26-27):** * **Reinforcing Presence:** Indofil is focused on research and development. and had renewal of recognition from DSIR and recertified for GLP. The company also worked on co-ordination with the manufacturing team and improved processes. **Manufacturing Excellence (Pages 28-29):** * **Global Demand:** Indofil has enhanced capacity and state-of-the-art facilities to ensure optimal capacity utilisation, and increased production capacity. The also are backward integrated and pursue a six sigma approach and continue a reliance on sustainable technology. They have plant certifications and IMS certifications. **Maintaining a Robust Supply Chain (Pages 30-31):** * **Efficient Processes:** The company is developing efficient and smarter processes while maintaining a robust supply chain to enhance efficiency and by adopting digital technologies. **Environment, Social and Governance (ESG) (Pages 32-34):** * **Sustainable Value Creation:** Indofil is determined to safeguard the interests of people, communities, and the environment with effective environment management system, zero EHS non-compliance, and integration of ISO. The company has introduced EHS concerns and has virtual audits along with virtual defensive driving training, weekly tool-box talk, and daily GPS tracking. * **Employee Health and Safety:** Indofil prioritizes safety at the workplace through collaborative leadership and by recognising exceptional employees with zero incident reported. **Governance (Pages 34-37):** * **Commitment:** The company is committed to good governance as the cornerstone of a successful organisation through transparent and accountable operations. They encourage diversity and value the whistleblower policy while maintaining a code of business conduct and ethics. * **Awards:** The company has received multiple awards. **Statutory Reports (Pages 38-112):** * The notice for the annual general meeting is given. M/s S.N. Addagatla & Co. have been reappointed as cost auditors. * Directors' Report: The directors outline the company's performance and initiatives in the areas of operations, international business, innovation, manufacturing excellence, supply chain management, and enabling dynamic change. * Management Discussion and Analysis: The document provides an overview of the global and Indian economy, the agrochemical and speciality chemical industries, and the company's performance, outlook, risks, and opportunities. Details for the same are provided. **Financial Statements (Pages 113-223):** * Detailed standalone and consolidated financial statements, auditor's reports, and related notes are presented, covering balance sheets, statements of profit and loss, statements of changes in equity, and statements of cash flow. The specific figures and ratios within these statements are presented.

Indofil Industries Limited Unlisted Shares

Adapting to change is a core value at Indofil, guiding its strategy to achieve success and sustainable progress. The 28th Annual Report for 2020-21 details the company's performance amidst the challenges of the COVID-19 pandemic. **Corporate Overview:** Indofil Industries Limited, a global agrochemicals and specialty chemical company, aims to improve farmers' productivity and yields. Its vision is to be a global leader with customer success, achieved through efficient R&D, manufacturing, and marketing. The company values customer success, velocity, teamwork, prosperity, and knowledge. Indofil has integrated manufacturing processes and is a leading company for launching new products. It has 942 employees worldwide. In FY 2020-21, the company's revenue crossed ₹1000 crore. Indofil’s production facilities are located in Dahej, Gujarat, with capacities of 33,600 tonnes, 4,000 tonnes (synthesis plant), and 38,000 tonnes (innovative solutions plant), plus an EBDC plant with a capacity of 35,000 tonnes. The company has operating subsidiaries, representative offices, and manufacturing units across the globe, with a presence in over 120 countries. **Product Portfolio:** Indofil provides a range of agrochemicals, including fungicides, insecticides, herbicides, acaricides, surfactants, and plant growth regulators, as well as plant nutrition products under brands like Indofil M 45, Token, and Indotron AE. It also offers specialty performance chemicals for leather, textile, paints, plastics, and construction. International offerings include technical products like Mancozeb and mixtures/formulations with various combinations. **Chairperson's Message:** Chairperson Dr. Bina Modi notes the fiscal year 2020-21 was challenging but emphasized Indofil's resilience and commitment to its values, especially "People First." The company sustained progress domestically and internationally by adopting new realities such as work-from-home and digital technologies. The agriculture sector played a vital role in reviving the economy, registering 3.4% growth. Despite challenges, revenue and profitability increased, exceeding pre-COVID-19 levels. **COO's Message:** COO Narendra Rane highlights Indofil's strategic alignment with evolving market dynamics, particularly the emphasis on "Make in India" and "Aatmanirbhar Bharat." He points to the company's adaptability, problem-solving abilities, and the value-accretive product pipeline. Total income grew to ₹2,441 crore, with EBITDA improving by 70% to ₹467 crore. Revenue also crossed ₹1,000 crore each in domestic and international business. The company is focused on product portfolio expansion and realignment of its distribution network to further growth and exploration of expansion in the US and Africa. Innovation is a way of life. While the pandemic was ongoing, training, seminars and connect forums were held and people centricity was prioritized. **Financial Highlights:** * **Consolidated Total Income:** ₹2,441 crore (9% YoY growth) * **Consolidated EBITDA:** ₹467 crore (70% YoY growth) * **Consolidated PAT:** ₹67 crore (-29% YoY change) * **Consolidated Cash Flow from Operations:** ₹762 crore (129% YoY growth) * **EPS:** ₹31 (-30% YoY change) * **Reserves:** ₹1,953 crore (1% YoY growth) * **Consolidated Gross Fixed Assets:** ₹1,650 crore (1% YoY growth) * **Book value per share:** ₹915 (1% YoY growth) **Business Model:** Indofil's business model emphasizes financial capital, intellectual capital, manufactured capital, natural capital, and human capital to create value through end-to-end process competence. This includes customer engagement, research & development, manufacturing & formulation, marketing & distribution, product development and brand building. Key outputs include Agro Chemicals and Specialty Performance Chemicals. The outcomes from the model is a decrease in dependency on non-renewable energy, 45,189KL of recycled water, 10.49 lakh farmers covered through field activities, and products available in over 120 countries. **Strategic Priorities:** Indofil adopted novel measures to navigate macro-economic situations, enabling success across geographies. Focused efforts improved results through backward integration, cost optimization, and digital adoption. **Adapting to Challenges:** The company focused on Employee Health and well-being, capability building, and employee engagement. As for Backward integration, Metalaxyl and Cymoxanil are the products. ₹246 crore Long-term Debt Repaid, 28% YoY reduction in finance cost **Achieving Success:** Launched "IndoLife Ke Humsafar" loyalty program, exported Maxilizer Liquid to Tunisia, and achieved registration of Albion products in the Philippines. Also Improved process of Tricyclazole , Metalaxyl , and Cymoxanil and Backward integrated commercial products including Propargite and Thifluzamide . **International Market:** The report highlights sustained growth in Europe, Brazil, and Bangladesh, with efforts to strengthen business segments and product offerings in each region. 1,100 MT of Mancozeb WG was sold in USA. **Manufacturing and Supply Chain Management:** Indofil emphasizes manufacturing excellence through capacity expansion, improved utilization, and backward integration. Digital tools have been adopted, including for SPOT bidding of primary freight contracts. **Building a Sustainable Foundation:** The company prioritizes environmental sustainability through efforts to ensure zero liquid discharge, recycle waste, and reduce water consumption. Key initiatives include conducting safety audits, commissioning sewage treatment plants, and forming COVID-19 task forces. The company also focuses on Employee health and well-being. **Social Responsibility:** Indofil is committed to sustainable and inclusive growth, particularly through community empowerment and healthcare initiatives, including donations of oxygen producing plants and hearse vans. **Board of Directors:** Details of the Board of Directors are provided, with emphasis on their expertise and contributions to the company. Key individuals include Dr. Bina Modi (Chairperson), Ms. Charu Modi (Executive Director), and Mr. Samir Kumar Modi (Non-executive Director). **Statutory Information:** The report includes information on the Annual General Meeting, audit committee, director responsibility statement, auditors' report, related party transactions, remuneration and appointments and various annexures with information on financials, compliance and CSR. **Financial Statements:** The report included audited financial statements, including the balance sheets and profit and loss statements (standalone and consolidated). A limited summary of financials were included above. In conclusion, the Indofil's Annual Report 2020-21 portrays a company that has demonstrated remarkable resilience, adaptability, and a strong commitment to its values during a challenging period. It outlines strategic initiatives and financial performance, and emphasizes the importance of sustainable practices and social responsibility.