Annual Report: 2023
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):
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):
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):
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:
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.
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