INDOFIL INDUSTRIES LIMITED / ANNUAL REPORT 2019-20 Sowing Seeds of Sustainability
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27th Annual Report 2019-20 Sowing Seeds of Sustainability Business works best when all the players have skin in the game. Distribute the risks, share the profits, let everybody win. Mr. K K Modi August 27, 1940 – November 2, 2019 Contents PAGE 2-47 Corporate Overview About Indofil ...............................................4 Business at a Glance .................................6 Global Context ...........................................8 Product Portfolio ....................................10 Chairperson’s Message ..........................14 Message from COO .................................16 Financial Highlights ................................18 Operational Highlights .......................... 20 Our Value Creation Model .....................22 At Indofil, we resolutely Deriving Synergies from Collaboration ............................................ 24 uphold the essence of People First .............................................. 26 Exploring Opportunities ....................... 28 sustainability – right Empowering Farmers ........................... 30 Enhancing Capabilities ............................32 from farms, farmers to Research & Development ......................36 Risk Management ................................... 38 our investors. With a Environment, Health and Safety .......40 Towards a Greener Future ................... 42 zeal to deliver innovative Consciously Giving Back ........................ 43 Board of Directors .................................. 44 and sustainable agro- Awards and Recognition ........................47 chemical solutions, we PAGE 48-97 believe in meeting the Statutory Reports needs of the present Notice ....................................................... 49 Management Discussion without compromising & Analysis ................................................. 57 Director’s Report .................................... 67 that of the future. Annexures to Directors’ Report .......... 73 Corporate Governance Report .......... 90 We are aware of the challenges faced as well as the requirements of our by PAGE 98-223 farmers. To help our stakeholders sustain long-term growth, we rely on our efficient Financial Statements Standalone .............................................. 98 R&D capabilities to deliver unique solutions Consolidated .......................................... 158 that empower and transform lives. Leading the change with a renewed focus on plant nutrition, plant health and plant immunity, our range of superior quality products are aimed at ensuring better productivity, delivering healthy return on investment and setting new standards in the industry. Keeping Customer Success at the core of our operations, we are perfectly poised to expand and grow, thereby sowing the seeds of sustainability, for today and tomorrow. 4 INDOFIL INDUSTRIES LIMITED / ANNUAL REPORT 2019-20 Sowing Seeds of Sustainability About Indofil Indofil Industries Limited (Indofil) is among the leading manufacturers, distributors and marketeers of agrochemicals and specialty chemicals with a fully integrated framework across products. Indofil is part of about $ 1.5 billion Modi Enterprises that spans business across diverse sectors. Headquartered in Mumbai, Maharashtra, Indofil pursues a focused-growth strategy aimed at creating benchmarked chemical solutions to serve its domestic and global customers. Our 9 zones in India and 10 international offices comprise of a workforce of over 1000 people, serving customers across more than 120 countries. Market positioning Vision Mission Our mission is to achieve leadership in growth rate. To be a global We leverage our efficient R&D, registration, manufacturing and marketing competencies through our committed and proficient leader in growth team. We will strive to make our customers successful by providing high-quality products, services and solutions in the domestic and with customer global markets. To expedite growth, we will use collaborations, acquisitions and manufacturing proximity success. to the market in the segments of crop care, specialty and performance chemicals. CORPORATE OVERVIEW / STATUTORY REPORTS / FINANCIAL STATEMENTS 5 About Indofil Six decades of growth In 1965, Indofil commissioned its first EBDC plant in Thane for production of Mancozeb, Zineb and Maneb. Over the years, we have grown multifold to be one of the world’s leading Mancozeb producers with 5 manufacturing units. We also successfully expanded our product portfolio from a handful of agricultural chemicals to an array of agricultural chemicals for various crops along with specialty & performance chemicals for various industries. Creating value for stakeholders, consistently CONSOLIDATED TOTAL INCOME 2,236 Values (J in Crore) Customer Teamwork Success CONSOLIDATED PAT 95 (J in Crore) Prosperity Knowledge CONSOLIDATED Velocity EPS 44 (in J) Scan the QR code to know about our Vision, Mission and Values in detail Use any QR code scanning app to scan the QR code 6 INDOFIL INDUSTRIES LIMITED / ANNUAL REPORT 2019-20 Sowing Seeds of Sustainability Business at a Glance Indofil has today evolved from a single product chemical manufacturing company to an integrated multi-product chemical company. Our presence is strategically spread across three business segments: Agrochemicals Innovative Solutions Plant Nutrition Reliability Efficient Supply Chain High Quality Global Partnerships Trust & Loyalty Our Key Differentiators Innovative Ethical Core R&D Values Seamless Agility in Crisis Personalization Management Technical Manufacturing Expertise Excellence & Product Development CORPORATE OVERVIEW / STATUTORY REPORTS / FINANCIAL STATEMENTS 7 Business at a Glance Our Presence Capacity* (in tonnes) Dahej, Gujarat 33,000 4,000 Dahej, SEZ, Gujarat (Unit-1) Synthesis Plant, Dahej, SEZ, Gujarat (Unit-2) 35,000 35,000 Innovative Solutions Plant, Dahej, EBDC Plant, Dahej, GIDC, Gujarat (Unit-3) Gujarat (Unit-3) Certifications for plant Chandigarh ISO 9001:2015 for quality management Uttar Pradesh systems Bihar Gujarat West ISO 14001:2015 for environmental Bengal management system Chattisgarh ISO 45001:2018 for occupational health Maharashtra & safety Authorised Economic Operator (AEO) Telangana T2 certificate Ecovadis recognition across 21 CSR indicators Karnataka Certifications for R&D unit Tamil Nadu Head Office National Accreditation Board for Testing and Calibration Laboratories Regional Offices (NABL) Manufacturing plants Good Laboratory Practices (GLP) Certification *Thane Plant operations moved to Dahej, hence not mentioned here. 8 INDOFIL INDUSTRIES LIMITED / ANNUAL REPORT 2019-20 Sowing Seeds of Sustainability Global Context At Indofil, we prepare for the future, anticipating the market landscape across countries. Our expertise in seeking newer ways to serve our customers across extremely diverse geographies allows us to create value for our stakeholders, consistently. 120+ Countries of presence Mexico Costa Rica Revenue share from each geography Brazil 53% 12% India South America 18% 17% Europe Rest of the world Subsidiaries Representative office Head office Global Network CORPORATE OVERVIEW / STATUTORY REPORTS / FINANCIAL STATEMENTS 9 Global Context Netherlands Russia Kyrgyzstan South China Korea Italy Bangladesh Taiwan Mumbai Myanmar Philippines Malaysia Sri Lanka Indonesia Mauritius Madagascar Australia New Zealand South Africa 10 INDOFIL INDUSTRIES LIMITED / ANNUAL REPORT 2019-20 Sowing Seeds of Sustainability Product Portfolio Brand Indofil continues to garner trust of millions of customers across the world for its unique and innovative product offerings. We apply science and our in-house research capabilities to develop solutions and products that meet diverse customer needs. In more than 120 countries across the world, we empower millions of farmers to improve their yields and enhance their productivity with our products by making better and more sustainable use of available resources. Agrochemicals Key crops Our major revenue driver, the agrochemicals business offers protective solutions for a large section of crops including: Cereals Pulses & Vegetables Fruits Fibre & Oilseeds Plantation Rice Soyabean Potato Grapes Cotton Wheat Black Gram Tomato Apple Tea/Coffee Maize Peanuts Cucurbits Pomo Sugarcane Chilli Mango Onion Banana CORPORATE OVERVIEW / STATUTORY REPORTS / FINANCIAL STATEMENTS 11 Product Portfolio Domestic Business Our products portfolio and Brands Fungicides Herbicides Acaricides To destroy or prevent the growth of Herbicides are agrochemicals used to Acaricides are used to kill or prevent fungi, which can cause serious damage kill unwanted plants and weeds without members of the arachnid subclass Acari, to agricultural produce, resulting in harming crops. They play a significant which includes ticks and mites. critical losses of yield, quality, and profit role in ensuring proper growth of crops. for the farmers, we offer a range of Brands: Mitex, Colonel-S and Raze fungicides. It is an agrochemical made of Brands: Oxygold, Society, Killog, Zechor, biocidal chemical compounds or biological Speed Extra, Pixo, Nami, Offset, Clean- organisms. UP, Tadka71, Passport, Munafa, Prakat, Speed, Gromate, Chase, Atrafil, Golf and Brands: Indofil M 45, Indofil Z 78, Bigul 41% Moximate, Avtar, Merger, Sprint, Share in revenue mix in Impression, Iglare, Indofil’s Baan, Baan Surfactants and Plant Growth Regulators FY 19-20 Gold, Matco, Boon, Companion, Noor, To reduce interfacial tension between two Debut, Dhan, Benfil, Sitara, Sitara Plus, liquids and to facilitate easier