Organization Profile
The Company is a leading player in the agriculture sector and is recognized as one of Maharashtra?s foremost manufacturers of a diverse range of agricultural inputs. Our comprehensive product portfolio includes SSP fertilizers, hybrid seeds, and NPK mixture granulated fertilizers, all tailored to meet the evolving needs of the farming community.
In addition to our core focus on agriculture, we have strategically diversified into complementary sectors such as warehousing, cold storage, and LABSA manufacturing. We have further expanded our capabilities with a state-of-the-art pipe manufacturing plant, producing drip irrigation systems, sprinklers, and HDPE portable water pipes, supporting modern irrigation practices.
Our flagship brand, "Krishi Sanjivani," is widely trusted among farmers for its quality and performance. With production facilities spread across Maharashtra, Karnataka, and Madhya Pradesh, we ensure regional accessibility and operational efficiency.
Demonstrating our commitment to sustainability, the Company is also engaged in renewable energy generation through wind turbines, contributing to environmentally responsible growth.
Indian Economy Overview and Outlook for FY 202425
The Indian economy continues to demonstrate strong resilience and dynamism, with FY 202425 poised to build on the robust growth momentum of previous years. Economic expansion remains underpinned by sustained government-led capital expenditure, higher capacity utilization in manufacturing, and the enduring strength of the services sector. Additionally, healthier balance sheets in both the corporate and banking sectors have further bolstered economic confidence and investment activity. Key indicatorsincluding rising GST collections, e-way bill generation, and growth in digital toll transactions (e-toll)reflect the continuing formalization of the economy and the resilience of underlying economic activity. The Reserve Bank of India (RBI) has projected GDP growth for FY 2025 26 to outpace inflation, reflecting confidence in the country?s macroeconomic fundamentals and policy framework.
From a global perspective, ongoing geopolitical developments and disruptions in global supply chains have highlighted the strategic importance of onshoring and friend-shoring production capabilities. India?s active participation in the India-Middle East-Europe Economic Corridor (IMEC) signals a major step toward enhancing connectivity and trade integration between Asia, the Persian Gulf, and Europepositioning the country as a key player in global logistics and commerce.
The Government of India has also placed strong emphasis on technological advancement, particularly in the field of Artificial Intelligence (AI). FY 202425 has witnessed increased interest and investment across both the public and private sectors aimed at integrating AI into core business functions and governance systemsdriving innovation, efficiency, and competitiveness. Sustainability and clean energy continue to be national priorities. The government is aggressively expanding the country?s renewable energy capacity, supported by comprehensive policies such as:
Subsidies and tax incentives for green energy initiatives,
Renewable Purchase Obligations (RPOs) for utilities,
Support for solar, wind, and green hydrogen projects, and
Targeted promotion of the electric vehicle (EV) ecosystem.
India?s proactive stance on climate action and green growth is attracting significant industry participation and foreign investment. With the forecast of a normal monsoon this year, rural demand is expected to remain stable, further contributing to broad-based growth across sectors, including agriculture.
Outlook
From an analytical standpoint, Future period reflects of balanced and inclusive growth, supported by:
Structural economic reforms,
Strategic geopolitical alignments,
Rapid digital adoption,
Green energy transition, and
Improved investor confidence.
While global uncertaintiesincluding oil price volatility and geopolitical tensionspose potential risks, India?s diversified economic base, strong domestic demand, and sound fiscal management position it well to navigate challenges and sustain growth momentum in the current financial year.
Indian Agriculture Outlook and Developments for FY 202425
Agriculture remains the bedrock of the Indian economy, employing nearly half of the nation?s population and contributing significantly to rural livelihoods and food security. As the third-largest sector of the economy, Indian agriculture has consistently played a central role in ensuring self-sufficiency in food grains and positioning India as a major global producer of agricultural commodities.
In FY 202425, the sector has navigated a mixed operating environment, influenced by improving policy support, climate-related challenges, and increased investment in rural infrastructure. Despite continued dependence on monsoons, the forecast of a normal monsoon this year has brought optimism for stable kharif sowing and improved crop output. During the previous year, erratic rainfall patterns and depleting reservoir levels impacted both crop productivity and input consumption. However, FY 202425 has seen a more coordinated response from the government and stakeholders, emphasizing climate-resilient farming practices, drought mitigation, and resource-efficient irrigation systems such as drip and sprinkler technologies.
The Central and State Governments have continued their efforts to strengthen the sector through:
Income support schemes like PM-KISAN,
Subsidies for fertilizers and seeds,
Crop insurance under PMFBY, and
Promotion of digital agriculture platforms to empower farmers with real-time information.
Significant focus has also been placed on agricultural infrastructure development, including:
Expansion of micro-irrigation networks,
Establishment of modern warehouses and cold storage chains,
Strengthening of logistics and agri-marketing platforms.
Additionally, the government has intensified its push towards natural farming, organic agriculture, and the promotion of agri-tech startups, which are expected to enhance both productivity and sustainability in the long term.
Outlook
The outlook for the agricultural sector in FY 202526 remains cautiously optimistic, supported by:
Favorable monsoon conditions,
Policy continuity and farmer welfare schemes,
Growing adoption of technology, and
Strong rural demand recovery.
As India balances traditional farming practices with modern agri-tech and sustainability goals, the agriculture sector is well-positioned to support inclusive rural growth and contribute meaningfully to the national economy.
Indian Fertilizer Industry Outlook and Trends for FY 202425
The fertilizer industry continues to play a crucial role in strengthening India?s agriculture sector, particularly in the face of evolving climate conditions, rising food demand, and the need for sustainable productivity. As agricultural practices shift toward efficiency and nutrient balance, the role of fertilizersespecially Single Super Phosphate (SSP)has become even more significant.
SSP remains a vital component of balanced fertilization, offering a cost-effective, multi-nutrient solution containing 16% phosphate and 11% sulfur, along with secondary nutrients like calcium, magnesium oxide, and micronutrients. It is particularly important for crops such as oilseeds, pulses, sugarcane, fruits, vegetables, and tea, and is highly effective in sulfur-deficient soils, which affect over 40% of India?s cultivable land.
In FY 202425, the Indian fertilizer sector is expected to witness continued demand growth, supported by:
A forecast of a normal monsoon, leading to improved sowing and nutrient application;
The government?s focus on soil health management and balanced fertilization under various schemes;
Subsidy rationalization efforts, aiming for wider adoption of indigenous fertilizers like SSP to reduce reliance on imported DAP and complex fertilizers.
Policy Environment and Government Initiatives
The Government of India has remained committed to ensuring the affordability and accessibility of fertilizers, with special emphasis on nutrient-based subsidy (NBS) policies. These policies promote the consumption of fertilizers containing a balanced mix of nutrients while reducing the subsidy burden.
Efforts to encourage SSP usage have gained further traction, given its role in reducing import dependence and providing localized, crop-specific nutrient solutions. As part of this push, the government is:
Promoting customized fertilizers aligned with soil health card data,
Investing in fertilizer application technologies to improve efficiency,
Continuing its support for direct benefit transfers (DBT) in fertilizer subsidy payments.
Challenges and Industry Considerations
While the demand outlook for fertilizers remains positive, the industry continues to face structural and operational challenges:
The capital-intensive nature of fertilizer manufacturing, particularly in the case of SSP,
Fluctuating interest rates and delays in subsidy disbursements, which strain working capital,
Heavy dependence on monsoons, making the industry vulnerable to weather-related volatility.
Our Role and Outlook
Our company continues to be a key contributor to India?s fertilizer ecosystem through the production of SSP fertilizers enriched with phosphate, sulfur, calcium, and essential micronutrients. Marketed as a generic customized fertilizer?, our SSP product supports crop-specific nutrient needs and promotes soil health, particularly in sulfur-deficient regions. As awareness grows among farmers regarding balanced fertilization, and with increasing preference for cost-effective, indigenous alternatives, the future outlook for SSP remains strong. With the government?s ongoing support and our company?s commitment to quality and efficiency, we are well-positioned to meet the rising demand and contribute meaningfully to India?s agricultural sustainability.
Current and Future Outlook FY 202425
The financial year 202425 began under challenging macro and agro-climatic conditions, with a below-normal monsoon and lower reservoir levels, which adversely impacted crop sowing and overall rural sentiment. Compounding this was a sharp downward revision in subsidy rates, which negatively affected fertilizer pricing, leading to elevated channel inventories and margin pressures. These factors significantly impacted business performance during the first quarter of the year. However, from the second quarter onward, the situation improved meaningfully. A reversal in monsoon patterns led to an above-normal monsoon and improved water levels in reservoirs, driving higher demand for fertilizers and other agri-inputs. Additionally, a more supportive government policy stanceincluding a marginal increase in subsidy rates-contributed to a gradual recovery in performance and profitability compared to the previous year.
Thanks to this improved environment and strategic internal measures, the Company recorded a total turnover of 462.74 crore in FY 202425, up from 404.75 crore in FY 202324. Segment-wise performance is as follows:
Fertilizers Division: Turnover increased to 265.14 crore (up from 223.84 crore), driven by favorable monsoon conditions, improved market sentiment, and continued farmer trust in our SSP products.
Seed Division: Registered a turnover of 150.50 crore, up from 137.49 crore, reflecting strong acceptance of our research-based seed varieties and enhanced market penetration.
New Business Divisions (LABSA, Pipes, and Warehousing): Contributed 54.13 crore to the topline, up from 47.56 crore, supporting overall revenue diversification and margin stability.
The company?s ability to rebound in a difficult environment, along with focused cost management, strategic sourcing, and operational discipline, has enabled it to post a marginal profit, re-establishing its path toward sustained growth.
Outlook for FY 202526
India is currently experiencing a favorable agricultural environment, supported by continued above-normal monsoons, robust reservoir levels, and strong kharif crop sowing patterns. These trends are expected to positively influence agri-input demand throughout FY 202526.
Key developments that shape a positive business outlook for the upcoming year include:
Input Cost Dynamics: While prices of key raw materials like rock phosphate have softened, the increase in sulphuric acid prices may have a partial offsetting effect on cost savings.
Government Policy Support: Continued policy backing through the Nutrient-Based Subsidy (NBS) Scheme, SSP subsidies, and freight subsidies remains a crucial enabler for industry performance.
Subsidy Hike Effective April 2025: The Government?s upward revision of SSP subsidy by 2,142/- per MT, effective April 2025, is expected to enhance margins, stabilize pricing, and strengthen overall financial performance.
Strategic Direction
With strong macro tailwinds, policy support, and an improving cost structure, the Company is well-positioned to outperform its previous benchmarks in FY 2025 26. Strategic priorities include:
Expanding the reach of the SSP and seed product portfolio in high-growth geographies,
Scaling operations in LABSA, Pipes, and Warehousing to further diversify revenue,
Leveraging technology, operational efficiency, and cost control to protect margins.
Opportunities and Threats FY 202526
The Indian agriculture sector has entered FY 202526 with strong tailwinds, following an above-normal monsoon, as forecasted and confirmed by the India Meteorological Department (IMD). Improved reservoir levels and widespread rainfall have enhanced the outlook for crop sowing, agri-input demand, and farmer sentimentcreating a favorable environment for the fertilizer and seed industry.
In alignment with the Hon?ble Prime Minister?s Atma Nirbhar Bharat? mission, the Government of India continues to push for self-sufficiency in fertilizer production, reducing import dependence and strengthening domestic capacity. The upward revision in SSP subsidies by 2,142/- per MT, effective April 2025, and anticipated freight subsidy schemes are expected to provide further financial relief and margin stability for SSP manufacturers.
These developments open significant growth opportunities for the Company:
The favorable agro-climatic environment and improved policy framework will drive higher fertilizer consumption.
Our strategic plant locationsclose to key consumption centersoffer logistical advantages, enabling timely and cost-effective delivery to farmers.
The Company?s diversified business portfolio, including LABSA, Pipes, Warehousing, and Seeds, provides resilience and multiple growth levers.
Increasing awareness about balanced fertilization and soil health is likely to boost demand for SSP, especially in sulfur-deficient regions.
Key Threats and Industry Challenges
Despite a more optimistic environment, several structural and external risks persist and warrant careful management:
Policy Volatility: Sudden changes in government subsidy structures, NBS rates, or freight policies can directly affect market prices and margins.
Monsoon Dependence: While this year has been favorable, agriculture in India remains heavily monsoon-dependent, making the industry vulnerable fluctuations to weather .
Raw Material Price Volatility: Fluctuations in the global prices of rock phosphate, sulphuric acid, and other key inputs impact cost structures and working capital needs.
Seasonal Demand: Fertilizer consumption is concentrated during Kharif and Rabi seasons, leading to uneven revenue cycles and challenges in capacity utilization.
Farmer Awareness: A lack of knowledge about the nutritional benefits of SSP continues to limit market penetration in some regions.
Logistics & Working Capital: Rising logistics costs, coupled with delayed subsidy disbursements, create liquidity pressures and demand efficient working capital management.
Human Resources / Safety Management System
Human Resources are one of the most important ingredients for growth. The Company considers its highly motivated and well-maintained employees its most valuable assets of the Company. Company strongly believes in continuously taking steps towards the talent management, leadership development, and employee engagement.
Your Company therefore strives to align human resource policy and initiatives to meet business plans. Training of employees to maintain high level of motivation is an ongoing process. Industrial relations at all the units remained cordial during the year. Health & safety Management system in the Company aims at to reduce, eliminate or control workplace hazards and associated risks of accidents or injuries to the workers. We provide sufficient information, instructions, training and supervision to enable all workers to identify, minimize and manage hazards and contribute positively to safety at works
Cautionary Statement
This Management Discussion and Analysis Report contains statement about Company?s future plans, projections, estimates, expectations may be forward looking statements within the meaning of applicable laws and regulation. Actual result could however differ materially from those expressed or implied in this statement due to factors beyond control of the Company like, monsoon condition, economic condition, government policies and regulations etc.
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