bharat agri fert Management discussions

FERTILISER DIVISION:

During the fiscal year 22-23, our company faced challenges as we were unable to secure the necessary support from our existing bankers to meet our working capital requirements. This situation had repercussions, including the inability to import raw materials at the lower prevailing prices, which later tripled due to the Ukrainian war.

As we move forward into the current fiscal year 23-24, our promoters have taken the strategic decision to explore additional working capital options from alternative banking sources through an ODAP. This move is aimed at boosting our revenue and profit margins, leveraging the favourable industry conditions, especially once we have sufficient rainfall.

In an effort to diversify our product portfolio and capture value-added revenue, we are introducing Zincated and Boronated SSP/GSSP in the current year. This expansion allows us to offer diversified phosphatic fertilizers without the need for significant additional capital investment.

Furthermore, we are actively engaged in discussions with IPL (Indian Potash Ltd), one of Indias most reputable and longstanding fertilizer traders since 1955, regarding the marketing of SSP in the state of Maharashtra. In addition to our existing marketing setup with M/s. Greenstar Fertilizers Limited, we are also exploring the possibility of leasing a fertilizer unit under more favourable terms as a contingency plan.

These strategic moves reflect our commitment to adapt and thrive in the face of challenges and opportunities in the fertilizer industry, ultimately aiming to enhance our revenue, profits, and market presence.

REALTY DIVISION:

The company has successfully secured a range of crucial permissions, approvals, and consents from various regulatory bodies, including TMC, CFO, MOEF, and Civil Aviation. Additionally, we have obtained RERA (Real Estate Regulatory Authority) registration for our ambitious Phase-2 residential project. This project encompasses the development of approximately 400 1/2/3 BHK flats in the iconic G-TOWER, known as Wembley, a soaring tower with G+58 floors.

Wembley is strategically located in the prominent area of Majiwada, Thane (West), making it a prestigious addition to the Thane cityscape. The commencement of construction for Wembley is scheduled for October 2023, with an estimated completion timeframe of 3 to 4 years. The project is expected to generate substantial revenue, ranging from Rs 700 to 800 crore, based on prevailing market prices.

This development marks a significant milestone for our company as we near the completion of our Thane project, solidifying our presence and impact in the region. Our commitment to quality and adherence to regulatory standards ensure that Wembley will be a testament to our dedication to delivering exceptional living spaces to our valued customers. >

Company is also in process of searching further JV project in Mumbai and other two tier city area in future like Ahmedabad, Indore & Pune etc.

ANCHAVIYO RESORT HOSPITALITY DIVISION:

The resort has shown remarkable recovery following the COVID-19 recession and has achieved its highest revenue and occupancy levels in the last seven years. This success has been possible due to the excellent support received from our bankers, who have facilitated further development of our theme-based rooms, increasing them from the current 46 to 125 in the next two years. This expansion will position the resort as an ideal destination for weddings accommodating 300 to 350 guests.

In addition to our core hospitality offerings, we have received offers for various corporate events, wedding photo shoots, film and serial shoots, solidifying our resorts brand recognition as "ANCHAVIYO." This success is the result of the hard work and dedication of our promoters, who have diversified our business in the hospitality sector.

Presently, our company owns 120 acres of freehold land in Wada, Palghar district, in Maharashtra, and we are in the process of acquiring an additional 30 acres of land, bringing our total land parcel to 150 acres in the near future. We are also exploring opportunities for foreign participation in ventures such as amusement parks, golfing parks, and other entertainment businesses through joint ventures. These initiatives will leverage our excess realty business surplus and contribute to the development of our Wada land.

Our plans include introducing farm plotting and bungalow schemes at the appropriate time, once we obtain the necessary NOCs and permissions from the relevant authorities. This strategic diversification aligns with our conservative approach and leverages the promoters extensive experience and unity.

Our commitment to diversification and progress, combined with our existing infrastructure, positions us for success in our proposed divisions. We anticipate that these endeavours will yield better revenue, profits, and returns for our shareholders in the future.

	For and on behalf of the Board
	For Bharat Agri Fert & Realty Limited
Registered Office:	Yogendra D. Patel
301, 3rd Floor, Hubtown Solaris,	Chairman & Managing Director
N. S. Phadke Marg, Near Gokhale Bridge,	(DIN: 00106864)
Andheri (East),
Mumbai 400 069
Date: 22nd May, 2023
Place: Mumbai