coromandel international ltd share price Management discussions

Global Economy

World economics, in recent years, has faced multiple challenges ranging from the pandemic induced output contraction to volatile commodity prices as a result of Russia-Ukraine conflict and weakening growth due to monetary tightening across nations. While the economies reopened as COVID-19 subsided, the macroeconomic environment was strongly influencedby the ongoing geopolitical crisis.

This caused the prices of critical commodities like crude oil, natural gas, and fertilisers to surge during first half of the financial year. However, declining energy and food prices in early 2023, though still at elevated levels compared to pre-war, is improving the purchasing power of households and organizations. Sooner-than-anticipated reopening in China is also expected to support global trade activity by easing supply chain pressures.

Headline inflation figures across global economies continue to remain elevated and above the threshold levels despite recent moderation. Hawkish sentiments have prevailed across most of the advanced as well as emerging market economies during the year. Rate hikes by US Federal Reserve resulted in significant capital outflow from other nations causing deepening current account deficits and significant inflationary pressures in net importing countries. As a result of the synchronized monetary tightening measures adopted by the countries, global inflationis expected to substantially reduce from 8.8% in 2022 to 6.6% and 4.3% in 2023 and 2024 respectively. IMF predicts average annual inflation of 4.6% and

8.1% for advanced and emerging market economies respectively in 2023.

World GDP growth rate is projected to be ~3.0% over the next five years on an average which is relatively lower than historical annual average of 3.8% (2000 2019).

Advanced economies are projected to see growth at 1.2% while emerging markets and developing economies could see a modest rise in growth to 4.0% in 2023.

Amidst geo-political tensions, global players are working towards diversifying their supply chains of strategic products and there has been a shift towards South Asian countries including India. With the container supply expected to outpace demand significantly, freight prices are expected to adjust and decline in 2023.

The world saw the highest-ever levels of carbon dioxide emissions in 2022 (36.8 GTCO2) owing to fierce rebound from pandemic times with travel opening up and heightened dependence on coal. Substantial investments across renewable energy technologies, electric mobility and carbon capture capabilities could be seen as the need of the hour.

Going forward, with persisting inflation across advanced economies, defiant labour market scenario and the hawkish tone set by majority of the central banks, global economic outlook is likely to experience a slowdown.

Indian Economy

India growth story has seen substantial rebound from the pandemic era and continues to exhibit immense confidence. As per World Bank estimates, GDP growth is expected to be 6.9% during FY2023 supported by an uptick in private consumption and government capital expenditure.

During the year, calibrated rate hikes by RBI (290 basis points) and moderating global commodity prices towards latter half of the financial year have successfully tamed the inflation within tolerance levels. Indias exports witnessed continued momentum and during the year have grown by 14% to USD 770 billion. However, the trade balance has widened due to currency depreciation and higher energy and commodity prices. Overall, Indias external sector indicators have improved significantly with foreign exchange reserves rebounding from USD 524 billion levels in October 2022 to close to USD 600 billion now.

To improve its manufacturing competitiveness, Government has introduced schemes like PM GatiShakti and National Logistics Policy. In the last three years, Production-Linked Incentives (PLI) schemes have given the required impetus to sectors like Auto, Aviation, Chemicals, Electronics, Food Processing, Medical & Pharma, Renewable Energy, Telecom and Textiles. PM-Kisan and PM-Garib Kalyan Yojana have been endorsed by United Nations Development Programme for their positive impact in ensuring Indias food security goals are met.

As part of its sustainability commitments, India pledged to reach net-zero emissions by 2070 and reduce emissions intensity of its GDP by 45% by 2030. The country is expected to see renewed focus on climate finance, energy security and green hydrogen. As a positive stride in this direction, the latest budget has allocated ~INR 19,000 crores to incentivize the private sector under the National Green Hydrogen Mission.

With resilient domestic demand, capital investment, strengthening corporate and banking balance sheets, World

Bank projects Indias GDP to grow at 6.3% in FY2024, with nearly 17% of the global growth to be contributed by it (IMF).

Global Agriculture

2022 was the third consecutive year of unprecedented disruptions in the global supply chain - the outbreak of the COVID-19 pandemic, followed by the Russia-Ukraine war, impacted the commodity flow across the markets. This led to sharp rise in food prices, but thanks to robust and well-integrated global agrifood system, global trade in food and agricultural products proved to be remarkably resilient to the disruptions.

The Food Price Index, which tracks the movement of key agricultural commodities, experienced twelfth consecutive monthly decline since reaching its peak in March 2022, dropping by 21% over this period, with sharp falls across vegetable oil and cereals.

Though the global cereal production in 2022 is estimated to drop by 1.3% (at 2,774 million MT) with marginal drop in world cereal stocks-to-use ratio, the overall supply-demand interrelationship is seen to be at comfortable levels.

OECD-FAO Agricultural Outlook 2022-2031 has projected global agricultural production to increase by 1.1% p.a., over next decade with the additional output to be predominantly produced in middle- and low-income countries. This would be driven by wider access to inputs as well as increased productivity-enhancing investments in technology, infrastructure, and training.

Since the early 2000s, demand for biofuels (ethanol and biodiesel) increased significantly following the implementation of policies to support national commitments

to reduce carbon dioxide (CO2) emissions and reduce

the dependency on imported fossil fuels. Over the next decade, biofuel demand is expected to slow-down with

India accounting for half of additional consumption. India has taken an ambitious target of achieving 20% ethanol blending by 2025 and was able to achieve 10% in 2022.

Indian Agriculture

Indian agriculture has come a long way since the advent of the Green Revolution. Today, India is amongst the largest producers of major food commodities globally, not only addressing the nutritional needs of the nation but feeding the world as well.

Agriculture and allied sector accounts for a sizeable 18.3% in Gross Value Added (GVA) of the country and contributes to 47% of Indias employment. Over the last six years, agriculture sector in India has grown at average annual growth rate of 4.6% supported by Governments reformative measures to augment productivity, ensuring price support for farmers, crop diversification initiatives and boosting investment in infrastructure facilities.

During the year, favourable agroclimatic conditions, timely availability of agri inputs and improved crop realizations led to higher kharif and rabi crop sowings. The country recorded annual rainfall equalling ~108% of its Long-Period Average during calendar year 2022 (IMD) with major part of the country experiencing above normal southwest monsoon. As per 2nd Advance Estimates for 2022-23, total foodgrain production in the country is estimated at record 323 million

MT, higher by 2.5% over last year. The sector is projected to grow at 3.5% during 2022-23, with ~USD 50 billion worth of agri and livestock produce export.

On the reforms front, Direct Income Support schemes from Centre and various state governments continued to improve liquidity at the farm level. National Agriculture Market (e-NAM), pan-India electronic trading platform, has supported farmers in providing much needed access to trade, better price discovery and thereby, obtaining good returns for their produce. As part of Cluster Development Programme implemented by National Horticulture Board, the Government has permitted a few private organizations to pilot cluster farming of horticulture crops and has offered financial support from the government. This initiative targets to make Indian agricultural produce competitive in the global market and thereby, augmenting its farmers income. Agriculture Infrastructure Fund (AIF) has been contributing to upgrading agriculture-related infrastructures especially in post-harvest segment and community farm assets. As part of Governments Pradhan Mantri Kisan Samruddhi

Kendras (PMKSKs), ~0.3 million fertiliser retail shops are planned to be converted into model retail outlets. These centers will act as one-stop shop for farmers by providing agri-inputs and services including farm extension and diagnostics, farm mechanization solutions, etc. Governments push for ‘Total Approach for farming sector and adoption of latest technologies in agriculture intend to place farmers at the core of the strategy. India became the first country in the world to start commercial production of

Nano Urea and has received the approval for Nano DAP. Acknowledging Indias proposal to create domestic and global demand and to provide nutritional food to the people,

United Nations has declared 2023 as the International

Year of Millets, emphasizing the potential role of millets in strengthening small farmers, mitigating food security challenges and attaining sustainable development goals. This along with Governments move to hike minimum support price for the crop provides huge impetus to India as the nation accounts for nearly 20% of the global millet production. Additionally, millets are known to have lower carbon and water footprints and have substantial resilience to climate change impacts.

There has been an increased focus on application technologies like drone-based spraying, improving resource utilisation and driving farm efficiencies. To encourage usage of drones in Agriculture and make it affordable to the farmers, the Government has been engaging closely with the drone manufacturers, service providers and agri companies to develop cost effective solutions and improve technology penetration. Subsequently, the drone manufacturing has been brought under the Production Linked Incentive scheme, which is expected to provide thrust to the sector. In the Union Budget 2023-24, an ‘Agriculture Accelerator

Fund has been set up which aims at building a startup ecosystem to boost entrepreneurship among the rural farming community.

While Indian agriculture has shown resilient performance, agriculture and allied sector is taking significant steps towards developing sustainable solutions to meet certain challenges including adverse climate change impacts, sub-par farm mechanization, inefficient agri inputs usage, smallholding or fragmented nature of land ownership, etc. With faster technology adoption and increased infrastructure impetus, the Indian agriculture can go a long way in addressing the global food security and become food bowl of the world.

Business Performance Summary

Coromandel delivered a robust performance during the year, clocking strong growth in turnover and profitability, with favourable agricultural environment across most of the key operating markets, normal crop sowing and supportive policy measures from the government. This growth comes at a time when volatility dominated raw material pricing as well as availability and the impact originating from geopolitical uncertainty persisted. Through introduction of new products, enhancing its product development capabilities and investments across key capital projects, the company was able to stay ahead of the industry. With its diverse presence across its agriculture value chain, Coromandel will continue to provide balanced nutrition and integrated pest management solutions to maximize farm productivity.

9 new products were launched in domestic market this year to equip its farmers with advanced technologies. In addition to this, 2 new agrochemical technicals were commercialized by the company during the year. The company is working on building a pipeline comprising of wide range of new as well as combination molecules which shall be commercially launched in the near future. Crop Protection business has started manufacturing Technicals from its multi-purpose plant at Ankleshwar and plans to bolster its manufacturing capabilities via greenfield expansion.

The company continued its focus on developing new products and during the year, developed nanotechnology-based fertiliser, NanoDAP, which aims to improve nutrient uptake, lower water consumption, and minimize environmental losses. It is setting up a plant in Andhra Pradesh and plans to launch the product in the second half of 2023..

During the year, Coromandel strengthened its backward integration capabilities in the Nutrient business by acquiring 45% shareholding in Rock Phosphate project in Senegal.

Major capital expenditure projects such as sulphuric acid plant and desalination plants are progressing well and expected to be commissioned in FY2024.

The company is looking at step-out opportunities to drive growth in coming years. As part of this, it intends to leverage its technical expertise and manufacturing infrastructure to foray into adjacencies like CDMO domain, specialty and industrial chemicals. Coromandel also made investments in new age Ag-Tech start-ups with deep technological capabilities. The organization places a strong emphasis on ensuring safe operations at its manufacturing plants and logged a combined Total Recordable Incident Rate (TRIR) of 0.35 per million manhours. During the year, it undertook structural strengthening initiatives, executed installation projects in order to ensure safe handling of hazardous chemicals, and conducted external audits and studies to ensure compliance with industry standards and regulations. Companys retail business continues its focus on providing holistic agricultural solutions including products, farm advisory and farm mechanization services. A new ecommerce platform, MyGromor, has been launched in key markets and has received good response from customers. The company continues to promote Ag-Tech solutions for farmers and has started to pilot cold storage solutions from Ecozen through its retail network.

Coromandel has put considerable effort in driving digital transformation across the organization and has taken significant strides in the year through adoption of business intelligence dashboards across functions, Salesforce productivity tools and robotic process automation. It has set up Centre of Excellence at Visakhapatnam to drive digital initiatives across its manufacturing operations. Coromandel was ranked within the top 10 percentile of global chemical companies in the Dow Jones Sustainability Indices (DJSI) Corporate Sustainability Assessment (2022), a globally recognized benchmark that evaluates companies on their economic, social and environmental performance. This recognition reinforces Coromandels commitment to sustainability and its efforts to create a positive impact on society and the environment. The Company is in the process of setting ESG targets for FY2025 in line with long term commitments to drive sustainability across its operations.

In terms of financial performance, the Companys consolidated total income grew by 55% to reach INR

29,799 crores, and net profit improved by 32% to reach INR 2,013 crore for the year. Net debt-equity ratio stands at zero as of 31st March 2023.

Coromandel has been declared as winner of Deloittes ‘Indias Best Managed Companies 2022, demonstrating the organizations commitment towards business ethics and ability to adapt to changing industry landscape with a keen focus on innovation and technology.

During the year, the companys long-term credit rating by CRISIL has been upgraded from ‘CRISIL AA+ (Positive) to ‘CRISIL AAA (Stable) and short-term debt rating continue to be ‘CRISIL A1+. The Companys long-term credit rating by ‘India Ratings & Research (A Fitch Group Company) has been revised to ‘IND AAA (Stable), and its short-term debt rating stands at ‘IND A1+.

During the Board meeting held on 15th May 2023, the Board has recommended a final dividend of INR 6 per share along with an interim dividend of INR 6 per share which was declared and paid earlier. The total dividend for the year was INR 12 per share in line with the prior year.

Fertiliser

Global Fertiliser Scenario

After showing signs of recovery post the Covid 19 induced supply shocks and logistics disruption, Fertiliser industry was impacted by the geopolitical uncertainty in the Baltic region. Sudden export sanctions on Russia and Belarus, which together account for 41% of globally traded potash and 25% of nitrogenous fertilisers, resulted in significant volatility in global markets. Further, natural gas and ammonia markets contributed to record high raw material costs for processed phosphate producers. The sector, which was experiencing lower channel inventory, witnessed export restrictions from China, exacerbating already reduced global availability. The reduced global supplies due to protectionist measures and market disruptions and higher global demand in competing markets led to increase in fertiliser prices, peaking to a record level in mid-2022.

In the second half of the year, fertiliser prices started to decline. Market loosening factors, record output in Russia exceeding initial expectation, shift in trade flows and delayed and reduced buying interest for fertiliser application due to affordability, led to softening of key fertiliser products. With falling fertiliser prices and easing energy situation in Europe due to healthy stocking and less than expected winter, affordability has been continuously improving.

Fertiliser demand is expected to improve in FY2024 to cover up for the application shortfall in the previous year. Supply is set to improve with overall increase in manufacturing capabilities in major producing hubs along with possible easing of export restrictions in China and improving potash supplies.

As per International Fertilizer Association, a 3% recovery in global fertiliser consumption is anticipated in 2023 to 194 million MT of nutrients (+5.9 million MT), returning the consumption levels on par with 2019.

Indian Fertiliser Scenario

As part of the agricultural value chain, Fertilisers have played a key role in ensuring the improvement in farm output in India. India is the second largest consumer of fertiliser globally after China, servicing over 190 million hectares of gross cropped area and reaching 140 million farmlands. Despite India not being endowed with the major raw materials of fertilisers, it is the third largest producer and meets 70-75% of its nutrient requirements domestically. As part of ‘Atma Nirbhar Bharat initiative in fertilisers, there has been a renewed focus towards building domestic capacities and backward integration capabilities. In Phosphatics (DAP & NPKs), the focus is towards strengthening the backward supply linkages for key raw material and finished products like DAP through establishing partnerships and long-term contracts with resource rich nations.

There has been an increased thrust on reviving the Single Super Phosphate (SSP) industry, the cheapest source of Phosphate providing multiple nutrients like Sulphur and Calcium. In the current elevated commodity cycle, SSP has emerged as a good substitute especially for oilseeds and pulses for semi-arid & rain-fed regions.

During the year, to ensure the availability of fertilisers at reasonable prices to farmers, the Government stepped up its support in the form of higher subsidies under the Nutrient Based Subsidy (NBS) scheme. This has helped the farming community to carry out the agricultural activities without any disruption by absorbing the price shocks. In

FY23, against the budgetary allocation of INR 1.05 lakh crore for Urea and NPK fertilisers, Government released INR 2.5 lakh crores funds towards the fertiliser subsidy. This ensured stable consumption of fertilisers at the farm-gate level.

	India - Fertiliser - Production, Imports and Consumption trends - in lakh MT
	Production			Imports			Consumption - PoS
	FY21	FY22	FY23	FY21	FY22	FY23	FY21	FY22	FY23
Urea	246	251	285	98	91	76	350	342	357
DAP	38	42	43	49	55	66	119	93	105
NPK	93	83	93	14	12	28	118	115	101
SSP	49	54	56				45	57	50
MOP				42	25	19	34	25	16
Total	426	430	478	203	182	188	666	631	630

Industry worked closely with the Government to ensure timely availability of fertilisers and its consumption during the year were at previous year levels. The revival of Urea plants and higher utilization by Phosphate players led to higher production by 11% during the year.

To bring focus to balanced nutrition and address the issue of soil health, Industry has been partnering with the Government to promote the use of Organic fertilisers and integrated nutrient management programs. Organic variants like City compost Potash derived from Molasses (PDM) have been brought under the subsidy program to improve its adoption. To improve the nutrient use efficiencyof fertilisers, the adoption of new technology solutions like nano, slow-release, coated, liquid and bio-fertilisers is being promoted. One of the key developments during the year was the launch of the "One Nation One Fertiliser" (ONOF) and the "Pradhan Mantra Kisan Samruddhi Kendra (PMKSK)" initiatives by the Government. With PMKSK, government is working with the industry to convert all agri-input retail shops into model retail shops to strengthen the farm advisory and drive integrated nutrient management practices. In addition to the agri-inputs, these centers will offer farm extension and diagnostics services and can provide farm mechanization solutions.

Fertilisers – Business Performance

Coromandel is the largest private sector marketer and manufacturer of DAP and NPK fertilisers in the country. The Company enjoys a considerable market presence in

Southern, Eastern and Western regions in India and is revered amongst the most trusted brands in the country. Its three manufacturing plants at Visakhapatnam and Kakinada

(in Andhra Pradesh) and Ennore (in Tamil Nadu) together account for one-fourth of the domestic phosphatic capacity.

Companys Visakhapatnam and Ennore plants are backward integrated and have the flexibility to operate with multiple rock and acid combinations.

Realizing the supply chain vulnerabilities and low availability of fertiliser raw material in India, Coromandel has been working towards strengthening its backward integration capabilities in the last two decades. Its strategic investments in Tunisia and South Africa helps in meeting part of its phosphoric acid requirement.

During the year, Coromandel acquired a 45% stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal to meet its rock phosphate needs, a key raw material for manufacturing Phosphoric acid. BMCC has a mining license to beneficiate rock phosphate and has been producing commercial rock phosphate for use in Visakhapatnam plant.

This investment will help in strengthening Coromandels backward integration to ensure long-term supply security of the key raw material. At full capacity, BMCC can meet up to one-third of the Companys rock phosphate requirement. Further, its new 1,650 MT per day sulphuric acid plant commissioning is on track and likely to be completed by first half of the year 2023. With this, company plans to add 5 lakh MT of Sulphuric acid per annum volumes from the current level of 6 lakh MT, thereby resulting in a combined capacity of 11 lakh MT. The investment is in line with Coromandels long-term objectives to secure key raw materials for its fertiliser production.

On the sourcing side, the company operated with desired agility to ensure availability of key raw materials in a disrupted supply chain scenario. In addition to diversifying its sources, it employed an optimum mix of long-term contracts and spot buying to mitigate price variability and ensuring timely availability of inputs.

On the manufacturing front, the business continued to prioritize safe operations and Total Recordable Incident Rate (TRIR) during the year was 0.41 per million manhours.

The complex fertiliser plants operated at 95% capacity utilization, and achieved record production volumes of 3.3 million MT, a growth of 14% over FY2022. The company has also used alternate raw materials to enhance the output. As part of its strategy to reduce dependance on single source of rock, company has carried out debottlenecking of Phosphoric acid plant to use different sources of rock and has achieved record acid production during the year. The business prioritized its Single Super Phosphate (SSP) operations by enhancing granulation capacity across its various plant locations, besides reviving its Pali

(Maharashtra) facility, and adding capacities at Ennore

(Tamil Nadu) through tolling arrangement which has resulted in SSP production going up by 19% to 8.6 lakh MT in the FY23. The company has also improved infrastructure facilities across all its plants along with Quality Control labs to ensure quality products are being supplied to the farming community. During the year, the company has also worked on product innovation in SSP and developed Urea SSP which can potentially supplement N and P nutrient needs and can be an alternative to DAP. The company has also developed crop specific SSP grades fortified with micronutrients which helps in better uptake of nutrients in addition to improved yields.

Coromandel registered its highest ever sales volume of 36.5 lakh MT in DAP/ NPK segment, a 10% growth over last year.

This was supported by strong consumption with PoS sale of

35.4 lakh MT, with its market share increasing to 17.2%.

In SSP, the company has achieved record primary sales of 8.1 lakh MT and retained its position as market leader in the category. Coromandel continues to support the farmers through continuous agronomic services with the thrust on balanced nutrition approach across geographies. In line with the Governments vision to strengthen farm advisory practices, Coromandel has set up multiple Pradhan Mantri Kisan Samruddhi Kendras (PMKSKs) across its key markets and is focusing on offering holistic agri-input solutions which include products and services such as drone spraying, soil testing and advisory.

In a major boost to drive sustainable practices in agriculture, the Company has successfully developed a nano technology-based fertiliser, Nano DAP at its R&D center, IIT Bombay. It will enable high Phosphorous and Nitrogen availability to the plant and is suitable for all crops including cereals, fruits and vegetables, oil seeds, pulses, onion, cotton, Sugarcane, etc. The Company is setting up a plant in Andhra Pradesh and plans to commercialize the product during the second half of 2023. With this innovation Coromandel will be amongst the pioneers in introducing Nano products in the country with patents for all its products. The company has also developed Nano Urea and has applied for FCO inclusion. The company has conducted ~700 field trials and has partnered with leading agricultural universities and research centers to establish efficacy of the product.

The company has embarked on digital transformation journey and initiated various digital products especially at the manufacturing side and as part of its strategy to drive excellence in manufacturing has established state of the art Centre of Excellence at Visakhapatnam. This center will focus on leveraging data and analytics to improve operational efficienciesbesides imparting technical training to its operations team. Business is also working on multiple other digital interventions across value chain to leverage data and provide timely inputs for decision making.

Coromandel - Phosphatic / SSP Fertiliser Sale (in lakh MT)

Period	Complex	DAP	Complex + DAP	SSP
FY2019	24.2	6.1	30.3	5.7
FY2020	26.1	5.4	31.3	5.7
FY2021	28.1	5.4	33.5	6.7
FY2022	28.3	4.9	33.2	7.6
FY2023	31.2	5.3	36.5	8.1

Specialty Nutrients

In Indian agriculture, the use of specialty nutrients has become increasingly important in recent years as farmers seek to improve crop yield and quality. Coromandels Specialty Nutrients business has continued to dedicate its efforts to addressing key concerns faced by the farming community. The business product portfolio facilitates in ensuring balanced nutrition to plant, improving soil health and providing stage-specific nutrition to select cash crops, fruits, and vegetables.

The business deals with high performance products like bentonite sulphur, water-soluble fertilisers, micronutrients, liquid fertilisers, organic soil health restoring agents, organic manures, organic Potash, etc. During the financial year, the key focus of the business was on improving capacities through creation of infrastructure facilities at its plants. An integrated storage and automatic packing facility was set up in Kakinada to improve production efficiency.

An automatic packing line was set up in the state-of-the-art liquid fertiliser manufacturing plant at Visakhapatnam. It enriched its product offering through the introduction of ‘AcuMist Calcium. The business introduced products catering to the urban gardening segment under the umbrella brand "Gardina" that provides a range of holistic organic nourishment products for indoor and outdoor plants. The business continues to leverage its strength in smart sourcing and has been making conscious effort in diversifying its procurement of key raw materials and finished products. During FY23, the focus premium category of the business achieved a growth of 19%, with a strong emphasis on promoting balanced plant nutrition and enhancing farm productivity.

During the year, the business sharpened its sourcing efficiencies and quality assurance protocols to offer superior quality organic products, while offering distinct services to farmers like organic carbon (OC) tests. Specialty Nutrients business was able to complete 50,000+ OC tests and contribute towards better soil health.

Aligning with the objective of serving farmers and bringing the best technology to their fields, the business commissioned the drone project, named as "Gromor Drive", that would ensure farmers access to efficient nutrient spraying and through its chain of Nutri-Clinics, business aims to provide infrastructure for soil, water, and leaf testing, and provide consultation service in key addressable markets to benefit the farming community through improvement in yield and quality as well as optimization of cultivation cost.

With its superior quality products and services, the business ensures to continue its growth story while resolving the concerns of the farming community and contributing towards a sustainable agrarian economy.

Crop Protection Chemicals

Global Crop Protection Industry Outlook

The global Crop Protection industry is estimated to grow by 6% to USD 69 billion in 2022, led by improved sales across Latin America and North America regions. Improved crop prices in 2022 supported higher consumption of Agrochemicals during the year.

Region	2021	2022	% Change
Asia Pacific	21	22	4%
Latin America	16	19	17%
EMEA	16	16	-4%
North America	11	13	9%
Total	65	69	6%

Global Crop Protection Industry ($ billion) [Source: IHS Markit]

The movement surrounding the growing sustainability and environmental awareness is resulting in an increasingly strict regulatory environment, particularly in Europe. This is becoming a major influence on the global crop protection market and is resulting in the promotion of usage of biologicals and integrated pest management systems. During the year, weather patterns in key countries, especially Africa and APAC regions, were unfavourable. Latin American region, however, performed relatively well owing to conducive weather conditions across its key producing geographies.

The manufacturing sector saw heightened restrictions as a result of Chinese governments carbon neutrality initiatives aimed at improving energy efficiency. Additionally, higher prices of key commodities such as natural gas, sulphur, ammonia, etc. contributed to an increase in product prices across the globe. In India, Crop Protection sector was seen to be impacted by varied factors. Continuous rains across several parts of the country resulted in lesser pest infestation leading to lower demand for key agrochemical molecules. Higher end customer prices and per-acre cost to the farmer as a result of increase in input prices impacted the demand for agrochemical products.

During the year, the industry worked through the technical task force and presented its observations to the Expert Committee on the draft notification relating to the proposed ban of 27 pesticides. The industry players started trials for Drone Application of Pesticides with a push from Central Insecticides Board & Registration Committee (CIB&RC). CIB&RC has permitted the usage of 507 registered Crop Protection products with drones for an interim period of 2 years. This is likely to encourage extensive adoption of new technology which is observed to be more efficient and safer.

With the supply chain disruptions post the COVID-19, the global agrochemical companies are looking at diversifying their sourcing, and India is well positioned as a strong manufacturing alternative. With its rich know-how of complex chemistry, fast-evolving agrochemical ecosystem, sound regulatory compliances, and deep relationship with global innovators based on ethical IPR protocol and cost-efficient manufacturing, India offers a very competitive manufacturing destination to the global CPC industry.

Crop Protection Chemicals Business Performance

Coromandels Crop Protection business registered modest growth of 5% versus last year driven by growth in domestic formulations and B2B segments. The manufacturing plants continued to operate safely with increased emphasis on safety protocols. In addition to this, major thrust was given to improving instrumentation and revamping infrastructure at all plants. The business has improved the cost position for its key molecules and is expected to reap the benefits of cost reduction initiatives in the coming years through the implementation of manufacturing excellence initiatives within technical plants.

The business undertook the ‘War-on-Waste initiative in this regard and successfully achieved significant reduction in specific raw material and utility consumption.

The business has successfully commissioned a "Multi Product Facility" at Ankleshwar plant during Q4. This will help in diversifying companys portfolio to newer molecules and improve its operational flexibility.

On the domestic formulations side, the Business introduced five new products (including three novel combinations) spanning herbicides, insecticides, and fungicides. The new launches have received an encouraging response from the market. During the year, the share of speciality and new products stood at 56%. The marketing team introduced several digital initiatives to improve engagement with the farming community.

The product development and regulatory teams have been fortified, conducting several high-quality in-house trials using world-class monitoring and analytics tools and receiving a high number of registrations across domestic and overseas markets. The business carried out its long-term strategy exercise and intends to strengthen its product portfolio in the coming years. It is leveraging its Japan desk to explore partnerships with innovator companies. The business announced its plans to expand into CDMO and

Specialty & Industrial chemical segments to seize potential growth opportunities.

Bioproducts

The Business offers a range of biopesticides containing strategy, Azadirachtin for safeguarding crops and other biostimulants derived from plant extracts besides anti-transpirants and non-ionic spreaders. The cutting edge Azadirachtin manufacturing facility situated in Cuddalore, Tamil Nadu, is the largest in the world. During the year, the Bioproducts business faced raw material shortage with respect to its Azadirachtin production and registered significant volume contraction. The other products in the portfolio registered stable performance. The business has carried out cost-intensive interventions to manufacture best-in class pure Azadirachtin, to ensure neem seed supply and overcome quality related challenges. Despite facing a challenging raw material situation, the unit has successfully produced Azadirachtin with superior technical purity through continuous improvement and innovation related to extraction process. business plans to strengthen As a diversification its focus on expanding its non-Azadirachtin portfolio. The

R&D team of Bioproducts is undertaking multiple initiatives in the areas of microbial development, plant extract-based bio-stimulants and continues to collaborate with Tamil Nadu Agricultural University (TNAU) as the CRO. The business proactive investment in establishing neem plantations is expected to yield results in the upcoming year, which shall further support in ensuring raw material availability.

Retail

Coromandel, with a network of around 751 rural retail outlets across Andhra Pradesh, Telangana, and Karnataka, has successfully pioneered the rural retail model in India. Supported by a 2,000-member strong team, the Retail business is the face of the organization deepening its connect and engagement with farming community.

The Retail business continued to develop solutions to leverage technology in nutrient management, delivery mechanisms and farm advisory. Crop stress mapping using satellite imagery is one of the key solutions offered by the business facilitating the promotion and adoption of precision farming. Advanced pest and weather prediction technologies, boom sprayer services, cold storage solution and personalized programmes offered by the business differentiate it from competition and augment farmer loyalty. The business adopted a Crop focused approach by providing customized crop based recommendations and advisory services. Scientifically developed Crop specific packages aligning with growth stage were promoted along with expert advice through scientists with the "Scientist at Store" initiative. This initiative received positive feedback from the farming community and helped in improving the crop productivity.

Retail business diversified products and services portfolio combined with its focus on integrated farming solutions continues to deliver enhanced farm yields and profitability for farmers. The business is also looking at solving certain challenges faced by farmers through accelerated digital capabilities and strategic partnership avenues.

Opportunities & Strengths

Opportunities

1. India is emerging as a low-cost manufacturing destination with all the government measures and private investments. This is applicable to Agrochemical industry wherein Coromandel has established itself and is currently focusing on growth in market share.

Expanded capacities could serve as a major sourcing avenue for global players and thereby tap the exports potential.

2. Likelihood of Production Linked Incentive Scheme for Agrochemicals can further bolster expansion in production capacities to meet global as well as domestic demand.

3. ‘Atma Nirbhar Bharat initiative in the fertiliser industry can support capacity expansion.

4. PM Program for Restoration, Awareness, Nourishment and Amelioration of Mother Earth (PM PRANAM) aims to promote usage of alternative fertilisers through incentivization of States and Union Territories. Coromandel, with its strong presence in Organic fertilisers segment, is capable of tapping this potential.

5. Central and State Governments income support schemes for farmers ensure disposable income in the hands of farmers which can support their agri-inputs purchase.

6. Governments continued support in promoting farm mechanisation through Custom Hiring Centres can further improve adoption and enhance farm productivity

7. Certain agrochemical molecules have faced stringent regulatory pressure in recent years, especially in Europe.

This is leading to increased adoption of biological products in these regions, which can be leveraged by Coromandel.

8. Irrigation projects within Coromandels key operating markets, Telangana and Andhra Pradesh, will augment the area under assured irrigation further supporting the farming community

9. Acceleration of Ag-Tech like drones, precision farming, etc. are expected to improve crop yield, diagnostics and application capabilities which provides organizations with avenues for step-out growth

10. Adoption of Nano, slow-release, coated, and water-soluble fertilisers by farmers shall improve nutrient use efficiency. Coromandel is only one of the few players who has obtained approval for its NanoDAP product, which is expected to be a game-changer in Indian agriculture.

11. Due to cost competitiveness and technical capabilities, there exists an increased opportunity within CDMO and Specialty & Industrial Chemicals segment in India.

Strengths

1. Coromandel has strong presence across the agricultural value chain offering integrated crop management solutions from sowing to harvesting stage.

2. It has an extensive network of 751 rural retail stores across Andhra Pradesh, Telangana and Karnataka. Through direct engagement with farmers, Coromandel can leverage the information as well as feedback and incorporate the same across other areas of its business.

3. The company has a strong distributor / dealer network through which its products reach the farmers.

4. Brand equity and trust gained from the farmers in key agri-input consumption markets gives Coromandel an advantage over competition

5. Backward integration through investment in Baobab Mining & Chemicals Corporation (Senegal) shall ensure cost advantage and availability of raw materials.

6. Diversified portfolio of crop-specific, unique and differentiated products enables the company in meeting the farmers needs.

7. Investments in expansion of multi-product plants within its Crop Protection Chemicals business shall provide the much-needed flexibility in operations and ensure agile operations.

8. Business expansion into Specialty & Industrial chemical and CDMO domains offer additional growth avenues by leveraging existing manufacturing and research infrastructure.

9. Coromandel has substantial captive manufacturing infrastructure for Phosphatic fertilisers, Secondary, Micronutrients, water-soluble fertilisers, crop protection chemicals and bio-products. Integrated manufacturing operations in Fertilisers business and Technical and formulation manufacturing capabilities in Crop Protection

Chemicals business ensure significant advantages in terms of cost, efficiency and time-to-market.

10. The organization possesses 7 state-of-the-art R&D facilities for new product development across all our business units. It has a rich pipeline of products and partners with leading research organizations.

11. Coromandel has strategic partnerships for technology and sourcing - strategic investment in Tifert (in Tunisia) and Foskor (in South Africa) for upstream integration for Phosphoric Acid sourcing, partnerships with global Crop Protection organizations for new product development, manufacturing technology and marketing and joint venture with Yanmar and Mitsui in farm mechanisation segment.

12. The company has a fundamentally strong balance sheet with cash surplus

13. Companys credit rating has seen recent upgrades:

‘CRISIL AAA (Stable) by CRISIL and ‘IND AAA (Stable) by India Ratings & Research (Ind-Ra)

Financial Review

The Company registered a good performance in FY 2022- 23 with total standalone revenue at INR 29,610 crores compared to INR 19,088 crores in the previous year. The Companys PBT was at INR 2,722 crores compared to INR 1,931 crores in the previous year. PAT was at INR 2,035 crores compared to INR 1,412 Crores in the previous year. Net cash from operating activities before working capital changes is INR 2,938 Crores compared to INR 2,178 Crores in the previous year.

Risk Management

The Risk Management is covered under the Section: ‘Risk Management of the Integrated Report.

Human Resource Development

The organization constantly invests in the capability development of its talent and the process of learning & development enables its employees in realizing their true potential. As a key contributor to the successful attainment of organizational goals, holistic development and well-being of employees remain at the forefront of its business approach. Human Resource policies are made contextual and contemporary from time to time.

Talent Development: The Company nurtures talent and leadership through various capability management programmes to hone technical and behavioural skills and meet business-specific development initiatives cater to a wide variety of employee profiles addressing sales and marketing, manufacturing, operations and leadership domains. In line with Companys long-term business plan, several talent management upskilling and reskilling programs have been rolled out for the workforce. The Companys flagship digital learning platform, VidhyaOnline, is being used extensively by the employees for their learning and development needs. Saksham in Crop Protection Chemicals business unit, Outbound Training in

Nutrient business unit and Agri Capability Enhancement (ACE) program in Retail business unit are few of the key programs initiated as part of Learning and Development. Following are salient people development initiatives:

Coromandel Knowledge Centre (CKC): CKC endeavors to enrich manufacturing capability with an integrated model of knowledge, best practices sharing for Safety, Manufacturing,

Production, Operations, Engineering, Technology, 5S, TQM,

TPM, etc. CKC strengthens Functional and Safety capabilities across all Nutrient Businesses manufacturing locations with training programs such as Energy Management Techniques, Manufacturing Excellence, Simulation Training, Behavioral Safety, On the Job Safety Trainings, etc.

Sales Force Learning Academy: Sales Force Learning Academy (SFLA) is conceptualized to augment agri-domain capabilities and managerial skills of its Frontline and Middle Management Fertilisers Sales and Marketing team.

Three programs: NEAT (New Entrant Assimilation Training), MORE (Marketing Officer Resurgence and Excellence) and ZEAL (ZMs Excellence for Agri Leadership) and Agronomy

Training are organized regularly to cater to the training needs of Marketing team.

VidhyaOnline: This initiative has helped in enabling seamless access to E- Learning Platform across domains. 12 modules were launched during FY2023. This includes governance modules on POSH and Whistle-blower. VidhyaOnline was also launched on the dealer portal for enriching knowledge of the stakeholders.

Leadership Development: Coromandel has a well-structured process to identify and nurture High Potentials (HiPos) and to develop a strong Leadership pipeline across all SBUs.

These programs include Excel-30, STAR (Set to Augment Results), LEAD (Leadership Excellence for Acceleration and Development) and ASPIRE (Accelerate Successful Performance in Retail Excellence) programs for long-term development of high-performing employees. Select HiPos were nominated to business relevant programmes across various IIMs.

Coromandel Finance Academy: The Program aims to requirements. improve the functional, IT and general management skills ofThe learning and the Finance professionals and the Company has engaged a leading knowledge management firm for the implementation of the program.

Partnering with Academic Institutions: Coromandel collaborated with some of the leading academic institutions such as ISB, Great Lakes, Indian Institute of Management, IIFT, NAARM, Centre for Creative Leadership, SHRM, ANGRAU, etc. These programs include Excel-30,Coromandel Finance Academy, Sales Force Training Academy, STAR and LEAD Programmes for long-term development of high-performing employees, Branding and Communication & Corporate Knowledge Centre. The Company has strengthened its talent review and succession management processes which include a regular review by the Leadership team, leading to recalibrated offerings that help in developing and nurturing future leaders.

Campus to Coromandel Career: In the year 2022-23,

Coromandel rolled out its campus hiring initiative through 4C - College, Campus, Coromandel, Careers. Employees children were given opportunity during the campus drive.

Employee Engagement: Coromandel initiated the Employee Engagement Survey for all its employees through ‘Great Place to Work. To have maximum outreach, the survey was launched in 6 Languages. 95% of employees participated in the survey. Coromandel is now certified as "Great Place to Work" through Great Employers Private Limited. Company remains focused on delivering an employee experience wherein they feel strongly connected to the brand, the business, and the overarching guiding principles of Murugappa Group. During the year, the Company rolled out various employee engagement initiatives including Family Connect, Wellness sessions, festival celebrations, unit level rewards and recognition programs, etc. The leadership team at Coromandel continues to review the key engagement agenda for the organization through specific action plans.

Drone Pilot Certification & Training: Drone project was initiated by business during FY2023 with field tests conducted successfully at R&D farm and pilot project undertaken across farms in Andhra Pradesh, Telangana, and Maharashtra. For the certification and training of the pilots, the company collaborated with "The Centre for A.P. Sensors and Smart Applications Research in Agriculture (APSARA)", a DGCA (Director General of Civil Aviation) Authorized Remote Pilot Training Organization (RPTO), at Acharya N.G. Ranga Agricultural University (ANGRAU) Lam, Guntur, Andhra Pradesh.

Prevention of Sexual Harassment at Workplace: Coromandel has a Policy of Prevention of Sexual Harassment (POSH) to ensure a harassment-free workplace for employees. Harassment cases are dealt as per companys zero tolerance policy. To ensure that all employees are made aware of policy and various aspects of act, the company organised POSH campaigns across locations, covering all employee groups (Management, Non-management and Contract) through workshops. Workshops were conducted for Leadership as well as members of Internal Committee (IC) for understanding the Act of 2013 and the process for dealing with cases of harassment. As per the requirement of the Sexual Harassment of Women at Workplace Act, Coromandel has constituted the IC. During the year 2022-

23, three cases were reported on sexual harassment out of which two have been investigated and actions have been taken by the Management in line with IC recommendations and one is currently under investigation.

Motivational Rewards Program: I-CARE Success Story Drive in Crop Protection Chemicals business unit (Initiative,

Communication, Action, Responsibility, Execution

Excellence), BIG BULL program and GEM (Going the Extra

Mile) in Retail business unit, Achievers Awards in Nutrient business unit, etc. are few of programs aimed at recognizing achievements of the workforce. Shine Awards are awarded to employees who go above and beyond the call of duty in consistently upholding Coromandel Values despite several challenges. The award is a fitting recognition for their commitment to the Five Lights – Integrity, Passion, Quality, Respect and Responsibility. This year, 8 employees were awarded and commended for upholding the Five Lights.

Industrial Relations

Industrial relations across all Coromandel plants continued to remain cordial during FY2023. Long-term settlements were concluded at Udaipur, Nandesari and Ranipet. For Plant operative employees, Performance Linked Incentive Scheme (PLIS) were factored with key parameters - Production,

Operational Efficiency, Quality, Safety, Behavioural/ TQM Efficiency and Periodicity. Adequate control measures have been deployed for engagement of contractual staff across Coromandel. Statutory compliances were monitored and tracked for closure of any significant observations. Workers education and training as per unit requirements has been well deployed across the organization. STEP UP initiatives to metamorphose Non-Management Staff to Management Staff is well underway. Annual Communications Meetings, and other structured social gatherings as part of Employee Engagement and work-life balance across Coromandel have received great support and appreciation from all the employees.

Corporate Social Responsibility

An integral part of Coromandels growth story has been its endeavour for holistic socio-economic development. The very existence of an enterprise depends upon the welfare of the community and its ecosystem. The philosophy of Coromandel to plough back profits for creating a better tomorrow for lives has always remained paramount. The organisation has continued its commitment to give back to its communities through a range of projects from education and healthcare to skill development and nutrition, from sanitation and hygiene to women empowerment. The Corporate Social Responsibility of Coromandel has touched over a million lives and has worked towards creating new opportunities to build a better tomorrow for societies around it.

Coromandel has evolved a focused location-centric approach to develop programs through close co-ordination & consultations with the society around its plants. The Impact Assessment Report of the CSR programme by a third-party agency on the COVID initiatives, indicate that the CSR projects have met the project objectives and have impacted the community in improving their awareness and captured positive feedback about the program. Coromandel has received the highest rating and acceptance of its communities in undertaking the COVID initiatives.

The CSR programmes have won several appreciation, laurels, and awards in public domain by the Civil Society and by prominent development organisations at the national level.

Education

Through its education initiatives, the company focuses on ensuring children have the right access, equity, and quality of education, especially in government schools.

The Coromandel Girl Child Education Scheme, ensuring equal opportunities for girl children, has continued its aim of supporting girls in standards IX - XII. Through the scheme, the company has provided scholarships and career counselling to 2,201 girls. Udbhav School, which provides quality education to the economically weaker sections and supported by Coromandel, continued to deliver strong results and recorded 98% pass percentage in class X board exams conducted by Telangana State Board of Secondary Education.

To combat the learning gaps and to address the slow learners resulting from covid lock down in the years the schools were closed, Learning Enrichment Programme was introduced and supplementary classes in subjects like Math, Chemistry and Physics were provided for 3,292 students across 12 government schools of Visakhapatnam, Ennore, Kakinada and Sarigam. A total of 685 students from 8 government schools benefitted through this initiative. To promote sports and extracurricular activities at schools,

Sports Day was conducted in 121 Government Schools in which 4,226 students participated. Infrastructure support was provided to 63 schools, with assistance ranging across classroom renovation, toilet construction, science lab,

PA systems, etc. 43 RO plants were installed at various Government Schools benefitting 18,073 students.

Coromandel has continued its support towards the education for the children born with a hearing impairment by partnering with Signing Hands Foundation to produce 20 videos in sign language for children to understand basics and Balavidyalaya, the school for young deaf children. 51 children have been studying in the school and 3 children have been integrated to mainstream education.

Health

Coromandel has been able to implement preventive programs, supporting the government-driven health programs, which has commanded credibility and appreciation of the community and the respective district administration. The paediatric ward in Kakinada has enhanced the outreach of the hospital by at least ten times, through appropriate technology and collaboration. 9,195 children got treated in the ward during the year, ensuring they were healthier and better.

The Coromandel Medical Centres reached out to 45,988 patients in 2022-23. The out-patient facility caters to the not-so privileged and the hospital offers services of senior doctors, dentists and physiotherapists along with state-of-the-art diagnostic laboratory and pharmacy services. Total of 1,29,462 people got benefited through the services of the hospital.

Coromandel Hospital at Kakinada has offered accessible health services to 82,841 outpatients in which 33,930 were new patient walk-in. Till date, Coromandel Hospital at

Kakinada has reached 2,48,523 beneficiaries. Coromandel continued its support to a health centre in Ankleshwar through installing oxygen plant and dialysis machine and played a vital role in ensuring institutional deliveries. A total number of 10,301 people benefitted through the centre with the support and 83 deliveries took place in 2022-23.

89 Medical Camps were conducted at all major CSR locations, including dental, eye, general health, anaemia screening, sickle screening and ANC mother check-up benefiting 20,613 patients directly. Coromandel has supported children with congenital and acquired heart diseases with a total number of 43 surgeries have taken place and the children have received a new lease of life.

Community Development

Coromandel continues to support the local communities for augmenting the rural infrastructure under the segment of community development projects. Its primary areas of infrastructure-based CSR activity include construction and renovation of community buildings, partnering development of infrastructure building for promoting micro enterprises associated with necessary capacity building and market linkages.

Coromandel has continued implementing several programmes towards promotion of livelihood and empowerment of women through skill-based trainings, capacity building, backward and forward linkages to sustain the income generation activities. The programme aims to promote and strengthen SHGs inculcating a habit of savings and enforcing credit discipline. 481 women were trained on tailoring, beautician, housekeeping, etc.

Boat engines, ice boxes and fishing equipments like nets and other items were given to fisherman community at Ennore and Dahej benefiting 413 families. During the year, the company has built 4 community halls benefitting 6,800 people and installed 21 Reverse Osmosis plants benefitting

40,880 people. Other Community Infrastructures like Anganwadi centres, social welfare hostel, hand bore wells, safety barricades, open gyms, etc. were constructed and / or renovated, thereby, reaching 4,11,097 people.

Employee Volunteer Engagement

During this FY 22-23, 593 employees of Coromandel

International Limited across various locations volunteered effectively in various CSR activities and have approximately contributed 1,501 hours to various noble causes implemented through the organizations CSR initiatives.

Sustainability

Coromandel has tightly interconnected business activities aimed at promoting sustainability throughout its entire value chain. The organization is making consistent advancements towards achieving its environmental, social, and governance objectives. It has implemented new initiatives and innovations targeting reduction of emissions from across its value chain. Corporate Social Responsibility & Sustainability Committee of the Board of Directors of Coromandel has been constituted to provide strategic direction to guide and implement sustainability roadmap, ensure effective management of stakeholders through collaborative approach and assure alignment of social and environmental aspects with business objectives.

Promoting biodiversity in the areas surrounding its factories is a matter of great significance to Coromandel. Over the years, it has executed a series of initiatives aimed at enhancing greenbelt coverage including projects such as land reclamation (Harithavanam at Visakhapatnam), expansion of Neem plantation, Birds Paradise (at Kakinada) and Green Visakha (at Visakhapatnam). The organization has also implemented TERIs Mycorrhiza

Technology to cultivate plants on recycled waste materials at its Visakhapatnam location.

Coromandel has planted around 3.86 lakh saplings till date covering an area of 918 acres across its Nutrient business unit locations with ~17,000 saplings being planted this year. Miyawaki dense plantation methodology was adopted at Visakhapatnam, Kakinada and Ennore. Third party assessment of Green Visakha program comprising of a detailed study of its qualitative and quantitative impact, with respect to ecology, carbon sequestration, ambient air, ground water, noise, soil and social aspects, was conducted. Companys Bioproducts division has planted ~1 lakh neem trees at Thyagavalli, Pathamadai and Sivaganga. Organic farming method and drip irrigation systems have been adopted in these plantations. During the year,

2,500+ saplings, covering an expanse of ~17,800 sqm., were planted across Crop Protection Chemicals business unit locations. This includes an external greenbelt area of

~15,600 sqm. at Ankleshwar.

To guarantee full adherence to the relevant waste and emission regulations, the organization utilizes multiple methods. It has set up Continuous Emission Monitoring Systems (CEMS) at all its stacks to monitor the required parameters online. At its plant locations, the organization has set up Continuous Ambient Air Quality Monitoring Systems (CAAQMS) to ensure that emissions comply with the standards established by CPCB & SPCB.

The Company is placing significant focus on improving energy efficiency and renewable energy mix and is identifying possible waste reduction mechanisms.

In FY2023, Coromandel successfully recycled 9,953 MT worth of plastic waste at an organizational level. At Kakinada unit, the business unlocked additional capacity through process and feedstock optimization and infrastructure debottlenecking which minimized the complexity involved in hazardous chemical handling. At few of its Crop Protection Chemical plants, significant portion of incinerate waste disposal mode was changed to co-processing and reduction in effluent generation at source was achieved for key products as part of the business 3R philosophy (Reduce – Reuse – Recycle). Certain projects such as tote bin installations aimed at enabling safe handling of hazardous chemicals were undertaken during the year. ‘War-on-Waste (WoW) initiatives driven by Crop

Protection Chemicals business, as part of its journey towards Operational Excellence, have yielded several benefits including reduction in specific gas During FY2023, the company carried out external water audits at Visakhapatnam, Kakinada, Ennore and Ranipet units. British Safety Council Five-Star Safety Audit was conducted at Visakhapatnam unit. Third-party Energy, Environment and Sustainability audits were conducted across its Crop Protection Chemicals business units reiterating the business commitment towards sustainable operations. Additional studies were carried out across Coromandel manufacturing plants in multiple areas to assess and ensure safe operations with some of these covering ammonia safety systems, fire adequacy, process safety, new product powder safety, fugitive emissions, consumption corrosion, etc.

During the financial year, Coromandel voluntarily participated in Dow Jones Sustainability Indices (DJSI)

Corporate Sustainability Assessment (2022) and attained a score of 50 which is a substantial improvement over previously assigned score. This further demonstrates Coromandels commitment to sustainable business practices.