Coromandel International Ltd Management Discussions

1. Global Economy

The global economy exhibited steady yet uneven growth across regions in 2024, moving up by 3.3% during the year. There was slowdown in manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies. Chinas 5.0% GDP number was led by faster-than-expected net export growth; however, slowdown in consumption amid delayed stabilization in the property market and persistently low consumer confidence affected overall growth. Euro area remained subdued, largely reflecting continued weakness in manufacturing and goods exports even as consumption picked up. Momentum in the US remained robust, as economy expanded at a rate of 2.8% led by strong domestic consumption.

Inflationary pressures eased in most economies; however, services inflation remained persistent. Global commodity prices started softening during 2nd half of the year, especially on the energy front. Commodity price index as tracked by World Bank registered a decline of 3% during 2024. Fertilizers, which remained largely soft compared to previous year started inching up in Q1CY25.

Commodity Price Index (2010 = 100)

Period	Total Index	Energy	Agriculture	Fertilizer	Metals
CY20	63	53	87	75	79
CY21	101	95	108	152	116
CY22	143	153	119	236	115
CY23	108	107	111	154	104
CY24	105	102	115	118	107
Q1CY25	105	99	120	129	109

Source: World Bank

On the geopolitical front, 2024 was an eventful year witnessing elections in three largest global democracies - India, the US and Indonesia along with EU, Mexico among others. The electoral outcomes, alongside broader geopolitical tensions and economic uncertainties are shaping the global landscape for businesses and policy makers alike in 2024 and beyond. Conflicts including Russia-Ukraine, Israel-Hamas & Middle East flare ups, caused regional instability and trade disruptions affected energy and food security. The recent trade tari related measures have exacerbated uncertainties affecting the economic outlook across regions, posing new headwinds for global growth and inflation.

Globally, nations are taking progressive actions on transitioning towards clean energy. European Unions Carbon Border Adjustment Mechanism (CBAM), which aims to address the challenge of carbon leakage and promote global climate action was implemented in 2024. It imposes a carbon price on imports of certain goods, such as steel, cement, and fertilizers, from countries that do not have comparable carbon pricing mechanisms.

In its latest Economic Outlook Report, IMF estimates slowdown in global growth at 2.8% in 2025 and 3.0% in 2026, reflecting the direct effects of the new trade measures and their indirect effects through trade linkage spillovers, heightened uncertainty and deteriorating sentiment. The global disinflation is likely to continue, with inflation expected to decline to 4.3% in 2025 and to 3.6% in 2026.

2. Indian Economy

In the global context, India displayed steady economic growth during the year. The 2nd Advance estimates (SAE) released by the National Statistical Office (NSO) estimates Real Gross Domestic Product (GDP) growth at 6.5% in 2024-25 on the back of robust growth in private final consumption expenditure. On the supply side, real Gross Value Added (GVA) expanded by 6.4%, driven by agriculture sector.

Real GVA growth

Sector	FY24	FY25 (SAE)
Agriculture	2.7%	4.6%
Industry	11.0%	4.3%
Services	9.2%	7.5%
Overall	8.6%	6.4%

Source: NSO

Headline consumer price index (CPI) inflation, which averaged 4.9% upto December 2024, has since been easing with March 2025 inflation at a 12-month low of 3.3%, driven by sharp decline in vegetable prices. After retaining the policy repo rate at 6.5% since February 2023, the Monetary Policy Committee (MPC) has embarked on monetary easing in H2:2024-25. It changed the stance from withdrawal of accommodation to neutral in October 2024 and has taken cuts in the policy repo rate by 50 basis points (bps) to 6.00% in its February and April 2025 meetings.

Indias foreign exchange reserves stood at US$ 676 billion (as of 4th Apr 25), a 4% y-o-y increase. Countrys trade deficit (Merchandise) widened to USD 283 billion, on account of static exports and higher imports of gold, electronics goods and petroleum products.

In 2024-25, India made significant strides in its green energy transition, underscoring its commitment to sustainable development. The country achieved a record addition of 30 GW in renewable energy capacity, reaching total installed renewable energy (RE) capacity of 220 GW and is on track of achieving 500 GW of non-fossil fuel-based capacity by 2030. New policy initiatives introduced during the year like Green Credit Programme, focus on green hydrogen, and amendments to the Energy Conservation Act aligns with Indias net zero by 2070 commitments and reflects its strategic priorities.

The year also marked initial rollout of Indias data privacy legislation. This includes establishment of the Data Protection Board of India, consent frameworks, and compliance guidelines for businesses.

Going forward, RBI estimates sustained demand from rural areas, an anticipated revival in urban consumption, expected recovery of fixed capital formation supported by increased government capital expenditure, higher capacity utilisation, and healthy balance sheets of corporates and banks to support growth in 2025-26. It has projected real GDP growth at 6.5% in 2025-26 with headwinds from global trade disruptions posing downward risks.

3. Global Agriculture

FAOs forecast for global cereal production in 2024 stands at 2,849 million tonnes, slightly down (0.3%) from the previous year, yet it is still the second largest output on record. The reduced output reflects an anticipated lower maize production, largely impacted by adverse weather conditions in South America, Europe and Southern Africa. However, world wheat and rice outputs are anticipated to rise, which should partly offset the foreseen decrease in maize production. The increase in wheat production is expected to be concentrated in Asia. World rice production in 2024/25 is forecast at a record high of 543 million tonnes (milled basis), a 1.6% area-driven expansion. India is expected to account for much of the seasons anticipated growth. Although still accounting for a limited share of world rice use, non-food industrial uses recorded a 17% annual expansion, largely due to greater use of rice for ethanol production in India.

The world cereal stocks-to-use ratio in 2024/25 stands at 30.1%, slightly down from 30.9% in 2023/24, but still at a comfortable level. The projected decline in cereal stocks rests on an anticipated 6.0% decline in global coarse grain stocks.

The Food and Agriculture Organizations (FAO) price index, which tracks the most globally traded food commodities was down in 2024 by 2%, with major decline coming in Cereals (-13%) and Sugar (-13%).

In its Agricultural outlook for 2024-2033 period, OECD-FAO has projected shift in global consumption patterns: Chinas 28% contribution to global consumption growth in the previous decade is expected to decline to 11% in medium term due to stabilisation of nutrition patterns, slower income growth and declining population. Conversely, India and Southeast Asian countries are expected to account for 31% of global consumption growth by 2033, driven by their growing urban population and increasing afluence.

The growing awareness of sustainability in agriculture has driven significant progress across the sector. Farmers, businesses, and policymakers are increasingly recognizing the importance of adopting environmentally responsible practices to preserve natural resources and combat climate change. There has been a notable shift towards regenerative farming, balanced chemical use, efficient water management and usage of technology. Consumer demand for sustainably sourced products continues to rise, encouraging transparency and innovation throughout supply chains. The role of green ammonia and low-carbon fertilizers gained attention amid calls for decarbonizing agricultural inputs.

4. Indian Agriculture

In 2024, Indian agriculture yet again demonstrated resilience and is expected to register record food grain and horticulture output. Robust government support through minimum support prices (MSP), expanded irrigation initiatives, and direct income support helped stabilize rural incomes. During the year, India received above normal monsoon rains at 108% of long period average, resulting in higher acreages and a strong Kharif season.

The third advance estimate (TAE) for 2024-25 placed foodgrains production at 354 million tons, marking an increase of 7% over the previous year, largely led by higher rice output. The production of horticultural crops in 2024-25 reached 362 million tonnes as per the first advance estimates (FAE), 2.1% higher than the final estimates for 2023-24.

Agricultural Production in 2024-25 (mil ton)

Crop	FY24 (FE)	FY25 (TAE)	% chg
Foodgrains	332	354	7%
Oilseeds	40	43	7%
Sugarcane	453	450	-1%
Cotton^	33	31	-6%

^ mil bales Source: MoA&FW

On the policy front, India is closely working towards improving self-sufficiency in Pulses and oilseeds with country importing ~USD 23 billion worth of these commodities in 2024-25. In the Union Budget, Government announced a six-year mission focusing on increasing domestic production of pulses like Tur,

Urad, and Masoor to reduce import dependence. The initiative includes state procurement at guaranteed prices and support for farmers to boost yields. National Mission on Edible Oils – Oilseeds was introduced during the year. Approved with a total outlay of 10,103 crore, this mission aims to boost domestic oilseed production and achieve self-reliance in edible oils over a seven-year period from 2024–25 to 2030–31.

There has been good development in terms of infra strengthening. Government has recently announced work under Ken-Betwa River linking project that intends to bring ~3.5 million hectares under assured irrigation. Further, there has been renewed impetus for completion of Polavaram project in Andhra, which can bring another 1 million hectares of land under irrigation.

India has implemented several direct income support schemes like PM KISAN, aimed at ensuring the financial well-being of its agricultural community, reducing rural distress, and promoting inclusive growth. During the year, state level schemes like Rythu Bharosa (Telangana), Annadata Sukhibhava (Andhra) were introduced that aims to provide financial assistance for covering expenses related to agri inputs like seeds, fertilizers etc.

During the year, India witnessed significant acceleration in adoption of drone technology within the agricultural sector, driven by improved technology penetration, government initiatives, technological advancements, and growing awareness for precision farming. Namo Drone Didi Scheme, launched in 2023, aims to provide drones to 15,000 women Self-Help Groups (SHGs) during 2024–26, enabling them to offer rental services for agricultural purposes, such as the application of liquid fertilizers and pesticides. Further, under the Sub-Mission on Agricultural Mechanization (SMAM), the government is providing subsidies for purchasing drones.

5. Business Performance Summary

In FY24-25, Coromandel delivered a robust performance across Nutrients and crop protection segments, improving its farm level engagement, driving operational excellence across functions and continued execution of its strategic initiatives. This was further aided by strong tailwinds such as good monsoon, higher reservoir levels and increased crop sowing in its target markets.

During the year, Company registered record sales volumes in fertilisers, expanding its presence in North and Central India. Retail business added more than 100 stores, increasing its footprint in existing and new markets. Crop protection business benefitted from new product introductions and improved demand for some of its key molecules. Nano products generated good traction in the market, while speciality nutrients and bioproducts continue to drive integrated farm management practices.

In terms of Financial performance, Revenue for the company was up by 9% to Rs 24,064 Crores, while PAT improved to Rs 1,941 Crores. Working capital cycle improved during the year with lower debtor and inventory days, reflecting its operational efficiency and focused market approach. Its credit rating continues to be strong (‘CRISIL AAA (Stable, IND AAA (Stable), reflecting its strong financial health and creditworthiness.

The company has been strengthening its new products and infrastructure capabilities and during the year-initiated work on multiple projects. Its fertilizer plant at Kakinada is undertaking capacity enhancement project, will involves setting up of a new granulation train for NPKs. This will enhance Kakinadas plant capacity by 7.5 lakh tons to 30 lakh tons, making it the largest integrated Phosphatic complex in the country. Its ongoing backward integration Phosphoric acid-Sulphuric acid project at Kakinada is progressing well and is expected to come onstream in FY25-26. Further, Companys rock mining project at Senegal has set up a fixed processing plant, increasing its recovery and throughput. The operations have fully stabilized and have started delivering consistent rock supplies. Its Crop Protection business has initiated work on establishing a state-of-the-art Multi-Product Plant (MPP) for manufacturing new generation Crop Protection Technicals in Gujarat. During the year, Coromandel commissioned its Nano fertilizer plant at Kakinada with a capacity to produce 1 crore bottles of Nano fertilisers per annum. It has also doubled its capacity of Bentonite Sulphur plant at Vizag.

Companys commitment to safety remains unwavering, with a strong emphasis on fostering a zero-incident culture, enhancing workplace safety protocols, and ensuring the well-being of employees, partners, and surrounding communities. During the year, Total Recordable Injury Rate (TRIR) per million manhours stood at 0.3. Companys Crop protection business was accredited to Responsible Care Management System- RC from Indian Chemical Council, reflecting its commitment to improving health, safety, and environmental performance.

Nineteen new products were introduced during the year. Company partnered with Japanese innovator to launch patented in-licensed product Prachand, which has performed well in the market. In nutrients segment, Urea SSP, a first-of-its-kind complex and multi nutrient fertiliser (Nitrogen, Phosphorous, Calcium and Sulphur) was introduced. To drive research in precision agriculture and new product development, Coromandel inaugurated a state-of-the-art Hi-Tech Polyhouse at its Research & Development (R&D) Farm in Shamirpet, Telangana. The facility is equipped with the latest technology, enabling Coromandel to conduct advanced field trials of its innovative range of agri-inputs.

Company has set up an advanced Soil and Leaf Testing Laboratory at its plant in Kakinada, Andhra. Equipped with state-of-the-art technologies, this facility is designed to provide precise soil and plant nutrient analysis, helping farmers across India better understand their soil and its nutrient composition.

During the year, company scaled up its drone spraying operations through its ‘Gromor Drive initiative and retail centers and covered 2.2 lakh acres. Currently operational in seven key states Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh and Uttar Pradesh, Gromor Drives operations are supported by RPTO-trained pilots. Company is collaborating with other Agri players to expand its footprint and during the year announced partnership with Mahindras Krish-e for providing drone spraying services.

As part of its growth vision to expand presence in Crop Protection, the Company signed definitive agreements to acquire majority stake in NACL Industries Limited (NACL). NACL is an India based Crop Protection player having strong branded formulation business in domestic markets, exports Technicals in key global geographies and has presence in contract manufacturing operations with global multinational agrochemical companies.

During the year, Coromandel acquired an additional 7% stake in Chennai-based drone manufacturing company Dhaksha Unmanned Systems Private Limited through fresh issue of shares to increase its overall shareholding in Dhaksha to 58%. Further, Coromandel acquired an additional 9% equity stake in BMCC, its rock mining project in Senegal, taking its overall shareholding to 54%.

Company continued to foster a high-performing, inclusive, and future-ready workforce by creating a positive employee experience, investing in professional development, and supporting employee well-being across all levels of the organization.

Based on its ESG targets focusing on minimizing resource use, protecting the planet and driving inclusive growth, company is taking progressive steps. During the year, its initiatives spanned around maximizing green energy and waste heat utilization, alternate water usage (desalination & rainwater harvesting), plastic management, farm level interventions (drone spraying, product stewardship) etc. During the year, Coromandel has improved its Corporate Sustainability Assessment (2024) and ranked within the top 7 percentile of global chemical companies in the Dow Jones Sustainability Indices (DJSI), a globally recognized benchmark that evaluates companies on their economic, social and environmental performance.

As part of its digital shift, Coromandel is empowering its teams with digital enablement across all its functions. Faster data-based decision making, improving customer experience and enhancing efficiency in a secure environment remain the primary focus areas. During the year, the Cyber Security posture was elevated to protect the Company against an increasingly complex threat landscape. Multiple Security tools, processes and policies have been deployed in line with the Zero Trust principles. The Digital Data Centre Analytics project delivered insightful dashboards for various functions and the AI/ML models now deployed have started yielding positive results. Going forward, as part of its commitment to innovation and embracing novel technologies, the Company has firm plans to further leverage AI to unlock the value across its processes.

Overall, it has been an encouraging year for the company, where it has displayed ‘Agility in Action in driving key initiatives and building capabilities to strengthen competitive moats, accelerate focus areas and nurture emerging businesses.

6. Fertilizer

Global fertilizer scenario: Global fertilizer consumption saw a modest 3% rebound in 2024, reaching 203.7 million tons, driven by projected urea demand growth, particularly in South Asia. However, this recovery occurred amidst declining a ordability, hitting a two-and-a-half-year low due to strong phosphate and potash prices against weak crop values. Phosphate markets were tight due to limited supply, exacerbated by Chinas export restrictions and firm input costs. Similarly, potash prices trended upwards due to supply constraints. Regional dynamics played a significant role. DAP demand east of Suez was fuelled by competition, notably from Indias low stocks. Latin American demand and Chinas absence boosted MAP prices. On the supply side, Chinas export controls on urea and phosphates in mid-2024 aimed to stabilize its domestic market and promote organic fertilizer use. A surge in global fertilizer prices in October 2024, especially in North America and Europe, was triggered by rising ammonia and natural gas costs, coupled with increased seasonal demand in Europe.

Indian fertilizer scenario: The Indian fertilizer sector plays a pivotal role in underpinning the nations agricultural strength and ensuring food security for its vast population. As the second-largest consumer and third-largest producer of fertilizers globally, Indias fertilizer landscape in FY2024-25 is marked by a concerted effort to balance productivity with environmental responsibility. Government policies actively champion sustainable agricultural practices, including Integrated Nutrient Management, alongside a strong emphasis on promoting indigenous fertilizer production. The Nutrient Based Subsidy (NBS) scheme continues to be instrumental in providing farmers with affordable access to essential nutrients, navigating the complexities of the international market. Complementary support mechanisms like the PM Kisan Samman Nidhi and enhanced Minimum Support Prices (MSPs) further empower the farming community and incentivize investments in improved agricultural inputs.

A significant thrust towards achieving ‘Atma Nirbhar Bharat (self-reliant India) is reshaping the domestic fertilizer production landscape. The strategic commissioning of five new urea plants across the country has led to a substantial reduction in urea imports, with domestic production witnessing a notable increase from FY15 to FY25. Simultaneously, there is a growing emphasis on promoting environmentally friendly alternatives. The PM Pranam Scheme actively incentivizes states to reduce chemical fertilizer consumption and adopt integrated nutrient management practices by rewarding them for subsidy savings, which can then be reinvested in promoting alternative fertilizers and raising awareness among farmers. Furthermore, the government is actively fostering the adoption of organic and nano fertilizers. The nationwide expansion of Nano-DAP application, recognized for its enhanced efficiency and cost-e ectiveness compared to conventional DAP, represents a key step towards reducing reliance on imported phosphatic fertilizers. This multi-faceted approach, encompassing policy support, domestic capacity building, and the promotion of innovative and sustainable nutrient solutions, defines the evolving Indian fertilizer scenario in FY 2024-25. During the year, the industry recorded DAP + NPK production of 15.1 million tons registering 9% growth and consumption of 23.5 million ton with 7% growth over the last year.

India Fertiliser statistics (mil tons)

	PRODUCTION				IMPORT				CONSUMPTION (POS)
	FY 22	FY 23	FY 24	FY 25	FY 22	FY 23	FY 24	FY 25	FY 22	FY 23	FY 24	FY 25
UREA	25.1	28.5	31.4	30.6	9.1	7.6	7	5.6	34.2	35.7	35.8	38.8
DAP	4.2	4.3	4.3	3.8	5.5	6.6	5.6	4.6	9.3	10.4	10.8	9.3
NPK	8.3	9.3	9.6	11.3	1.2	2.8	2.2	2.3	11.5	10.1	11.1	14.2
SSP	5.4	5.7	4.5	5.2					5.7	5	4.5	4.9
MOP					2.5	1.9	2.9	3.5	2.5	1.6	1.6	2.2
TOTAL	42.9	47.8	49.7	51.0	18.2	18.8	17.6	16.0	63.1	62.9	63.8	69.4

Source: Fertiliser Association of India

Coromandel Fertilisers – Business Performance:

For nearly six decades, Coromandel has been partnering Indias farming community in driving balanced plant nutrition. As nations leading private sector manufacturer of phosphatic fertilizers, known for its diverse NPK grades, Coromandel continued its strong performance in FY 2024-25, achieving record-breaking results.

Companys manufacturing plants undertook capacity debottlenecking to deliver highest ever volumes of 3.33 million tons with the highest level of safety and environment management. Vizag & Kakinada Units were honoured with the British Safety Councils International Safety Award under the "Distinction" Category, reflecting its utmost importance placed on safety with a TRIR < 0.5 consistently. Improved product quality has been achieved through cross-functional collaboration and the establishment of quality councils. The Ennore unit safely resumed Phosphoric Acid operations after obtaining all necessary statutory clearances and approvals through thorough inspections and certifications. It managed to maximize the acid production in its 8 months of operation. The major backward integration projects for Phosphoric Acid and Sulfuric Acid plants at Kakinada are on track and expected to be commissioned in FY25-26.

During the year, the company announced expansion of its granulation capacity by 0.75 million tons at Kakinada. The brownfield expansion is expected to come up in two years time and will help in substituting DAP imports, especially in the northern markets, thereby increasing balanced nutrition through NPK fertilisers. The new granulation plant will feature advanced, energy-e cient technology, enabling the production of high-quality phosphatic fertilizers to meet growing farmer demand.

To drive self-sufficiency in operations, Coromandel has improved the captive rock utilization (from own mines at BMCC, Senegal), increased its own Phosphoric acid volumes, achieved record Sulphuric acid volumes, increased its captive power share from waste heat through various energy optimization initiatives, and improved captive water generation from the desalination unit.

Manufacturing operational effectiveness was consistently supported by Digital Analytics and ML/AI Models built to aid process operations, yielding significant benefits. The digital transformation journey and the application of analytics and

ML in safety (through Video Analytics), quality processes, operations, and productivity are progressing well.

On the sourcing front, Company continued to strengthen its supply chain by diversifying supplier base, securing long-term contracts, and leveraging strategic partnerships to ensure cost-e ective, reliable, and timely procurement of key raw materials. Recognizing Indias reliance on imported rock phosphate, Coromandel strategically increased its stake in BMCC Senegal to 53.8%. Further, it stabilized production through setting up a Fixed processing plant. Going forward, company expects to receive consistent supplies of rock from BMCC that can meet upto one third of its rock requirement.

Coromandel registered record sales of Phosphatic fertilisers (NPK+DAP) in FY25, increasing volumes by 13%. The share of unique grade stands at 35%, with consumption-based market share improving to 18% (LY: 15%). As part of its market diversification approach, company forayed into north & central India markets.

Coromandel sales

in lakh tons	Complex	N=RIGHT>DAP	Complex + DAP	SSP
FY19	24.2	6.1	30.3	5.7
FY20	26.1	5.4	31.5	5.7
FY21	28.1	5.4	33.5	6.7
FY22	28.3	4.9	33.2	7.6
FY23	31.2	5.3	36.5	8.1
FY24	30.3	5.1	35.4	6.5
FY25	33.8	6.0	39.9	7.7

Companys Single Super Phosphate business commissioned Urea SSP and Magnesium Sulphate grades at its Nimrani unit. It has also set up a Sodium silico fluoride plant, that utilizes process by-product for making fluoro based product. During the year, SSP plants operated at a higher capacity and focused on value added and granulated products.

Coromandel actively supports farmers through a comprehensive suite of agronomic services, including soil and leaf testing conducted at 58 Nutri clinics nationwide, promoting the adoption of balanced nutrition practices. Aligned with government initiatives, the company has established 13,385 Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs) across key markets, serving as vital resource centers for farmers.

Demonstrating its leadership in providing holistic farm solutions, Coromandels drone spraying service, Gromor Drive, achieved significant scale, covering over 115,000 acres and is witnessing strong adoption by the farming community. This initiative underscores the Companys commitment to leveraging technology to enhance efficiency and reduce costs for farmers. It has also partnered with Mahindra Krish-e to promote drone spraying.

Coromandel is actively developing various digital tools across its value chain to enable data-driven decision-making, enhancing operational efficiency and customer engagement. In line with this digital transformation, Coromandel has launched the Gromor Nutri Connect Farmer App, a dedicated Microsite, and a WhatsApp BOT to enhance communication and reach its customer base more effectively.

During the year, Coromandel set up an advanced Hi-Tech Polyhouse at its Shamirpet R&D farm in Telangana. This state-of-the-art facility will significantly enhance the companys capabilities in precision agriculture research and the development of innovative new products tailored to the evolving needs of the agricultural sector. Further strengthening its agronomic support infrastructure, the company has launched a Central Soil and Leaf Testing Lab at Kakinada, dedicated to enhancing the accuracy and efficiency of its soil and leaf analysis services for farmers.

Coromandel is partnering with leading organizations to drive sustainable agriculture through collaborative research. During the year, it signed a Master Research Agreement with the International Fertilizer Development Centre (IFDC) to drive fertilizer innovation and promote sustainable agricultural practices. It also partnered with ICAR-NBSS&LUP, Nagpur to develop soil test-based nutrient advisory services for farmers in Maharashtra, leveraging digital platforms for optimized fertilizer recommendations. During the year, the company instituted FAI Plant Nutrition Award to recognize outstanding contribution in the field of plant nutrition and sustainable agriculture encouraging innovation, research excellence, and best practices among industry professionals and institutions.

7. Speciality Nutrients

The Specialty Nutrients business remains a key enabler in Coromandels mission to drive sustainable agriculture through high-e ciency, crop-specific nutrition solutions. In FY 2024-25, the business delivered good performance, supported by strategic initiatives focused on innovation, farmer engagement, and channel expansion.

A major initiative launched during the year was "Virasat – for Generations," aimed at raising awareness around the long-term benefits of organic fertilizers. This program encourages the use of organic inputs to preserve soil health and ensure agricultural sustainability across generations. To extend reach and coverage, the Speciality Nutrients business significantly expanded the treated area under Coromandels products, supported by strong market development efforts and farmer-centric programs across key regions.

The business strengthened its customer outreach through enhanced digital engagement, allowing for wider reach and deeper connections with farmers. Complementing this, influencer marketing was actively leveraged to engage the farming community through trusted digital voices, building product awareness and credibility.

To meet growing demand, Sulphur production capacity was doubled during the year, ensuring timely supply and wider availability.

Nutriclinic, Coromandels farmer service platform, played a vital role in providing soil testing and tailored crop advisory services. With its expanding footprint, Nutriclinics are empowering farmers to make informed nutrient decisions, optimize yields, and adopt sustainable practices.

Speciality Nutrient Business has launched several innovative products across categories. In the organic segment, crop-specific solutions like Areca Shakti and Co ee Bliss were introduced. In the specialty nutrients portfolio, Pixibud and Pixigrow were launched to support critical growth stages. The Nutribooster category was strengthened with the introduction of Nanozyme, a solution for improved plant health and productivity.

Through these targeted initiatives and farmer-first solutions, the Specialty Nutrients business remains strongly positioned to contribute to the advancement of Indian agriculture and the success of farming community.

8. Crop Protection

Crop Protection – Business Scenario

In 2024, the agrochemical industry faced second consecutive year of decline as consumption was impacted by unfavorable weather conditions in key agricultural regions such as Latin America, Australia, and major cereal-growing areas of Europe. These weather-related challenges, combined with pricing pressures, elevated inventory levels, and strained farm economics, contributed to a difficult year for the sector. Industry estimates indicate a 7% decline in value, bringing the market down to USD 77 billion. Indias agrochemical exports during the year were also down by 3% to USD4.2 billion.

Looking ahead, recent tari -related embargo poses a potential downside risk, as it could drive up input costs and dampen consumption—particularly in the United States, the second-largest agrochemical consumer after Brazil. The agrochemical market in 2025 is expected to remain neutral with improving channel inventory and expected favorable weather conditions; however, uncertainties relating to price pressure and trade policies persist.

Indian Agriculture experienced a good season with above normal rains and healthy reservoir levels. The season for agri-inputs started on a positive note but continuous rains during peak consumption period & lower acreages of key agchem consuming crops like cotton and chilli led to lower applications. Overall, the industry is estimated to register a marginal growth owing to relatively low pest pressure across crops.

The herbicides segment in India is experiencing rapid growth, driven by rising labor costs. Currently accounting for nearly 25% of total agrochemical sales, this category is expected to mirror the adoption rates seen in global markets, where herbicides contribute over 50% of sales in the coming years.

On the technology front, the use of drones for agricultural spraying is gaining momentum, bolstered by government initiatives and active industry involvement.

Crop Protection Business Performance

During the year, Coromandels Crop Protection business delivered a strong performance, registering sales & EBIT growth of 7% and 13% respectively, through all-round improvement in volume, customer acquisitions, new product introductions and operational efficiencies.

To capitalize on emerging market trends, the company expanded its herbicide portfolio by introducing three new formulations. Additionally, it partnered with Japanese innovator to license an insecticide and launched two other formulations. To diversify its fungicide offerings, the company rolled out three new products. In total, ten new products were launched during the year, including three patented ones, which have been well-received in the market. Share of new products to total sales has increased to 21%, up from 16% last year. The business secured five 9(3) registrations, highlighting its commitment to new-age solutions alongside its portfolio of Me-Too products. The company is strengthening its marketing approach by focusing on integrated solutions through initiatives such as Gromor Suraksha Kshetras, Gromor Suraksha Days, and Graam Path. It is also scaling up its digital marketing efforts to enhance customer engagement and outreach.

On the exports front, Coromandel delivered a resilient performance and registered a volume growth of 9% in a challenging market. It strengthened its presence in Latin America, APAC, and Africa markets by focusing on timely deliveries, tailored solutions, and technical handholding for customers navigating volatile markets. The business deepened its engagement with long-standing partners and attracted new buyers. During the year, business received six registrations for its technical and formulation products.

Business is committed to promote safe work practices and has been conducting external audits and leveraging technology tools like video analytics within its operations. TRIR (Total Recordable Incident Rate), a key workplace safety metric, stood at 0.14 in FY25. During the year, the business received certification of Responsible Care practices for its Technical, R&D and Formulation sites. This underscores its commitment to sustainability and maintaining high standards of security, safety, health and environmental performance across its operations.

Business continued its efforts towards driving quality improvements and the First Time Pass Rate (FTPR), which measures products meet quality standards upon initial inspection, stood at 99.6%. Companys Ankleshwar unit won prestigious Golden Peacock award in April 2025, a testament of its efforts towards quality practices.

To strengthen its manufacturing infrastructure, the Company expanded capacity for two existing molecules and commercialized two new herbicides along with one fungicide technical. It has also announced the establishment of a state-of-the-art Multi-Product Plant (MPP) in Gujarat for manufacturing Crop Protection Technical. Leveraging its R&D and manufacturing capabilities, the Company is actively pursuing opportunities in adjacent areas while engaging closely with global customers.

9. Bioproducts

The Bioproducts business of the company offers a range of biopesticides containing Azadirachtin for safeguarding crops and bio-stimulants 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.

The business has carried out several efficiency improvement interventions to manufacture best-in class pure Azadirachtin meeting global quality requirements and organic regulations. As part of its diversification strategy, business expanded its non-Azadirachtin portfolio with entry into microbials and other plant extracts and received good market acceptance. The share of sales from new products stands at 24%. Further, the Business is in process of registering its bioproducts in international markets like EU, US, LatAm.

To improve its presence across the value chain, the business is in-housing end to end operations - from Procurement to Manufacturing. During the year, the business set up production capacity for bio fertilizers and microbial crop protection products using the fermentation process developed inhouse.

10. Retail

Established in 2008, Coromandels Retail business, is the face of the organization deepening its connect and engagement with farming community. Supported by a 3,000+ member strong team, the ~900 Retail centers serve as comprehensive hubs for farmers, offering a wide range of products and services tailored to enhance agricultural productivity and sustainability.

During the year, the business added more than 100 new stores, expanding its presence in existing states (Andhra, Telangana, Karnataka) and entering into new markets (Maharashtra and Tamil Nadu). Further, to provide a focused approach to crop protection business, it inaugurated 5 new format CPC exclusive stores known as Corocare.

The Retail business continued to develop innovative solutions by leveraging technology across multiple fronts, including Precision Advisory, e-commerce, drone-based spraying (covering over 1 lakh acres), and last-mile delivery services. Through its Direct Door Delivery initiative, the business distributed approximately 3.6 lakh bags directly to farmers fields. Additionally, the adoption of digital payment solutions enhanced convenience, transparency, and efficiency across retail transactions. During the year, ‘Gromor Sena was introduced, an initiative to provide e-commerce services to the rural customers living in non-catchment areas. During the year, the business launched the podcast and panel discussion based digital content providing the agricultural solutions to the farmers via its YouTube channel which currently garners 400k+ subscribers.

As part of its customer centricity, the business felicitated farmers and their families, in recognition of their continued trust and contribution to sustainable agriculture. Its focused approach of providing customized crop-based recommendations and solution based advisory services is empowering farmers to enhance productivity and profitability and sets the retail business apart from its competitors and augment farmer loyalty.

Retail business diversified products and services portfolio combined with its focus on integrated farming solutions continue to deliver enhanced farm yields and profitability for farmers. The business is reinforcing its position as a leading rural retail chain, with plans to expand into new markets while developing advanced technology solutions and broadening its service offerings.

11. Nano Fertilisers

Since the launch of Nano Fertilisers in FY2023-24, the business has been able to establish and scale Nano DAP across all its key markets in India. Committed to serving farmers by introducing innovative technologies that make farming more remunerative and sustainable, Nano Fertilisers is a strong step in this direction that introduces the concept of high Nutrient use efficiency and also leaving almost nil residues in the environment.

During the year, the business has set up its state-of-the-art Nano Fertiliser plant at its Kakinada complex in Andhra Pradesh. The new Nano Fertilizer Plant is designed using energy-e cient technologies and has fully automated production line including robotic arm for bottling operations. Company had also set up a Nano Technology Center at Coimbatore to focus on Nano application in agriculture and to establish quality for Nano range of products.

With its vision of Manufactured in India and Made for the World, the business has initiated efforts to establish Nano Fertilisers in global markets. The business will continue to work on expanding its portfolio and reach for Nano fertilisers and work with all stake holders to leverage the capability of Nano Technology in agriculture, both remuneratively and sustainably, in India and in global markets.

12. Opportunities & Strengths

Opportunities

1. Balanced Nutrition practices to drive shift towards NPKs and organic fertilizers. With current distortions in N:P:K application rates (10.9:4.4:1.0 v/s recommended 4:2:1), balanced fertilization critical to improve crop productivity and soil health.

2. Increasing acreage under assured irrigation to improve cropping intensity and agri inputs consumption. Since 2010, Indias irrigation coverage has improved from 45% to 55%.

3. Focus on resource use efficiency to improve application of water soluble fertilizers, slow release and liquid fertilizers. These technologically superior products have higher nutrient uptake and reduces water usage.

4. Coromandels proposed capacity enhancement to expand its presence in new markets

5. Companys strengths in Phosphate based chemistries open opportunities in non-agriculture downstream applications

6. Low per capita agrochemical usage in India relative to global peers offers opportunity for higher consumption of Crop Protection products

7. Indias relative advantage in chemicals manufacturing due to cost competitiveness, technical capabilities and increasing actions towards diversifying supply chains by global customers, provides opportunities in Agrochemical, CDMO and Specialty & Industrial Chemicals manufacturing

8. Increasing consumer awareness towards sustainable and bio-based solutions can drive shift towards Integrated Pest Management (IPM) practices. Coromandel, with its bioproducts business, is well positioned to offer farmers green alternatives and support sustainable farming practices.

9. Increased adoption of drones in Indian agriculture for spraying and crop monitoring purposes provides opportunity to expand Companys Gromor Drive initiative 10. High rural internet penetration (82 crore active users) provides opportunity to expand customer reach

Strengths

1. Strong corporate governance practices that promote transparency, accountability, and ethical business conduct.

2. Leading manufacturer and marketer of Phosphatic fertilisers in the country, with ability to manufacture 14 grades

3. End-to-end value chain presence in Fertilisers with presence in rock mining, intermediates production, fertiliser manufacturing and marketing

4. Strong technical manufacturing presence in Agrochemicals, with ability to make 20 molecules. Further, with the acquisition of NACL, subject to regulatory clearance, Coromandel to become the leading Indian Agchem player.

5. ~900 rural retail stores, acting as one-stop-shop for farming needs and providing direct customer connect

6. Leading Speciality nutrients and Bioproducts company, offering integrated farm management approach

7. Plants situated in major agri inputs consuming markets offers locational advantage

8. Strong salience for ‘Gromor brand, resulting in sound loyalty and long term customer engagement

9. 7 state-of-the-art R&D facilities for new product development across all its business units. It has a rich pipeline of products and partners with leading research organizations.

10. Strong capabilities in Drone manufacturing through its subsidiary Dhaksha. It offers solutions in defence, agriculture and enterprise segments and provides opportunity to diversify its customer base.

13. Financial Review

The Company registered a strong performance in FY 2024-25. Standalone revenue stood at Rs. 24,064 crores compared to Rs. 22,029 crores in the previous year. The Companys PBT was at Rs. 2,585 crores compared to Rs. 2,272 crores in the previous year. PAT was at Rs. 1,941 crores compared to Rs. 1,719 crores in the previous year. Net cash from operating activities before working capital changes is Rs. 2,748 crores compared to Rs. 2,403 crores in the previous year. Return on net worth for FY24-25 stood at 19% reflecting a healthy balance of strong profit generation, effective capital utilization, and sustainable shareholder value creation.

	uom	2024-25	2023-24
Debtors Turnover	no. of days	45	50
Inventory Turnover	no. of days	95	100
Interest Coverage		11.5	14.1
Ratio
Current Ratio		2.0	2.1
Debt Equity Ratio		0	0
Operating Profit	%	11.0	10.9
Margin (EBITDA)
Net Profit Margin	%	8.1	7.8
Return on equity	%	19.0	19.9

14. Risk Management & Internal Control

This is covered under the section ‘Risk Management of the Integrated Report.

15. Human Resource Development

At Coromandel, Human Resources play a pivotal role in achieving business objectives and advancing the companys growth aspirations. In this context, a number of people-centric initiatives were undertaken during FY24–25, focussing on strengthening capabilities across levels and functions, driving strategic priorities, and fostering a culture of excellence, inclusivity, and empowerment.

Building People Capabilities

The focus on learning and development during FY24–25 was evidenced by a 12% increase in employee training man-days — 6.5 days per employee compared to 5.8 days in FY23-24. In total, 35,827 learning man-days were recorded across the organisation, covering functional, behavioural, quality, and safety training, delivered both in-person and virtually. These initiatives included location-specific programmes as well as organisation-wide themes such as Leadership Development, Financial Acumen, Executive Presence, and Competency-Based Interviewing Skills. Additionally, Coromandel implemented extensive POSH (Prevention of Sexual Harassment) training, creatively delivered through street plays and an updated e-learning module.

The YOLO (Your Own Learning Orbit) e-learning platform launched over 220 new courses during the financial year. This included a curated blend of modules across marketing, finance, negotiation skills, analytical tools, products, team leadership, strategic thinking, customer orientation, and compliance. Over 17,200 learning paths were successfully completed by employees.

To bring an outside-in perspective, a series of distinguished external speakers were invited to address employees. Notably,

Dr Kiran Bedi, IPS, delivered an inspiring session on the theme "Dream, Dare, and Deliver".

At the business unit level, Nutrient business enhanced agri-domain knowledge and managerial skills among its sales and marketing teams through programmes such as New Entrant Assimilation Training (NEAT) and Marketing Officer Resurgence and Excellence (MORE). Retail focused on upskilling 121 store teams through classroom, virtual, and field training. CPC emphasised outbound learning, targeting communication and team-building skills, while the Bio business developed managerial capabilities of its first-time managers. In the manufacturing units, plant-specific technical training was conducted along with quality and safety programmes.

Creating a resilient and future-focused organisation

As part of a Succession Planning initiative, a comprehensive Development Centre was conducted in collaboration with global consultancy partners to assess the behavioural competencies of middle and senior leadership. This assessment paved way for crafting Individual Development Plans incorporating skill labs, workshops, and other learning interventions to be completed in FY25–26. Furthermore, the Emerging Leaders Programme (ELP) has been designed for middle managers, aimed at building the leadership pipeline, in association with the Indian Institute of Management, Bangalore, and will be launched in FY25–26.

In partnership with a global consulting firm, a job evaluation exercise for mid to senior levels was undertaken, covering spans of control and job banding. Following the study, completed in January 2025, an organisational restructuring exercise is planned for FY25–26.

The organisation undertook a compensation benchmarking exercise in partnership with Mercer, to ensure pay structures are competitive and aligned with evolving business needs and market standards.

Enhancing our Talent Pool

With Coromandel set to grow organically and inorganically, key talent at various levels have been added to bring in the requisite capabilities. 984 new employees were recruited across various functions and businesses, supporting key projects such as the expansion of Retail stores and the new Sulphuric Acid, Phosphoric Acid, and Granulation plants.

Additionally, 42 campus hires were recruited from premier institutes such as IIT, NIT, IIM, MDI etc. for Sales & Marketing, Manufacturing, Finance, HR, IT and General Management roles. These fresh graduates undergo a structured year-long training programme to facilitate their transition into the corporate environment and strengthen the internal talent pipeline.

Employee Engagement and Wellness

FY24–25 witnessed vibrant employee engagement activities, ranging from festival celebrations and sports leagues to annual gatherings and family picnics, thereby fostering camaraderie across the organisation.

Bloom, an employee wellness initiative, was launched alongside a dedicated app offering services such as counselling, nutritional guidance, exercise routines, and access to expert-led health sessions.

A dipstick engagement survey conducted by Great Place to Work (GPTW) recorded a 7% improvement in overall engagement scores, rising to 82% from 75% in 2022. Key dimensions such as credibility, respect, fairness, and pride saw improvements of 8–10%, afirming the effectiveness of actions taken post the 2022–23 survey. Notably, 91% of employees expressed that Coromandel is a Great Place to Work.

Rewarding Performance

Recognition and reward initiatives continue to drive a high-performance culture across the organisation. The Chairmans Annual Award recognised employee contributions that have made a significant impact to the organisation. The SHINE Awards honour employees exemplifying the Five Lights — Integrity, Passion, Quality, Respect, and Responsibility. In FY24–25, 24 employees were felicitated with the SHINE Awards.

At Chronicle, the quarterly employee communication meeting, MD & CEO recognised outstanding employee performance for the quarter. Business level reward and recognition initiatives include the I-CARE Success Story drive in CPC, the BIG BULL programme in Retail, and the Achievers and Champions Club Awards in the Nutrient Business.

Industrial Relations and Compliance

Industrial relations remained harmonious across all Coromandel plants during FY24–25. Long-Term Settlements (LTS) were successfully concluded at the Vizag and Ankleshwar plants.

Compliance audits were systematically conducted across all sites to ensure adherence to statutory requirements. The status of compliance is being monitored through ‘Lawrbit, a digital compliance management platform introduced during FY24–25.

Strengthening Processes to Support the Business

Comprehensive internal audits were undertaken across all locations to strengthen process adherence across 42 HR policies and procedures. Technology has been leveraged extensively, with real-time customised dashboards providing insights into key HR metrics such as headcount, recruitment and attrition trends.

In a significant achievement, Coromandels HR practices and key initiatives aligned to business objectives were assessed by Bureau Veritas against ISO 30408 standards. Coromandel was awarded the prestigious ISO 30408 certification for Human Resources Management in FY24–25, becoming one of the few Indian companies to receive this recognition.

16. Corporate Social Responsibility (CSR) Initiatives: Touching Lives, Transforming Communities

Rooted in the foundation of inclusivity, empowerment, and sustainable development, Coromandels Corporate Social Responsibility initiatives extend far beyond philanthropy. It reflects its deep bond with people and the land around its operations transforming aspirations into achievements across healthcare, education, womens empowerment, community infrastructure, and environmental stewardship.

This year, its employees have set a new benchmark in compassion and service. Over 1,500 employees volunteered more than 4,200 hours the highest in its history fuelling its projects not just with resources, but with human connection, heart, and purpose.

The impact of its commitment has been recognised nationally and locally, earning prestigious accolades such as 2nd place in the PRSI National Award for CSR in the Private Sector, along with honours from the Governor of Andhra Pradesh and District Collectors at its unit locations.

Healthcare is a cornerstone of companys CSR efforts. Believing that access to medical care is a fundamental human right, it operates three medical centres delivering consultations across specialties gynaecology, paediatrics, dental care, and orthopaedics for a nominal fee. At Kakinada, its flagship Coromandel Hospital is expanding into a 60 bed state-of-the-art inpatient facility, bringing world-class healthcare closer to those who need it most.

In education, the company is breaking barriers to learning by building critical infrastructure science labs, classrooms, school toilets, RO water plants; and delivering programs that enrich young minds and brighten futures.

Companys community development and women empowerment initiatives from skill-building programs to community hall constructions create ecosystems of opportunity where every woman, man, and child has a fair chance to thrive.

Measuring what matters:

In FY 2024-25, Coromandel committed INR 46 crores to various CSR initiatives. It conducts independent impact assessments for most projects, ensuring that the work not only meets legal expectations but also maximises the social return on investment. The projects have been rated in the Platinum Category of Performance by Blue Sky, reafirming that its CSR programs are among the best in class.