Dhanuka Agritech Ltd Management Discussions

The global economy stands at a critical juncture. After a prolonged and unprecedented period of shocks, the economy appears to have stabilised through much of 2024, with steady yet underwhelming growth rates. Global GDP is expected to grow by 3.3% in 2024 and 2.8% in 2025, maintaining the same pace as in 2023. However, the global economy demonstrated resilience and withstood a series of mutually reinforcing shocks, despite substantial interest rate hikes by central banks aimed at restoring price stability. Growth remained subdued amid lingering uncertainty, constrained by weak investments, sluggish productivity growth and high debt levels.

I However, the global landscape changed as governments around the world reordered policy priorities and uncertainties have increased. Risks stemmed from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world. Compounding these challenges, the war in Ukraine drove energy prices even higher, placing additional strain on economies with significant energy demands.

	Estimate	Projections
	2024	2025	2026
World output	3.3%	2.8%	3.0%
Advanced economies:	1.8%	1.4%	1.5%
United States	2.8%	1.8%	1.7%
Euro Area	0.9%	0.8%	1.2%
Emerging Markets and Developing Economies:	4.3%	3.7%	3.9%
Emerging and Developing Asia	5.3%	4.5%	4.6%
China	5.0%	4.0%	4.0%
India	6.5%	6.2%	6.3%
Middle East and Central Asia	2.4%	3.0%	3.5%

Source: https:/A/vww.imf.org/en/Publications/WEO/lssues/2025/04/22/world-economic-outlook-april-2025

Future Outlook

Looking ahead, intensifying downside risks dominate future outlook, amid escalating trade tensions and financial market adjustments. The forecast for global growth has been revised markedly down, reflecting a highly unpredictable environment. Expectations are that divergent and swiftly changing policy positions and deteriorating sentiments can lead to even tighter financial conditions. Short and long-term growth prospects are expected to be hindered by a trade war and heightened trade policy uncertainty.

Global growth forecast for the next five years stands at 3.1%, marking its lowest level in decades. Lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025. Advanced economies are forecast to maintain a steady growth rate of 1.8% in 2024, and declining to 1.4% in 2025 followed by a slight uptick to 1.5% in 2026, while the emerging market and developing economies are projected to have grown by 4.3% in 2024, with growth in 2025 and 2026 estimated to decline slightly to 3.7% and 3.9%, respectively.

At this critical juncture, there is a need for countries to work constructively to promote a stable and predictable trade environment and to facilitate international co-operation, while addressing policy gaps and structural imbalances. Global headline inflation is expected to decline at a slightly slower pace. Inflation is expected to fall from 5.9% in 2024 to 4.5% in 2025, with advanced economies reaching their inflation targets sooner than emerging and developing markets.

As per the second advance estimates by the National Statistics Office (NSO), the Ministry of Statistics and Programme Implementation (MOSPI), Indias real GDP is estimated to grow by 6.5% in FY2024-25, as compared to real GDP growth rate of 8.2% in FY 2023-24, which was estimated to be the highest in the previous 12 years (barring FY 2021- 22). Retail inflation fell to a remarkable 4.6% in the fiscal year 2024-25, hitting a six-year low and being at its lowest since 2018-19. Retail inflation has been on a decline from 5.4% in 2023-24 and 6.7% in 2022- 23, on account of high-frequency macro- economic indicators, and indicating a promising outlook in the coming years.

The countrys economic growth reflects a steady performance in a dynamic global economic environment. The Indian economy continues to be driven by a revitalised manufacturing base and a thriving services sector, and supported by key reform-based policies of the government.

The impressive growth trajectory highlights the resilience of Indias economy, and reinforces its status as the fastest-growing major economy, driven by a well-executed strategic approach, and surpassing other major emerging markets, including China. The key drivers for boost in economic growth were public infrastructure investment and rising household real estate investments.

India restored macroeconomic and financial stability, but structural impediments to growth and persistently high inflation remained a key macro- economic challenge. However, despite the macroeconomic environment, Indias growth momentum remained strong, positioning it to achieve one of the highest annual GDP growth rates globally. The Indian economy demonstrated remarkable resilience in CY 2024, characterised by strong GDP growth, substantial foreign exchange reserves, and record levels of foreign direct investment (FDI) inflows.

As per International Monetary Funds (IMF) list of World GDP Rankings2025, India iscurrently ^k the fifth-largest economy in the world, with a GDP of US$ 3.89 trillion at current prices, growing at an impressive rate in FY2023-24.

India is currently the third- ^ largest economy in the world in r terms of GDP based on purchasing power parity (PPP) with a GDP size of US$ 16.02 trillion, as perthe data from IMF.

India Economic Outlook FY 2025-26

With economic activity remaining robust, Indias economy is projected to further strengthen in FY 2025-26, driven by strong export growth in services and goods categories like pharmaceuticals and electronics. On the supply side, expansion in the manufacturing and services sectors continued to drive the economy throughout the forecast period.

India is poised to lead the global economic landscape, retaining its position as the fastest- growing major economy. According to the World Banks Global Economic Prospects (GEP) report, Indias economy is projected to expand at a robust 6.7% in both FY 2025-26 and FY 2026-27, far surpassing global and regional counterparts. With global growth expected to remain at2.7% in 2025-26, Indias strong performance highlights its resilience and increasing influence in shaping the worlds economic future. A sustained growth reflects the countrys strong economic fundamentals and ability to maintain momentum despite global uncertainties, reinforcing its position as a key player intheglobal economy.

(Source: World Bank & International Monetary Funds World Economic Outlook)

A Key Engine of Development

The agriculture sector is the largest source of livelihood in India. The country is one of the largest producers of agriculture and food products in the world. Agriculture, with its allied sectors, is also the largest source of employment in the country. With ~ 55% of the Indian population engaged in the agricultural sector, it contributes 16% to Indias total GDP.

The agri-sector is undergoing major transformation on the back of technological innovations. Recent initiatives to enhance farmer welfare, including improved credit and insurance schemes, have been commendable steps supporting growth of the sector.

Emphasising Agriculture as the first engine for Indias development journey, Union Budget 2025-26 announced a slew of measures to spur agricultural growth and productivity, as mentioned below:

Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme

? The programme to be launched in partnership with the states, covering 100 districts with low productivity, moderate crop intensity and below-average credit para meters, to benefit 1.7 crore farmers.

Building Rural Prosperity and Resilience

? A comprehensive multi-sectoral programme to be launched in partnership with states to address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy.

? Phase-1 to cover 100 developing agridistricts.

Aatma Nirbharta in Pulses

? Government to launch a 6-year "Mission for AatmaNirbharta in Pulses" with focus on Tur, Urad and Masoor.

? NAFED and NCCF to procure these pulses f rom farmers during the next fouryears.

Comprehensive Programme for Vegetables & Fruits

? A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers to be launched in partnership with states.

Source: India Union Budget Highlights, 2025-26

India is on its way to becoming a global leader in agriculture, with the Ministry of Agriculture projecting a record-breaking Kharif foodgrain production, with an unwavering support from the nations agrochemicals sector. Indias foodgrain production for the 2024-25 crop year (Kharif and Rabi) is estimated at 330.9 million tonnes. The Ministry of Agriculture is providing assistance and encouragement to farmers through various schemes, resulting in a record increase in agricultural crop production

India produced record rice, wheat, and maize in the 2024-25 kharif season, as per Ministry of Agriculture and FarmersWelfares second advance estimates of production of major agricultural crops, revealing a record-high harvest of rice, wheat,and maize.

? India produced Kharif foodgrains to the tune of 1,663.91 lakh tonne and Rabi foodgrains (excluding summer crop) atl,645.27 lakh tonne.

? Kharif rice is estimated at 1,206.79 lakh tonne, while Rabi rice (excluding summer) at 157.58 lakh tonne.

The agricultural land in India is gradually decreasing, while the demand for agricultural products is increasing. To boost productivity on 174 million hectares of arable land and meet high domestic demand for agricultural products, an increased investment in agricultural infrastructure like irrigation facilities, warehousing, and cold storage coupled with innovative crop-specific solutions boosting nutrient use efficiency will be key to be self- sufficient.

India is one of the largest agricultural product exporters in the world. Agricultural exports from India have seen a notable increase in the past several years, demonstrating the strength of Indias agricultural sector. Agri-exports from India stood at US$ 48.15 billion in FY 2023-24 vis-a-vis US$ 52.5 billion in FY2022-23. However, exports in FY2023-24 have more than doubled in the past decade - up from US$22.70 billion in FY2013-14.

In FY 2024-25, Indias agricultural exports grew by 6.5% to US$ 37.5 billion (April-December 2024). The agricultural export growth exceeded the overall merchandise exportgrowthofl.9%.

Agricultural exports are expected to grow further in the years ahead. Growth in exports of meat, dairy, cereal preparations, and fruits and vegetables are offsetting the challenges arising from restrictions placed on export of rice, wheat and sugar in a bid to rein in domestic prices.

As the country continues to focus on improving business ease, fostering competitiveness, and tapping into the emerging markets, it is poised to not only sustain, but also accelerate its agricultural export momentum in the coming years. Source:https://pib.gov.in/PressReleasePage.aspx?P RID=2098447

The governments commitment to increase farmers income can be seen through the significant rise witnessed in agri-exports. Various initiatives taken by the government through APEDA have worked as catalysts for the growth of exports. Some of these include: organizing B2B exhibitions in different countries and exploring new potential markets through product-specific and general marketing campaigns.

Indias domestic agricultural sector is undergoing a significant transformation driven by technology and innovation.

? There is a growing emphasis on diversification and increasing areas under high value crops, increase in drip irrigation and demand for quality agri-inputs.

? Farmers are responding to the increasing demand for fruits, vegetables and exotic crops to tap the growing domestic and export demand.

? Precision agriculture and data-driven approach allows for targeted resource utilisation, improved yields, and reduced waste.

? AgrfTech startups a re playing a crucial roleinthis transformation by developing solutions such as online marketplaces for farm inputs, weather forecasting and pest predictions.

Sustainable practices in agriculture to reduce environmental footprint

These technological advancements empower farmers with knowledge and resources, leading to better decision-making. Governments initiatives of promoting digital literacy and rural infrastructure development aims to support the small and marginal farmers who struggle to access technology and credit. By embracing technology, innovation, and sustainable practices, Indian agriculture can enhance productivity, empower farmers, and ensure food security for the nation.

Agrochemicals, encompassing Insecticides, Fungicides and Herbicides play a pivotal role in safeguarding crops, enhancing yields, and maintaining food quality. A dynamic agrochemicals market, characterised by technological advancements and evolving farming practices, underscores the crucial role of agrochemicals in shaping the future of agriculture. Growth is fuelled by the rising global population, increased food demand, and agricultural intensification.

In 2024, the global Crop Protection Chemicals market was valued at US$ 96.05 billion. The market size is growing year-on-year and is poised to reach US$ 141.69 billion by 2033, exhibiting a projected Combined Annual Growth Rate (CAGR) of 3.96% during the forecast period of 2025-2033. A growing population requiring improved crop yields, changing consumer preferences to horticultural crops and better quality of food, technology advancements, government and regulatory support and pest pressure brought on by climate change is driving the crop protection market globally.

Source: https://www.imarcgroup.com/crop-protection- chemicals-market

? Rising Global Population

According to the United Nations World Population Prospects 2022, the global population has surpassed 8 billion, creating an urgent need for higher agricultural productivity. This exerts pressure on limited arable land,

driving increasing demand for agrochemicals to bridge the gap between food production and consumption by improving theyields.

? Technological Advancements in Agriculture

By employing technologies and advanced tools such as soil sensors, Al-driven analytics, multispectral imaging, and autonomous delivery systems, farmers can optimise fertiliser and water usage, improving soil productivity and minimising environmental impact.

? Opportunities in Precision Agriculture

Precision agriculture incorporates tools such as the "4Rs" principle (right source, rate, time, and place), soil mapping, and decision-support software to monitor and address crop nutrient needs effectively, thereby maximising crop health and yield.

? Globalisation and Emerging Need

Globalisation of agriculture has facilitated the exchange of agricultural commodities, leading to new challenges in pest and disease management, increasing the demand for novel active ingredients to protect crops. Asia, with its rapidly growing population and economic expansion, has emerged as a significant market for agrochemicals, particularly herbicides.

Source:https://www.agribusinessglobal.com/agrochemicals/global-agrochemicals-market-poised-for significant-growth-projected-to-reach-282-2-billion-by-2028/

As the world aims to feed an estimated 9.7 billion people by 2050, a 50% increase in foodgrain productivity is imperative. This necessitates not only new seed varieties, but also innovative crop protection products, achievable through the development of novel agrochemical molecules. As demand for sustainable and efficient farming practices rises, agrochemical companies are expected to focus on precision technologies and environmentally friendly solutions.

India is the fourth-largest manufacturer of agrochemicals after the United States, Japan, and China. Indias agrochemicals market is projected to grow, reflecting a pressing need for increased R&D, product registrations and IPR to propel India into a leading position as an agrochemical exporter. India is now second-largest exporter of agrochemicals with the potential to sustain growth as the global agrochemical industry is increasingly looking at India in theirsupply chain diversification strategy.

Contributing 11.85% to Indias total exports in FY 2024-25, Indias agrochemicals exports continued to show positive momentum. Agri-exports ranked 2nd worldwide, standing at the threshold of a transformative journey. The United States, Brazil, and Japan emerge as thetop destinations for Indian agrochemical exports. With stable domestic demand and a robust export market, the future is promising for India to emerge as a global leader in agrochemical innovation.

Indias organic product exports witnessed a significant surge, climbing 34.6% YoY to reach US$ 665.96 million in 2024-25, from US$ 494.8 million in the previous fiscal year of 2023-24, as per data from the commerce ministry. Growth was driven by heightened demand for pulses, essential oils, and fresh produce in the developed nations and highlighting rising international demand for Indian organic products, and was supported by 4% increase in volume, totalling 368,155 tonnes.

APEDA, the commerce ministrys arm, revised the regulations of the National Programme for Organic Production (NPOP) to make it more farmer-friendly and to help India achieve US$2 billion exports target for organic food products by2030.

? Adoption of I PM:

Adoption of Integrated Pest Management (IPM), an emerging trend in the agrochemicals market, is a sustainable approach that combines cultural, biological, and chemical methods to manage pests effectively, while minimising environmental risks and reflects the shift toward eco-friendly and efficient farming solutions.

? Technological advancements:

Precision farming tools, mechanised equipment, and improved irrigation systems, are enhancing productivity.

? Increase in sustainable practices:

Cover crops, smother crops, crop rotation, green manure, and composting are gaining traction. These methods promote soil fertility, address nutrient deficiency, and support conservation efforts, ensuring balanced energy use and improved yields.

Source:https://www.indianchemicainews.com/poiicy/uni

on-budget-2025-agrochem-sector-expects-reduction-

in-custom-duties-gst-and-increased-access-to-credit-

to-farmers-24870

While it continues to be robust, the agrochemicals industry faces a unique set of challenges and opportunities, with several headwinds such as rising raw material costs, caused by global market inventory overhang, erratic rainfall and resultant low reservoir water levels. Some of the major challenge forthe industry are mentioned below.

Key Challenges:

The lack of awareness about safe use of agrochemicals in farming presents a significant challenge to the agrochemicals market.

? While agrochemicals, including insecticides, herbicides and fungicides, are widely used to control pests, remove unwanted plants from the fields, and combat disease attacks, concerns about their environmental impact are rising owing to a growing number of disinformation campaigns.

? Issues such as water pollution and soil degradation have intensified callsforsustainable alternatives.

Indias agrochemicals industry remains resilient and is projected to grow to USD 14.5 billion by 2027- 28, with a CACR of 9 per cent, despite global headwinds.

Indias agrochemical industry is valued at USD 11.2 billion in 2024-25, having grown 8.7 per cent year- on-year despite a challenging global environment.

As global supply chains stabilise and agricultural activity rebounds, a moderate recovery is projected in 2024-25, supported by improved demand and cost-competitive manufacturing by Indian players.

With its strong foundation in chemistry, growing technological capabilities, and expanding global presence, Indias agrochemical industry is well- positioned to play a pivotal role in addressing global food security challenges, while driving economic growth at home. While the industry faces challenges on price pressures and changing global trade dynamics, it is presented with unprecedented opportunities for growth and innovation.

? Convergence of biotechnology, nano technology, and information technology is opening new frontiers in crop protection and enhancement.

? As the industry evolves, collaboration between stakeholders, investment in research and development, and a focus on sustainable practices will helpthe industry realise its full potential.

Below are some key trends that are shaping the future of the agrochemicals industry and are projected to influence market growth in the coming years.

I Increasing use of herbicides is a key factor I I driving growth in the agrochemicals I I market.

I Agrochemicals, including herbicides, I I insecticides and fungicides are essential I I in protecting crops from pests, disease I I attacks, improving both yield and quality.

I Rising demand for healthier food choices I I has particularly increased the use I I of agrochemicals in fruit and vegetable I I cultivation.

I Advances in modern agrochemicals have I I led to eco-friendly products that I I decompose faster after application, I I reducing environmental impact.

I Sustainable practices such ascover I I crops,smother crops, conservation I I energy efficiency, continue to shape I I markettrends.

I These innovations support productivity, I I while promoting environmental I I responsibility.

The three main categories of crop protection chemicals include Insecticides for managing insect pests, Herbicides for weed control, and Fungicides to combat fungal diseases. Agricultural farmers employ these chemicals judiciously to optimise crop production while minimizing environmental impact.

Need for Crop Protection products

Crop protection products are designed to protect crops from insects, diseases and weeds. They do so by controlling pests that infect, consume or damage crops. Uncontrolled pests significantly reduce the quantity and quality of food production. It is estimated that annual crop losses could double without the use of crop protection products. About 20-30% of potential food production is lost every year due to low usage of crop protection chemicals and the lack of awareness amongst the farmers. An adequate and reliable food supply cannot be guaranteed without the use of crop protection products.

Source:https://croplifeindia.org/indian-agriculture-growth-and-crop-protection-industry/

Global warming increasing pest infestation

With every passing year, pests are rising due to climate change. Pest infestations, including insects, diseases and weeds, significantly reduce crop output, which leads to substantial economic losses for farmers to the tune of 10-35%, with declining farm production. As the worlds second-largest producer of agricultural commodities, India faces an annual loss of Tl.48-lakh crore due to pests, weeds, and fungal diseases

Source:https://croplifeindia.org/indian-agriculture-growth-and-crop-protection-industry/

Availability of safe and effective pesticides and their judicious use bythefarming community is critical to a sustained increase in agricultural production and productivity. Pesticides are also useful in health programmes for controlling vectors, responsible for diseases like malaria and dengue.

During the 1960s and 1970s, Green Revolution had considerably increased crop production and made India self-sufficient in food. Apart from high yielding seeds, chemical fertilisers and irrigation, pesticides played a key role in enabling the Green Revolution.

Another key challenge is the use of spurious pesticides, which constitutes 25% of the pesticide marketin India.Thesituation needs to be addressed to curb further proliferation and stringent procedures are required to identify and analyse chemical com pounds in the various entry points.

Crop Nutrition is a critical input for improving production, productivity and quality of farm produce. Indias Crop Nutrition market can be divided into two segments that comprise inorganic fertilisers including bulk fertilisers, and organic fertilisers from both biological and plant-based sou rces I ike sea weeds.

Primary drivers contributing to the growth of Indias Crop Nutrition industryare:

? lowfertiliser use efficiency,

? degrading soil health,

? increased areas under high value crops,

? increaseindripirrigation,and

? demandforqualityof produce.

Driving change in Agrochemicals

The agricultural landscape is witnessing a significant transformation with the integration of sustainable farming practices and precision agriculture techniques. Technological advancements are reshaping the agrochemical landscape. Precision farming, leveraging sensors and loT-based technologies, enables more targeted and efficient use of agrochemicals. Artificial Intelligence and machine learning tools are being employed to predict optimal sowing times and alert farmers to pest attack risks. Drone technology is revolutionising crop monitoring and pesticide application, offering precision and efficiency previously unattainable.

Innovative technologies used in delivery of agrochemicals:

? Development of new agrochemical delivery systems presents another frontier for innovation.

? Nanotechnology and controlled release systems, while widely used in pharmaceuticals and cosmetics, remain underutilised in agrochemicals.

? New technologies offer the potential to enhance properties such as solubility, permeability, bioefficacy, and stability, while reducing dosage requirementsand environmental impact.

Long-term benefits of investing in research and development (R&D) of patented agrochemical molecules are undeniable. This shift is crucial for ensuring sustained growth and positioning India as a hub for innovation in agrochemicals. Indias agrochemical sector is having the potential for bringing about a transformation through innovation and research. Several agrochemical players are investing in enhancing manufacturing infrastructure, while a select few are investing in R&D and product development to strengthen the portfolio and position themselves to capture the emerging prospects.

Key Imperatives of R&D

? To combat losses due to infestation, a focus on R&D is indispensable to developing novel agrochemical molecules and formulations that offer enhanced pest control and modern weed management practices, ultimately boosting agricultural output.

? As India strives to maximise its potential in the agrochemical landscape, a strategic shift towards novel solutions and intensified R&D effo rts a re i m pe rative.

? The evolution in the agrochemical industry not only promises economic benefits, but also ensures sustainable agriculture practices, aligning with global demands and challenges.

Poised for transformative growth

Indias agrochemical industry stands at a pivotal juncture, facing unprecedented opportunities, yet significant challenges. As global dynamics shift and technological advancements accelerate, the sector is poised for transformative growth. The industry is poised for a bright future, with projections suggesting a strong growth potential.

Key factors fuelling future growth:

? Crops such as Cotton, Soybean, Maize and Sugarcane not only provide major export opportunities, but also source for important input to the domestic industries to support Indias economic prosperity.

? To provide food security of growing population, India needs to sustain production of food grains, fruits and vegetables, which can also be leveraged to tap export market including value- added products.

? Leveraging technology across the agricultural value chain is critical for the sustainability of agriculture to support Indias march to further economic prosperity.

? The Government is providing policy support to leverage the emerging manufacturing opportunity in Agrochemicals. Government policies are focussed on transforming the agricultural value chain for increasing farmers income aimed at balanced economic growth and addressing the emerging challenges in agriculture.

India is positioning itself as a global manufacturing hub, leveraging its low labour costs and improving infrastructure. The industry is focused on developing safer, more effective pesticides, with an emphasis on farmer education about the new technologies and integrated pest management strategies. Value chain partners, such as the agrochemical companies, play a significant role in transforming agriculture activities, and are strengthening their core to tap the emerging market opportunities.

However, there is a constant need for the industry to navigate complex regulatory environments, address environmental concerns, and continue to improve farmer education and product stewardship. Balancing these challenges with the opportunities presented by technological advancements and emerging markets is crucial for sustained growth.

Dhanuka Agritech is a leading Indian agrochemical company. Dhanuka is working with the vision of transforming India through agriculture. We have a pan-India presence in all major states to reach out to more than 10 million farmers with our products and services.

Dhanukas key focus has been on the introduction of novel chemistry and extensive product development, distinguishing us from the rest of the industry. With 4 manufacturing units and 41 warehouses across India, we cater to around 6,500 distributors and around 80,000 retailers.

Dhanuka has a strong sales and marketing team to promote and develop new products. Dhanukas strong R&D division, has world-class NABL- accredited laboratory as well as an excellent team for new product registration and development. Dhanuka has international collaboration with 10 leading global agrochemical companies from Japan, U.S. and Europe, which helps us to introduce latest technology in India.

The Companys strength lies in the manufacturing and marketing of formulated products. In FY2023- 24, Dhanuka commenced operations at its Dahej chemical synthesis plant, and working to create breakthroughs in chemical synthesis with our new R&D laboratory with 30 chemists for research and chemical processes.

The product portfolio is largely distributed across the Insecticides, Herbicides, Fungicides, Bio-pesticides, and Bio-stimulants segments. Insecticides contribute a significant portion of the overall revenues and the Company aims to ramp up its presence in the fast-growing Herbicides segment. DAL is aggressively working towards the goal of "Transforming India through Agriculture" through initiatives like doubling farmers income. The Companys latest innovative sales process guides the farmers effectively on crop solutions through channel partners and a dedicated team. It also ensures a smooth reach of products to farmers with readily available stock on demand as per the latest market scenario. This new-age sales process is managing issues like inventory cost, blockage of funds and uncertain demand and supply. It also offers automatic order processing and complete availability ofthe products in real-time.

Dhanuka has a healthy Net worth of Rs. 1402.72 Crores as at 31st March, 2025. Care Edge has accorded credit rating CARE AA; Stable for long term bankfacilitiesand CARE AA;STABLE/CARE A1+ for long term/shortterm bank facilities.

During the year, Company received registration certificates for Ipfencarbazone Technical 97% w/w min u/s 9(3) and Glufosinate ammonium Technical 95% w/w min. u/s 9(3) Tl. Halosulfuron methyl 6% + Metribuzin 50% WG and Etofenprox 6% + Diafenthiuron 25% WC u/s 9 (3) endorsement for additional packaging. The Company has launched herbicides products under brand name Dinkar containing Ipfencarbazone 25% SC (22.81% w/w) on Transplanted Rice for the control of Echinochloa

crusgalli (Sanwak), Ludwigia parviflora (Ban long), Eclipta alba (Bhringraj), Ammania baccifera (Banmirch), Cyperus iria & Cyperus difformis (Motha) weeds and Purge containing Fomesafen 12.5% + Quizalofop ethyl 4.68% EC on Groundnut & Soybean for the control of different types of weeds u/s 9(3)- of the I nsecticide Act, 1968.

The Company has also received registration certificates for Export of Bifenthrin 25.1% EC, Ethion 47% w/v EC and Iprovalicarb 5.5% + Propineb 61.25% WP u/s 9(3). Company has also received the certificates u/s 9 (4) TIM ofthe Insecticide Act, 1968 for Difenoconazole Technical 95% w/w min. Cyflufenamid 5% EWon Chilli crop for the control of Powdery mildew disease u/s 9(3), Validamycin 3% L on Paddy crop for the control of sheath blight disease u/s 9(4) and Azoxystrobn 18.2% + Difenoconazolell.4%SCon Chilli crop for the control of Anthracnose & Powdery mildew disease and Paddy crop for the control of Sheath blight disease u/s 9(4) for Label expansion through Drone application.

The Company has launched various products during the FY 2024-25, Turmoil, Miyako, Markar Super, Protocol, Delightand Roxa.

The Company has entered into an MOU with ICAR (Indian Council of Agricultural Research), New Delhi for scientific and technical cooperation in the implementation ofthe project of national research institutions/ Regional stations/ KVKs & Agricultural universities under ICAR.

Financial Performance for FY 2024-25 (Standalone)

? Revenue from Operations increased to Rs. 2035.15 Crores in FY2024-25 from Rs. 1758.54 Crores i n FY2023-24,15.7% u p over Iast year.

? Profit Before Tax increased to Rs. 392.14 Crores in FY2024-25 from Rs. 318.75 Crores in FY2023- 24,23.0% u previous year.

? EBITDA increased to Rs. 416.61 Crores in FY2024-25 from Rs.327.44 Crores in FY2023-24, 27.2% up over last year.

? Profit after Tax increased to Rs. 392.14 Crores in FY2024-25 from Rs. 318.75 Crores in FY 2023-24, 23.0% up over last year.

? The Company reported an EPS of Rs. 65.55 in FY2024-25 com pa red to Rs. 52.46 i n FY2023-24.

Segment Performance
Segments	of FY2024-25 Revenue(%)	of FY2023-24 Revenue(%)
Insecticides	35	38
Fungicides	16	16
Herbicides	32	34
Others	17	12

 

	FY 2024-25	FY 2023-24
Debtor Turnover	5.05	5.13
Inventory Turnover	2.99	2.81
Debt Service Coverage Ratio	35.44	36.28
Current Ratio	3.29	3.69
Debt Equity Ratio	0.05	0.02
Operating Profit Ratio	17.75%	16.31%
Net Profit Ratio	14.59%	13.60%
Return on Equity Ratio	22.34%	20.64%
EBITDA Margin	20.47%	18.62%

Indias agriculture sector displayed notable resilience, driven by a favourable Kharif season and above-average monsoon rainfall, which contributed to increased foodgrain production. The sector continued to progress with the adoption of advanced technologies such as precision farming, data-driven analytics, and automation. Enhanced government focus and rising investments further propelled agricultural growth. Robust performance in horticulture and livestock segments boosted rural incomes, while strategic policy interventions helped stabilise farmer earnings and enhance productivity.

The outlook for the agrochemical industry in 2025 appears promising, with signs of market recovery supported by stabilising agrochemical prices and improved weather conditions across key regions including Europe, Asia, and Brazil. Agricultural chemicals will continue to play a pivotal role in enhancing crop productivity and ensuring global food security amid rising demand. The global agrochemical market is projected to reach USD 230.62 billion in 2025, growing at a CAGR of 3.4% during 2025-2033 period, driven by population growth, increasing food consumption, and the need formore efficientand protective farming practices. The overall outlook for Indian agriculture in 2025 is encouraging, with expectations of a strong rebound and potential new records in foodgrain production. This positive trend is underpinned by favourable monsoon predictions and strengthening rural demand. The Indian Meteorological Department (IMD) has released an optimisticfirstforecastforthe 2025 monsoon, predicting "above normal" rainfall for the second consecutive year—a development likely to further bolster the performance of Indias agrarian economy.

The Company isa leading agrochemical company in India, focusing on brand sales in the market. The companys strength lies in the manufacturing and marketing of formulated products. In FY 2023-24, the Company commenced operations at the Dahej chemical synthesis plant, and the Company is working to create breakthroughs in its chemical synthesis plant with the new R&D laboratory with 30 chemists for research and chemical processes. Dhanuka is working with the vision of transforming India through agriculture.

In FY 2024-25, the Company has acquired international rights to the active ingredients IprovalicarbandTriadimenol (invented by Bayer AC, Germany). With this acquisition, Dhanuka plans to expand its footprint in more than 20 countries, including the regions of Latin America, Europe Middle East & Africa as well as Asia including India. This acquisition will enable Dhanuka to embarkon a journey of global market expansion. Dhanuka will be shifting the manufacturing of at least one of the products to India, leveraging the capabilities of our manufacturing unit at Dahej, Gujarat.

Material Development in Human Resources/ Industrial Relations

At Dhanuka, we place a strong emphasis on continuous skill development as a key driver of employee retention and career progression. Our approach is designed not only to enhance current job performance but also to prepare our workforce for future leadership roles and expanded responsibilities.

In FY 2024-25, our talent development initiatives achieved significant momentum, equipping employees with new, in-demand skills and positioning them for growth within the organization. Strategic leaders receive comprehensive onboarding, structured support, and dedicated mentorship, ensuring smooth transitions and empowering them to guide and develop the next generation of leaders.

We continue to foster a more inclusive and supportive workplace culture, with focused efforts on making the environment more conducive for women across all levels ofthe organization.

Our evolved HR strategies have led to marked reductions in turnaround times for key processes, strengthening our ability to attract and retain top- tier talent. This progress is vital to maintaining our competitive edge and ensuring long-term success. In parallel, our HR Operations team is achieving critical milestones in our digital transformation journey—streamlining systems and enhancing efficiency through digital integration. Additionally, our recruitment teams are working proactively to close open positions and support the companys expanding needs.

Learning and Development of Employees

Dhanuka is committed to enhancing employee capabilities through diverse training programs. These programs, developed in collaboration with stakeholders, utilize immersive classroom sessions, practical training, and advanced technology platforms.

Our Sales Academy, DARES (Dhanuka Academy to Reach Excellence in Sales), provides a specialized development path for our sales team.

Safety is a paramount concern at Dhanukas factories. Through comprehensive training programs, they have successfully cultivated a strong safety-first culture.

Our commitment to leadership development is evident in targeted programs like "The 3 Laws of Performance" and "The Art of Giving Feedback." These initiatives are designed to elevate team management skills by embedding principles of integrity and fostering effective feedback practices, ultimately contributing to a more positive workplace. Furthermore, our Learning & Development (L&D) team collaborates closely with leaders on succession planning to ensure a strong pipeline of future leadership.

Environment Safety, Health and Energy Conservation

Safety at workplaces is of paramount importance to the Company. It continuously strives to ensure various training and awareness programs are conducted throughout the year. The aim is to maintain the highest standards of safety across factories and workplaces and ensure the latest best practices are implemented across the business to bring operational efficiencies and save energy.

Stakeholder Engagement

The Companys endeavor is to maintain regular engagement with all its stakeholders to ensuretheir concerns are addressed and expectations are met. Dynamic processes are in place within the Company to ensure the integration of feedback from various stakeholders such as suppliers, customers, employees, and investors on a routine basis. By trusting employees, partnering with suppliers and dealers, and engaging with local communities, we worktowardsserving and delighting ourcustomers.

Internal Control Systems and Adequacy

The Company has adequate systems of internal control in place, which is commensurate with itssize and the nature of its operations. The Company has designed and put in place adequate Standard Operating Procedures and Limits of authority manuals for the conduct of its business, including adherence to the Companys policies, safeguarding its assets, prevention, and detection of fraud and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. These documents are reviewed and updated on an ongoing basis to improve the internal control systems and operational efficiency. The Company uses a state-of-the-art ERP system to record data for accounting and managing information with adequate security procedures and controls.The Company has its own in-house internal audit team which keeps checks on every system operating in the Company. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the Companys operations. It brings a systematic, disciplined approach to evaluate and improving the effectiveness of risk management, control, and governance processes.

A Certificate issued by Managing Director and CFO, forming part ofthe Corporate Governance Report, confirm the existence and effectiveness of internal controls and reiterate their responsibilities to report deficiencies to the Audit Committee and rectify the same.

Risk Mitigation Framework

The Company has a risk management committee that identifies internal and external risks that are particular to the business, such as financial, operational, sectoral, sustainability-related risks (especially those involving ESG), informational, cybersecurity and other risks. The committee is in charge of overseeing and directing the implementation ofthe risk management policy.The risk management committee reviews the risk management policy regularly and recommends any modifications to the risk management approach. A thorough risk-management framework allows us to pre-emptively monitor risks emanating from the internal and external environment. As a result, we have been able to consistently create value for all our stakeholders, despite industry cycles and economic headwinds.

The Company functions under a well-defined organization structure. Flow of information is well defined to avoid any conflict or communication gap between two or more departments. Second-level positions are created in each department to continue the work without any interruption in case of nonavailability offunctional heads. Effective steps are being taken to reduce the cost of production on a continuing basis, taking various changing scenarios in the market.

Cautionary Statement

Statements in this Management Discussion and Analysis contain "Forward-Looking Statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to the Companys future business developments and economic performance. While these forward- looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materiallyfrom our expectations. These factors include but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/ likely events or circumstances.