Annual Report FY 2011-12 - PI Industries

MANAGING DIRECTOR’S MESSAGE
Dear Shareholders,
It is a pleasure to address you once again. I am delighted to report that we have put in another strong performance this year where our
revenues and EBITDA have grown by ~22% and 28% respectively and net profit has crossed the Rs.100 Crore mark. The performance
was also aided by the inflows from the divestiture of our polymer compounding business which has been used to strengthen the
balance sheet as well as deploying resources in our core business. The performance is even more commendable given that it was
achieved in the backdrop of a challenging macro-economic scenario and an erratic pattern of the north-east monsoon. It further
reinforces the strength of our unique business model fortified with trust and respect for IPR along with a pursuit of excellence.
The Indian agricultural landscape witnessed a mixed picture for FY12. The industry suffered due to increased input costs (fuel, raw
material etc.) and inability to completely pass it on to the end consumer. Erratic rainfall, low crop productivity, poor crop economies
and reduced acreages for some crops negatively impacted farmers’ ability and inclination to invest in crop protection products.
Despite these challenges our domestic Agri-Input business witnessed a revenue growth of ~22% much ahead of the sector average.
We also pro-actively introduced new molecules, which are based on our ground level understanding of the needs of the farmer. In
the coming financial year we plan to introduce 2 new molecules which have potential to become category leaders. We have signed
agreements for 6 new molecules to strengthen our product portfolio and sustain our growth momentum.
The recent budgetary support to agriculture and the necessity to ensure food security to our citizens require all out efforts to
enhance agriculture productivity, and hence offers great opportunity for the growth of its input industries.
Our Custom Synthesis exports grew from strength to strength, up 62% YoY. The fact that more than 90% of the revenues from our
Custom Synthesis exports are derived from patented products speaks highly of both our technological capabilities and the trusted
relationships we enjoy with the global innovators. Given the very good visibility and the new capacity addition, the company is well
on its way to sustained and interesting growth in the coming years.
The year was also one of rewards and recognition.
We received the GLP Certification. One of our very prestigious Business Partner M/s Bayer, Germany bestowed on us the `Certificate
of Excellence’ in recognition of our outstanding performance under Supplier Sustainability Program. And then your Company was
recognized as one of India’s top 100 brands by PowerBrand.
All this has been possible due to the commitment and dedication of our people.
Going ahead we will continue to strengthen our human resources and our processes for greater achievements and successing years.
Mayank Singhal
Managing Director & CEO
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