Page 31 - FBL AR 2019-20

Corporate Statutory FinanCial
overview StatementS StatementS

Our business overview

for FY 2019-20

Key achievements, FY 2019-20
ƒ The Company developed a value-added variant of Vitamin D3 500 feed grade
ƒ Fermenta launched a new product, fish oil derived cholesterol, for the aquaculture
market
ƒ The Company established a wholly owned subsidiary in Germany – Fermenta
Biotech GmbH
ƒ The in-house cholesterol was manufactured as the Key Starting Material (KSM),
strengthening the Company’s self-reliance and sustainability

Q: What were the challenges faced relevance of a Company like ours that Q: The year under review was also
by the business in the last financial is completely backward-integrated and the first full financial year following
year? hence suited for catering to consumer the amalgamation of Fermenta with
A: The decline in animal feed realisations demand in a sustainable manner. DIL Ltd.
during the last financial year significantly Q: Through what initiatives did the A: At Fermenta, we see the amalgamation
affected our overall revenues. Besides, an Company strengthen the business? as a game-changer for some good
African Swine Flu in the second quarter reasons. It brought together the interests
of the last financial year resulted in a cull A: In the past, the Company would procure of Fermenta and its parent Company in
down of the global pig population, which cholesterol to manufacture resin that a synergic manner that we believe will
moderated animal feed consumption. would, in turn, be used to manufacture enhance shareholder value across the
The Company’s performance was further either animal feed or human feed. During foreseeable future. The merged entity
impacted by the COVID-19 pandemic the year under review, the Company possesses precious real estate estimated
during the last quarter of the financial integrated backwards to the manufacture in excess of H500 crores. The management
year under review when Fermenta shut of cholesterol, widening its value chain. We has taken a decisive call to progressively
operations at its manufacturing facilities believe that the challenging manufacture monetise this land parcel along with Thane
at Kullu and Dahej for three weeks in of cholesterol will achieve a number One and utilise the proceeds in growing its
accordance with government guidelines. of things for our Company: strengthen core business.
However, the Company continued to control over operations, strengthen quality
address the requirements of the day and and enhance our dependability for the Q: Where does the Company go from
build its business through the course of sustainable supply of our end product. The here?
the year. cholesterol manufactured was successfully A: The Company broad-based its
included as a source of the Key Starting geographic footprint in a decisive way
Q: What was the brighter side of this Material (KSM), which will strengthen during the last financial year. The Company
performance? the Company’s competitiveness position launched a wholly owned subsidiary
A: On the brighter side, we protected and respect as an integrated self-reliant in Germany, Fermenta Biotech GmbH,
much of our offtake commitments across Vitamin D3 manufacturer. This integration which will enhance our visibility in Europe.
most of our customers. The Company makes us one of few players of our size in Besides, the Company entered into a
reported an increase in volumes. The other the world to have integrated backwards, contract manufacturing relationship with
positive was that during the last quarter of strengthening our respect. As an extension a European company for manufacturing
the year (extending into the first quarter to our product portfolio, we were able to value-added variants of its feed grade
of the current financial year) there was manufacture cholesterol from fish oil for product. Similar value-added products
increased focus around human immunity applications in the aquaculture market will typically be new variants where we
requirements, expected to strengthen the (specifically the shrimp feed segment), will utilise third party manufacturing
offtake of Vitamin D3 products. We believe which was commercialised in the Latin resources. This will strengthen our position
that this development can enhance the America and Asia Pacific markets. in terms of quality, reach and enhance

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