Page 33 - FBL AR 2019-20
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Corporate Statutory FinanCial
overview StatementS StatementS
The synergies arising out of the merger
Value-accretive to the shareholders of DIL Limited as they would have access to the
core business of Fermenta Biotech Limited
Greater integration, financial strength and flexibility, maximising shareholder value
Greater cash and asset pool to fund organic and inorganic growth opportunities
Improved organisational capability and leadership
Cost savings arising out of rationalisation, standardisation and simplification of
business processes in addition to the elimination of duplication and rationalisation
of administrative expenses
Leverage of a larger assets base and cash flow
customer offerings without additional a curious balance of being mature on the Q: What are the principal
capital expenditure. We believe that this one hand and sunrise on the other. In the opportunities for the Company?
asset-light arrangement will strengthen current situation, there is an increasing A: Fermenta expects to address the
our ‘Made in Europe’ branding and improve awareness that Vitamin D is beneficial not growing preventive health sector by
customer accretion. We are optimistic just for bone health, but also for wellbeing, positioning itself as a one-stop destination
that this game-changing investment will immunity, muscle cum joint strength, for nutritional ingredients. By utilising its
not only be good for our profitability but mental as well as heart hygiene. What widening global distribution network,
also for our respect as a solutions-focused provides Fermenta optimism is the extent Fermenta expects to provide world-
global organisation. of Vitamin D deficiency and a growing class nutritional offerings through a
awareness of its benefits.
Q: How is the Company strategically combination of inorganic and organic
placed in its business today? Q: How does the Company intend to partnerships. The Company will deepen
A: Fermenta’s quality products enjoy capitalise on these realities? its presence in the area of Vitamin Mineral
Supplements by addressing the preventive
applications across market segments. A: The Company is attractively positioned health and wellness segments. The result is
The Company’s offerings range from its to cater to the global consumption of that we envisage Fermenta to evolve into
primary product Vitamin D and variants ingredients and premixes in human a leading player catering to the growing
to integrated biotechnology platforms to and animal nutrition applications. The need for fighting widespread malnutrition
environmental solutions to waste water Company’s optimism is derived from the in India.
management and treatment as well as following credentials: its diversification in
real estate. This diversified portfolio helps the space of nutrition-based ingredients,
mitigate risk and ensures cash flows even retention of key accounts (combined with
in volatile and uncertain market conditions. the addition of new customers across Mr. Krishna Datla
all territories and segments), primed for Managing Director
Fermenta is the only manufacturer
of Vitamin D3 in India and a leading growth through new product offerings
player globally. Within this niche, the and an attractive pipeline in the nutritional
Company offers value-added variants ingredients domain. The Company expects
across applications. We believe that the to diversify its presence in the food
market of Vitamin D3 is at the cusp of an segment through the addition of relevant
attractive break-out: new downstream products for milk and oil fortification.
applications and delivery formats are being In view of these building blocks, the
continuously developed even though Company is confident of achieving
Vitamin D has been available for decades, significant growth across the foreseeable
as a result of which the niche represents future.
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