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"Hikal has delivered another quarter of positive performance. From a segmental performance perspective, the Crop
Protection business has performed well, registering a positive YoY growth of 105% in Q2 on the back of strong volume
growth of our existing products and further scale up of volumes of our new products. We expect this positive
momentum to continue in the next few quarters based on a healthy pipeline of products at various stages.
Unusually heavy rainfalls in the Raigad region had a severe impact on our Mahad operations leading to the
shutdown of our Mahad facility for several weeks. This led to a loss in sales and profitability for the crop division.
Relentless efforts by our teams from all our sites helped in restarting our operations in a staggered manner and we
were able to return to normal operations in due course.
Our Pharmaceutical business remained flat due to a slower offtake by customers in this quarter. This was primarily
due to several raw material shortages and global logistics issues. We expect raw material challenges to continue in
the next few months and are working with both our suppliers and customers to mitigate the price fluctuations.
Our capex plans and our new product launch plans remain intact for both our divisions. We are seeing tailwinds in
terms of new opportunities arising from global supply chain disruptions and the China plus one strategy playing out.
Global supply chain challenges coupled with a steep increase in input raw material prices continue to pose a
challenge for our industry going forward. We have put in significant efforts over the past few years on developing
alternate sourcing partners and backward integration of certain raw materials. While this will help us in the long-
term, we do expect certain disruptions in the short term. Over the next several months we expect the situation to
As part of our efforts to fight the Pandemic, our employees across the company are 100% vaccinated for their first
dose and about 75% have been vaccinated for their second dose. We expect to have all our employees fully
vaccinated by the year end.
In alignment with our long-term vision and bold aspirations, we have set out on a transformational journey with a Global consultant to create a roadmap across our business verticals. This initiative will drive future growth and profitability, by giving us a new strategic direction and enabling us to chart our progress in a sustainable manner. The journey forward will not just entail accelerating growth in our existing pharma and crop protection businesses but
will also see strong growth in our emerging business verticals such as animal health and biocides.