FY2011 Annual Report of Standard Chartered PE-backed company P.I. Industries

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FY2011 Annual Report of Standard Chartered PE-backed company P.I. Industries Ltd. (NSE - PIIND ; BSE - 523642) for your perusal. Key Takeaways from the annual report are also attached for reference.

Key Takeaways from recent FY2011 Annual Report of P. I. Industries Ltd. :

1. Revenue of the company increased by 33 % YoY to Rs. 719 cr. backed by a 38 % rise in Agri-Input business and a 23 % rise in Custom-Synthesis (CSM) business.

2. Operating Profit increased by 41 % YoY to Rs. 123.64 cr. backed by a 105 basis points expansion in OPM. This expansion in margins was achieved inspite of the fact that company's Polymer business (which is now sold off to Rhodia, S.A.) witnessed significant pressure on margins because of input-cost pressures.

3. Company foresees FY12 to attain similar growth rates with a good expansion in margins backed by new product launches in Agri-Input segment and ~Rs. 1350 cr. order-book of CSM business.

4. In end-FY11, company has started commercial production of some very promising products revenues of which are going to accrue in FY12.

5. Key highlight of FY11 was the signing of an agreement with the largest electronics company of the world, Sony Corporation to set-up a joint research centre in Udaipur, named PI-Sony Research Centre, which was inaugrated in January 2011. As per the agreement, this R&D centre will be engaged in developing commercially viable processes for molecules invented by Sony.

6. In PI-Sony R&D centre, work has already commenced on innovative chemicals meant for use in futuristic products likeflexible television and solar cells. This centre is projected to be a potential future growth driver for the company.

7. Company's flagship brand in Agri-Input segment viz., Nominee Gold has attained a status of the fastest growing herbicide brand of India. In coming years, company expects Nominee Gold to attain a status of the largest herbicide brand in India with respect to Rice crop.

8. In FY11, company has, in association with a leading MNC, successfully introduced a herbicide in soyabean and pulses segment.

9. In FY11, company has filed registration for two new molecules and has signed four new agreements with original patent holders to evaluate the domestic launch of their innovative molecules in herbicide / fungicide segment.

10. Company has signed a distribution agreement with a leading MNC for marketing of its new generation insecticide and acaricide which will help PI further strengthen its dominant position in plantation, field crops, vegetables and fruits.

11. In FY11, company filed Seven patent applications for new non-patent-infringing processes developed for various molecules.

12. Company's upcoming plant at Jambusar is presently under construction and is expected to get commissioned in last quarter of FY12. This plant, once operational, is expected to contribute heavily towards the growth of the company.