Mr. Maulik Mehta

Dear Stakeholders,

I feel honoured to be given the opportunity to serve the Company and reaffirm that I am committed to growing the organisation keeping sacred the values that are instilled by promoters in Deepak Nitrite, while embracing 50th year of legacy. I thank Shri Umesh Asaikar for his efforts over the last era to bring the Company at today's height.

During the fiscal year, our Company navigated global volatilities ably deliver an excellent performance on the back of an engaged team, sustainable operations and a wide portfolio of important chemical intermediates. We continue to be associated with leading names in the Chemicals Industry. Our customers have reaffirmed their commitment further developing their product lines with upstream support from Companies like Deepak that deploy state-of-the-art technology for process and sustainability.

Strategic Transformation

We stand at a turning point in global chemical supply chain as China de-emphasizes its chemical manufacturing industry, and global partners look beyond for countries and companies that can offer market stability. Our Company is thus, well regarded for its specialisation in niche chemistries and ability to conduct hazardous and complex processes safely. During the year, DNL witnessed its established business lines of Basic Chemicals and Fine and Speciality Chemicals break new grounds. The Performance Products division which reported a turnaround performance in the prior fiscal was able to further elevate itself.

We stand at a turning point in global chemical supply chain as China de-emphasizes its chemical manufacturing industry, and global partners look beyond for countries and companies that can offer market stability.

In FY 2019-20, Deepak Phenolics Limited (DPL), a wholly-owned subsidiary, completed its first full year of operations with a rapid ramp up of about 90% capacity utilisation, a testament to plant operators and domestic customers’ desire to partner with an Indian supplier. I take the opportunity to share my deep gratitude with all stakeholders. DPL also commissioned its premium grade Isopropyl Alcohol ('IPA') plant in April 2020, at the height of the lockdown, thanks to stoic support from policy makers and its technology team. With a capacity of 30,000 MT, Deepak is committed to supplying this essential item at a time when human needs transcend economics.

DNL is well along its journey of becoming a Company that its stakeholders, both internal and external, can depend on for support, growth opportunities and future readiness. We hope to take this to the next level by strategically utilizing various land parcels to produce new chemical intermediates in long term relationships with key customers.

Performance and Operational Excellence

The COVID pandemic challenged our ability to respond to a crisis like no other. We executed a Business Continuity Plan which focused on first ensuring employee welfare, and restarting plants safely under the shadow of manpower and material movement constraints. Our Company continues to prioritize revenue recovery and a unique ability to leverage strategic customer relationships. Our Company, nonetheless, lost about several daysof effective production in FY 2019- 20, and a large part of April so that it could adhere to government policies fully. On the one hand, we are working with customers in the dyes segment as they slowly restart their production, while on the other, we see buoyant demand from the pharmaceutical, personal care and agrochemical industries. I remain cautiously optimistic about our performance this year.

Environment and Sustainability

Despite the current situation surrounding the pandemic, we believe that the trend towards sustainable, environmentally friendly operations continues. Companies that hold these values dear will see their performance bolstered at the expense of others who remain callous about manufacturing, heedless of impact on the globe. As a signatory of Responsible Care, Together for Sustainability (TFS) and Nicer Globe, DNL assigns the highest importance of safety, environment and health. Our Company has implemented multiple initiatives to reduce its carbon and water footprint, and has developed value-added chemicals from by-products in its circular economy efforts. I can proudly say that the DPL facility has the highest energy efficiency of any Phenol plant of its size in the world. I'd like to thank all our stakeholders for their continued encouragement and support. By aligning our goals with those of our customers, and society at large, we are building a stronger, more resilient Company that works to make the world a better place with its presence.

Best Regards,