Astec Lifesciences

AGM24 notes

CMO

• New herbicide plant is built by looking at innovator demand, as registrations come through volumes will ramp up in 2-3 years

• 8 commercialized products, 2 more to be commercialized

• 8**-10% higher margins than enterprise**

• Didn’t respond to product specific questions

• Working with innovators to increase their CDMO division, differentiate based on R&D, time to market and technology platforms

Enterprise segment

• Will see recovery in FY25, Europe is doing well (inventory level at bare minimum), USA is looking good with normalized inventory

• Have seen some export demand returning, external conditions still remains challenging

Miscellaneous

• Recovery in Q4 due to newly launched products and higher contribution of CDMO sales

• Godrej restructuring changes: Astec will be part of Godrej industry group, no impact on management of Astec Life

• 75% of current energy demand is met from renewable sources which should increase to 90% by FY26

• KSM dependency on China reduced from 46% to 10% in FY24

Disclosure: Not invested (no transaction in last-30 days)