Press Release
An Agrochemical Perspective from India
Mr Vimal, it is good to have you to discuss the trends in the agrochemical industry. As one of the fastest-growing Indian companies, you have shown significant growth over the last three years, how was 2017-2018
The market in India is certainly growing overall and there are ample opportunities for companies ready to deliver quality products and good service. We are focused on providing good service to our customers; growth is an after effect. India continues to be a large and growing agricultural market. Our ability to move quickly in the manufacturing and brand business is helping us. Food grain output has increased by 0.9% to 277.49 million tons in 2017-2018, which exceeded the previous record of 275.11 million tons during 2016-17. Monsoon has been good for the last few years driving the demand.
Will the good years continue?
The demand for safe and effective agrochemicals will continue to show growth — of this I have no doubt — as for the industry, it needs to change with the times. Phasing out of older products with newer and safer agrochemicals, working on farmer education, and having a chemical industrial base to support agrochemical manufacturing in India will definitely show different players different results.
Coming to China, was 2017-2018 a rough year because of the challenges in the supply of products?
The pollution drive, which started in China in mid- 2017, impacted the supply chain of intermediates and technicals. We were aware of the trend and discussed with our suppliers and kept our customers updated on the possibility of lower supply and raising prices. No doubt this has happened on a product-to-product basis. I would say that we were prepared and adjusted accordingly. Our investment in technical manufacturing also helped us to maintain supplies.
Your brand has been showing robust growth in the last two years. How do you see the opportunities in India’s brand business?
In India, developing a loyal dealership network and creating an image with the farmers need careful strategy and plan. It is necessary to have a direct connect with the farming community to drive loyalty and confidence. In terms of products, this is the era of combinations that show a synergistic effect. Farmers are looking for higher effectiveness with lower usage and lower cost per hectare. We see good demand for synergistic fungicide combinations such as Azoxystrobin + Difenoconazole and Tebuconazole + Sulphur. At the same time, we are introducing newer and safer formulation of established technicals such as Diafenthiuron SC. Internationally, countries are moving to a three-product combinations regime. We are yet to see this in the Indian market.
Till last year we observed consolidation and megamergers among international companies. This year, we are seeing this in India also with the acquisition of Arysta by the UPL.
Do you see the Indian agrochemical industry poised for international growth?
In fact, in 2016, we had acquired a technical manufacturing facility of Arysta. Now, we are expanding this to meet our growth goals. With India being the fourth largest producer of agrochemicals in the world and with support for ‘Make in India,’ India is poised to grow further. The potential in Indian markets itself will drive growth and I believe that the next few years will see the Indian agrochemical industry demonstrating an even stronger international presence.