4th Agrochemicals Conference 2014- Agrochemicals for ensuring food and Nutritional Security for the Nation

August, 2014
Agrochemicals for ensuring food
and Nutritional Security for the Nation
Knowledge and Strategy Paper
released at
CONFERENCE 2 0 1 4
th
4 National
AGROCHEM CALS
Knowledge and Strategy Partner

01

03

04
Manish Panchal
Practice Head - Chemical & Energy
Tata Strategic Management Group
Manish.panchal@tsmg.com
Charu Kapoor
Engagement Manager - Chemicals
Tata Strategic Management Group
charu.kapoor@tsmg.com
P S Singh
FICCI
prabhsharan.singh@ficci.com
Head- Chemicals & Petrochemicals
The report on “Agrochemicals for food and nutritional security for the nation” is a part of joint
endeavor of Federation of Indian Chambers of Commerce and Industry (FICCI) and TATA
Strategic Management Group (TSMG) Chemical Practice's to highlight the importance of
agrochemicals for the Indian agriculture. It has been an ongoing exercise for regularly tracking
the trends in agrochemical and associated industries. The resulting knowledge and experience
givesusanadditionaladvantagetopreparethisreport.
India requires a robust, modernized agriculture sector to ensure the food and nutrition security
for its population given the fact that the scope for further increasing cultivable land is limited. In
order to meet the food grain requirements of the nation, the agricultural productivity and its
growth needs to be sustained and further improved. In combination with Integrated Pest
Management and Plasticulture techniques Agrochemicals can play a critical role by providing
pre and post-harvest protection to crops and the agricultural output.Through this report we
havehighlightedthevariouschallengesfacedbyIndianAgricultureandAgrochemicalsectorand
indicated way forward for increasing the penetration of agrochemicals to ensure food and
nutritionsecurityforthenation.
We are grateful to the inputs provided by industry leaders who agreed to interact with us. Their
knowledgeandguidancehelpedusshapethereport.
ThereportisaresultofFICCI'sobjectivetohighlighttheimportanceofagrochemicalsinnational
economyandbusinessopportunitiespresentinthesector.WearethankfultoFICCIforproviding
usanopportunitytodevelopareportwhichcanplayapivotalroleinachievingthisobjective.
Foreword

1. ExecutiveSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
2. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
3. TheneedofAgrochemicalsforfoodandnutritionalsecurity. . . . . . . . . . . . . . . . . . . . 11
4. IndianAgrochemicalmarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
IndustrystructureandCompetitivelandscape . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Indianmarketscenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
DistributionofdomesticcropprotectionmarketbyProductcategory. . . . . . . . . . 16
Statewisedistributionofcropprotectionmarket . . . . . . . . . . . . . . . . . . . . . . . . . 17
DistributionandSalesChannel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
ChallengesfacedbytheIndianCropProtectionIndustry. . . . . . . . . . . . . . . . . . . . 20
OpportunitiesandKeyGrowthDriversforIndianCropProtectionMarket. . . . . . . 22
5. TheWayForward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
KeyimperativesforAgrochemicalCompanies,Govt.andRegulatorybodies. . . . . 24
6. KeyPlayers:Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
7. Annexure-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
8. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
9. AboutTataStrategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
TataStrategicContacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
05
Table of Content

06
Figure1:Lossescausedbydifferentpests(%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
Figure2:IndianRural-Urbanpopulationcomparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Figure3:PercapitaconsumptiongrowthinAnimalProducts . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure4:Percapitaarableland(ha). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure5:Averagesizeoflandholdings(ha) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure6:Yieldcomparison(Tonnes/ha) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure7:Cropwisepests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure8:Foodrequirements(Mn.tonnes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure9:IndianCropProtectionMarket(USDBillion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure10:AgrochemicalValueChain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure11:KeyIndustryPlayersinIndia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure12:IndianCropProtectionMarketsplit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure13:Majorcropprotectionproducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure14:Statewisepesticideconsumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Figure15:Cropprotectiondistributionnetwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure16:IndianAgrochemicalExports,FY10-FY14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure17:Opportunitiesingenericproducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure18:Pesticideconsumption(Kg/ha)comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure19:Indicativeendtoendfarmersolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure20:IntegratedPestManagementcomponents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Figure21:Plasticultureapplications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure22:BenefitsofPlasticultureapplications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure23:KeyAgrochemicalPlayersinIndia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
LIST OF FIGURES

07
This report is developed by Tata Strategic Management Group with support of FICCI as the
knowledge paper for 4th National Conference on "Agrochemicals for ensuring food and
nutritionalsecurityforthenation".
At 1.2 billion, India is the second most populous country after China in the world. According to
United Nations statistics, India will surpass China to become world's most populous country by
2028. French Institute of Demographic Studies, predicts, that by 2050, India will take the top
spotwithastaggeringpopulationof1.6billion(upfromthe presentlevelof1.2billion) toleave
behind current world leader China, at the second place with 1.3 billion people.However, Indian
Agriculture is facing a critical challenge of maintaining food and nutrition security for the
burgeoning population. According to GHI (Global Hunger Index) rating of 2013, India stands at
16thpositionamongst120developingnationscovered.
Increasing urbanization, reduction in arable land, decreasing farm size, consumption shift
towards animal products and heavy dependence on monsoons are some of the critical
challenges faced by Indian agriculture. These factors highlight the importance of agrochemicals
for enhancing food and nutrition security for the nation. Moreover, low per hectare yield as
compared to global average and increasing pest attacks further strengthen the need of
agrochemicals.
The Indian crop protection industry is currently valued at USD 4.3 billion and is expected to grow
at a CAGR of 12% over the next five years. Insecticides is largest sub-segment of agrochemicals
with 60% market share whereas herbicides with 16% market share is the fastest growing
segmentinIndia.Goingahead,opportunitiesforIndiancropprotectionindustrywillcomeinthe
form of exports, growth in generic products, product portfolio expansion, and growth in
herbicidesandfungicides.
However, the Industry faces a number of challenges. Some of the key challenges are stringent
environment regulations across the world, low focus on R&D due to high costs and long
gestation period for new products and rising sale of non-genuine products. Non-genuine
products are not only a challenge to agrochemical industry but to the overall Indian economy,
resultinginlossofrevenuesforfarmers,agrochemicalcompaniesandGovernment.
The opportunities and potential exist, however a collaborative approach from the Industry,
Government and Regulatory bodies is required to ensure food and nutrition security for the
nation. Product innovation strategies, end to end comprehensive service offering to the farmer,
effective marketing and distribution strategies like educating the distributors/retailers apart
from farmers and leveraging on IT and Telecommunication infrastructure are some of the
Executive summary1

08
possible levers for companies to expand their presence amongst the end users and promote use
of agrochemicals. Integrated Pest and Management and Plasticulture techniques can support
agrochemicalsforsecuringfoodandnutritionforthenation.
However, the companies cannot achieve their objective in isolation. Continued infrastructural
support from Government is necessary for companies to improve their speed to market.
Government should also provide implementation support in terms of strict actions, regular
crackdowns, and punishments to stop the menace of non-genuine products. Adequate support
is also required for encouraging the industry to invest in R&D activities and develop innovative
solutions.
A collaborative and comprehensive approach can therefore help in overcoming the supply
demand constraints in the Indian agriculture sector, thereby ensuring food and nutrition
securityforthenation.

09
Introduction2
The global population currently stands at 7 billion, and is expected to rise to 9.3 billion by 2050.
This will require increase in global food production by 70% in order to meet the rising demand.
On one hand there is need to produce more food, on the other hand the world is facing
challenges of increasing urbanization, decreasing per capita arable land, increasing
malnutrition, rising food inflation and loss of crop output to pests, insects, weeds and diseases.
Globally,upto40%ofcropoutputislostduetoattackofpests,weedsanddiseases.Toovercome
thesechallenges,itisessentialtousecropprotectionchemicals.
The role of crop protection chemicals is not limited to protection; they help in yield
enhancement as well. Use of crop protection chemicals can increase crop productivity up to
50%, which helps mitigate crop loss from pest attacks by 40%. It is estimated that almost 20% of
world's agricultural production is lost due to post-harvest pest attacks.Thus, crop protection
chemicalsareessentialtoensurefoodandnutritionalsecurity.
Figure 1: Losses caused by different pests (%)
Traditionally, agrochemicals have been manufactured through chemical synthesis but lately
biochemical processes are gaining popularity. Usually, agrochemicals involves active ingredient
in a definite concentration along with adjuvants which enhance their performance, safety and
usability. The agrochemicals are diluted in recommended doses and applied on seeds, soil,
irrigationwaterandcropstopreventthedamagesfrompests,weedsanddiseases.
Thecropprotectionchemicalscanbebroadlyclassifiedintofivetypes:
1.1. Insecticides:Insecticides provide protection to the crops from the insects by either killing
them or by preventing their attack. They help in controlling the pest population below a
desiredthresholdlevel.
Weeds
33%
Insects
26%
Diseases
26%
Rodents
6%
Others
8%
Source: Industry Reports, Analysis by Tata Strategic

10
1.2. Fungicides:Fungicides protect the crops from the attack of fungi and can beof two types -
protectants and eradicants. Protectants prevent or inhibit fungal growth and
eradicantskillthepestsonapplication.
1.3. Herbicides:Herbicidesalso called as weedicides are used to kill undesirable plants. They
canbeoftwotypes-selectiveandnon-selective.
1.4. Bio-pesticides:Bio-pesticides are new age crop protection products manufactured from
natural substances like plants, animals, bacteria and certain minerals.They are eco-
friendly,easytouse;requirelowerdosageamountsforsameperformanceascomparedto
chemicalbasedpesticides.
1.5. Others (Fumigants, Rodenticides, Plant growth regulators etc.):Fumigants and
rodenticides are the chemicals which protect the crops from pest attacks during crop
storage. Plant growth regulators help in controlling or modifying the plant growth process
andareusuallyusedincotton,riceandfruits.
The following sections of the report provide an overview of the Indian crop protection market,
the challenges faced by the Indian agriculture sector and the role of agrochemicals in ensuring
foodandnutritionalsecurityofthenation.

11
At 180 million hectares, India holds second largest agricultural land in world. Almost 47% of
India's workforce is employed in agriculture; however its contribution to the GDP is a mere 14%.
Nearly 81 million hectares of India's land is desertified, threatening the food security. The
overgrazing of land and changing climatic patterns are exacerbating the situation. As more land
becomesunusable,thefoodsecurityoftheIndianpopulationisincreasinglyendangered.
Being the secondmost populous country in the world, India faces a critical challenge of ensuring
adequate food availability. The recent GHI (Global Hunger Index) rating of 2013 puts India at
16th position amongst the 120 developing nations covered. Compared to the global average of
13.8, the hunger index in India has a value of 21.3. Child malnutrition (under 5 years of age) in
India stands at 44%, much higher than neighbouring countries like Pakistan, Bangladesh and
manyAfricancountries.
CriticalChallengesfacedbyIndianAgriculture
Rising urban and declining rural population:The Indian population is estimated to
reachalmost1.5billionby2030.ItisexpectedthattheIndianagriculturesectorhasto
produce 355 million tonnes of food grains by 2030 in order to meet the growing
demand. However, a critical challenge faced by the country is the reduction in
agricultural workforce. The percentage share of rural population has consistently
declinedfrom75%in1991to67%in2014.Thiswouldleadtoanincreasedpressureto
increaseagricultureproductivitytofeedthegrowingpopulation.
l
The need of Agrochemicals for
food and nutritional security3
Figure 2: Indian Rural-Urban population comparison
1991 2001 2011 2014 (E)
25%
28%
32%
33%
75%
72%
68% 67%
Urban Population (%) Rural Population (%)
Source: Census of India 2011, Tata Strategic Estimates

12
Increasing shift towards animal products: With rising disposable income, the Indian
food consumption pattern is witnessing a shift towards livestock and poultry
products. This is reflected from the fact that ~37% of agricultural output growth over
2005-2011 came from animal products (milk, meat, fish, eggs). On the other hand
fruits and vegetables contributed 23% of growth while cereals resulted in 14%
growth.
Thisposesanincreasingburdentoraisetheagricultureproductivityasitisleadingtoa
shift from direct to indirect feedgrain consumption. It is estimated that 1kg poultry
meat requires 2-3 kg of feedgrain, 1 kg pork requires 4-5 kg of feedgrain while 1kg of
beef would require 5-10 kg of feedgrain consumption. With limited agriculture
resourcesthisleadstoincreasingconcernsforfoodsecurity.
l
Figure 3: Per capita consumption growth in Animal Products
Reduction in arable land: The amount of per capita arable land in India has
consistently declined from ~0.34 ha in 1950s to ~0.15 ha in 2000s. With rising
populationitisfurtherexpectedtoreduceto~0.07haby2030.
India has 16,000 sq. km of total cropped area during 10 years from 2000-01 to 2010-
11. During the same period land under urban use increased by 24,000 sq. km, at the
expense of arable land. This has put immense pressure on the current available arable
landforthefoodandnutritionalneedsofthepopulation.
l
1%
2%
3%
8%
2%
5%
12%
18%
Milk Fish Eggs Poultry
1994-2005 2005-2010
Source: Industry reports, Analysis by Tata Strategic

13
Decreasing farm size: The average farm size is India has declined by almost 50% from
2.28 ha in 1970s to 1.16 ha (2010-11). 80% of farm land is classified as small or
marginal. The 2011 Census of India indicates that68% of farms are less than two acres
in size and 95% are less than five acres in terms of owned holdings.While the average
size of landholding is decreasing (also fragmenting) the number of operational
holdingsisincreasingleadingtopoorharvestandlowincomesforthefarmers.
l
Figure 5: Average size of landholdings (ha)
Figure 4: Per capita arable land (ha)
0.34
0.15
0.08
0.07
0.4
0.3
0.2
0.1
0
1951 2001 2025 2030
Source: Agricultural Census, Analysis by Tata Strategic
2.28
1.84
1.55
1.33
1.16
2.5
2
1.5
1
0.5 1970-71 1980-81 1990-91 2000-01 2010-11
Hectares

14
An increase in the number of fragmented landholdings has led to more landholdings
but a decrease in the operating size of farms. Irrigation difficulties and restrictions in
crop variety due to small size impact the productivity. Hence, there is a need to make
optimumutilizationofthelimitedavailableland.
PerhectareyieldinIndialowerthantherestoftheworld:PerhectareyieldinIndiais
amongst the lowest in the world. Compared to global averageof 4tonnes/ha the yield
inIndiastandsat3tonnes/ha.DevelopedcountrieslikeUSA,UK,FranceandGermany
are able to achieve higher per hectare yields than India due to the extensive and
judicious use of agrochemicals. This calls for wise and balanced application of
agrochemicals in a sustainable and environment friendly manner and simultaneously
ensuringfoodsecurityforthenation.
l
Belgium
Netherlands
France
Germany/U.K./USA
China
Indonesia
Bangladesh
Sri/Lanka
World
Brazil
Pakistan
India
Source : Industry reports, Analysis by Tata Strategic
10
9
7.5
7
6.5
5
4.5
4 4 3.8
3 3
Figure 6 : Yield comparison (Tonnes/ha)
Increasing Pest Attacks: The total number of pests and serious pests for major crops
has increased significantly from 1940s. For instance, the number of harmful pests in
rice has increased from 10 to 17 andsimilarly there has been an increase in number of
harmful pests from 2 to 19 in case of wheat. The increased loss of crops to pests poses
a serious threat and highlights the importance of agrochemicals for ensuring food
security.
l

15
Figure 7: Crop wise pests
Figure 8: Food requirements (Mn. tonnes)
This will lead to an increase in demand for food grains. The current requirement of
rice, wheat and coarse cereals is 55 million tons which is expected to increase to 62
million tons after the introduction of the Bill. Decreasing arable land, increased pest
attacks, lower yields and farm size is going to make this a daunting task. However,
increased usage of agrochemicals on the limited arable land can help in yield
enhancementnecessarytomeettheincreasingdemand.
This reflects the need for increasing the crop productivity in India to ensure future
self-sufficiency for a billion-plus population. To address the issue of food and
nutritional security, India needs a robust and modernized agricultural sector with
specialemphasisontheapplicationsofagrochemicals.
Crop 1940 At present
Total pests Serious Pests Total pests Serious Pests
Rice
Wheat
Sugarcane
Groundnut
Mustard
Pulses
35
20
28
10
10
35
10
2
2
4
4
6
240
100
240
100
38
250
17
19
43
12
12
34
65
60
55
50
45
40
35
30
Current
Requirement
Estimated
Increase
New
Requirement
Source: Food Security Bill, Business Press, Tata Strategic Analysis
(Estimated increase due to implementation of Food Security Bill)
7
55
62
Food Security Bill increasing food grain requirement: Under the new Food Security
Bill, two-thirds of the population will receive 5kg of food grain every month at
subsidized rates of Rs. 1-3 per kg, with the poorest households continuing to receive
35kgoffoodgrainspermonthatsubsidizedprices.
l

16
Overview
The Indian crop protection industry is estimated to be USD 4.25 billion in FY14
andisexpectedtogrowataCAGRof12%toreachUSD7.5billionbyFY19.Exports
currently constitute almost 50% of Indian crop protection industry and are
expected to grow at a CAGR of 16% to reach USD 4.2 billion by FY19, resulting in
60% share in Indian crop protection industry. Domestic market on the other hand
would grow at 8% CAGR, as it is predominantly monsoon dependent, to reach
USD 3.3 billion by FY19. Globally, India is fourth largest producer of crop
protection chemicals, after United States, Japan & China.The crop protection
companies in India can be categorized into three types –Multi-National, Indian
includingpublicsectorcompaniesandsmallsectorunits.
Indian Agrochemical market4
Figure 9: Indian Crop Protection Market (USD Billion)
Domestic
Exports
2.25
3.3
2
4.2
Total
USD 4.25
billion
FY14 FY19
12%
USD 7.5
billion
16%
8%

17
IndustrystructureandCompetitivelandscape
The Indian crop protection industry is dominated by generic products with more than 80% of
molecules being non-patented. This results in very low entry barriers for the industry. Hence,
strong distribution network, appropriate pricing, brand recall and dealer margins are some of
the critical factors for companies to succeed. Crop protection chemicals are manufactured as
technicalgradesandconvertedintoformulationsforagriculturaluse.
The Indian Agrochemical value chain comprises of technical grade manufacturers, formulators
producing the end products, distributors and end use customers.According to Pesticide
Monitoring Unit, GOI, there are about 125 technical grade manufacturers, including about 10
multinationals, more than 800 formulatorsand over 145,000 distributors in India.More than60
technicalgradepesticidesarebeingmanufacturedindigenously.
Figure 10: Agrochemical Value Chain
In India top ten companies control almost 75-80% of the market share (Refer Annexure-I for list
of top agrochemicalcompaniesinIndia).The marketshareof largeplayers depends primarilyon
product portfolio and introduction of newmolecules. The markethas seen a number of mergers
and acquisitions with large players buying out small manufacturers. Companies are also looking
forstrategicalliancesandpartnershipsinordertoexpandtheirmarketreach.
Formulators
(~800)
Technical grade
manufacturers
(~125)
Distributors
(~145,000)
End use
customers
Presence of key industry participants across product segments
Company Insecticides Herbicides Fungicides Others
BASF India  -  Seed treatment
Bayer Crop science Ltd    Seed treatment, plant growth regulators
Dhanuka Agritech Limited    PGRs, Surfactants
DowAgroSciences India Pvt. Ltd.    Plant Growth Regulator
DuPont    Growth Enhancer
Excel Crop Care Limited    Seed treatment, Home & Garden
Gharda Chemicals Ltd.    Plant growth Regulator
Meghmani Organics Limited    Pesticide Intermediates
Monsanto India Ltd. -  -
Nagarjuna Agrichem Limited    Fertilizers, Micro Nutrients, Liquid Fertilizers,
PI Industries Ltd    Speciality Products
Rallis India    Rodenticides, Seed treatment
Syngenta India    Seed treatment
United PhosphorousLimited    Fumigants, Rodenticides
Maize seeds
Figure 11 : Key Industry Players in India

18
Indianmarketscenario
DistributionofdomesticcropprotectionmarketbyProductcategory
The Indian crop protection market is dominated by Insecticides, which form almost 60% of
domestic crop protection chemicals market. The major applications are found in rice and cotton
crops. Fungicides and Herbicides are largest growing segments accounting for 18% and 16%
respectively of total crop protection chemicals market.As the weeds grow in damp and warm
weather and die in cold seasons, the sale of herbicides is seasonal. Rice and wheat crops are the
major application areas of herbicides. Increasing labor costs and labor shortage are key growth
drivers for herbicides. The fungicides find applications in fruits, vegetables and rice. The key
growth drivers for fungicides are shift in agriculture from cash crops to fruits and vegetables and
government support for exports of fruits and vegetables. Biopesticides include all biological
materials organisms, which can be used to control pests. Currently biopesticides constitute only
3%ofIndiancropprotectionmarket;howevertheyprovidesignificantgrowthopportunitiesdue
to increasing concernsof safetyand toxicity of pesticides, stringent regulations and government
support.
Figure 12: Indian Crop Protection Market split
Source : Industry reports, Analysis by Tata Strategic
Insecticides
60%
Herbicides
16%
Fungicides
18%
Others, 3%
Biopesticides
3%
Figure 13: Major crop protection products
Segment Major Products Main Applications
Insecticides Acephate, Monocrotophos, Cypermethrin Cotton, Rice
Fungicides Mancozeb, Copper Oxychloride, Ziram Fruits, Vegetables, Rice
Herbicides Glyphosate, Isoproturan, 2,4-D Rice, Wheat
Bio-pesticides Spinosyns, neem based Rice, Maize, Tobacco
Others Zinc Phosphide, Aluminum Phosphide Stored produce

19
Statewisedistributionofcropprotectionmarket
Erstwhile Andhra Pradesh (Seemandhra and Telangana), Maharashtra and Punjab are top three
states contributing to 45% of pesticide consumption in India. Erstwhile Andhra Pradesh is the
leading consumer with 21% share. The top seven states together account for more than 70% of
cropprotectionchemicalsusageinIndia.
Figure 14: State wise pesticide consumption
DistributionandSalesChannel
The sales of crop protection chemicals are predominantly in rural areas. Thereforelarge
manufacturerswithallIndiapresenceuseathree-tiersalesanddistributionnetworkcomprising
distributors, wholesalers and retailers for wider market reach. On the other hand, regional
participantscateronlytothelocalmarkets.
Erstwhile AP
21%
Maharashtra
13%
Punjab, 11%
Uttar Pradesh
10%
West Bengal
8%
MP &
Chattisgarh,
6%
Haryana, 6%
Gujarat, 6%
Karanataka
5%
Bihar, 5%
Tamil
Nadu, 5%
Others, 4%

20
Companies with PAN India presence have 400-1000 distributors supplying to 25,000-30,000
retailers. Stocks are kept in warehouses or depots from where they are supplied to distributors.
To leverage on local companies distribution network several MNCs have tied-up synergistically
for co-distribution or co-marketing The mid-size and small scale companies operate through
direct marketing of their products. Most companies also perform field demonstrations to
increasefarmerawarenessandpromotetheirproducts.
Stringent regulations: Stringent environment regulations across the world are
increasing the cost of developing new products and simultaneously delaying the
introduction of new products in the market. For instance, in the European Union any
agrochemical product if found to be mutagenic, carcinogenic or endocrine disruptor
would not achieve registration or re-registration irrespective of the level of exposure
generated.Ittakesalmostninetotenyearstobringanewproduct.
Low focus on R&D by domestic manufacturers due to high costs: The industry is facing
a serious challenge owing to the rising R&D costs. It takes almost USD 250 million in
research and development to introduce a new product in the market. This prevents
the companies to invest in R&D activities and focus more on the generic products
whichrequirelowinvestmentsinresearchanddevelopment.
Lack of education and awareness among farmers:It is important to educate the
farmers about the appropriate kind of pesticide, its dosage and quantity and
ChallengesfacedbytheIndianCropProtectionIndustry
l
l
l
Figure 15: Crop protection distribution network
Source: Tata Strategic Analysis
In-house formulators
Formulators Retailers/Dealers Distributors
Retailers
Technical Grade manufactures
End usersRetailers
Distributors

21
application frequency. However it is not easy to reach the farmers owing to
infrastructure issues, regional languages and dialects. The main point of contact
between the farmers and the manufacturers are the retailers who don't have much of
a technical experience and are unable to provide a proper product understanding to
the farmers. It is also very difficult for the farmers to convey their needs effectively to
themanufacturers.
Need for efficient distribution systems:The large number of end users and the market
being predominantly generic in nature makes a strong and efficient distribution
network essential for the crop protection market. However, the industry is facing
problems due to supply chain inefficiencies and inadequate infrastructure which
results in post-harvest losses estimated at INR 45,000 crore every year, thereby
impacting the farmers. The lack of efficient distribution system also makes it difficult
for the agrochemical companies to reach the farmers to promote their products and
educatethemabouttheirusageandbenefits.
Non-genuineproducts: There is a significant share of non-genuinepesticides which
can be counterfeit, spurious, adulterated or sub-standard. According to industry
estimates the non-genuine pesticides could account for upto40% of the pesticides
sold in India in FY13. These products are inferior formulations which are unable to kill
the pests or kill them efficiently.Some such products do perform but leave by-
products which may significantly harm the soil and environment. The damage
through such products is multifold. Apart from crop loss and damage to soil fertility,
use of non-genuine products leads to loss of revenue to farmers, agrochemical
companiesandgovernment.
Some of the key reasons for use of non-genuine products are lack of awareness
amongst the farmers, difficulty in differentiating between genuine and non-genuine
products, supply chain inefficiencies, law enforcement challenges and influencing
powerofdistributors/retailers.
InassociationwithFICCI,TATAStrategichastakenupastudyfocusingonthissubject.
Long gestation period for new products: It takes almost 10 years to bring a new
moleculeintothemarket.Evenforthegenericproducts,itcantakeupto5yearstoget
the product registered. The regulatory bodies do not have adequate resources and
infrastructure to execute timely registration of products. Sometimes the rules are not
clearly defined creating interpretation challenges for the regulatory bodies.,leading
to confusions thereby adding to the complexities for the crop protection chemical
companies.
l
l
l

22
OpportunitiesandKeyGrowthDriversforIndianCropProtectionMarket
Export Opportunities: The export of pesticides from India hasseen a strong growth
over the last few years.Globally, India is the thirteenth largest exporter of pesticides.
Most of the exports are off-patent products. The major exports from India happen to
Brazil, USA, France and Netherlands. The key growth drivers are India's capability in
low cost manufacturing, availability of technically trained manpower, seasonal
domestic demand, overcapacity (Production capacity of 1,50,00 MT against
production of 85,000 MT in FY13), better price realization globally and strong
presence in generic pesticide manufacturing (India has process technologies for more
than60genericmolecules).
Post Tsunami Japanese companies are trying to build manufacturing capacities
outside Japan to derisk themselves. The Japanese companies are highly particular
about confidentiality and intellectual property protection and some of them have
seen opportunity in India and are now creating a base here.However, complex
registration procedures pose a major challenge for the Indian crop protection
chemicalsexport.
l
Agrochemicals worth USD 6.3 billion are expected to be taken off-patent list by 2020.
Globally, percentage share of generic products have increased from 33% in 2000 to
52% in 2013. The patented products share has reduced from 30% to 22% in the same
periodwhiletherestisconstitutedbyproprietaryoff-patentproducts.
This provides significant export opportunities for Indian companies which have
expertise in generic segment. Top 6 importing nations constitute only 44% of India's
agrochemical exports. This also indicates export potential for Indian companies. In
order to build a strong export base, companies should set up marketing offices in
association with domestic players in export geographies. Companies can look for
strategic alliances with local companies to expand their marketing and distribution
reach. Companies can also explore merger and acquisition opportunities to increase
theirglobalpresence.
Figure 16: Indian Agrochemical Exports, FY10-FY14
CAGR 17.5%
Source : Trademap Statistics, Tata Strategic Analysis
1.05
1.15
1.38
1.66
2.00
FY10 FY11 FY12 FY13 FY14
India Agrochemicals Exports (USD Bn.)

23
Figure 17: Opportunities in generic products
Growth in herbicides and fungicides: Labor shortage, rising labor costs and growth in
GM crops has led to growth in the use of herbicides. The herbicide consumption in
India currently stands at 0.3 USD billionand is expected to growat a CAGRof 15% over
the next five years to reach 0.6 USD billion by FY18. On the other hand the fungicide
industry in India has grown due to the growth in Indian horticulture industry, which
hasgrownataCAGRof7.5%overthelastfiveyears.
Low consumption of pesticides in India:The per hectare consumption of pesticides in
India is amongst the lowest in the world and currently stands at 0.6 kg/ha. On the
other hand consumption in developed nations ranges from 5-7 kg/ha whereas at 13
kg/ha China is almost 20-30 times as compared to India. In order to increase yield and
ensure food security for its enormous population agrochemicals penetration in India
isboundtogoup.
l
l
Figure 18: Pesticide consumption (Kg/ha) comparison
1.3
0.9
1.2
1.6
0.4
0.7
0.2
2014 2015 2016 2017 2018 2019 2020
Agrochemicals going off-patent, 2014-2020 (USD billion)
0.75
5 5
7 7
12
13
17
India
UK
France
Korea
USA
Japan
China
Taiwan

24
Key imperatives for Agrochemical Companies, Govt. and
Regulatorybodies
Agrochemicals can play a crucial role in overcoming the challenges faced by Indian agriculture
sector, thereby ensuring food and nutritional security for the nation. This can be achieved by
developing innovative products, expand the product/service offering and promoting the use of
agrochemicals amongst the end users, i.e. the farmers. The low consumption levels provide a
significant opportunity for agrochemical companies to increase their market penetration. Some
ofthekeyimperativesare:
Product innovation: Product innovation needs to capture emerging market trends and match
internationalstandards.Companiesinagro-chemicalspacecanfocusonthefollowing:
Companies need to innovate products which can improve the effectiveness of
pesticide usage as well as reduce the negative impacts on environment. With the
advent of GM crops and increasing popularity of bio-pesticides, environment
friendlinessoftheagro-chemicalscouldbeadifferentiatingfactor.
Indian companies would need to increase focus on developing new active ingredients
rather than just focusing on generics. Indian companies usually spend 1-2% of their
turnover on R&D as compared to global companies which spend 5-10% of their
turnoveronR&D.
Indian companies can also look for strategic tie-ups/ alliance with large MNCs for
contractmanufacturingiftheylacktheabilitytoinvestindevelopingnewmolecules.
In line with global trend, Indian companies can look for opportunities to expand their
presence in value chain by incorporating seeds in their product portfolio. Globally it
has been witnessed that EBITDA and PAT margins have increased as companies have
integrated into seed manufacturing. This would help in increasing the reach amongst
thefarmers.
End to end farmer solution: Companies should look for opportunities to provide a
comprehensive agri offering to the farmer. A one stop solution for the farmer ranging from
agricultureandfarminputstoprocurement,storageanddistributionservicesontheoutputside
would help companies develop sustainable business models. End to end solution not only
createsabetterreachwiththefarmersbutwillalsoturnsthreatslikegeneticallymodifiedseeds,
organic farming etc. into opportunities. Many companies are already following the integrated
model.Whileithashelpedthefarmerstoimprovetheiryield,gettechnicalassistanceandbetter
value for their produce, it has also helped companies to strengthen their presence amongst the
farmers.
l
l
l
l
The Way Forward5

25
Effective Marketing and distribution: Effective marketing and distribution and
increased reach to farmers is a key growth driver for the agrochemical companies.
However, rising sales of non-genuineagrochemical products has impacted the
industry image. Companies are already investing in marketing activities to educate
l
the farmers and increase their customer base. However, some additional strategies
which can be adopted by companies are: Apart from educating the end users
companies should also work on influencing the distributors and retailers. Pesticide
distributors and retailers play a critical role in agrochemical supply chain. Often the
farmer decision to purchase a pesticide is guided by the distributors and retailers.
Hence it is not only critical for companies to promote their products amongst the
retailers/distributors but also incentivize them to sell genuine products. Industry
bodiesalsoneedtoinvestinoverall"Imageimprovement"oftheindustry.Companies
should cometogether and develop strategiesto promote the use of genuine products
amongst the end users. Joint efforts should be undertaken to educate farmers about
pesticide use in a judicious and appropriate manner. Benefits of Bio-pesticides also
needtobepromotedtoencourageshiftfromthetraditionalproducts.
Leverage on IT and Telecommunications: Companies should leverage on IT and
Telecommunication infrastructure. Apart from Television and Radio, companies can
capitalize on SMS services to be in touch with distributors' retailers and farmers. IT
servicescanbeusedtoprovidetechnicalandoperationalguidance.Portalsinregional
languagescanhelpbuildconnectandenduringrelationshipswithfarmers.
l
Figure 19: Indicative end to end farmer solution
Procurement
Animal feed
& Fuel
Logistics & Storage
Crop Protection
& Seeds
Contract FarmingFertilizers
Farm
Advisory,Farm
Services,Finance
INPUTSIDE
OUTPUTSIDEFarmer

26
Role of Government and Regulatory Bodies:Apart from Agrochemical companies, Government
and Regulatory bodies have to play a critical role for achieving increased reach of agrochemicals
amongst the farmers. Without their support it would be difficult to realize the true potential of
agrochemicals.
Government needs to continue to provide infrastructural support to the industry so as to
develop effective marketing and distribution solutions.A repository of best practices and
development of centre of excellence should be intensified by Government. The Government
should increase the frequency of various awareness camps/education programs organized in
associationwithindustryandacademiatoencouragefarmerstouseagrochemicals.
Non-genuine pesticides are a critical challenge which impact not only the industry image but
also the crop productivity and soil fertility. Strict actions, regular crackdowns and punishments
arethereforerequiredtostopthemenaceanddamagecausedbynon-genuineproducts.
Fast track approvals and clearances should be provided by regulatory bodies to encourage
companies to develop new products. Monetary support by Government to Industry and
Academia for R&D activities can also provide an impetus for developing new products and
techniques
Integrated Pest Management:Integrated Pest Management (IPM) is a sustainable approach to
pest management by combination of biological, mechanical, physical and chemical methods.
These methods are performed in three stages: prevention, observation and intervention. It is an
ecologicalapproachandstrivesforeliminatingorsignificantlyreducingtheuseofpesticidesand
at the same time controlling pest growth at acceptable levels. There are six basic components of
IPMwhichareemployedtocontrolpestgrowth.
Figure 20: Integrated Pest Management components
1. Acceptable
pest levels
2. Preventive
practices
3. Monitoring
4. Mechanical
controls
5. Biological
controls
6. Chemical
controls
IPM
Source: Industry reports, Tata Strategic analysis
Basic components of Integrated Pest Management

27
Apart from IPM, newer molecules with better efficacy are being developed. These molecules
such as sulfonylurea and imidazolinone require lesser volume of chemicals per net treated area.
Newer products such as biological pesticides, seed treatment chemicals, and semiochemicals
are being introduced. Seed treatment chemicals require a very small volume of the chemical as
comparedtonormalcropprotectionchemicals.
Although IPM is accepted in principle as one of the options for crop protection, its
implementation at farmer level is limited. While chemical pesticides cannot be avoided
altogether, incorporating non-chemical methods in pest management would help in optimizing
costsandwouldprovidecropprotectioninaneco-friendlymanner.
Plasticulture in Agriculture: Plasticulturerefers to use of plastics in agriculture and horticulture.
Plasticulturehas a number of applications in modern agriculture and promise to transform
Indianagricultureandbringinthe"SecondGreenRevolution".Boththequalityandthequantity
of the crops and other farm products can be optimized using various techniques. Some of the
majorapplicationsofPlasticulturearelistedinthetablebelow:
Figure 21: Plasticulture applications
Application Comments
Drip Irrigation System Precise application of irrigation water and plant nutrients at low
pressure and frequent intervals through drippers/emitters directly
into the root zone of plant
Sprinkle Irrigation System Application of water under high pressure with the help of a pump
Water is released through a small diameter nozzle placed in the
pipes
Ponds and Reservoir Linings Plastics film lining to prevent against seepage in canals, ponds and
reservoirs
Also avoids depletion of stored water used for drinking & irrigation
purpose
Plastic Mulching Mulching is covering the soil around the plant with plastics film,
straw, grass, hay, dry leaves, stones etc.
Prevents loss of moisture and acts as a barrier between the soil
and atmosphere
Greenhouse Greenhouse is a framed structure covered with glass or plastics
film
Acts as selective radiation filter, in which plants are grown under
the controlled environment
Plastic Tunnel Plastics tunnel facilitates the entrapment of carbon dioxide,
thereby enhancing the photosynthetic activities of the plant that
help to increase yield
l
l
l
l
l
l
l
l
l
l

28
Figure 22: Benefits of Plasticulture applications
Indian Agriculture sector needs a second green revolution to ensure food and nutritional
security for the nation due togrowing population, increasing urbanization at the expense of
agricultural resources and loss of agricultural produce due to pest attacks. It therefore becomes
imperative to implement measures not only for crop protection but also for enhancing the crop
productivity and agrochemicals thuswill continue to play a critical role in achieving food and
nutritionalsecurityforthenation.
Plasticulture Application Water Saving (%) Water Use Efficiency (%) Fertilizer Use Efficiency (%)
Drip Irrigation 40-70 30-70 20-40
Sprinkler Irrigation 30-50 35-60 30-40
Plastic Mulching 40-60 15-20 20-25
Greenhouse 60-85 20-25 30-35
Shade Nets 30-40 30-50 Not Available
Tunnel 40-50 20-30 Not Available
Farm Pond Lined 100 40-60 Not Applicable
with Plastic Film
Plastics which are most widely used in agriculture, water management and related applications
arePE,(LLDPE,LDPEandHDPE),PPandPVC.
The application of Plasticulture can substantially decrease the costs and therefore can lead to
higherproductivitywithabetterqualityofcrops.Thetablebelowshowsthewatersaving,water
use efficiency and fertilizer use efficiency by various plasticulture applications. Each application
candrasticallysavewaterbyabout30to100%.

29
6 Key Players: Profile
BASF India Limited
Company overview Founded in 1943 as an Indian arm of global chemical company
BASF
Engages in manufacture and sale of agrochemicals, performance
products, plastics, inorganic chemicals, and functional solutions
Product segments/ Verticals Chemicals
Plastics
Performance Products
Functional Solutions
Agricultural Solutions
Crop Protection Chemicals
Products Insecticides
Herbicides
Fungicides
Specialties
Sales Revenue in FY12 Rs.4,429 Crores (includes revenue from other product segments)
Manufacturing locations The company has five manufacturing plants
1. Thane (Maharashtra)
2. Manglore (Karnataka)
3. Dahej (Gujarat)
4. Chennai (Tamil Nadu)
5. Ankleshwar (Gujarat)
Marketing Adoption of innovative marketing initiatives
Company operates as a total solution provider through programs
like Samruddhi program
R&D Collaborative research with BASF SE, BASF Schweiz AG and
BASF Corporation in USA.
Expenditure on R&D: INR 9.18 Cr
Key Mergers/ Acquisitions Acquired the business of Cognis Specialty Chemical Pvt. Ltd in
India in 2011
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l

30
Bayer Crop Science India
Company overview Bayer CropScience is one of the world's leading cropscience
companies in the world with presence in 122 countries
Product segments/ Verticals Crop Protection
Environmental Science
Bioscience
Fungicides
Herbicides
Seed treatment chemicals
Plant growth regulators
Sales Revenue in Fy12 Rs. 2839 Cr (includes revenue from other product segments)
Manufacturing locations Manufacturing locations at Himmatnagar & Ankleshwar
Total production capacity of 5770 MT of active ingredients and
formulation capacity of 10,025 KL & 3650 Mt for liquids & solids
respectively
~70% of the formulations are contract manufactured
Distribution structure Has own distribution network & is also in co-distribution alliances
with several other companies in India
R&D Apart from crop protection, major areas of research include seeds
& plant traits
R&D spend in FY12 is 0.65% of net revenue
Key Mergers/ Acquisitions Acquisition of Biotech company Athenix Corp., 2009
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Dhanuka Agritech Limited
Company overview Started in 1980 by the acquisition of Northern Minerals Pvt. Ltd
Manufacturer of wide range of pesticides, plant growth regulators
reaching out to more than 10 million farmers.
Product segments/ Verticals Agrochemicals
Crops
Surfactants
Fungicides
Herbicides
Plant Growth & Regulators
l
l
l
l
l
l
l
l
l

31
Dhanuka Agritech Limited
Sales Revenue in Fy2013 INR 646 Cr (Exports Sales: INR 0.25 Cr)
Manufacturing locations Three manufacturing units located at
1. Gurgaon (Haryana)
2. Sanand (Gujarat)
3. Udhampur (J&K)
Distribution structure Pan-India presence through its marketing offices
Network of more than 7,500 distributors/ dealers selling to over
70,000 retailers
R&D Two R&D centres at Gurgaon and Jullundur for generation of
scientific data, and evaluation of new molecules, soil
testing,advisory services, training of farmers among all.
Total expenditure on R&D was INR 1.45 Cr(0.25% of Total
Turnover)
Key Mergers/ Acquisitions Collaborations with various international chemical companies like
Du Pont, Chemtura, FMC, Bayer, Sumitomo, Mitsui, Arysta
l
l
l
l
l
l
l
Dow AgroSciences India Pvt. Ltd.
Company overview Fully owned subsidiary of Dow AgroSciences headquartered in
Indianapolis,U.S.A.
Global company that provides pest management, agricultural
and biotechnology products.
Seeds, Traits and oil
Herbicides
Fungicides
Sales Revenue in FY12 INR 14,500 Cr (Global)
Manufacturing locations Manufacturing plant :Lote,Parashuram, 250 km away from
Mumbai (Maharashtra)
Distribution structure Dow AgroSciences markets its products through a network of
distributors and divisional sales managers.
R&D Extensive importance to R&D with a global annual R&D budget
excess of INR1,000 Cr
4:3:1 process of product development
l
l
l
l
l
l
l
l
l
l
l
l
l

32
DuPont
Company overview DuPont's India subsidiary was setup in 1994 and Contract
manufacturing of crop protection products started in 1995
Seeds
Fungicides
Herbicides
Sales Revenue in FY12 India contributed 2.5% of overall revenues
INR 4,900 Cr (includes revenue from other product segments)
Manufacturing locations Manufacturing locations at Savli, Gujarat and Hyderabad for crop
protection and seed treatment
Signed an distribution alliance with Punjab State Cooperative
Supply and Marketing Federation Limited (Markfed), a federation
of more than 3,000 societies in Punjab State in 2012
R&D DuPont's knowledge centre at Hyderabad was inaugurated in
2008, which was its first R&D centre outside the US
Gloabally the company spends ~USD 2 Bn p.a. on R&D
activities
Key Mergers/ Acquisitions Acquired Nandi seeds and cotton germplasm business of
Nagarjuna seeds in India in 2009
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Excel Crop Care
Company overview Established in 2002
A major player in domestic and export market in India
Product segments/ Verticals Soil health
Seed treatment
Crop protection
Growth enhancers
Post-harvest
Home & Garden
Herbicides
l
l
l
l
l
l
l
l
l
l

33
Excel Crop Care
Fungicides
Weedicides
Sales Revenue in Fy2013 Sales revenue of INR 745 Cr with exports of INR 300 Cr
Manufacturing locations Manufacturing locations at Gajod, Bhavnagar and Silvassa
Distribution structure Products are sold through distributors
R&D R&D expenditure was ~0.91% of total turnover
R&D focused on fungicides and herbicides and development of
combi-formulations for enhanced efficiency
l
l
l
l
l
l
l
Gharda Chemicals Limited
A major player in domestic and export market in India
Intermediates
Pigments
Veterinary drugs
High performance polymers
Contract services
Herbicides
Fungicides
Sales Revenue in FY2011 Sales Revenue FY13 in the profile of Gharda Chemicals to 1129 crores.
Manufacturing locations 5 manufacturing locations at Dombivli, Ankleshwar, Lote, Jamm & Panoli
Distribution structure Products are sold through distributors
R&D In House R&D activities include product research & process
improvement for backward integration and import-substitution
Key Mergers/ Acquisitions Set up Gujarat Insecticides Ltd. In joint venture with Gujarat Agro
Industries Corporation Ltd. In 1980
In 1996, Gharda Chemicals purchased the entire holdings of Gujarat
Agro Industries Corporation Ltd and Gujarat Insecticides Ltd. Became
the subsidiary of Gharda Chemicals.
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l

34
Meghmani Organics Limited
Company overview Incorporated in 1995 from Gujarat Industries which was
established in 1986
Pigments
Products Pesticides
Technical products
Formulations
Intermediates
Sales Revenue in FY13 INR 1,040 Cr (includes revenue from other product segments)
with revenue from agro-chemicals ~INR 809 Cr
Manufacturing locations Manufacturing locations at Ankleshwar, Chharodi, Dahej and
Panoli
R&D R&D focused on development of off-patent molecules and
improvements in process parameters
R&D spend in FY12 is 0.18% of net revenue
l
l
l
l
v
v
v
l
l
l
l
l
Monsanto India Limited
Company overview Monsanto India Limited (MIL) is a subsidiary of the Monsanto
Company, USA and is the only publicly listed Monsanto entity
outside USA
It has been present in India for over six decades now
Seeds
Fungicides
Herbicides
Sales Revenue in FY13 INR 460 Cr (includes revenue from other product segments)
Manufacturing locations Production unit at Silvassa, Bellary and an integrated
manufacturing plant in Hyderabad
l
l
l
l
l
l
l
l
l
l
l

35
Monsanto India Limited
Distribution structure Reaches out to over 1 Mn farmers every year through various
farmer engagement programs
Has own distribution network through distributors and dealers
Monsanto has tied up with seven states through public-private
partnership where it plays the role of seed supplier as well as
knowledge partner
R&D Globally, Monsanto invests 9-12% of the sales on R&D
R&D in India focused on improving maize seeds and herbicides
for weed management
l
l
l
l
l
Nagarjuna Agrichemical Limited
Plant growth promoters
Fungicides
Herbicides
Sales Revenue in FY13 INR 702 Cr (includes revenue from other product segments)
Manufacturing locations Production unit at Silvassa and integrated manufacturing plant in
Hyderabad
Developing a corporate R&D centre near Hyderabad to look at
contract manufacturing opportunities
Distribution structure Extensive warehousing and logistics network to handle
operations in 20 states
Strong network of ~10,000 dealers
R&D R&D/ Process development department of NACL is claimed to
be second largest of any Indian Agro-chemical company in terms
of size and scope
l
l
l
l
l
l
l
l
l
l
l
l

36
PI Industries
Company overview Incorporated in 1947 as Mewar Oil and General Mills Ltd.
Corporate office in Gurgaon with R&D setup at Udaipur
Product segments/ Verticals Agro-chemicals
Specialty products
Custom Synthesis and Manufacturing
Fungicides
Herbicides
Sales Revenue in FY13 ·~INR 1313 Cr.
YoY revenue growth of 22%
Manufacturing locations Manufacturing plant at Ankleshwar and formulation unit in
Jammu
Distribution structure Robust distribution network with ~8,000 distributors & direct
dealers and 35,000 retail points across the country
27 stock points including own depots and C&Fs
Strong database of farmers with their contact details for direct
customer reach out
R&D R&D expense was ~0.62% of the total turnover
R&D centre at Udiapur focused on synthesis and development of
new molecule for Agro-chemicals, fine chemicals & specialty
chemicals
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Rallis India
Company overview Rallis is one of the leading Indian agrochemical company
Product segments/ Verticals Agri business domestic: Five segments: Pesticides, seeds,
fertilizers, household products & seed treatment chemicals
Institutional business: Formulations & technical bulk sales to
leading companies like Bayer, Syngenta, UPL, etc
International business
Contract services
Herbicides
Fungicides
Rodenticides
l
l
l
l
l
l
l
l
l
l

37
Rallis India
Sales Revenue in FY2013 INR 1,274 Cr (includes revenue from other product segments)
with 32% from outside India
Manufacturing locations Five manufacturing plants at Akola, Ankleshwar, Lote,
Patancheru and Dahej
Total installed capacity of pesticides is 22,020 MT for solids
&15,225 MT for liquids
Distribution structure Distribution network covers 80% districts of India, with more than
2,500 dealers & 37,000 retailers
Four regional & zonal offices each, 33 area sales offices, 23
depots present all over India
International business is done through own registrations &
agents & distributors
Institutional sales are direct
Digitized base of ~7,00,000 farmer with multiple farmer
engagement programs
R&D R&D is involved in developing new formulations, providing better
delivery and sustainable solutions to the farmers
New Millennium Indian Technology Leadership Initiative (NMITLI)
is being pursued to find newmolecules and further association is
done with National Chemical Laboratory, Pune
Involved with regulatory studies & registration process
Key Mergers/ Acquisitions Acquired 22% stake in Zero waste Agro Organics Pvt. Ltd.
Involved in organic manure and soil conditioners manufacturing
Acquired majority stake in Bangalore based Metahelix Life, 2010
Co-marketing alliances with several companies such as DuPont,
Syngenta, Bayer, FMC, Makhteshim Chemical works, Ghrada
Chemicals, etc
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Syngenta India Limited
Company overview 84% subsidiary of Switzerland headquartered Syngenta Global
Formed by merging agri-businesses of Novartis & AstraZeneca
in 2000
Product segments/ Verticals Seeds
Crop protection chemicals
Fungicides
Herbicides
Seed Care
Sales Revenue in FY2013 INR2539 Cr. (includes revenue from other product segments)
Manufacturing locations Manufacturing plant at Santa Monica, Goa
Distribution structure Products are sold through distributors and co-marketing
alliances with leading Indian companies
l
l
l
l
l
l
l
l
l
l
l

38
R&D Research & Technology centre at Goa, involved in product
research of organic chemical synthesis and analytical chemistry
research. R&D expenditure was 1.88% of total turnover
Key Mergers/ Acquisitions Co-marketing alliance with Rallis India
Crop protection technology exchange with DuPont, partnership
on improving crop quality with Embrapa - the Brazilian
Agricultural Research Corporation, R&D agreement with Dow
AgroScience
Product license from Sumitomo
l
l
l
l
United Phosphorous Limited
Company overview Established in 1969 and has its presence in all value-added
agricultural inputs ranging from seeds to crop protection &post
harvest activity
Largest Manufacturer of agrochemical in India
Has its own subsidiary offices worldwide
Global player with customer base in 123 countries
Industrial and Specialty chemicals
Animal Nutrition
Riceco
Fungicides
Herbicides
Fumigants
Rodenticides
Plant Growth & Regulators
Sales Revenue in FY2013 Rs. 4136 Cr (61% of companies revenues are derived from
exports)
Manufacturing locations 23 manufacturing location across the globe with 9 in India
Production capacity of 98,264 MT of pesticides & 42,631 MT of
pesticides intermediates
Distribution structure Products are sold through distributors spread across the country
R&D R&D activities in product development &registration.Spend about
2% of total revenues
Key Mergers/ Acquisitions Product acquisitions from DuPont and Bayer
Company acquisitions of Metahelix Life, Evofarms, AG, Cequisa
and ICONA,Advanta,RiceCo US
United Phosphorus Acquires Dutch Company Agrichem
Acquisition of a 51% stake in DVAAgro Do Brasil,a Brazilian
company, from DVA Group, Germany
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Syngenta India Limited

39
7 Annexure - I
Figure 23: Key Agrochemical Players in India

40
8 References
1. KnowledgepaperforFICCIAgrochemicalsConclave2013preparedbyTataStrategic
2. Agropageswebsite
3. FAOStatistics
4. CropLifeAmerica
5. CreditSuisseReports
6. ChemtechFoundationarticleonpesticideindustry
7. IndianAgrochemicalIndustryreportbySunidhiInstitutionalResearch
8. ArticleongrowingimportanceofAgrochemicalsbyKPMG
9. R&DTrendsforChemicalCropProtectionProductsbyPhillipsMcDougall
10. PrimaryinteractionswithIndustryexperts

41
Founded in 1991 as a division of Tata Industries Ltd, Tata
Strategic Management Group is the largest Indian own
management consulting firm. It has a 70 member strong
consulting team supported by a panel of domain experts.
Tata Strategic has undertaken 500+ engagements, with
over100clients,acrosscountriesandsectors.
It has a growing client base outside India with increasing
presence outside the Tata Group. A majority of revenues
now come from outside the group and more than 20%
revenuesfromclientsoutsideIndia.
Tata Strategic offers a comprehensive range of solutions
covering Direction Setting, Driving Strategic Initiatives and
ImplementationSupport
Our Offerings
lScenarios & Vision lIndia Entry
lMarket insights lAlliance & Acquisition Planning
lEntry / Growth Strategy lStrategic due diligence
lCSR Strategy lManufacturing Strategy
lOrganization Structure
lCulture & HR Transformation
lManpower Planning &
Optinization
lLeadership Development &
succession planning
lSupply Chain Optimization
lThroughput enhancement
lSuperior Fulfillment
lProject Excellence
lProcurement Transformation
lResource Management
lProgram Management
lChange Management
lBenefit Realization
Set Direction
Drive Strategic
Initiatives
Facilitate
Implementation
Strategy
Marketing & Sales Operations
Implementation
Organization Effectiveness
Reports co-authored by Manish Panchal, Charu Kapoor, Mansi Mahajan and Manan Agarwal
ManishPanchal
Practice Head – Chemicals, Energy & SCM
E-mail: manish.panchal@tsmg.com
Phone: +91 22 6637 6713
Charu Kapoor
Principal – Chemicals & Energy
E-mail:
Phone: +91 22 6637 6756
charu.kapoor@tsmg.com
Tata Strategic Contacts
About Tata Strategic9
lRevenue Enhancement
lProduct Innovation
lMarket Share
Rura/Urban/B2B
lChannel Effectiveness
lRoute to Market

42
About FICCI
Established in 1927, FICCI is one of the largest and oldest apex business organizations in India.
FICCI’shistory iscloselyinterwovenwithIndia'sstruggle forindependence,industrializationand
emergence as one of the most rapidly growing global economies. FICCI has contributed to this
historical process by encouraging debate, articulating the private sector's views and influencing
policy.
Anot-for-profitorganization,FICCIisthevoiceofIndia'sbusinessandindustry.
FICCI draws its membership from the corporate sector, both private and public, including MNCs;
FICCI enjoys an indirect membership of over 2,50,000 companies from various regional
chambersofcommerce.
FICCI provides a platform for sector specific consensus building and networking and is the first
portofcallforIndianindustryandtheinternationalbusinesscommunity.
OurVision
To be the thought leader for industry, its voice for policy change and its guardian for effective
implementation.
OurMission
To carry forward our initiatives in support of rapid, inclusive and sustainable growth that
encompasseshealth,education,livelihood,governanceandskilldevelopment.
To enhance the efficiency and global competitiveness of the Indian industry and to expand
business opportunities both in domestic and foreign markets through a range of specialized
servicesandgloballinkages.

4th Agrochemicals Conference 2014- Agrochemicals for ensuring food and Nutritional Security for the Nation

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to 4th Agrochemicals Conference 2014- Agrochemicals for ensuring food and Nutritional Security for the Nation

Similar to 4th Agrochemicals Conference 2014- Agrochemicals for ensuring food and Nutritional Security for the Nation (20)

More from TATA Strategic Management Group- Chemicals Vertical

More from TATA Strategic Management Group- Chemicals Vertical (20)

Recently uploaded

Recently uploaded (20)

4th Agrochemicals Conference 2014- Agrochemicals for ensuring food and Nutritional Security for the Nation