Agrochem industry

1. Doubling Farmers Income
Role of Indian Agrochemical Industry
Investment Trends and Way Forward

2. Discussion Topics
• Role of Agrochemicals : From “Green Revolution” and
“Doubling Farmers Income” to “Sustainable Farming for
Future”
• Global Agrochemical Industry V/s Indian Agrochemical
Industry
• Investment Trends & Opportunities for Domestic and
Export markets
• Building India a “Globally Competitive Manufacturing Hub
for Agrochemicals”

3. Role of Agrochemicals in Doubling Farmers Income
Phalaris Control in Wheat
BPH Control in Rice
Fumigation for
Grain Protection
Reducing Post-harvest
losses
Extending Shelf Life-
Horticulture
Enabling Agri-Exports
Labour Shortage addressed
Water Shortages –Rice, DSR
Precision Farming adoption
Climate Smart Agriculture
Green Revolution Developing Value Chain Sustainable Farming

4. Fungicides
Insecticides
Herbicides
Seed Treatment
Biologicals
Adjuvants
Crop Nutrition
Seed Treatment
Biologicals
Crop Nutrition
Soil Conditioners
Adjacent Technologies
Growth Regulators
Edible Coatings
Fresh Fruits
Fumigation for
Grains and Tubers
Agrochemicals building ‘Agriculture Value Chain’
Precision Farming

5. Global Industry V/s Indian Industry
(Domestic Market, Indigenous production and Exports)

6. ASIA AFRICA North America South America Europe Australia & NZ
Global Agrochemicals Market V/S Indian Industry
Generic penetration driving global growth
GMO Technologies
Generic Penetration
Food Exports
Horticulture
62 = 20 + 5 + 10 + 15 + 10 + 2
Regional split of Agrochemical Market in US Billion Dollars Source: Philip Mc Dougal
Infra Development
Technology Adoption
Increasing Population
Increasing Food Demand
Input Intensification
Generics & New Products
Horticulture
Growth in China & India
GMO Technologies
Emerging Markets
Generic Penetration
Horticulture
Regulatory Challenges
Generic Penetration
Set-aside Area
GMO Technologies
Generic Penetration
Horticulture
+7-10% Expected +5-7% Expected +2% Expected +5% Expected 1-2% Expected 1-2% Expected
70% of global market is Generic

7. Top Players in the Global Agrochemicals Market
7
“INDIA leaps into the
League of top 4

8. Global Trade
&
Investment Opportunities
“Import Substitution in India”

9. Global Agrochemicals Trade
Agrochemical Exports 2017
Rank Countries
Exports
(bn USD)
World % Share
1 China 4.8 14%
2 Germany 4.2 12%
3 USA 3.9 11%
4 France 3.5 10%
5 India 2.4 7%
6 Belgium 2.0 6%
7 Spain 1.3 4%
8 UK 1.3 4%
9 Israel 1.2 3%
10 Italy 0.8 2%
11 Netherlands 0.7 2%
12 Hungary 0.6 2%
13 Japan 0.5 2%
14 Others 7.2 21%
Total-World 34.4 100%
Source: ITC (WTO), HS Code- 3808
(Accessed on 31st August 2018)
Agrochemical Imports 2017
Rank Countries
Imports
(bn USD)
World %
Share
1 Brazil 2.5 7%
2 France 2.0 6%
3 Canada 1.8 5%
4 Germany 1.6 5%
5 India 1.3 4%
6 USA 1.3 4%
7 Spain 0.9 3%
8 Ukraine 0.9 3%
9 UK 0.9 3%
10 Belgium 0.9 3%
11 Russian Federation 0.9 3%
12 Italy 0.9 3%
13 Australia 0.9 2%
14 Others 18.7 53%
Total- World 35.5 100%
Source: ITC (WTO), HS Code- 3808
(Accessed on 3rd September 2018)
Europe accounts for ~50% of global agrochemical exports followed by
China (~14%)

10. Global Agrochemicals Use in Agricultural Production
Source: http://www.fao.org/faostat/en/#data/RP
(Accessed on 31st August 2018)
Agriculture Production 2017
Rank Countries
Agriculture Production
(bn USD )
World % share
1 China 968.6 28%
2 India 401.3 12%
3 USA 193.9 6%
4 Indonesia 133.5 4%
5 Brazil 93.8 3%
6 Nigeria 78.3 2%
7 Pakistan 69.8 2%
8 Russia 63.3 2%
9 Japan 56.9 (2016) 2%
10 Turkey 51.7 2%
11 Iran 44.3 1%
12 Thailand 39.4 1%
13 Mexico 39.3 1%
14 Others 1164.5 34%
Total- World 3398.7 100%
India. 0.3
Usage:
(Kg/ha)
Agrochemical Use 2016
Rank Countries
Use
(tonnes)
World % Share
1 China 1,772,296 43%
2 USA 407,779 10%
3 Brazil 377,176 9%
4 Argentina 207,706 5%
5 Ukraine 78,201 2%
6 Canada 75,318 2%
7 France 71,951 2%
8 Spain 61,895 2%
9 Italy 60,259 1%
10 Mexico 57,111 1%
11 Japan 51,006 1%
12 Australia 50,922 1%
13 India 50,410 1%
14 Others 794,802 19%
Total-World 4,116,832 100%
Source: ttps://data.worldbank.org/indicator/NV.AGR.TOTL.CD
(Accessed on 3rd September 2018)

11. 93
20
25
35
65
86
212
318
11%
2%
3%
4%
8%
10%
25%
37%
0 100 200 300
Others
UK
Singapore
Israel
Germany
Japan
USA
China
138
25
27
58
67
132
141
727
11%
2%
2%
4%
5%
10%
11%
55%
0 100 200 300 400 500 600 700
Others
Korea
Switzerland
Israel
Japan
USA
Germany
China
FY 2013-14 ($ 852 mn) FY 2017-18 ($ 1312 mn)
Source- Ministry of Commerce and Industry, India- Databank (Accessed on 28.August.18)
Imports’ growth in terms of CAGR ~9%. Can be reduced to 3%-5% with policies aimed at import substitution.
India’s Imports of Agrochemicals- Major Suppliers (USD mn)
Note- FY= Indian Financial year (April to March)

12. 975
54
57
64
85
86
299
301
52%
3%
3%
3%
3%
4%
16%
16%
0 200 400 600 800 1000
Others
Germany
Belgium
Netherlands
Japan
France
USA
Brazil
India’s Export of Agrochemicals- Major Buyers (USD mn)
1,211
75
78
87
108
126
386
486
48%
3%
3%
3%
4%
5%
15%
19%
0 200 400 600 800 1000 1200
Others
Bangladesh
Belguim
Vietnam
France
Japan
Brazil
USA
FY 2013-14 ($ 1922 mn) FY 2017-18 ($ 2556 mn )
Source- Ministry of Commerce and Industry, India- Databank (Accessed on 28.August.18)
Exports’ growth in terms of CAGR ~6%. Can be accelerated to >10% with policies support
Note- FY= Indian Financial year (April to March)

13. Indian Industry established a
strong production base
in last decades

14. India’s capability to manufacture multiple synthetic
chemistries in Agrochemical-Groups
Insecticides
• Organosulfurous
acid ester
• Organophosphorus
esters
• Pyrethroids
• Chloronicotinyl
• Fiproles
Fungicides
• EBDC
• Triazoles
• Benzimidazole
• Thiophanate
• Phthalamide
• Nitriles
Herbicides
• Phenoxy
• Sulfonyl Ureas
• IPU
• FOPs
• Metributzin

15. Agrochemical Production: Key Products/Key Players
Insecticides
AI Group Products Capacity
(mt)
Manufacturers
OPs Profenofos
Chlorpyriphos
Monocrotophos
Acephate
26,000
44,000
37,000
35,000
Gharda, UPL, Rallis
Excel, Coromandal,
Sudarshan, GSP,
Nagarjuna, HIL,
Spectrum, Hyd
Chem, Meghmani
Pyrethroids Lambda Cyhalothrin
Bifenthrin
Alpha-Cypermethrin
Cypermethrin
Fenvalerate
Allethrins
1,900
2,200
N.A.
31,000
N.A.
100*
Gharda, UPL, Tagros,
Bayer, IIL, Hemani,
Heranba,
Meghmani, HPM,
Best Agro
CNIs Imidacloprid
Thiomethoxan
Acetamiprid
2,500
2,600
400
Bayer, IIL, UPL,
Bharat, Nichino, GSP

16. Fungicides
AI Group Product Capacity
(mt)
Comments
EBDC Propineb
Mancozeb
10,000
1,68,000
UPL, Indophil,
Coromandal, HIL,
HPM
Triazoles Hexaconazole
Tricyclazole
3,500
3,600
Rallis, GIL, Astec,
Meghmani, IIL,
Indophil
Others Thiophanate 2,450 IIL, Coromandal,
Astec
Agrochemical Production: Key Products/Key Players

17. Herbicides
AI Group Product Capacity Comments
Phenoxy 2,4 – D 36000 Atul,Meghmani,
Others
Non-Selectives Glyphosate
Paraquat
37,500
10000*
Excel, IIL,
Coromandal,
Meghmani
Rice Herbicides Bysperibac
Pretilachlor
350
15,000
IIL, Best Agro,
Syngenta, NACL
Wheat Herbicides Sulfosulfuron
Clodinafop
Metrebuzin
400
1,300
6,200
UPL, IIL, Best Agro,
Atul, Bharat,
Nichino, Rallis
Others Pendimethalin
Imazethapir
Pyrazosulfuron
13,800
1,800
700
UPL, Rallis, GSP, Atul
Agrochemical Production: Key Products/Key Players

18. Opportunities for Import Substitution

19. Herbicides
(34)
Fungicides
(26)
Insecticides
(27)
PGR
(1)
Idosulfuron Fluazifop Trifloxystrobin Dithianon Ethiprole Pymetrozine Prohexadione
Mesosulfuron Triasulfuron Fluopicolide Dimethomorph Flupyradifurone Abamectin
Ethoxysulfuron Fomesafen Penflufen Triticonazole Fluopyram Fluensulfone
Tembotrione Pinoxaden Propamocarb Oxathiapiprolin Spirotetramat Bifenazate
Imazamox Mesotrione Iprovalicarb Picoxystrobin Iprovalicarb Diflubenzuron
Bentazone Trifloxysulfuron Fenamidone Mandipropamid Chlorfenapyr Dinotefuran
Topramezone Propaquizafop Fosetyl AI Cyproconazole Metaflumizone Tolfenpyrad
Tepraloxydim Ametryn Ametoctradin Isopyrazam Flocoumafen (Rodenticide) Chromafenozid
Imazapic Carfentrazone Epoxyconazole Metrafenone Difenacoum (Rodenticide) Cyflumetofen
Saflufenacil Sulfentrazone Metiram Prochloraz Spinetoram Clothianidin
Diclosulam Quizalofop Pyraclostrobin Bupirimate Sulfoxaflor Etoxazole
Penoxsulam Bispyribac Fluxapyroxad Tetraconazole Methoxyfenozide Pyriproxifen
Fluroxypyr Halosulfuron Bosclid Cyazofamid Chlorantraniliprole Fenitrothion
Pyroxsulam Quizalofop Cyantraniliprole
Azimsulfuron
Flumioxazin
Bensulfuron Orthosulfamuron
Halaxofop Flucetosulfuran
Investment Opportunities for 88 products (Mostly off-patented)
Annual Revenue Potential approx. INR 9,500 Crores + Exports

20. Investment Opportunities for Agrochemicals
• India has multiple technologies to produce these AIs and
Intermediates
• Transfer of technologies also possible
• 88 products, can generate annual revenue of INR 9500 cr &
needs INR 4000 cr investments
• Large potential for Exports besides Domestic market
• Need to defend current indigenous production

21. Agrochemical Production Clusters

22. Existing scope of Agrochemical Clusters
• Major agrochemical clusters are located at:
• Gujarat (Vapi, Ankleshwar, Dahej,, Jhagadia) Maharashtra (Roha,
Tarapur, Mahad, Lotte),Telangana (Hyderabad)
• Major Agro-formulation clusters are at Jammu, Anand, Hyderabad,
Rajasthan, Chennai & Haldia, Ambala.
• All agrochemical active ingredient gets classified under 5(b) category
and need clearance from MOEF rather than state Pollution Control
Board.
• 3-4 years required for getting clearance to start the construction
activities.
• Limitation of CETP (Central Effluent treatment Plant) in setting up
manufacturing facilities. .

23. • Trend to move to zero liquid discharge (ZLD) sites for all pesticide
manufacturing units
• Many state PCBs insists on setting up of MEE (Multiple Effect
Evaporator) for high TDS effluent disposal.
• The chemical manufacturing industrial zones do not have the same
quality of infrastructure and facility as available in China
• AI manufacturing dependent on intermediates sourcing from China
DMPAT, CCMP, NII, Triazenone, CDFP, DETCL, ESPO, 3-4 DCA,
Alfa Nepthanol, Chloropropanyl Chloride, EDA
Existing scope of Agrochemical Clusters

24. Suggestions for Investments - Indigenous production
• Make in India at affordable prices to reduce input costs for farmers
• Local production reduces input costs for farmers upto 50%
• Lower cost/Ha increases penetration to small holding farmers
• Reduce regulatory timeline from 3-5 years to less than 1 year under Make in India
• Incentivise backward integration for long-term competitive advantage
• Both availability of raw materials, intermediates and production process
maturity now exist in India
• Availability of world-class equipment in India at lower capital cost (25-40%
lower than Europe)
• Investments linked to specific export markets viz US, Europe, LatAm etc., which
may need closing supply chain loop in destination countries
• Export incentives due to higher capital investments

25. Support needed for Indigenous production / Investments
• Expand intermediates production to reduce imports.
• Trade war between US and China is an opportunity and also a potential
challenge
• Clearance of Projects in less than 6 months from Environment Ministry
• Production for exports should not be part of ‘Pesticides Management Bill’
• Incentivise R&D to reach growth objectives – Export Markets
• Inclusive approach for Industry specially at state level to avoid market
disruptions

26. Thank You

27. Existing scope of Agrochemicals Clusters
a) Major agrochemical clusters are located at:
Gujarat (Vapi, Ankleshwar, Dahej,, Jhagadia) Maharashtra (Roha, Tarapur, Mahad, Lotte)
Telangana (Hyderabad)
b) Major agro-formulation clusters are at Jammu, Anand, Hyderabad, Rajasthan, Chennai &
Haldia, Ambala.
c) AI manufacturing dependent on intermediates sourcing from China.
d) Some clusters have central effluent treatment facility with discharge norms frozen by State
Pollution Control Boards
e) Trend to move to zero liquid discharge (ZLD) sites for all pesticide manufacturing units