The Hindu Business Line : Agro-chemical maker enters Pak, Brazil markets

Ahmedabad, Aug. 31 The Gujarat-based Meghmani Organics Ltd, manufacturer of pigments and agrochemicals, has secured registrations for its agrochemical products in two fast-growing markets for pesticides — Pakistan and Brazil. It also became one of the earliest registrants in Pakistan after direct Indo-Pakistan trade was allowed recently.

In Brazil, which is the second largest market for pesticides after the US, Meghmani has obtained registration for Acephate, a newer generation molecule suitable for multiple crops such as cotton, tobacco, corn and grapes, among others.

Big Breakthrough

The company expects to become one of the main players in Acephate market in Brazil, with about 30 per cent market share, Mr Ashish Soparkar, Managing Director, said in a statement here today.

Brazil is a big breakthrough because this important market would grow even faster due to its increased focus on bio-fuels, he said. The total pesticides market in Brazil is currently worth about $3.3 billion. In terms of herbicides, it has about 50 per cent of the total market, insecticides 30 per cent and fungicides 15 per cent. Meghmani was registered in June this year as a source with the largest distributor in Brazil. According to Mr Soparkar, it will now become one of the few players in the Acephate market in Brazil, the others being Arysta, Sipcam and Fersol. Meghmani has already contracted for its first order of Acephate to be delivered till October.

“This order accounts for about 30 per cent of Brazilian market share for the Acephate product.”

As for Pakistan, which has a market size for pesticides worth $250 million, he said insecticides accounts for over 80 per cent of the total crop protection market, with herbicides at 16.5 per cent and fungicides at 3.5 per cent.

For the Pakistan market, Meghmani has received registration for two of its synthetic Pyrethroid molecules. Mr Soparkar is confident due to the similarities between Pakistan and Indian agro markets as crop patterns and weather are quite similar between the two countries.

Registration process was in progress for many other products in Pakistan, which include molecules from synthetic Pyrethroid and the organo-phosphorous group. Established in 1986, the company’s turnover in the financial year ended March 31, 2007, was Rs 469.05 crore whereas its net profit was Rs 40.90 crore. It has four plants, two each in Ahmedabad and Bharuch districts.

Its export sales accounted for about 70 per cent of the total revenue. North America and Europe contributed 20 per cent and 25 per cent respectively. The remaining contributions came from markets in Africa (5 per cent), South America (10 per cent), and Australia. In Singapore, where it is listed on the main board of SGX, it won the ‘most transparent company award’ for the last two consecutive years. Meghmani recently completed its secondary listing in India at the Bombay Stock Exchange and the National Stock Exchange.

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