Agri Business

GSP Crop Science plans ₹500-cr expansion in Gujarat

BL Bengaluru Bureau | | Updated on: Mar 02, 2022
Bhavesh Shah, MD, GSP Crop Science

Bhavesh Shah, MD, GSP Crop Science

To boost manufacturing of technicals, intermediates

Agrochemical firm GSP Crop Science Pvt Ltd plans to expand its manufacturing capacity of technicals and intermediates at Saykha in Gujarat with an investment of about ₹500 crore over next few years, a move that would help reduce its dependency on China.

Bhavesh Shah, Managing Director, GSP Crop Science said the capacity utilisation at its manufacturing units in Gujarat has reached 80 per cent prompting the company to go in for expansion plans.

The proposed expansion would reduce the company’s dependency on China for technicals to around 30-40 per cent from the current 80 per cent.

The company has formulation and technical manufacturing units at Nandesari, Saykha in Gujarat and in Jammu.

It currently manufactures around 14 intermediates and plans to add another 4-5 intermediates with the proposed expansion plan, which will be funded largely by the internal accruals, Shah said.

GSP Crop Science is a debt free entity and Oman India Joint Investment Fund is the only institutional investor in the company. The Shah family owns around 85 per cent stake in the company.

Product range

The company sells agrochemicals in segments such as insecticides, fungicides and herbicides under 60 different brands in the domestic market for a range of crops such as paddy, cotton, wheat, soyabean, groundnut and vegetables among others.

It also exports agrochemicals to around 30 countries including Brazil and the US. Brazil is the largest export market for the company, Shah added.

GSP Crop Science also contract manufactures the agrochemicals for both domestic and global firms.

The company derives around 45-50 per cent of its earnings from its product sales in India, while exports contribute around 30 per cent and the rest from contract manufacturing.

In FY21, GSP Crop Science reported a net profit of ₹69.57 crore on revenues of ₹1,136.91 crore.

Outlook

“We are hoping to touch a revenue of ₹1,350 crore in the current financial year, ₹1,750 crore in the next financial year and ₹2,500 crore by 2025,” he said.

The company has a distribution channel of around 5,000 distributors is expanding the same by adding around 500-600 distributors every year.

“We plan to have around 8000 distributors by 2025,” Shah said. Maharashtra is the biggest State for the company in terms of market share.

GSP Crop Science, which considers among the top 20 agro-chemical players in the country is aiming to be among the top 10 in the next 3-4 years, Shah said. Further, Shah also said that the company is focusing on introducing more green chemistry products in the Indian market.

Published on March 02, 2022
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