Exuding confidence on its strong pipeline connecting with farmers and focus on innovations, agrochemical firm Insecticides (India) is confident to grow at 20 per cent CAGR over the next five years from a turnover of about ₹1,800 crore in 2022-23, said Managing Director and CEO Rajesh Aggarwal.

The company’s main thrust has been to offer off-patented pesticides, herbicides and fungicides to Indian farmers at cheaper rates than the multinational companies.

Aggarwal told businessline: “We are increasing our manufacturing capabilities as we have been coming out with new products. Already, capacities in Gujarat and Rajasthan have been enhanced while another new plant at near Behror, Rajasthan, is likely to be commissioned in two years. Our strategies have been to continuously develop new technicals and formulations in association with our Japanese partner.”

Insecticides India has a 20:80 joint venture with Japan’s OAT Agrio Co under which a new company named as OAT & IIL India Laboratories has been set up in 2013 specifically to invent novel agro-molecules, a company official said.

Aggarwal said the company will keep providing agrochemicals with “aggressive pricing” model so that farmers can afford to buy those products.

Key growth States

Speaking about market share in different geographical regions, he said even in those areas where others see a saturation in agrochemical consumption, Insecticides India has registered 10 per cent growth. “Uttar Pradesh, Maharashtra and Telangana are those key States where the company has registered over ₹200 crore business each, while the turnover from Punjab, Haryana, Madhya Pradesh, Karnataka and Andhra Pradesh is over ₹100 crore each. Tamil Nadu and Bihar are two other States where the growth is good,” said Aggarwal.

Paddy, wheat, cotton, pulses, maize are some of the key field crops where the company’s share is good whereas it also has products for vegetable and plantation crops.

Commenting on ‘Mission’, an agrochemical suitable for sugarcane, Aggarwal said in the first year of its launch during this year’s kharif season, Insecticides India has clocked a revenue of about ₹70 crore and may cross ₹200 crore next year through institutional sales (through sugar mills) as well as via its conventional network.

“The price of our product is almost half of the most popular pesticide used against different lepidopteran pests. We have made the technicals here and now trying to develop both the intermediates (currently imported) required to produce the technicals also in the country. That will further reduce its rates,” said Aggarwal.

The ₹40,000-crore domestic agrochemical market has major dominance of insecticides (about 60 per cent), while herbicides have about 25 per cent share, fungicides about 10 per cent and others 5 per cent. In other major agri producing countries the share of herbicides is 60 per cent.