Dhanuka Agritech plans to set up a manufacturing unit in Keshwana village of Rajasthan with an investment of ₹50 crore. The debt-free company plans to fund its entire capital investment for the new unit through internal accruals.

The new unit will have a capacity to produce liquid pesticide of 6,000-kilo litre a year and 5,000 tonnes in powder form. The Gurgaon-based company’s overall pesticide production capacity in liquid and powder form will go up to 10,000 kilo litre and 10,000 tonnes, respectively.

The first phase of the project will be completed next January with second phase going on stream in July 2015. The new plant will produce pesticide for paddy, soyabean, cotton, pulses and horticulture crops.

Dhanuka currently has three manufacturing facilities in Haryana, Gujarat and Jammu and Kashmir to produce over 80 plant protection chemicals and has tie-ups with four Japanese and three US companies.

MK Dhanuka, Managing Director, Dhanuka Agritech, told Business Line that the company has received a good response for its innovative pesticide product Lustre, which is capable of not only killing the pest but also improving yield and enhancing the quality of output.

Sold on Lustre Initially, Dhanuka said, farmers were sceptical and felt that Lustre was overpriced, but when tested on paddy crop, Lustre not only improved the yield by 15 per cent but also the realisation by 10 per cent due to better quality.

“We are now recommending the use of Lustre in chilli and tomato crops,” he said. In two months, Dhanuka plans to launch a new product, Mortar, which can be used on paddy and vegetables.

Dhanuka says that at 500 gm a hectare, India’s pesticide usage is the lowest in the world. In comparison, Japan uses 11 kg for each hectare, while it is 8-10 times more in developed countries.