Insecticides (India) Limited, one of the top domestic crop protection companies, is planning to phase out old molecules and will launch in-house developed next-generation products, besides entering the global markets.
Rajesh Agarwal, MD, Insecticides (India) said, "We launched three new products in the first quarter and plan is to launch about 10 next-generation insecticides, herbicides, fungicides, biologicals and Plant Growth Regulators (PGRs) this year. Every year about 10 new molecules come to the global markets and the same number gets off-patent and our idea is to focus on these next-generation off-patent crop protection products."
He added that five new products were launched in fiscal year 2017-18 and that contributed over 43 per cent to the revenues during that year. In the last financial year, Insecticides India launched eight new products and that contributed nearly 45 per cent, or Rs 535 crore revenues to the topline.
"Now we have around 120 products and plans are to phase out old generic products and keep only 60-70 products. In the case of new generation broad-spectrum crop protection products, large volume sales will be less but value will be higher," said Agarwal.
He said the company is focussing on both backward and forward integration and is investing over a billion rupees on new synthesis facilities in Gujarat and Rajasthan. Currently, the company has four R&D centres and manufacturing facilities in Chopanki in Rajasthan, Samba and Udhampur in Jammu & Kashmir and Dahej in Gujarat.
Insecticides India, which has a joint venture with OAT Agrio of Japan, is developing new chemical entities(NCE)s and the first product is expected to be commercialised in the next three-four years. Another couple of molecules are also in development. The company also has a tie-up with Nissan for selling next-generation crop protection products.
The R&D of biological crop protection products is another area of development. In-house R&D has developed a VAM (Vaslcular Arbuscular Mycorrhizae, a fungus which can dissolve the excess phosphates in the soil and a soil energiser Kayakalp. Another three-four new biological products are in the pipeline.
Exports are another focus area for Insecticides India as registrations are on in new countries with 100-plus export agreements. Currently, the company exports to about 20 countries and will increase it to 25 by the end of the year. "Last year exports were Rs 60 crore, which will increase to Rs 100 crore this year and in the next year will cross Rs 200 crore," Agarwal said.
While India's MNC-dominated crop protection market, worth Rs 20,000 crore, had been growing at 2-3 per cent for the past few years, Insecticides India was growing at 5-6 per cent. The company had revenues of Rs 1192 crore in FY19 with a Profit After Tax of Rs 122 crore.