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Front-line performer in crop care market

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Front-line performer in crop care market 1

 

Insecticides (India) Ltd. (IIL) is India’s leading and Front-line performer in crop care market 2one of the fast growing Agrochemicals manufacturing company. IIL has emerged as a front-line performer in India’s crop care market and is all set to grow impressively. IIL owns the prestigious Tractor Brand which is highly popular among the farmers. This umbrella brand of its agro products signifies the company’s deep connection with the farming community. IIL has state-of-the-art formulation facilities in Chopanki (Rajasthan), Samba & Udhampur (Jammu & Kashmir) and Dahej (Gujarat). IIL also has technical synthesis plants at Chopanki and Dahej to manufacture technical grade chemicals also providing competitive edge by backward integration.
IIL has an equity capital of Rs20.67 crore supported by reserves of Rs710 crore. Valuation, at present, looks highly attractive, considering several factors including the government’s focus towards the sector the company is operating despite not a very impressive financial performance. In the 2019-20 fiscal, the Company’s net profit declined to Rs86.91 crore from Rs122.81 crore in the previous year. However, total income rose to Rs1,365.78 crore last fiscal from Rs1,194.25 crore in 2018-19.
One can accumulate this stock as the stock has the potential to zoom on the upper side to Rs700 in 12 to 18 months.

In Conversation

What is your core business?

The core business of IIL is crop protection that includes agrochemicals and biologicals, ranging from insecticides, herbicide, fungicides & plant growth regulators (PGRs). We also have a household range for termite control under the leading brand Lethal. The company has 5 different Research and Development centers; it has 5 ultra-modern formulation plants, 2 technical plants, and 24 depots.

What are the unique strengths of the Company?

One of the core strength of the company is its integrated entity; it is one of the companies in the industry which has the R&D, Technical Synthesis, one of the largest formulation facility, International Tie-ups and aggressive marketing field force. IIL has one of the largest product ranges of products that provide cost-effective option to farmers. Besides, we have technical collaborations with agrochemical majors from US and Japan. We also have a MoU with ICAR-IARI for on-the-ground projects in Uttar Pradesh involving 3 villages in Hapur district under CSR wing IIL Foundation. More than anything else, IIL has dedicated and NABL-approved R&D facilities and ISO-certified production units in Dahej (Gujarat), Chopanki (Rajasthan), Sambha and Udhampur (Jammu & Kashmir).

Front-line performer in crop care market 3
Mr. Rajesh Aggarwal
Managing Director,
Insecticides (India) Ltd.

What have been the major achievements of the Company in recent times?

IIL began operations in 2001 and started its first formulation plant in Chopanki (Rajasthan) in 2002. The first acquisition happened in 2003 when it acquired 23 brands of Montari Industries Ltd. in 2005. The Company then launched two biggest brands of Agro chemical industry – Thimet and Nuvan. Marketing tie up with Nissan, Japan for marketing of Pulsor and Hakama was other milestones. Then in 2017 setting up of the product invention R&D centre in JV with Japanese company OAT Agrio was first of its kind in India.

Which is the most popular brand of the Company?

Our products are being marketed under the umbrella brand of Tractor Brand, which is very popular among the farming community.

How do you look at the opportunities in these trying times?

Opportunities are immense. Agro chemical industry is growing steadily, and IIL is growing at a better rate. With farmers moving towards the better technology and new age farming, requirement of crop protection also gets significance.

What would you like to say about quality standards, R&D and innovation?

The manufacturing facilities of IIL have ISO 9001:2015, ISO 14001: 2015 and OHSAS 45001:2018 certifications. In House R&D Centre at Chopanki is recognized by DSIR. We are working aggressively in the field of research with five different R&D Centres at different locations working with different themes. We have set up a product invention R&D Centre at Chopanki in JV with Japanese company OAT Agrio Co. Ltd.

What would you like to highlight about your team?

Today we have a team of more than 1250 employees, with one of the lowest attrition rate in the Industry. They are led by the stalwarts of the industry with a very open environment to work towards the common goals.

What are your financial strengths?

Our revenues have increased by 14 % this fiscal with nearly consistent PAT & EPS, we go forward to become a debt free company and plans to become debt free in FY21.

Who are your blue chip clients?

We serve farmers, and we are proud to have them as both our consumer and patrons. Apart from them we have institutional customers as well in the country and overseas.

What are your expansion plans?

We continuously do the brown field expansion at all our plants; we have recently set up a new plant in SEZ, Dahej.

What is your message for the shareholders?

We all at IIL, strive hard to get the best value to all stake holders for their trust they have shown in us. IIL is continuously evolving with the time and taking every step to come out with the products for the every changing demand of the farmers.

How do you foresee the future of your company?

We have been working hard for a bright future of the company as the registration process of the new products is a lengthy process and can take as many as five years. As such if we start an initiative today the fruits of the same will come in future. Our research, development and the registration team is working tirelessly to give the new age effective products to the farmers which are well within their reach.

About the author: IE&M Team

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