- Technical: consolidating since feb… long term uptrend… short term downtrend…
- Offers high-quality, innovative, effective crop-protection and food safety solutions
- Offers 70 formulations of various insecticides, herbicides, fungicides and PGRs, some of which have come out of patent in recent past (2021)
- Building strong presence among the farmers by conduction various programmes
- Dec 2022 result was pretty bad…better compared to dec 21 yoy… but since september showed 2x growth yoy compared to 2021 september quarter, this was disappointing
- Received patent for three products out of which two are yet to be launched. Planning to launch these products in the financial year 2024
- Brownfield capex to complete in fy24
- Segment-wise co is working on different kind of one-shot solutions where multiple pest and weeds could be controlled together. So, one such product was launched Q2 which was for sucking pest for cotton and chilly and that product contributed and kept on contributing in Q3 also to a great extent.
- “We are covering not only cotton, chilly, we are covering paddy, which is vast geography in India, we are covering sugarcane also, we are covering corn, we are covering various soya bean also, so different herbicide we are working on, we are in narrow leaf and broad leaf weeds can be controlled together.”
- “inventory levels I believe for the next 12 months will remain at the current levels or little bit laid back, but that due to the reason of more geographical and product expansion what we are having.”
- 2-3 years before others catchup on the current formulations… industry needs rapid r&d
- market size for the company’s patented products is estimated to be over Rs. 2,000 crores, starting from FY25.
- company has received registrations for new products and plans to launch them, targeting a 40% market share.
- company’s margin trajectory is expected to improve over the next 1 to 3 years, driven by export growth and new product launches.
- Pyroxasulfone Registration: The company has already registered the product but has not yet launched it. They obtained the license in January and plan to start sales in September or October of the current year (FY24).
- The company does not have any specific plans regarding increasing promoters’ stake at the moment.
- Backward Integration and Raw Materials: Most of the products, including AI, technical, and formulations, are produced in-house, including the subsidiary. The company’s import dependency on raw materials is decreasing as they are developing intermediates in-house. The target is to minimize import dependency by FY26.
- Formulation Patents: The company’s formulation patents, such as for Ronfen, have a blocked range of percentages within the patent. Other competitors cannot come up with the same formulation outside of the specified range, ensuring the company’s right to win in this regard.
- Antithesis – Environmental Concerns: Critics might argue that the company’s use of large molecules contributes to environmental degradation, pollution, and loss of biodiversity. They may question the sustainability of the company’s agricultural practices and advocate for more environmentally friendly alternatives.
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