In a recent development, Niti Aayog member Ramesh Chand has expressed optimism about the growth potential of India’s agro-chemical industry, even in the face of stiff competition from China. This positive outlook for the sector has significant implications for companies operating in the agrochemical space, such as Dharmaj Crop Guard Limited, a leading player in the Indian market.
Dharmaj Crop Guard Limited (NSE:DHARMAJ), based in Ahmedabad, India, is actively involved in the manufacturing, distribution, and marketing of a wide range of agrochemical formulations. Their product portfolio includes insecticides, fungicides, herbicides, plant growth regulators, micro-fertilizers, and antibiotics, catering to both B2C and B2B customers.
Dharmaj Crop Guard Ltd (DCGL) is correctly positioned to capture growth in both domestic and international demand for agrochemicals.
Domestic demand
- India is one of the largest consumers of agrochemicals in the world, and the demand is expected to grow at a CAGR of 7-8% in the coming years. This growth is being driven by factors such as increasing agricultural productivity, rising incomes, and growing awareness of the benefits of agrochemicals.
- DCGL has a strong presence in the domestic market, with a wide range of products and a well-established distribution network. The company is also expanding its manufacturing capacity to meet the growing demand.
International demand
- The global agrochemicals market is also expected to grow in the coming years.
- DCGL is already exporting its products to over 20 countries, and the company is planning to expand its global reach further. The company has a strong focus on research and development, which is helping it develop new and innovative products that meet the needs of international customers.
Financials
The financials are strong with sustained revenue and profit growth. However, the cash flow in recent reports has been on the lower side.
References
Indian agro-chemical industry can grow over 9 pc notwithstanding Chinese competition: Niti Aayog
Disc: Invested
Disclaimer: The article is not a recommendation or advice as to whether any investment is suitable for a particular investor.
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