Ranvir’s Portfolio

Sumitomo Chemicals India Ltd –

Notes from Annual Report

SCIL is a leading manufacturer and distributor of diverse agro solutions. Also has prominent animal nutrition and environmental health as additional business units. Has a diverse portfolio of generic and speciality products in both chemicals an and biologics space. Also engaged in marketing of proprietary products of its Japanese parents. Company has a good presence in fruit and vegetable crops which are high growth areas

Offers solutions for –

Pest control
Crop protection
Rodent control
Bio – pesticides
Plant growth regulators
Fumigants

Company Infra –

Total of 05 facilities in Gujarat (04) and Maharashtra (01)

Bavnagar – Technicals and Formulations
Gajod – Metal Phosphides and Formulations
Tarapur – Technicals
Vapi – Formulations
Silvasa – Formulations

Also has 03 R&D facilities at Mumbai, Bhavnagar, Gajod

Pan – India Depots – 60
Field officers – 1500 +
200 + Brands, 700 + SKUs
15k + distributors
Exporting to 50 + countries from India
Selling in 26 Indian states

Product wise sales breakdown –

Insecticides – 43 pc
Herbicides – 24 pc
Plant growth regulators – 9 pc
Metal Phosphides ( used for fumigation ) – 8 pc
Fungicides – 9 pc
Animal Health (animal feed additive products) + Environmental Health (infectious disease control products) – 7 pc

Geography Wise revenue break up –

India – 75 pc
Africa – 6 pc
Japan – 5 pc
Asia – 2 pc
EU – 2 pc
LATAM – 9 pc
North America – 1 pc

80 pc of domestic sales are branded
30 pc of export sales are branded

India is the 4th largest producer and 3rd largest exporter of Agrochemicals in the world. India is the largest producer of Milk, Pulses and Jute. India is also the second largest producer of Wheat, Rice, Fruits, Sugarcane, Groundnut and cotton. Indian agrochemicals Industry is expected to grow at a CAGR of 8 pc from FY 23-30. In India, aprox 50 pc of area is under agriculture vs 10-25 pc as avg for most countries. If agri-productivity is improved in India, India can be a big food grain exporter vs its current share of 2.5 pc of global agri exports. At present – Indian farmers are losing about 20-25 pc of their produce to pests / disease

Avg Capex spend @ 70-75 cr/ yr. Additionally allocated Rs 120 cr to develop 5 new products in the next 2 yrs

Long term threat for the Industry – GM crops that have far greater pest resistance vs the normal / hybrid crops. India regulators have however been cautious wrt GM adoption

The China + 1 sentiment is helping the Indian Agrochemical producers to gain mkt share in export mkts. Exports from India are expected to grow at > 15 pc/yr for next 5-7 yrs. Indian companies need to invest more in Technicals manufacturing to reduce their dependence on China

Indian consumption of Agrochemicals is at 0.6 kg/hectare vs 13 kg/hectare for China and 12 kg/hectare for Japan !!!

Disc : Hold a tracking position, not SEBI registered, biased