Ficci TSMG Aug 2014

Agrochemicals for ensuring food
and Nutritional Security for the Nation

Knowledge and Strategy Paper
released at
4th National
AGROCHEM CALS
CONFERENCE 2 0 1 4
August, 2014
Knowledge and Strategy Partner
01
03
Foreword
Manish Panchal
Charu Kapoor
P S Singh
Practice Head - Chemical & Energy

Tata Strategic Management Group
Manish.panchal@tsmg.com
Engagement Manager - Chemicals

Tata Strategic Management Group
charu.kapoor@tsmg.com
Head- Chemicals & Petrochemicals

FICCI
prabhsharan.singh@ficci.com
The report on Agrochemicals for food and nutritional security for the nation is a part of joint
endeavor of Federation of Indian Chambers of Commerce and Industry (FICCI) and TATA
Strategic Management Group (TSMG) Chemical Practice's to highlight the importance of
agrochemicals for the Indian agriculture. It has been an ongoing exercise for regularly tracking
the trends in agrochemical and associated industries. The resulting knowledge and experience
gives us an additional advantage to prepare this report.
India requires a robust, modernized agriculture sector to ensure the food and nutrition security
for its population given the fact that the scope for further increasing cultivable land is limited. In
order to meet the food grain requirements of the nation, the agricultural productivity and its
growth needs to be sustained and further improved. In combination with Integrated Pest
Management and Plasticulture techniques Agrochemicals can play a critical role by providing
pre and post-harvest protection to crops and the agricultural output.Through this report we
have highlighted the various challenges faced by Indian Agriculture and Agrochemical sector and
indicated way forward for increasing the penetration of agrochemicals to ensure food and
nutrition security for the nation.
We are grateful to the inputs provided by industry leaders who agreed to interact with us. Their
knowledge and guidance helped us shape the report.
The report is a result of FICCI's objective to highlight the importance of agrochemicals in national
economy and business opportunities present in the sector. We are thankful to FICCI for providing
us an opportunity to develop a report which can play a pivotal role in achieving this objective.
04
Table of Content
1.
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
2.
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
3.
The need of Agrochemicals for food and nutritional security. . . . . . . . . . . . . . . . . . . . 11
4.
Indian Agrochemical market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Industry structure and Competitive landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Indian market scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Distribution of domestic crop protection market by Product category. . . . . . . . . . 16
State wise distribution of crop protection market . . . . . . . . . . . . . . . . . . . . . . . . . 17
Distribution and Sales Channel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Challenges faced by the Indian Crop Protection Industry . . . . . . . . . . . . . . . . . . . . 20
Opportunities and Key Growth Drivers for Indian Crop Protection Market. . . . . . . 22
5.
The Way Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Key imperatives for Agrochemical Companies, Govt. and Regulatory bodies . . . . . 24
6.
Key Players: Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
7.
Annexure - I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
8.
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
9.
About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Tata Strategic Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
05
LIST OF FIGURES
Figure 1: Losses caused by different pests (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
Figure 2: Indian Rural-Urban population comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Figure 3: Per capita consumption growth in Animal Products . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 4: Per capita arable land (ha). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 5: Average size of landholdings (ha) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 6: Yield comparison (Tonnes/ha) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 7: Crop wise pests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 8: Food requirements (Mn. tonnes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 9: Indian Crop Protection Market (USD Billion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 10: Agrochemical Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 11: Key Industry Players in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 12: Indian Crop Protection Market split . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure 13: Major crop protection products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure 14: State wise pesticide consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Figure 15: Crop protection distribution network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 16: Indian Agrochemical Exports, FY10-FY14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure 17: Opportunities in generic products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure 18: Pesticide consumption (Kg/ha) comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure 19: Indicative end to end farmer solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 20: Integrated Pest Management components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Figure 21: Plasticulture applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 22: Benefits of Plasticulture applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 23: Key Agrochemical Players in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
06
Executive summary
This report is developed by Tata Strategic Management Group with support of FICCI as the
knowledge paper for 4th National Conference on "Agrochemicals for ensuring food and
nutritional security for the nation".
At 1.2 billion, India is the second most populous country after China in the world. According to
United Nations statistics, India will surpass China to become world's most populous country by
2028. French Institute of Demographic Studies, predicts, that by 2050, India will take the top
spot with a staggering population of 1.6 billion ( up from the present level of 1.2 billion) to leave
behind current world leader China, at the second place with 1.3 billion people.However, Indian
Agriculture is facing a critical challenge of maintaining food and nutrition security for the
burgeoning population. According to GHI (Global Hunger Index) rating of 2013, India stands at
16th position amongst 120 developing nations covered.
Increasing urbanization, reduction in arable land, decreasing farm size, consumption shift
towards animal products and heavy dependence on monsoons are some of the critical
challenges faced by Indian agriculture. These factors highlight the importance of agrochemicals
for enhancing food and nutrition security for the nation. Moreover, low per hectare yield as
compared to global average and increasing pest attacks further strengthen the need of
agrochemicals.
The Indian crop protection industry is currently valued at USD 4.3 billion and is expected to grow
at a CAGR of 12% over the next five years. Insecticides is largest sub-segment of agrochemicals
with 60% market share whereas herbicides with 16% market share is the fastest growing
segment in India. Going ahead, opportunities for Indian crop protection industry will come in the
form of exports, growth in generic products, product portfolio expansion, and growth in
herbicides and fungicides.
However, the Industry faces a number of challenges. Some of the key challenges are stringent
environment regulations across the world, low focus on R&D due to high costs and long
gestation period for new products and rising sale of non-genuine products. Non-genuine
products are not only a challenge to agrochemical industry but to the overall Indian economy,
resulting in loss of revenues for farmers, agrochemical companies and Government.
The opportunities and potential exist, however a collaborative approach from the Industry,
Government and Regulatory bodies is required to ensure food and nutrition security for the
nation. Product innovation strategies, end to end comprehensive service offering to the farmer,
effective marketing and distribution strategies like educating the distributors/retailers apart
from farmers and leveraging on IT and Telecommunication infrastructure are some of the
07
possible levers for companies to expand their presence amongst the end users and promote use
of agrochemicals. Integrated Pest and Management and Plasticulture techniques can support
agrochemicals for securing food and nutrition for the nation.
However, the companies cannot achieve their objective in isolation. Continued infrastructural
support from Government is necessary for companies to improve their speed to market.
Government should also provide implementation support in terms of strict actions, regular
crackdowns, and punishments to stop the menace of non-genuine products. Adequate support
is also required for encouraging the industry to invest in R&D activities and develop innovative
solutions.
A collaborative and comprehensive approach can therefore help in overcoming the supply
demand constraints in the Indian agriculture sector, thereby ensuring food and nutrition
security for the nation.
08
Introduction
The global population currently stands at 7 billion, and is expected to rise to 9.3 billion by 2050.
This will require increase in global food production by 70% in order to meet the rising demand.
On one hand there is need to produce more food, on the other hand the world is facing
challenges of increasing urbanization, decreasing per capita arable land, increasing
malnutrition, rising food inflation and loss of crop output to pests, insects, weeds and diseases.
Globally, up to 40% of crop output is lost due to attack of pests, weeds and diseases. To overcome
these challenges, it is essential to use crop protection chemicals.
The role of crop protection chemicals is not limited to protection; they help in yield
enhancement as well. Use of crop protection chemicals can increase crop productivity up to
50%, which helps mitigate crop loss from pest attacks by 40%. It is estimated that almost 20% of
world's agricultural production is lost due to post-harvest pest attacks.Thus, crop protection
chemicals are essential to ensure food and nutritional security.
Figure 1: Losses caused by different pests (%)

Rodents
6%
Others
8%
Weeds
33%
Diseases
26%
Insects
26%
Source: Industry Reports, Analysis by Tata Strategic
Traditionally, agrochemicals have been manufactured through chemical synthesis but lately
biochemical processes are gaining popularity. Usually, agrochemicals involves active ingredient
in a definite concentration along with adjuvants which enhance their performance, safety and
usability. The agrochemicals are diluted in recommended doses and applied on seeds, soil,
irrigation water and crops to prevent the damages from pests, weeds and diseases.
The crop protection chemicals can be broadly classified into five types:
1.1. Insecticides:Insecticides provide protection to the crops from the insects by either killing
them or by preventing their attack. They help in controlling the pest population below a
desired threshold level.
09
1.2. Fungicides:Fungicides protect the crops from the attack of fungi and can beof two types protectants and eradicants. Protectants prevent or inhibit fungal growth and
eradicantskill the pests on application.
1.3. Herbicides:Herbicidesalso called as weedicides are used to kill undesirable plants. They
can be of two types - selective and non-selective.
1.4. Bio-pesticides:Bio-pesticides are new age crop protection products manufactured from
natural substances like plants, animals, bacteria and certain minerals.They are ecofriendly, easy to use; require lower dosage amounts for same performance as compared to
chemical based pesticides.
1.5. Others (Fumigants, Rodenticides, Plant growth regulators etc.):Fumigants and
rodenticides are the chemicals which protect the crops from pest attacks during crop
storage. Plant growth regulators help in controlling or modifying the plant growth process
and are usually used in cotton, rice and fruits.
The following sections of the report provide an overview of the Indian crop protection market,
the challenges faced by the Indian agriculture sector and the role of agrochemicals in ensuring
food and nutritional security of the nation.
10
The need of Agrochemicals for

food and nutritional security
At 180 million hectares, India holds second largest agricultural land in world. Almost 47% of
India's workforce is employed in agriculture; however its contribution to the GDP is a mere 14%.
Nearly 81 million hectares of India's land is desertified, threatening the food security. The
overgrazing of land and changing climatic patterns are exacerbating the situation. As more land
becomes unusable, the food security of the Indian population is increasingly endangered.
Being the second most populous country in the world, India faces a critical challenge of ensuring
adequate food availability. The recent GHI (Global Hunger Index) rating of 2013 puts India at
16th position amongst the 120 developing nations covered. Compared to the global average of
13.8, the hunger index in India has a value of 21.3. Child malnutrition (under 5 years of age) in
India stands at 44%, much higher than neighbouring countries like Pakistan, Bangladesh and
many African countries.
Critical Challenges faced by Indian Agriculture
l
Rising
urban and declining rural population:The Indian population is estimated to

reach almost 1.5 billion by 2030. It is expected that the Indian agriculture sector has to
produce 355 million tonnes of food grains by 2030 in order to meet the growing
demand. However, a critical challenge faced by the country is the reduction in
agricultural workforce. The percentage share of rural population has consistently
declined from 75% in 1991 to 67% in 2014. This would lead to an increased pressure to
increase agriculture productivity to feed the growing population.
Figure 2: Indian Rural-Urban population comparison

75%
68%
67%
72%
32%
28%
33%
25%
1991
2001
Urban Population (%)
2011
2014 (E)
Rural Population (%)
Source: Census of India 2011, Tata Strategic Estimates
11
l
Increasing shift towards animal products: With rising disposable income, the Indian
food consumption pattern is witnessing a shift towards livestock and poultry

products. This is reflected from the fact that ~37% of agricultural output growth over
2005-2011 came from animal products (milk, meat, fish, eggs). On the other hand
fruits and vegetables contributed 23% of growth while cereals resulted in 14%
growth.
This poses an increasing burden to raise the agriculture productivity as it is leading to a
shift from direct to indirect feedgrain consumption. It is estimated that 1kg poultry
meat requires 2-3 kg of feedgrain, 1 kg pork requires 4-5 kg of feedgrain while 1kg of
beef would require 5-10 kg of feedgrain consumption. With limited agriculture
resources this leads to increasing concerns for food security.
Figure 3: Per capita consumption growth in Animal Products

18%
12%
8%
5%
2%
1%
3%
2%
Milk
Fish
1994-2005
Eggs
Poultry
2005-2010
Source: Industry reports, Analysis by Tata Strategic
l
Reduction
in arable land: The amount of per capita arable land in India has
consistently declined from ~0.34 ha in 1950s to ~0.15 ha in 2000s. With rising
population it is further expected to reduce to ~ 0.07 ha by 2030.
India has 16,000 sq. km of total cropped area during 10 years from 2000-01 to 201011. During the same period land under urban use increased by 24,000 sq. km, at the
expense of arable land. This has put immense pressure on the current available arable
land for the food and nutritional needs of the population.
12
Figure 4: Per capita arable land (ha)

0.4
0.34
0.3
0.2
0.15
0.08
0.1
0.07
0
1951
2001
2025
2030

l
Decreasing farm size: The average farm size is India has declined by almost 50% from
2.28 ha in 1970s to 1.16 ha (2010-11). 80% of farm land is classified as small or

marginal. The 2011 Census of India indicates that 68% of farms are less than two acres
in size and 95% are less than five acres in terms of owned holdings.While the average
size of landholding is decreasing (also fragmenting) the number of operational
holdings is increasing leading to poor harvest and low incomes for the farmers.
Figure 5: Average size of landholdings (ha)

2.5
2.28
Hectares
2
1.84
1.5
1.55
1.33
1
0.5
1.16
1970-71
1980-81
1990-91
2000-01
2010-11
Source: Agricultural Census, Analysis by Tata Strategic

13
An increase in the number of fragmented landholdings has led to more landholdings

but a decrease in the operating size of farms. Irrigation difficulties and restrictions in
crop variety due to small size impact the productivity. Hence, there is a need to make
optimum utilization of the limited available land.
l
Per hectare yield in India lower than the rest of the world: Per hectare yield in India is
amongst the lowest in the world. Compared to global average of 4tonnes/ha the yield
in India stands at 3 tonnes/ha. Developed countries like USA, UK, France and Germany
are able to achieve higher per hectare yields than India due to the extensive and
judicious use of agrochemicals. This calls for wise and balanced application of
agrochemicals in a sustainable and environment friendly manner and simultaneously
ensuring food security for the nation.
Figure 6 : Yield comparison (Tonnes/ha)

10
9
7.5
6.5
5
4.5
3.8
tan
Pa
kis
Br
az
il
d
Wo
rl
Ba
ng
lad
es
h
Sr
i/L
an
ka
Ind
on
es
ia
Ge
rm
Ch
ina
ce
an
y/U
.K
./U
SA
Fr
an
an
d
Ne
the
rl
Be
lgi
um
Ind
ia
Source : Industry reports, Analysis by Tata Strategic
l
Increasing Pest Attacks: The total number of pests and serious pests for major crops
has increased significantly from 1940s. For instance, the number of harmful pests in
rice has increased from 10 to 17 andsimilarly there has been an increase in number of
harmful pests from 2 to 19 in case of wheat. The increased loss of crops to pests poses
a serious threat and highlights the importance of agrochemicals for ensuring food
security.
14
Figure 7: Crop wise pests

Crop
1940
At present
Total pests
Serious Pests
Total pests
Serious Pests
Rice
35
10
240
17
Wheat
20
100
19
Sugarcane
28
240
43
Groundnut
10
100
12
Mustard
10
38
12
Pulses
35
250
34

l
Food
Security Bill increasing food grain requirement: Under the new Food Security
Bill, two-thirds of the population will receive 5kg of food grain every month at
subsidized rates of Rs. 1-3 per kg, with the poorest households continuing to receive
35 kg of food grains per month at subsidized prices.
Figure 8: Food requirements (Mn. tonnes)

65
60
55
62
50
55
45
40
35
30
Current
Requirement
Estimated
Increase
New
Requirement
(Estimated increase due to implementation of Food Security Bill)

Source: Food Security Bill, Business Press, Tata Strategic Analysis
This will lead to an increase in demand for food grains. The current requirement of
rice, wheat and coarse cereals is 55 million tons which is expected to increase to 62
million tons after the introduction of the Bill. Decreasing arable land, increased pest
attacks, lower yields and farm size is going to make this a daunting task. However,
increased usage of agrochemicals on the limited arable land can help in yield
enhancement necessary to meet the increasing demand.
This reflects the need for increasing the crop productivity in India to ensure future
self-sufficiency for a billion-plus population. To address the issue of food and
nutritional security, India needs a robust and modernized agricultural sector with
special emphasis on the applications of agrochemicals.
15
Indian Agrochemical market
Overview
The Indian crop protection industry is estimated to be USD 4.25 billion in FY14
and is expected to grow at a CAGR of 12% to reach USD 7.5 billion by FY19. Exports
currently constitute almost 50% of Indian crop protection industry and are
expected to grow at a CAGR of 16% to reach USD 4.2 billion by FY19, resulting in
60% share in Indian crop protection industry. Domestic market on the other hand
would grow at 8% CAGR, as it is predominantly monsoon dependent, to reach
USD 3.3 billion by FY19. Globally, India is fourth largest producer of crop
protection chemicals, after United States, Japan & China.The crop protection
companies in India can be categorized into three types Multi-National, Indian
including public sector companies and small sector units.
Figure 9: Indian Crop Protection Market (USD Billion)

12%
Total
USD 4.25
billion
USD 7.5
billion
4.2
16%
Exports
2
8%
3.3
Domestic
2.25
FY14
FY19
16
Industry structure and Competitive landscape

The Indian crop protection industry is dominated by generic products with more than 80% of
molecules being non-patented. This results in very low entry barriers for the industry. Hence,
strong distribution network, appropriate pricing, brand recall and dealer margins are some of
the critical factors for companies to succeed. Crop protection chemicals are manufactured as
technical grades and converted into formulations for agricultural use.
The Indian Agrochemical value chain comprises of technical grade manufacturers, formulators
producing the end products, distributors and end use customers.According to Pesticide
Monitoring Unit, GOI, there are about 125 technical grade manufacturers, including about 10
multinationals, more than 800 formulatorsand over 145,000 distributors in India.More than60
technical grade pesticides are being manufactured indigenously.
Figure 10: Agrochemical Value Chain

Technical grade
manufacturers
(~125)
Distributors
(~145,000)
Formulators
(~800)
End use
customers
In India top ten companies control almost 75-80% of the market share (Refer Annexure-I for list
of top agrochemical companies in India). The market share of large players depends primarily on
product portfolio and introduction of new molecules. The market has seen a number of mergers
and acquisitions with large players buying out small manufacturers. Companies are also looking
for strategic alliances and partnerships in order to expand their market reach.
Figure 11 : Key Industry Players in India

Presence of key industry participants across product segments
Company
Insecticides
Herbicides
Fungicides
Others
BASF India
Seed treatment
Bayer Crop science Ltd
Seed treatment, plant growth regulators
Dhanuka Agritech Limited
PGRs, Surfactants
Dow AgroSciences India Pvt. Ltd.
Plant Growth Regulator
DuPont
Growth Enhancer
Excel Crop Care Limited
Seed treatment, Home & Garden
Gharda Chemicals Ltd.
Plant growth Regulator
Meghmani Organics Limited
Pesticide Intermediates
Nagarjuna Agrichem Limited
Fertilizers, Micro Nutrients, Liquid Fertilizers,
PI Industries Ltd
Speciality Products
Rallis India
Rodenticides, Seed treatment
Syngenta India
Seed treatment
United Phosphorous Limited
Fumigants, Rodenticides
Monsanto India Ltd.
Maize seeds
17
Indian market scenario

Distribution of domestic crop protection market by Product category
The Indian crop protection market is dominated by Insecticides, which form almost 60% of
domestic crop protection chemicals market. The major applications are found in rice and cotton
crops. Fungicides and Herbicides are largest growing segments accounting for 18% and 16%
respectively of total crop protection chemicals market.As the weeds grow in damp and warm
weather and die in cold seasons, the sale of herbicides is seasonal. Rice and wheat crops are the
major application areas of herbicides. Increasing labor costs and labor shortage are key growth
drivers for herbicides. The fungicides find applications in fruits, vegetables and rice. The key
growth drivers for fungicides are shift in agriculture from cash crops to fruits and vegetables and
government support for exports of fruits and vegetables. Biopesticides include all biological
materials organisms, which can be used to control pests. Currently biopesticides constitute only
3% of Indian crop protection market;however they provide significant growth opportunities due
to increasing concerns of safety and toxicity of pesticides, stringent regulations and government
support.
Figure 12: Indian Crop Protection Market split

Biopesticides
3%
Others, 3%
Herbicides
16%
Insecticides
60%
Fungicides
18%
Source : Industry reports, Analysis by Tata Strategic
Figure 13: Major crop protection products

Segment
Major Products
Main Applications
Insecticides
Acephate, Monocrotophos, Cypermethrin
Cotton, Rice
Fungicides
Mancozeb, Copper Oxychloride, Ziram
Fruits, Vegetables, Rice
Herbicides
Glyphosate, Isoproturan, 2,4-D
Rice, Wheat
Bio-pesticides
Spinosyns, neem based
Rice, Maize, Tobacco
Others
Zinc Phosphide, Aluminum Phosphide
Stored produce
18
State wise distribution of crop protection market

Erstwhile Andhra Pradesh (Seemandhra and Telangana), Maharashtra and Punjab are top three
states contributing to 45% of pesticide consumption in India. Erstwhile Andhra Pradesh is the
leading consumer with 21% share. The top seven states together account for more than 70% of
crop protection chemicals usage in India.
Figure 14: State wise pesticide consumption

Tamil
Nadu, 5%
Others, 4%
Erstwhile AP
21%
Bihar, 5%
Karanataka
5%
Gujarat, 6%
Maharashtra
13%
Haryana, 6%
MP &
Chattisgarh,
6%
West Bengal
8%
Punjab, 11%
Uttar Pradesh
10%
Distribution and Sales Channel

The sales of crop protection chemicals are predominantly in rural areas. Thereforelarge
manufacturers with all India presence use a three-tier sales and distribution network comprising
distributors, wholesalers and retailers for wider market reach. On the other hand, regional
participants cater only to the local markets.
19
Figure 15: Crop protection distribution network

Technical Grade manufactures
Formulators
In-house formulators
Retailers/Dealers
Distributors
Retailers
Distributors
Retailers
End users
Source: Tata Strategic Analysis
Companies with PAN India presence have 400-1000 distributors supplying to 25,000-30,000
retailers. Stocks are kept in warehouses or depots from where they are supplied to distributors.
To leverage on local companies distribution network several MNCs have tied-up synergistically
for co-distribution or co-marketing The mid-size and small scale companies operate through
direct marketing of their products. Most companies also perform field demonstrations to
increase farmer awareness and promote their products.
Challenges faced by the Indian Crop Protection Industry

l
Stringent
regulations: Stringent environment regulations across the world are

increasing the cost of developing new products and simultaneously delaying the
introduction of new products in the market. For instance, in the European Union any
agrochemical product if found to be mutagenic, carcinogenic or endocrine disruptor
would not achieve registration or re-registration irrespective of the level of exposure
generated. It takes almost nine to ten years to bring a new product.
l
Low focus on R&D by domestic manufacturers due to high costs: The industry is facing
a serious challenge owing to the rising R&D costs. It takes almost USD 250 million in
research and development to introduce a new product in the market. This prevents
the companies to invest in R&D activities and focus more on the generic products
which require low investments in research and development.
l
Lack
of education and awareness among farmers:It is important to educate the

farmers about the appropriate kind of pesticide, its dosage and quantity and
20
application frequency. However it is not easy to reach the farmers owing to

infrastructure issues, regional languages and dialects. The main point of contact
between the farmers and the manufacturers are the retailers who don't have much of
a technical experience and are unable to provide a proper product understanding to
the farmers. It is also very difficult for the farmers to convey their needs effectively to
the manufacturers.
l
Need for efficient distribution systems:The large number of end users and the market
being predominantly generic in nature makes a strong and efficient distribution

network essential for the crop protection market. However, the industry is facing
problems due to supply chain inefficiencies and inadequate infrastructure which
results in post-harvest losses estimated at INR 45,000 crore every year, thereby
impacting the farmers. The lack of efficient distribution system also makes it difficult
for the agrochemical companies to reach the farmers to promote their products and
educate them about their usage and benefits.
l
Non-genuineproducts:
There is a significant share of non-genuinepesticides which

can be counterfeit, spurious, adulterated or sub-standard. According to industry
estimates the non-genuine pesticides could account for upto40% of the pesticides
sold in India in FY13. These products are inferior formulations which are unable to kill
the pests or kill them efficiently.Some such products do perform but leave byproducts which may significantly harm the soil and environment. The damage
through such products is multifold. Apart from crop loss and damage to soil fertility,
use of non-genuine products leads to loss of revenue to farmers, agrochemical
companies and government.
Some of the key reasons for use of non-genuine products are lack of awareness
amongst the farmers, difficulty in differentiating between genuine and non-genuine
products, supply chain inefficiencies, law enforcement challenges and influencing
power of distributors/retailers.
In association with FICCI, TATA Strategic has taken up a study focusing on this subject.
l
Long
gestation period for new products: It takes almost 10 years to bring a new
molecule into the market. Even for the generic products, it can take up to 5 years to get
the product registered. The regulatory bodies do not have adequate resources and
infrastructure to execute timely registration of products. Sometimes the rules are not
clearly defined creating interpretation challenges for the regulatory bodies.,leading
to confusions thereby adding to the complexities for the crop protection chemical
companies.
21
Opportunities and Key Growth Drivers for Indian Crop Protection Market
l
Export
Opportunities: The export of pesticides from India hasseen a strong growth

over the last few years.Globally, India is the thirteenth largest exporter of pesticides.
Most of the exports are off-patent products. The major exports from India happen to
Brazil, USA, France and Netherlands. The key growth drivers are India's capability in
low cost manufacturing, availability of technically trained manpower, seasonal
domestic demand, overcapacity (Production capacity of 1,50,00 MT against
production of 85,000 MT in FY13), better price realization globally and strong
presence in generic pesticide manufacturing (India has process technologies for more
than 60 generic molecules).
Post Tsunami Japanese companies are trying to build manufacturing capacities

outside Japan to derisk themselves. The Japanese companies are highly particular
about confidentiality and intellectual property protection and some of them have
seen opportunity in India and are now creating a base here.However, complex
registration procedures pose a major challenge for the Indian crop protection
chemicals export.
Figure 16: Indian Agrochemical Exports, FY10-FY14

India Agrochemicals Exports (USD Bn.)
CAGR
2.00
17.5%
1.66
1.38
1.05
FY10
1.15
FY11
FY12
FY13
FY14
Source : Trademap Statistics, Tata Strategic Analysis
Agrochemicals worth USD 6.3 billion are expected to be taken off-patent list by 2020.
Globally, percentage share of generic products have increased from 33% in 2000 to
52% in 2013. The patented products share has reduced from 30% to 22% in the same
period while the rest is constituted by proprietary off-patent products.
This provides significant export opportunities for Indian companies which have
expertise in generic segment. Top 6 importing nations constitute only 44% of India's
agrochemical exports. This also indicates export potential for Indian companies. In
order to build a strong export base, companies should set up marketing offices in
association with domestic players in export geographies. Companies can look for
strategic alliances with local companies to expand their marketing and distribution
reach. Companies can also explore merger and acquisition opportunities to increase
their global presence.
22
Figure 17: Opportunities in generic products

Agrochemicals going off-patent, 2014-2020 (USD billion)
1.6
1.3
1.2
0.9
0.7
0.4
0.2
2014
2015
2016
2017
2018
2019
2020

l
Growth in herbicides and fungicides: Labor shortage, rising labor costs and growth in
GM crops has led to growth in the use of herbicides. The herbicide consumption in
India currently stands at 0.3 USD billion and is expected to grow at a CAGR of 15% over
the next five years to reach 0.6 USD billion by FY18. On the other hand the fungicide
industry in India has grown due to the growth in Indian horticulture industry, which
has grown at a CAGR of 7.5% over the last five years.
l
Low consumption of pesticides in India:The per hectare consumption of pesticides in
India is amongst the lowest in the world and currently stands at 0.6 kg/ha. On the
other hand consumption in developed nations ranges from 5-7 kg/ha whereas at 13
kg/ha China is almost 20-30 times as compared to India. In order to increase yield and
ensure food security for its enormous population agrochemicals penetration in India
is bound to go up.
Figure 18: Pesticide consumption (Kg/ha) comparison

17
13
12
UK
Fr
an
c
Ta
iw
an
Ch
ina
pa
n
Ja
US
A
Ko
rea
Ind
ia
0.75

23
The Way Forward
Key imperatives for Agrochemical Companies, Govt. and

Regulatory bodies
Agrochemicals can play a crucial role in overcoming the challenges faced by Indian agriculture
sector, thereby ensuring food and nutritional security for the nation. This can be achieved by
developing innovative products, expand the product/service offering and promoting the use of
agrochemicals amongst the end users, i.e. the farmers. The low consumption levels provide a
significant opportunity for agrochemical companies to increase their market penetration. Some
of the key imperatives are:
Product innovation: Product innovation needs to capture emerging market trends and match
international standards. Companies in agro-chemical space can focus on the following:
l
Companies
need to innovate products which can improve the effectiveness of

pesticide usage as well as reduce the negative impacts on environment. With the
advent of GM crops and increasing popularity of bio-pesticides, environment
friendliness of the agro-chemicals could be a differentiating factor.
l
Indian companies would need to increase focus on developing new active ingredients
rather than just focusing on generics. Indian companies usually spend 1-2% of their
turnover on R&D as compared to global companies which spend 5-10% of their
turnover on R&D.
l
Indian
companies can also look for strategic tie-ups/ alliance with large MNCs for
contract manufacturing if they lack the ability to invest in developing new molecules.
l
In line with global trend, Indian companies can look for opportunities to expand their
presence in value chain by incorporating seeds in their product portfolio. Globally it

has been witnessed that EBITDA and PAT margins have increased as companies have
integrated into seed manufacturing. This would help in increasing the reach amongst
the farmers.
End to end farmer solution: Companies should look for opportunities to provide a
comprehensive agri offering to the farmer. A one stop solution for the farmer ranging from
agriculture and farm inputs to procurement, storage and distribution services on the output side
would help companies develop sustainable business models. End to end solution not only
creates a better reach with the farmers but will also turns threats like genetically modified seeds,
organic farming etc. into opportunities. Many companies are already following the integrated
model. While it has helped the farmers to improve their yield, get technical assistance and better
value for their produce, it has also helped companies to strengthen their presence amongst the
farmers.
24
l
Effective
Marketing and distribution: Effective marketing and distribution and

increased reach to farmers is a key growth driver for the agrochemical companies.
However, rising sales of non-genuineagrochemical products has impacted the
industry image. Companies are already investing in marketing activities to educate
Figure 19: Indicative end to end farmer solution
Fertilizers
Contract Farming
Crop Protection
& Seeds
Farmer
OUTPUT SIDE
rm
Fa
INPUT SIDE
Procurement
y,
or
vis
Ad
Animal feed
& Fuel
rm
Fa
s,
ice
rv
Se
ce
an
Fin
Logistics & Storage
the farmers and increase their customer base. However, some additional strategies
which can be adopted by companies are: Apart from educating the end users
companies should also work on influencing the distributors and retailers. Pesticide
distributors and retailers play a critical role in agrochemical supply chain. Often the
farmer decision to purchase a pesticide is guided by the distributors and retailers.
Hence it is not only critical for companies to promote their products amongst the
retailers/distributors but also incentivize them to sell genuine products. Industry
bodies also need to invest in overall "Image improvement" of the industry. Companies
should come together and develop strategies to promote the use of genuine products
amongst the end users. Joint efforts should be undertaken to educate farmers about
pesticide use in a judicious and appropriate manner. Benefits of Bio-pesticides also
need to be promoted to encourage shift from the traditional products.
l
Leverage
on IT and Telecommunications: Companies should leverage on IT and

Telecommunication infrastructure. Apart from Television and Radio, companies can
capitalize on SMS services to be in touch with distributors' retailers and farmers. IT
services can be used to provide technical and operational guidance. Portals in regional
languages can help build connect and enduring relationships with farmers.
25
Role of Government and Regulatory Bodies:Apart from Agrochemical companies, Government

and Regulatory bodies have to play a critical role for achieving increased reach of agrochemicals
amongst the farmers. Without their support it would be difficult to realize the true potential of
agrochemicals.
Government needs to continue to provide infrastructural support to the industry so as to
develop effective marketing and distribution solutions.A repository of best practices and
development of centre of excellence should be intensified by Government. The Government
should increase the frequency of various awareness camps/education programs organized in
association with industry and academia to encourage farmers to use agrochemicals.
Non-genuine pesticides are a critical challenge which impact not only the industry image but
also the crop productivity and soil fertility. Strict actions, regular crackdowns and punishments
are therefore required to stop the menace and damage caused by non-genuine products.
Fast track approvals and clearances should be provided by regulatory bodies to encourage
companies to develop new products. Monetary support by Government to Industry and
Academia for R&D activities can also provide an impetus for developing new products and
techniques
Integrated Pest Management:Integrated Pest Management (IPM) is a sustainable approach to
pest management by combination of biological, mechanical, physical and chemical methods.
These methods are performed in three stages: prevention, observation and intervention. It is an
ecological approach and strives for eliminating or significantly reducing the use of pesticides and
at the same time controlling pest growth at acceptable levels. There are six basic components of
IPM which are employed to control pest growth.
Figure 20: Integrated Pest Management components

Basic components of Integrated Pest Management
1. Acceptable
pest levels
2. Preventive
practices
6. Chemical
controls
IPM
5. Biological
controls
3. Monitoring
4. Mechanical
controls
Source: Industry reports, Tata Strategic analysis
26
Apart from IPM, newer molecules with better efficacy are being developed. These molecules
such as sulfonylurea and imidazolinone require lesser volume of chemicals per net treated area.
Newer products such as biological pesticides, seed treatment chemicals, and semiochemicals
are being introduced. Seed treatment chemicals require a very small volume of the chemical as
compared to normal crop protection chemicals.
Although IPM is accepted in principle as one of the options for crop protection, its
implementation at farmer level is limited. While chemical pesticides cannot be avoided
altogether, incorporating non-chemical methods in pest management would help in optimizing
costs and would provide crop protection in an eco-friendly manner.
Plasticulture in Agriculture: Plasticulturerefers to use of plastics in agriculture and horticulture.
Plasticulturehas a number of applications in modern agriculture and promise to transform
Indian agriculture and bring in the "Second Green Revolution". Both the quality and the quantity
of the crops and other farm products can be optimized using various techniques. Some of the
major applications of Plasticulture are listed in the table below:
Figure 21: Plasticulture applications

Application
Comments
Drip Irrigation System
l
Precise
application of irrigation water and plant nutrients at low

pressure and frequent intervals through drippers/emitters directly
into the root zone of plant
Sprinkle Irrigation System
l
Application
l
Water is
of water under high pressure with the help of a pump
released through a small diameter nozzle placed in the
pipes
Ponds and Reservoir Linings
l
Plastics
film lining to prevent against seepage in canals, ponds and

reservoirs
l
Also avoids
depletion of stored water used for drinking & irrigation
purpose
Plastic Mulching
l
Mulching
is covering the soil around the plant with plastics film,

straw, grass, hay, dry leaves, stones etc.
l
Prevents
loss of moisture and acts as a barrier between the soil

and atmosphere
Greenhouse
l
Greenhouse
is a framed structure covered with glass or plastics
film
l
Acts as
selective radiation filter, in which plants are grown under

the controlled environment
Plastic Tunnel
l
Plastics
tunnel facilitates the entrapment of carbon dioxide,

thereby enhancing the photosynthetic activities of the plant that
help to increase yield
27
Plastics which are most widely used in agriculture, water management and related applications
are PE, (LLDPE, LDPE and HDPE), PP and PVC.
The application of Plasticulture can substantially decrease the costs and therefore can lead to
higher productivity with a better quality of crops. The table below shows the water saving, water
use efficiency and fertilizer use efficiency by various plasticulture applications. Each application
can drastically save water by about 30 to 100%.
Figure 22: Benefits of Plasticulture applications

Plasticulture Application
Water Saving (%)
Water Use Efficiency (%)
Fertilizer Use Efficiency (%)
Drip Irrigation
40-70
30-70
20-40
Sprinkler Irrigation
30-50
35-60
30-40
Plastic Mulching
40-60
15-20
20-25
Greenhouse
60-85
20-25
30-35
Shade Nets
30-40
30-50
Not Available
Tunnel
40-50
20-30
Not Available
100
40-60
Not Applicable
Farm Pond Lined

with Plastic Film
Indian Agriculture sector needs a second green revolution to ensure food and nutritional
security for the nation due togrowing population, increasing urbanization at the expense of
agricultural resources and loss of agricultural produce due to pest attacks. It therefore becomes
imperative to implement measures not only for crop protection but also for enhancing the crop
productivity and agrochemicals thuswill continue to play a critical role in achieving food and
nutritional security for the nation.
28
Key Players: Profile
BASF India Limited

Company overview
l
Founded in 1943 as an Indian arm of global chemical company
BASF
l
Engages in manufacture and sale of agrochemicals, performance
products, plastics, inorganic chemicals, and functional solutions

Product segments/ Verticals
l
Chemicals
l
Plastics
l
Performance Products
l
Functional Solutions
l
Agricultural Solutions
Crop Protection Chemicals

Products
l
Insecticides
l
Herbicides
l
Fungicides
l
Specialties
Sales Revenue in FY12
l
Rs.4,429 Crores (includes revenue from other product segments)
Manufacturing locations
l
The company has five manufacturing plants
1. Thane (Maharashtra)
2. Manglore (Karnataka)
3. Dahej (Gujarat)
4. Chennai (Tamil Nadu)
5. Ankleshwar (Gujarat)
Marketing
l
Adoption of innovative marketing initiatives
l
Company operates as a total solution provider through programs
like Samruddhi program

R&D
l
Collaborative research with BASF SE, BASF Schweiz AG and
BASF Corporation in USA.

l
Expenditure on R&D: INR 9.18 Cr
Key Mergers/ Acquisitions
l
Acquired the business of Cognis Specialty Chemical Pvt. Ltd in
India in 2011
29
Bayer Crop Science India

Company overview
l
Bayer CropScience is one of the world's leading cropscience
companies in the world with presence in 122 countries

l
Crop Protection
l
Environmental Science
l
Bioscience

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
Seed treatment chemicals
l
Plant growth regulators
Sales Revenue in Fy12
l
Rs. 2839 Cr (includes revenue from other product segments)
l
Manufacturing locations at Himmatnagar & Ankleshwar
l
Total production capacity of 5770 MT of active ingredients and
formulation capacity of 10,025 KL & 3650 Mt for liquids & solids

respectively
l
~70% of the formulations are contract manufactured
Distribution structure
l
Has own distribution network & is also in co-distribution alliances
with several other companies in India

R&D
l
Apart from crop protection, major areas of research include seeds
& plant traits

l
R&D spend in FY12 is 0.65% of net revenue
l
Acquisition of Biotech company Athenix Corp., 2009

Company overview
l
Started in 1980 by the acquisition of Northern Minerals Pvt. Ltd
l
Manufacturer of wide range of pesticides, plant growth regulators
reaching out to more than 10 million farmers.

l
Agrochemicals
l
Crops
l
Surfactants

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
Plant Growth & Regulators
30

l
INR 646 Cr (Exports Sales: INR 0.25 Cr)
l
Three manufacturing units located at
1. Gurgaon (Haryana)
2. Sanand (Gujarat)
3. Udhampur (J&K)
l
Pan-India presence through its marketing offices
l
Network of more than 7,500 distributors/ dealers selling to over
70,000 retailers
R&D
l
Two R&D centres at Gurgaon and Jullundur for generation of
scientific data, and evaluation of new molecules, soil

testing,advisory services, training of farmers among all.
l
Total expenditure on R&D was INR 1.45 Cr(0.25% of Total
Turnover)
l
Collaborations with various international chemical companies like
Du Pont, Chemtura, FMC, Bayer, Sumitomo, Mitsui, Arysta
Dow AgroSciences India Pvt. Ltd.

Company overview
l
Fully owned subsidiary of Dow AgroSciences headquartered in
Indianapolis,U.S.A.
l
Global company that provides pest management, agricultural
and biotechnology products.

l
Crop Protection
l
Seeds, Traits and oil

Products
l
Insecticides
l
Herbicides
l
Fungicides
l
l
INR 14,500 Cr (Global)
l
Manufacturing plant :Lote,Parashuram, 250 km away from
Mumbai (Maharashtra)
l
Dow AgroSciences markets its products through a network of
distributors and divisional sales managers.

R&D
l
Extensive importance to R&D with a global annual R&D budget
excess of INR1,000 Cr
l
4:3:1 process of product development
31
DuPont
Company overview
l
DuPont's India subsidiary was setup in 1994 and Contract
manufacturing of crop protection products started in 1995

l
Crop Protection
l
Seeds

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
l
India contributed 2.5% of overall revenues
l
INR 4,900 Cr (includes revenue from other product segments)
l
Manufacturing locations at Savli, Gujarat and Hyderabad for crop
protection and seed treatment

l

l
Signed an distribution alliance with Punjab State Cooperative
Supply and Marketing Federation Limited (Markfed), a federation

of more than 3,000 societies in Punjab State in 2012
R&D
l
DuPont's knowledge centre at Hyderabad was inaugurated in
2008, which was its first R&D centre outside the US

l
Gloabally the company spends ~USD 2 Bn p.a. on R&D
activities
l
Acquired Nandi seeds and cotton germplasm business of
Nagarjuna seeds in India in 2009
Excel Crop Care

Company overview
l
Established in 2002
l
A major player in domestic and export market in India
l
Soil health
l
Seed treatment
l
Crop protection
l
Growth enhancers
l
Post-harvest
l
Home & Garden

Products
l
Insecticides
l
Herbicides
32
Excel Crop Care

l
Fungicides
l
Weedicides
l
Sales revenue of INR 745 Cr with exports of INR 300 Cr
l
Manufacturing locations at Gajod, Bhavnagar and Silvassa
l
Products are sold through distributors\
R&D
l
R&D expenditure was ~0.91% of total turnover
l
R&D focused on fungicides and herbicides and development of
combi-formulations for enhanced efficiency
Gharda Chemicals Limited

Company overview
l
Established in 1967
l
A major player in domestic and export market in India
l
Agrochemicals
l
Intermediates
l
Pigments
l
Veterinary drugs
l
High performance polymers
l
Contract services

Products
l
Insecticides
l
Herbicides
l
Fungicides
l
l
Sales Revenue FY13 in the profile of Gharda Chemicals to 1129 crores.
l
5 manufacturing locations at Dombivli, Ankleshwar, Lote, Jamm & Panoli
l
Products are sold through distributors
R&D
l
In House R&D activities include product research & process
improvement for backward integration and import-substitution

l
Set up Gujarat Insecticides Ltd. In joint venture with Gujarat Agro
Industries Corporation Ltd. In 1980

l
In 1996, Gharda Chemicals purchased the entire holdings of Gujarat
Agro Industries Corporation Ltd and Gujarat Insecticides Ltd. Became

the subsidiary of Gharda Chemicals.
33
Meghmani Organics Limited

Company overview
l
Incorporated in 1995 from Gujarat Industries which was
established in 1986
l
Crop Protection
l
Pigments

Products
l
Pesticides
v
Technical products
v
Formulations
v
Intermediates
l
with revenue from agro-chemicals ~INR 809 Cr

l
Manufacturing locations at Ankleshwar, Chharodi, Dahej and
Panoli
l

R&D
l
R&D focused on development of off-patent molecules and
improvements in process parameters

l
R&D spend in FY12 is 0.18% of net revenue
Monsanto India Limited

Company overview
l
Monsanto India Limited (MIL) is a subsidiary of the Monsanto
Company, USA and is the only publicly listed Monsanto entity

outside USA
l
It has been present in India for over six decades now
l
Crop Protection
l
Seeds

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
l
l
INR 460 Cr (includes revenue from other product segments)
l
Production unit at Silvassa, Bellary and an integrated
manufacturing plant in Hyderabad
34
Monsanto India Limited

l
Reaches out to over 1 Mn farmers every year through various
farmer engagement programs

l
Has own distribution network through distributors and dealers
l
Monsanto has tied up with seven states through public-private
partnership where it plays the role of seed supplier as well as

knowledge partner
R&D
l
Globally, Monsanto invests 9-12% of the sales on R&D
l
R&D in India focused on improving maize seeds and herbicides
for weed management
Nagarjuna Agrichemical Limited

Company overview
l
Established in 1994
l
Crop Protection
l
Plant growth promoters

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
INR 702 Cr (includes revenue from other product segments)
l
Production unit at Silvassa and integrated manufacturing plant in
Hyderabad
l
Developing a corporate R&D centre near Hyderabad to look at
contract manufacturing opportunities

l
Extensive warehousing and logistics network to handle
operations in 20 states
l
Strong network of ~10,000 dealers
R&D
l
R&D/ Process development department of NACL is claimed to
be second largest of any Indian Agro-chemical company in terms

of size and scope
35
PI Industries
Company overview
l
Incorporated in 1947 as Mewar Oil and General Mills Ltd.
l
Corporate office in Gurgaon with R&D setup at Udaipur
l
Agro-chemicals
l
Specialty products
l
Custom Synthesis and Manufacturing

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
~INR 1313 Cr.
l
YoY revenue growth of 22%
l
Manufacturing plant at Ankleshwar and formulation unit in
Jammu
l
Robust distribution network with ~8,000 distributors & direct
dealers and 35,000 retail points across the country

l
27 stock points including own depots and C&Fs
l
Strong database of farmers with their contact details for direct
customer reach out

R&D
l
R&D expense was ~0.62% of the total turnover
l
R&D centre at Udiapur focused on synthesis and development of
new molecule for Agro-chemicals, fine chemicals & specialty

chemicals
Rallis India
Company overview
l
Rallis is one of the leading Indian agrochemical company
l
Agri business domestic: Five segments: Pesticides, seeds,
fertilizers, household products & seed treatment chemicals

l
Institutional business: Formulations & technical bulk sales to
leading companies like Bayer, Syngenta, UPL, etc

l
International business
l
Contract services

Products
l
Insecticides
l
Herbicides
l
Fungicides
l
Rodenticides
l
36
Rallis India
l
with 32% from outside India

l
Five manufacturing plants at Akola, Ankleshwar, Lote,
Patancheru and Dahej

l
Total installed capacity of pesticides is 22,020 MT for solids
&15,225 MT for liquids

l
Distribution network covers 80% districts of India, with more than
2,500 dealers & 37,000 retailers

l
Four regional & zonal offices each, 33 area sales offices, 23
depots present all over India

l
International business is done through own registrations &
agents & distributors

l
Institutional sales are direct
l
Digitized base of ~7,00,000 farmer with multiple farmer
engagement programs
R&D
l
R&D is involved in developing new formulations, providing better
delivery and sustainable solutions to the farmers

l
New Millennium Indian Technology Leadership Initiative (NMITLI)
is being pursued to find newmolecules and further association is

done with National Chemical Laboratory, Pune
l
Involved with regulatory studies & registration process
l
Acquired 22% stake in Zero waste Agro Organics Pvt. Ltd.
Involved in organic manure and soil conditioners manufacturing

l
Acquired majority stake in Bangalore based Metahelix Life, 2010
l
Co-marketing alliances with several companies such as DuPont,
Syngenta, Bayer, FMC, Makhteshim Chemical works, Ghrada

Chemicals, etc
Syngenta India Limited

Company overview
l
84% subsidiary of Switzerland headquartered
Syngenta Global
l
Formed by merging agri-businesses of Novartis & AstraZeneca
in 2000
l
Seeds
l
Crop protection chemicals

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
Seed Care

l
INR2539 Cr. (includes revenue from other product segments)
l
Manufacturing plant at Santa Monica, Goa
l
Products are sold through distributors and co-marketing
alliances with leading Indian companies
37
Syngenta India Limited

R&D
l
Research & Technology centre at Goa, involved in product
research of organic chemical synthesis and analytical chemistry

research. R&D expenditure was 1.88% of total turnover
l
Co-marketing alliance with Rallis India
l
Crop protection technology exchange with DuPont, partnership
on improving crop quality with Embrapa - the Brazilian
Agricultural Research Corporation, R&D agreement with Dow
AgroScience
l
Product license from Sumitomo
United Phosphorous Limited

Company overview
l
Established in 1969 and has its presence in all value-added
agricultural inputs ranging from seeds to crop protection &post

harvest activity
l
Largest Manufacturer of agrochemical in India
l
Has its own subsidiary offices worldwide
l
Global player with customer base in 123 countries
l
Agrochemicals
l
Industrial and Specialty chemicals
l
Animal Nutrition
l
Riceco

Products
l
Insecticides
l
Fungicides
l
Herbicides
l
Fumigants
l
Rodenticides
l
Plant Growth & Regulators
l
Rs. 4136 Cr (61% of companies revenues are derived from
l
23 manufacturing location across the globe with 9 in India
exports)
l
Production capacity of 98,264 MT of pesticides & 42,631 MT of
pesticides intermediates
l
Products are sold through distributors spread across the country
R&D
l
R&D activities in product development &registration.Spend about
l
Product acquisitions from DuPont and Bayer
2% of total revenues
l
Company acquisitions of Metahelix Life, Evofarms, AG, Cequisa
and ICONA,Advanta,RiceCo US
l
United Phosphorus Acquires Dutch Company Agrichem
l
Acquisition of a 51% stake in DVA Agro Do Brasil,a Brazilian
company, from DVA Group, Germany

38
Annexure - I
Figure 23: Key Agrochemical Players in India
39
References
1.
Knowledge paper for FICCI Agrochemicals Conclave 2013prepared by Tata Strategic
2.
Agropages website
3.
FAO Statistics
4.
CropLife America
5.
Credit Suisse Reports
6.
Chemtech Foundation article on pesticide industry
7.
Indian Agrochemical Industry report by Sunidhi Institutional Research
8.
Article on growing importance of Agrochemicals by KPMG
9.
R&D Trends for Chemical Crop Protection Products by Phillips McDougall
10.
Primary interactions with Industry experts
40
About Tata Strategic
Founded in 1991 as a division of Tata Industries Ltd, Tata

Strategic Management Group is the largest Indian own
management consulting firm. It has a 70 member strong
consulting team supported by a panel of domain experts.
Tata Strategic has undertaken 500+ engagements, with
over 100 clients, across countries and sectors.
It has a growing client base outside India with increasing
presence outside the Tata Group. A majority of revenues
now come from outside the group and more than 20%
revenues from clients outside India.
Tata Strategic offers a comprehensive range of solutions
covering Direction Setting, Driving Strategic Initiatives and
Implementation Support
Our Offerings
Strategy
Scenarios & Vision

l
Market insights
l
Entry / Growth Strategy
l
CSR Strategy
India Entry
Alliance & Acquisition Planning
l
Strategic due diligence
l
Manufacturing Strategy
Set Direction
Drive Strategic
Initiatives
Operations
Marketing & Sales
Organization Effectiveness
Organization Structure
l
Culture & HR Transformation
l
Manpower Planning &
Optinization
l
Leadership Development &
succession planning
l
Revenue Enhancement
l
Product Innovation
l
Market Share
Rura/Urban/B2B
l
Channel Effectiveness
l
Route to Market
l
Supply Chain Optimization

l
Throughput enhancement
l
Superior Fulfillment
l
Project Excellence
l
Procurement Transformation
l
Resource Management
l
Implementation
Program Management
l
Change Management
l
Benefit Realization
l
Facilitate
Implementation
Tata Strategic Contacts

Manish Panchal
Practice Head Chemicals, Energy & SCM
E-mail: manish.panchal@tsmg.com
Phone: +91 22 6637 6713
Charu Kapoor
Principal Chemicals & Energy
E-mail: charu.kapoor@tsmg.com
Phone: +91 22 6637 6756
Reports co-authored by Manish Panchal, Charu Kapoor, Mansi Mahajan and Manan Agarwal
41
About FICCI
Established in 1927, FICCI is one of the largest and oldest apex business organizations in India.
FICCIs history is closely interwoven with India's struggle for independence, industrialization and
emergence as one of the most rapidly growing global economies. FICCI has contributed to this
historical process by encouraging debate, articulating the private sector's views and influencing
policy.
A not-for-profit organization, FICCI is the voice of India's business and industry.
FICCI draws its membership from the corporate sector, both private and public, including MNCs;
FICCI enjoys an indirect membership of over 2,50,000 companies from various regional
chambers of commerce.
FICCI provides a platform for sector specific consensus building and networking and is the first
port of call for Indian industry and the international business community.
Our Vision
To be the thought leader for industry, its voice for policy change and its guardian for effective
implementation.
Our Mission
To carry forward our initiatives in support of rapid, inclusive and sustainable growth that
encompasses health, education, livelihood, governance and skill development.
To enhance the efficiency and global competitiveness of the Indian industry and to expand
business opportunities both in domestic and foreign markets through a range of specialized
services and global linkages.
42

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Agrochemicals for ensuring food

and Nutritional Security for the Nation

Knowledge and Strategy Partner

Knowledge and Strategy Partner

Knowledge and Strategy Partner

Practice Head - Chemical & Energy

Engagement Manager - Chemicals

Head- Chemicals & Petrochemicals

Knowledge and Strategy Partner

The need of Agrochemicals for food and nutritional security. . . . . . . . . . . . . . . . . . . . 11

Indian Agrochemical market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

The Way Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Key Players: Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Knowledge and Strategy Partner

Knowledge and Strategy Partner

Knowledge and Strategy Partner

Knowledge and Strategy Partner

Figure 1: Losses caused by different pests (%)

Knowledge and Strategy Partner

The need of Agrochemicals for

urban and declining rural population:The Indian population is estimated to

Figure 2: Indian Rural-Urban population comparison

Source: Census of India 2011, Tata Strategic Estimates

Knowledge and Strategy Partner

food consumption pattern is witnessing a shift towards livestock and poultry

Figure 3: Per capita consumption growth in Animal Products

Source: Industry reports, Analysis by Tata Strategic

Knowledge and Strategy Partner

Figure 4: Per capita arable land (ha)

Source: Industry reports, Analysis by Tata Strategic

2.28 ha in 1970s to 1.16 ha (2010-11). 80% of farm land is classified as small or

Figure 5: Average size of landholdings (ha)

Source: Agricultural Census, Analysis by Tata Strategic

An increase in the number of fragmented landholdings has led to more landholdings

Figure 6 : Yield comparison (Tonnes/ha)

Source : Industry reports, Analysis by Tata Strategic

Knowledge and Strategy Partner

Figure 7: Crop wise pests

Source: Industry reports, Analysis by Tata Strategic

Figure 8: Food requirements (Mn. tonnes)

(Estimated increase due to implementation of Food Security Bill)

Indian Agrochemical market

Figure 9: Indian Crop Protection Market (USD Billion)

Source: Industry reports, Analysis by Tata Strategic

Knowledge and Strategy Partner

Industry structure and Competitive landscape

Figure 10: Agrochemical Value Chain

Figure 11 : Key Industry Players in India

Bayer Crop science Ltd

Seed treatment, plant growth regulators

Dhanuka Agritech Limited

Dow AgroSciences India Pvt. Ltd.

Plant Growth Regulator

Excel Crop Care Limited

Seed treatment, Home & Garden

Gharda Chemicals Ltd.

Plant growth Regulator

Meghmani Organics Limited

Nagarjuna Agrichem Limited

Fertilizers, Micro Nutrients, Liquid Fertilizers,

Rodenticides, Seed treatment

United Phosphorous Limited