About Indogulf Cropsciences Limited

BUSINESS OVERVIEW

Indogulf Cropsciences is engaged in the manufacturing of crop protection products, plant nutrients, and biologicals in India. The company is among the first few indigenous manufacturers of Pyrazosulfuron Ethyl technical with a minimum purity of 97% (Source: CareEdge Report) since 2018, and commenced production of Spiromesifen technical with 96.5% purity in 2019. Recognized as a ‘Two Star Export House’ by the Government of India, the company has exported to over 34 countries (Source: CareEdge Report).

Operations began in 1993, structured across three core verticals: crop protection, plant nutrients, and biologicals, catering to both retail and institutional customers. The product portfolio includes a wide range of formulations such as WDG, SC, CS, ULV, EW, SG, and FS, available in powder, granule, and liquid forms. These products address a wide spectrum of crops including cereals, pulses, oilseeds, fibre crops, plantations, fruits, and vegetables, focusing on crop yield improvement and sustainable agriculture.

The company also offers customizable contract manufacturing services aligned with client-specific formulation needs. Over the years, it has established strong business relationships with key clients including Krishi Rasayan Exports, Parijat Industries, BR Agrotech, Crystal Crop Protection, and Asasiat of Development for Agric & Trade Co., UAE. Major raw material suppliers include Coromandel International, GSP Crop Science, Dagro Chemical (China), Hubei Benxing (China), and MaxxGro Agrology.

Manufacturing operations span four facilities located in Samba (J&K), Nathupur-I & II, and Barwasni (Haryana), covering approximately 20 acres. The company has two subsidiaries: Indogulf Cropsciences Australia Pty Ltd (Sydney), facilitating OECD product registrations, and Abhiprakash Globus Pvt Ltd (Delhi), supporting market expansion and business development.

The company has a robust presence across 22 Indian states, 3 Union Territories, and over 34 countries. As of April 30, 2025, distribution is supported by 192 institutional business partners (B2B), 6,916 domestic distributors (B2C), 17 stock depots, 6 sales/branch offices, and 143 overseas partners, enabling extensive sales, promotion, and customer service reach.

As of April 30, 2025, the company had a marketing team of 293 employees. The Bankers to the Company are HSBC Limited and HDFC Bank Limited.

INDUSTRY ANALYSIS

Agrochemicals Industry Overview

Agrochemicals, primarily used for crop protection, play a crucial role in enhancing agricultural productivity by defending crops against pests, diseases, and weeds. According to the Food and Agriculture Organization (FAO), nearly 40% of food crops are lost annually due to such threats. Farmers rely on agrochemicals as the final input in the crop cycle to safeguard yields and ensure food security.

These chemicals are applied to seeds, soil, irrigation water, and crops in diluted doses, providing a reliable and effective solution to manage over 30,000 weed species, 3,000 nematode species, and 10,000 insect species. Agrochemicals are broadly classified into insecticides, herbicides, fungicides, and rodenticides, depending on the targeted pests. India ranks among the top five global producers of agrochemicals.

India – Crop Protection & Nutrition Demand Trends

India’s agrochemical market is witnessing robust growth, driven by increasing food demand, rising population, and government support through schemes like ‘Make in India’ and ‘Aatmanirbhar Bharat Abhiyan’. Despite challenges such as erratic monsoons, global slowdowns, and high input costs, consumption of nutrients and crop protection products increased in 2024.

Rising temperatures, unpredictable rainfall, and shrinking arable land are intensifying demand for agrochemical inputs. Favorable cost structures, skilled labor availability, and tax incentives further strengthen India's position as a global agrochemical supplier. Exports continue to rise, supported by India's competitive edge in low production costs.

India’s Global Position in Agrochemicals

• 2nd largest agrochemical exporter (2022) and 3rd largest (2023) – WTO

• Gained advantage post-COVID as global firms shift production from China to India

• Backed by PLI schemes aimed at increasing domestic production and reducing import dependency

• Expected rise in foreign investment due to favorable policy and cost structure

Agri-input Production in India

India's agri-input production surged at a CAGR of 16.4%, from 689 thousand tonnes in 2019 to 1,354 thousand tonnes in 2024. Pesticides hold the largest share (57%) and are projected to grow at a CAGR of 3.6% (2024–2029). Overall agri-input production is expected to grow at a CAGR of 6.9% during the same period.

Domestic Pesticide Industry Performance

The Indian pesticide market grew at a CAGR of 10.9%, reaching USD 1.37 billion in 2024, and is projected to grow at 8.8% CAGR (2024–2029). The industry primarily includes:

• Insecticides – 35% market share

• Fungicides – 29%

• Herbicides – 18%

Pesticide Production and Export Trends

• Pesticide output (42 technical grades) increased from 217 thousand tonnes (2018–19) to 280 thousand tonnes (2023–24) at 4.5% CAGR

• Export volumes grew faster, from 461 to 630 thousand tonnes at 8.1% CAGR, while export value rose at 18.2% CAGR, from Rs. 23.7 billion to Rs. 34.7 billion

• Export performance remained resilient, growing even during the pandemic, with a 22% volume growth in FY 2021–22

Pesticide Imports and Supply Chain Dependency

Although India remains a net exporter, imports rose at 8.4% CAGR, reaching 147 thousand tonnes in 2023–24, with China contributing over 60% of total imports. The value of imports grew at 6.4% CAGR, touching Rs. 116.7 billion.

Supply chain disruptions in China highlight India’s dependency on imported technical-grade insecticides. To mitigate risks, the PLI scheme is being expanded to promote domestic manufacturing of technicals, reduce reliance on imports, and strengthen backward integration.

Strategic Outlook

India is poised to emerge as a global manufacturing hub under the “China Plus One” strategy being adopted worldwide. Competitive labor costs, government incentives, and growing export opportunities position India to capitalize on rising global demand. The domestic industry’s continued focus on self-reliance, R&D, and supply chain resilience is expected to drive sustained growth in the coming years.

BUSINESS STRENGTHS

1. Diversified Product Portfolio Across Three Verticals
With over three decades of experience, Indogulf Cropsciences has evolved into a multi-product manufacturer in crop protection, plant nutrients, and biologicals. The product portfolio expanded from 198 products in FY2022 to 262 as of December 31, 2024, supported by in-house innovative processes. The range includes WDG, SC, CS, ULV, EW, SG, FS in various forms—powder, granule, and liquid. Innovative packaging, protected by three patents, incorporates QR codes for product details, enhancing safety, quality, and sustainability.

2. Established Domestic and International Distribution Network
The company maintains a pan-India presence across 22 states and 3 Union Territories, and exports to over 34 countries. As of April 30, 2025, the distribution network includes 192 institutional partners (B2B), 6,916 domestic distributors (B2C), 17 stock depots, 6 branch offices, and 143 overseas business partners, ensuring widespread customer reach and product promotion.

3. Backward Integrated Manufacturing Infrastructure
Adopting a backward integration strategy provides enhanced supply chain control, cost efficiency, and innovation potential. This approach supports alignment with long-term strategic goals while requiring careful planning and investment.

4. Robust R&D and Product Development Capabilities
The company operates an accredited R&D lab at Nathupur, Haryana, certified under ISO/IEC 17025:2017 by NABL. R&D efforts focus on developing new products and processes, upgrading 39 products, and improving production quality and cost-efficiency. These capabilities enable product diversification, respond to market evolution, and strengthen competitive positioning.

5. Experienced Leadership and Management Team
Promoted by Om Prakash Aggarwal (Chairman) and Sanjay Aggarwal (Managing Director), both with over 30 years of industry experience, the company benefits from strong strategic direction and deep sectoral expertise.

BUSINESS STRATEGIES

1. Expansion of Production Capacity for Cost Efficiency
Operations span four manufacturing facilities in Samba (Jammu & Kashmir) and three locations in Haryana—Nathupur I, Nathupur II, and Barwasni—covering approximately 20 acres. Plans are in place to expand existing production capacities to enhance cost efficiency and scalability.

2. Growth of Product Portfolio Across All Verticals
Focus remains on launching new products and categories across crop protection, plant nutrients, and biologicals to meet evolving consumer preferences and capture greater market share. Expansion will target diversified price points and adjacent product segments.

3. Strengthening R&D Capabilities
Consistent investments in R&D infrastructure and technology aim to support cost-effective and scalable processes. R&D expenditure over recent fiscals has been strategically allocated under quality testing expenses, representing up to 0.30% of gross revenue. As of April 30, 2025, the product portfolio has grown to 288 products, all developed and validated through in-house R&D.

4. Expansion of Sales & Distribution and Foreign Registrations
The sales and distribution footprint includes 22 states, 3 Union Territories, and exports to over 34 countries. The distribution network consists of 192 institutional partners (B2B), 6,916 domestic distributors (B2C), 17 stock depots, 6 branch offices, and 143 international business partners. Efforts continue to expand market presence and secure international product registrations.

5. Cost Optimization Initiatives
Strategic focus on cost reduction and process optimization through SAP implementation, automated packaging, and job work utilization. The R&D team actively develops alternative formulations to reduce material costs. Ongoing monthly operational reviews, supported by analysis of financial data and performance metrics, help identify inefficiencies and enable economies of scale across manufacturing processes

BUSINESS RISK FACTORS & CONCERNS

1. Capital-Intensive Industry and Financing Risks
The agrochemicals sector demands substantial capital for infrastructure maintenance, equipment procurement, and technology upgrades. Any failure to secure additional financing in the future may negatively impact business operations, financial health, and growth plans.

2. Threat from Alternative Crop Protection Methods
Emerging alternatives like biotechnology products, pest-resistant seeds, and genetically modified (GM) crops may reduce the demand for traditional agrochemical products. Successful commercialization of pest-resistant seed traits could displace chemical-based solutions. In contrast, resistance among pests and weeds to agrochemicals could also decrease product effectiveness. Inability to adapt the product portfolio in response may lead to reduced sales and profitability.

3. Geographic Concentration of Manufacturing Facilities
Manufacturing units are concentrated in Samba (J&K) and Haryana (Nathupur I & II and Barwasni). Any regional disruption—whether political, environmental, or regulatory—could significantly impact production, delay deliveries, and damage industry reputation. Lack of operational diversification across other regions poses a strategic vulnerability.

Indogulf Cropsciences operates in a high-capital, highly competitive environment. The business faces risks related to funding constraints, evolving agricultural technologies, and geographic concentration of facilities. These factors may impact operational stability, product demand, and long-term growth if not proactively managed.