Rallis India - Notes from AR 2020-21 -
- Company engaged in research, development , manufacturing and sales of - crop protection chemicals, crop nutrients and Hybrid Seeds. Company has 04 Manufacturing plants at -
Ankleshwar, Dahej - Gujarat
Lote, Akola - Maharashtra
Adding 02 new manufacturing plants at Dahej for export markets making formulations and AIs
03 Seeds processing units - 02 in AP, 01 in Chattisgarh
Company has 02 R&D centers at - Bengaluru - Rallis innovation and Chemistry Hub- for cropcare, Hybrid seeds development and agribiotech R&D center - for seeds
- FY 20-21 Financials -
Revenues at 2429 cr, up 8 pc
EBITDA at 323 cr, up 24 pc
PAT at 229 cr, up 24 pc
India crop protection sales at 1287 cr vs 1165 cr
India hybrid seed sales - 401 cr vs 364 cr, successfully launched 04 new products. Company has in-licensing arrangements in vegetables and mustard improved performance segment
Filed crops seeds portfolio for crops like - Paddy, Maize, Millet, Cotton and Mustard
Vegetables portfolio - chilli, okara, tomato and Gourds
International crop protection sales at 741 vs 772 cr. Company a trusted supplier to global generic players and innovators. Acquired leadership position in most active ingredients manufactured. Committed to expand product and customer portfolio in contract manufacturing
Launched 04 products in crop protection ( including 03 in house formulation ), 06 crop nutrition products ( including 02 bio pesticides ) in last 01 yr.
Increased dealer network by 5 percent.
Future growth levers - Investment in manufacturing ( Capex ), R&D, brand building and improving internal processes
- Company is currently manufacturing - 11 technical grade crop care products ( AIs ) , 112 formulation products
India’s share of agrochemicals - 51 pc insecticides, 25 pc herbicides and 24 pc fungicides. Structurally, the demand for agrochemicals to rise going forward due - better irrigation, current low per acre usage, increasing labour cost, improving irrigation, improving credit availability and higher farm incomes.
Globally - herbicides is the biggest category followed by fungicides and insecticides
Crop care segment wise growth for Rallis - Insecticides grew 4 pc, Herbicides and Fungicides both grew 24 pc each.
Crop nutrition business consists of - Bio Fertilizers, Bio Stimulants, Secondary and Micro nutrients, Water soluble fertilizers, Organic fertilizers and bio pesticides. Crop nutrition business achieved a growth of 22 pc
Seeds - Immense opportunity in India for hybrid seeds. This segment grew 10 pc during the year. Vegetables portfolio grew 20 pc.
- World pesticides Mkt at $ 60 billion. India crop care market at $ 6 billion with exports growing at 10 pc and domestic market growing at 8 pc CAGR for last 5 yrs.
Specialty fertilizers segment consisting of - organic fertilizers, bio stimulants, bio fertilizers, water soluble fertilizers, secondary and micro nutrients - gaining popularity in India. Current Mkt size - aprox $ 1.5 billion.
World seed mkt at $ 40 billion with GM and conventional seeds having equal mkt shares. Global mkt is dominated by Corn, Soy, Cotton and Vegetables. Seed mkt is R&D intensive- at par with pharma mkt with R&D spends at 15 pc of sales. Latest technologies - CRISPER, MAB and RNAi. India mkt at $ 2.5 billion, led by BG II traits cotton, hybrid maize and hybrid paddy.
- Total Capex for the yr at 168 cr towards expansion of manufacturing facilities and new formulations plant at Dahej. Formulations plant expected to come on line in early part of FY 21-22. Expansion of manufacturing capacity of hexaconazole, metribuzin, kresoxim methyl completed during the yr.
Of the 800 cr capex to be done over 3-5 yrs, 525 cr have been committed. This also includes setting up of a R&D facility at Bengaluru. This will also enable the company to make new AIs currently under development at R&D center.
**Company has taken initial steps in Biological space by launching 2 Bio Pesticides in the PY - reflecting company’s commitment towards technology led sustainable farming. **
Disc : invested, tracking position