Agrow Allied Ventures Pvt ltd (AAVPL) is a leading pesticide manufacturer in India, with its 2,4-D capacity in the leading position. The company is seizing the opportunity to expand its production capacity. Recently, Mr. Rakshit Sehgal, the Managing Director of AAVPL accepted an interview with AGROPAGES and introduced the company's future development plan, including plans to add two new pesticide technicals each year. He also shared his views on the development of the agrochemical industry in China and India.
Q: Can you introduce your company? What is the growth situation in recent years?
A: AAVPL is one of the fastest growing Agrochemical company in India which has maintained growth rate by min 35% y-o-y. Company has 3 main vertical where we focus on:
1. Technical Manufacturing
2. Contract Manufacturing
Our company is one of the strongest manufacturer of 2,4-D Series ( with complete range of Acid / Salts / Amines and Esters ) with a current capacity of 8,000 mts annually and plans to expand to 14,000 mts by 2020 . Along with 2,4-D Series our company manufactures other strong technical products which include Herbicides like Glyphosate / Pretilachlor / Clodinafop / Bispyribac Sodium , Insecticides like Thiamethoxam / Lambda Cyhalothrin / Diafenthiuron and Fungicides like Tricyclazole / Metalaxyl . The total technical manufacturing capacity is around 12,000 mts annually today which is produced in state of art technical plant located in Rajasthan in area of 60,000 m2 .
Apart from technicals, our company formulates more than 150 products for domestic and export markets in all liquid, powder and granule formulations. Our company is expert at specialised combination products for export markets.
Q: What is your company’s core competitiveness in your opinion?
A: Our company’s core competitiveness lies mainly in two areas.
Firstly its strongest product 2,4-D Series and Thiamethoxam for which we have been recognised as a global player exporting to more than 40 countries today. Our company is focusing on producing best quality products with least impurity profile in our state of art technical plant. With growing capacities, our company is achieving economies of scale to help and provide cheapest and best quality products to our customers.
Secondly the company expertise in registration of technical and formulated products in regulated markets. As registration requires huge investment, our company is focused on investing heavily on data generation on generic and new de-patent products from recognized GLP labs. As India is coming up a strong global supplier of agrochemicals, company foresee a huge potential in many markets by securing our presence through registration.
Q: How many production plants does your company have for generic products? Please introduce the capacity.
A: Our company manufactures 10-12 active technical products with a total capacity of 12,000 mts / annually at its state of art technical plant located in Rajasthan which is only 150 km from New Delhi. The biggest contributing product is 2,4-D Series which includes 2,4-D Acid 98% Tech , 2,4-D Amines 860/720/600gm/lt , 2,4-D Sodium Salt , 2,4-D Esters with an existing capacity of 8,000 mts and coming up with an expansion of 6,000 mts to reach its total capacity to 14,000 mts. The total technical capacity is expected to reach 20,000 mts by 2021 with all products together.
We also have specialised formulation plant as per International Standards which produces all kinds of Liquid( EC , SL , SC , ULV ,FS , ZC , ME ) , Powder ( WP , SP , EW ) and Granule ( WDG , WG ) formulations . We specialise in helping our customers to develop new formulation and combination products for specific solutions.
Q: How’s the export business in your company? What regions are your buyers mainly from?
A: Export contributes nearly 30% of on current topline which will be increased to 50% by 2020. Our company has been recognised as an STAR EXPORT HOUSE by Government of India. The top products exported by our company includes 2,4-D Acid / Amine , Thiamethoxam ,Cypermethrin and Lambda Cyhalothrin.
Our exports are wide spread to more than 40 countries today. Our company is dominantly present in South American, African, Middle East and Asians markets. We support our exports with GLP data like 5 batch / Phychem / Acute and Sub Acute data for many products.
Area wise export chart is as below …
Our company has already opened office in UK to enter European markets and will be opening a company in Latin America for serving surrounding markets. We are focusing on having own company registration in many markets so that we can penetrate deeper.
Q: What kind of impact does China’s environment regulations had to India’s pesticide industry and the companies?
A: The Environmental issue in China has given a huge opportunity to India to stand in global market. India is considered as a favourable and alternate supplier to many multinationals and renowned companies. We see many North and South American / Europeans and African companies approaching us to be a second source of supply to them after China. With Make In India Initiative by our honourable Prime Minister and supply constraints because of china environmental issues, our company has aggressive plans to make a mark in global markets.
Due to supply constraints in China, prices have move northwards and will remain so as no immediate relief is expected in near future. This has given an edge to Indian manufacturers to compete with China and encouraged them to increase production capacities and plan expansions. As there are only handful of technical manufacturers in India competing with Chinese products, the current situation is an excellent opportunity for them to maximize their potential. In next 2-3 years we will also observe addition of substantial technical manufacturing capacity in India to serve domestic and International markets.
Q: Some people in the industry have called on Chinese manufactures to cooperate with Indian companies to set up factories in India. What is your opinion about this?
A: India is welcoming Chinese manufacturers for joint ventures including our company to bring their manufacturing techniques and technical expertise to India. As India is still heavily dependent on China for many intermediates, China and India should come together to develop these products here itself. As India is the biggest market for China for selling intermediates, developing these products in India together can be beneficial for both. India itself is also the fastest growing agrochemical market globally with a vision to reach 6 billion $ by 2020. Backward integration will not only help India to produce products at cheaper prices but it can also be used by Chinese exporters as an alternate source of supply as they have customer globally to serve.
Q: Indian pesticide companies are also undergoing integration. How do you think this will affect the industry?
A: Coming in of Japanese and other global players in India is a clear indication that they want to develop India as an alternate and preferable sourcing destination. They foresee potential in Indian manufacturing capabilities. These global players will bring their vast experience and technical know-how to develop specialised and generic products from India. This development will open new markets and new products manufacturing opportunities for India.
Q: What do you think about the impact “Make in India” policy bring to the Indian agrochemical industry? How is the future development in such background for Heranba?
Make in India is a clear vision to promote locally manufacturing over Chinese technical imports. Abolishing of 9(3) TI vs TIM, clearly indicates that India will not risk its manufacturing industry against Chinese imported goods. With limited supply of imported technical, India has to depend upon manufacturing only. In near future we can also expect increase in custom duties on imported technical products to protect local industry. Indian companies along with government support have to be self-sufficient and stronger to meet the increasing demand of pesticides.
Our company has vision to become one of the strongest and dependable technical manufacturers to renowned multinational. We are increasing our technical capacities of existing product range and planning manufacturing of new de patented in coming years. We are aiming to add minimum 2 new active technical products every year. We already hold more than 30 9(4) TIM licenses and have another 25 license in process in 9(4) and 9(3) category which includes new molecules as well. Some of the new products planned are Dinotefuran , Penoxsulam , Quizalofop Ethyl , Carfentrazone and Pyraclostrobin .
We have an in house R&D team which is in continuous process of development of new products.
Along with technical manufacturing, we are in process of tie ups with renowned multinationals and companies for long term supply arrangements. We also expecting registration in American and European countries which will be help us to expand our business. To support our supply chain, we are continuously investing in our technical plant infrastructure and data generation.
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