Nagarjuna Agrichem aims to become Rs 1,000 cr entity

Indian crop protection company Nagarjuna Agrichem is looking at becoming a Rs 1,000 crore company in the next couple years, backed by its plans to tap the increasing domestic market and contract manufacturing tie ups Internationally.

According to Vijay Shankar, MD of the company, there would be two new herbicides launches along with four to five pesticide products, in two years and they are in the last leg of tying up with multinational companies for exclusive marketing rights of their patented products.

With 40-45 products in the kitty, the company is looking at expanding in Africa and other underdeveloped countries. It had clocked Rs 650 crore revenues last financial year,

''We are in talks with Japanese and an European company for bringing exclusive molecules, this year and next year. This apart we are also in talks with 8-10 international players to bring new formulations for the domestic market.” he said.

Estimates suggest that the domestic market for this space is pegged at around Rs 10,000 crore and is growing at 10 per cent annually. Nagarjuna Agrichem claims it is among the top ten players in the country and top two in the southern part. The revenue target will also see operating profit margins of six to seven per cent, Vijay Shankar said.

"We are not only witnessing a surge in the domestic demand but also emerging as a cost effective alternative in contract manufacturing globally. To meet the demand, we revamped a lot of our existing processes which has also helped in bringing down the cost of production is reduced,” said K S Raju, chairman – Nagarjuna group.

The agrochemicals company gets almost two thirds of its revenues from the domestic market and the rest from international.