Sales of Nissan Chemical’s Agricultural Chemicals segment rose by 4% comparing with the previous year to 47,487 million yen (432.1 million USD, at the current rate) in the fiscal year ended March 31, 2016. Operating income was 10,831 million yen (98.6 million USD), up by 17.2%. According to the company, the sales volume of “ALTAIR” (paddy rice herbicide) and Fluralaner (the active substance of veterinary medical product) fairly increased. Meanwhile, herbicide ROUNDUP (glyphosate) had healthy sales for individuals.
Sales of herbicide products were accounting for 71% of total sales of the Agricultural Chemicals segment, the proportions of insecticides, fungicides and plant growth regulators were 13%, 12% and 2%, respectively.
Export sales accounted for 31% of segment sales. Sales in Europe/Africa, Asia, North/Central/South America accounted for 52%, 30% and 18% of the export revenue, respectively. Domestic sales were weak due to continued post-consumer-tax-hike fallback.
For fiscal year 2016, Nissan Chemical expects sales of Agricultural Chemicals segment up by 10% to 4.6 billion yen, and operating income improved by 4% to 500 million yen. R&D expenses are estimated to increase 600 million yen due to two pipeline products entering into advanced R&D stages.
Nissan Chemical launched a herbicide TREFANOCIDE (Gowan acquired from Dow, exclusive sales right in Japan transferred to Nissan Chemical) in 2015, and plans to launch insecticide ISOCLAST (sulfoxaflor), licensed from Dow, in 2016.
“Progress2030” Long-Term Business Plan and “Vista2021” Medium-Term Business Plan
In April 2013, Nissan Chemical Group launched “Vista2015 Stage II,” a three-year medium-term business plan. Since then, the company has been executing two basic strategies which are “creating new products and new businesses” and “pursuit of business structure reforms.” Operating profit for the fiscal year 2015 reached 28.6 billion yen, exceeding the target by 2.6 billion yen as a result of the company’s efforts.
While global economic trends are becoming increasingly uncertain, the Group identified that “foray into new business domains”, “development of new products that match market trends”, and “enhancing R&D capability” as the tasks for ensuring sustainable growth. To overcome these challenges and secure growth, in April 2016, the company launched “Progress2030”, a long-term business plan for the period to 2030, and “Vista2021,” a six-year medium-term business plan which shows ideal situation of 2021.
In developing these plans, Nissan Chemical adopted new business model called “Future-Creating Enterprise that responds to social needs with unique, innovative technologies.” The company will strive to develop in synergy with society by helping to solve social issues such as global warming, energy problems and food shortages.
Net sales of agrochemical business are expected to reach 67 billion yen by 2021, operating profit reach 16.7 billion yen. In the Stage I of Vista2021 (2016-2018), Nissan Chemical plans to expand sales of paddy rice herbicide, ALTAIR®, and launch a new product line of ROUNDUP®, establish overseas subsidiaries and increase sales in overseas markets. In Stage II (2019-2021), the company plans to develop NC-515 insecticide, new fungicides and paddy rice herbicides.
The company will strengthen the pipeline for agrochemicals and expects business size of its Life Sciences business, which include agrochemicals, veterinary pharmaceuticals, pharmaceuticals and biomedical materials, to reach 100 billion yen.