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Bharat Group – Going Backward For Leap Forwardqrcode

Oct. 15, 2018

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Oct. 15, 2018


Inspired by its vision and built on a strong foundation of ethical values, Bharat Group, established four decades ago, has come a long way, and today, happens to be a US$250 million enterprise, ranking 4th among AgroPages' Top 20 Indian Agrochemical Companies list. 

From the year 2013 to 2017, Bharat Group has made commendable progress in its agri inputs business, and the CAGR during the period was 18%. Growth for the year 2016-17 was substantial, because of the commencement of the Dahej plant.

Bharat Group turnover from 2013-14 to 2017-18

How could Bharat Group achieve such an eye-catching performance in the consecutive weak global agrochemical market? With this question in mind, AgroPages interviewed Bharat group recently to explore its winning strategies.

First, Know the Constituent Companies

Bharat Group consists of three constituent companies: Bharat Rasayan Ltd, Bharat Insecticides Ltd and BR Agrotech Ltd.

Bharat Rasayan Ltd- BRL
Bharat Rasayan Ltd. (BRL), the Group’s flagship company established as a part of backward integration, is one of the biggest manufacturers of technical grade pesticides in India, and a government-recognized two Star Export House.

The company, with a dedicated team of scientists, has more than 195 international registrations and has been exporting its products to more than 65 countries across the globe. A wellequipped NABL laboratory provides support to the registration team. BRL is a preferred supplier for many MNCs to meet their global demand for several molecules. The company has a government-approved R&D center and a pilot plant focused on process improvements. Contract manufacturing for many molecules is also undertaken for many Indian and multinational companies.

In addition to the existing manufacturing capacity of 5,000 tones p.a, BRL has invested over $30MN in a state-of-the-art manufacturing plant at Dahej (Gujarat) on a 105,000 sq. meters plot, with a capacity of 15,000 MTs per annum. This has enabled Bharat Rasayan to upgrade its manufacturing capacities and add new molecules to its portfolio.

Bharat Insecticides Ltd. (BIL) and BR Agrotech have world class formulation facilities with a capacity of 25,000kls of liquid and 15,000mts of powder formulations.

All type of formulations viz. EC/WP/DP/GR/SL/SC/DS/WS/ FS/WDG/EW/ME etc. are manufactured. They have 26 branch offices, 26 depots and 4,800 dealers spread all over India, which have given them a pan India presence. It is also an ideal partner for developing and distribution of new formulations in the domestic and global markets. The company has ambitious plans for increasing its presence in India and globally.

BIL formulating plant is GMP cer tified. It is the only formulating plant in India which is GMP certified.BR Agrotech is an ideal partner for several reputed companies for formulating and packing their products in their trade names.

Winning Strategies:

Strong foundation of ethical values
BRL is commitment-bound to developing the safest and the latest product versions. None of its products are under "red" or "yellow", which indicate health risks and environmental concerns. Instead, they are all under the safer "blue" and "green" categories. "Going ahead, we will only develop green category products," said S. N. Gupta, Chairman of Bharat Group.

Exporting expansion
Bharat Group is exporting technical grade pesticides and formulations to more than 65 countries around the globe. The export turnover as of 01.04.18 was $45 million, with the major share of 30% to the Middle East. Asia occupied the second position at 28%, while Europe was in the third position, with 20%.

Continent wise export 2017-18

Bharat Group has GLP data available for many molecules, which supports overseas customers in registrations.

Four molecules i.e. Alphacypermethrin, Lambdacyhalothrin, Bifenthrin & Chlorpyrifos have also been approved by WHO/FAO.

Three molecules of Bharat have proved equivalent to the EU reference source. These are Alphacypermethrin, Lambdacyhalothrin & Chlorpyrifos Methyl.

Backward integration
Bharat group started from Bharat Insecticides Ltd, set up in 1976, to develop ready-to-use pesticides, insecticides, herbicides and fungicides. Thirteen years later, BRL was incorporated into the backward integration strategy for manufacturing the key concentrates (technical-grade pesticides and intermediates), essential for the formulations business. It also sold its products to agrochemical formulators in India and abroad. Today, BRL has grown bigger than Bharat Insecticides and is the fastest-growing entity within the promoter group. Out of the 400 agrochemical formulator makers in India, the top 200 are BRL's customers. Contract manufacturing accounts for a major share of its total production. Leading multinational companies are customers of BRL.

Enriching products

When it comes to developing new products, BRL follows a well thought-out strategy. Globally, around 9-10 products go out of patents every year. The company shortlists these products for production, keeping in mind Indian conditions and the demand for exports.

Bharat Group has focused on new “Off Patent Products” to be launched in the domestic and international markets. Some of the identified products are Zetacypermethrin, Picoystrobin, Spiromesifen, Carfentrazone Ethyl & Tolfenpyrad.

Earlier in 2017, BRL added a herbicide, Chlorimuron Ethyl, to its product portfolio. The patent protection on the herbicide had expired, and BRL was one of the early birds to sense the market opportunity that the generic and low-cost version could offer.

That BRL has grown steadily over the years could be attributed to this astuteness - its ability to identify the right product and launch it at the right time before the competition becomes intense. One of its flagship products is the insecticide Lambdacyhalothrin, another off-patent product. BRL has captured around 70% of the Lambdacyhalothrin market share in India.

BRL has continuously improved its competitiveness with Bifenthrin and Meribuzin, and commands a premium share in the global and domestic markets.

Other products with which BRL has a competitive edge are:
a. Cypermethrin
b. Permethrin
c. Alphacypermethrin
d. Chlorpyrifos
e. Chlorpyrifos Methyl
f. Thiamethoxam
g. Tebuconazole
h. Diafenthiuron

Future Strategy for Growth

Mr. S.N.Gupta, Chairman and Managing Director of Bharat Group is a renowned economist. He is a trustee and an active member of the Managing Committee of various institutions run by the Maharaja Agarsen Society. He is also on the Board of the Crop Care Federation of India (CCFI) and a Member of the Managing Committee of the Pesticide Manufacturer and Formulators Association of India (PMFAI). He is also actively participating and contributing a lot to several other social activities.

Under his guidance, the Group has devised the following strategy for growth:

(i) Focus on research & development for increasing the yield and purity of the molecules under production
(ii) Development of new combination formulations
(iii) Generation of GLP data and focusing on registrations in Brazil & the USA
(iv) Backward integration for gaining a global competitive advantage. CMAC, one of the intermediates for producing pyrethroids, will be produced from mid-2019. Other intermediate plants are also under active consideration.
(v) 23 Ac res land ac quired in Sayak ha to pro duc e intermediates. The project cost is estimated at $35 million.

The article is from 2018 INDIA PESTICIDE SUPPLIERS GUIDE magazine, download for more articles here:

Source: AgroNews


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