Heranba Industries Limited is one of the leading agrochemical players in India. The company had witnessed a robust growth in recent years. Now Heranba is grasping the opportunity to expand its production capacity and better serve farmers both in India and overseas. AGROPAGES has recently conducted an interview with Prakash Kumar, the manager of International Marketing of Heranba. In this article, Prakash Kumar talked about the company’s development and its core strength with us, and also showed his viewpoint to the latest market policy in China and India.
Please introduce Heranba. How is the company’s growth in recent years?
Heranba was incorporated in the year 1996, with a plan to manufacture few technical products mainly in the group of synthetic Pyrethroids, simultaneously it grew in structure by introducing many technical products and intermediates and later in the year 2005 onwards it started manufacturing Formulations and catering to farmers within India via its Brand segment. Today, Heranba’s formulations are exported in many countries.
In past 3 to 4 years, Heranba has grown at a rate of 20-25% on a year on year basis, by enhancing its production capacity as well its customer base within India and in Exports. We further expect the growth to be in similar lines considering demand for our products and disturbance in China’s chemical market due to various regulations set in.
What is the core competitiveness of Heranba?
Heranba’s core competitiveness is in its quality products which the company never compromises upon. Every year we are adding upon our production capacity of products which is commonly used at the farm level also we are also focusing upon to add more molecules which has demand in bigger volumes.
How many production plants does your company have for generic products? Please introduce the capacity.
The company has currently 4 production facilities in Vapi, a place in Gujrat. Of these 4 units,
i. One Unit is a multi-purpose plant and another unit manufactures a mix of finished goods and Intermediates. Both these units put together have a capacity to manufacture more than 1000 MT of Technicals and Intermediates per month.
ii. Another 2 units are our Formulation units catering to all kinds of formulations like EC, SC, CS, FS, WP, WDG and Granules and many more formulations to cater to the Indian market as well as for exports
iii. Heranba is also setting up a new plant at Saykha and Sarigam in Gujrat where it has planned for production of New Technicals and setting up an formulation plant with more equipped facilities.
Please introduce Heranba’s export business.
Our export business grew by almost 80% in last year. The top 3 products are Deltamethrin technical, Cypermethrin technical & Alphacypermethrin Technical. Buyer comes mainly from China, South East Asia, Middle East, Africa & Latin America. We export our products in more than 60 countries.
Indian pesticide companies are also undergoing integration. And many are under acquisitions with Japanese companies. How do you think this will affect the industry?
With Indian pesticide companies looking forward to amalgamation with multinationals it is creating opportunities for them to flourish, on the other hand, other Indian companies may face stringent competition from new molecules being introduced in Indian market
How’s China's production policy in recent years affect India? How do you think about the cooperation between Chinese and India companies?
Due to recent changes in China’s production policies, the demand shifted to India for pesticides products. Prices have also increased. Indian companies also suffered some production losses, due to unavailability of some raw materials, which are manufactured in China.
Many Chinese companies are aggressively exploring the cooperation. Though, it doesn’t seem to working out, so easily. We are open for any such co-operation, as we have the sufficient resources and products to penetrate both Indian and Export market competitively.
Can you talk about the impact “Make in India” policy bring to the Indian agrochemical industry? How is the future development in such background for Heranba?
Growth in India's agrochemicals imports from China may slow down due to regulatory changes proposed to boost local production of pesticides under the Make in India scheme if and when the proposed changes in regulation are implemented, companies will no longer be issued import registrations for products that have a manufacturing registration in India.
Integrated companies are expected to further invest in manufacturing facilities, as newer off-patent products are introduced into the Indian market.
While trading companies that are heavily dependent on formulated imports from China will be hit the hardest by the proposed regulatory change.
Companies that have TIM (technical indigenous manufacturing) registration will enjoy a monopoly in the domestic market, as other players will not be able to compete by offering the same product through imports until they too can attain a TIM registration and manufacture in India.
Our future strategy is to introduce new products which are under development and also enhance our scale of production. Also, we are working on many new registrations and enter into countries where our presence is yet to be established.
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