Dhanuka attributes outstanding performance to successful channel expansion

Dhanuka Agritech Ltd, India’s leading crop protection solutions provider which recently achieved the milestone of a gross turnover of Rs 500 crore in 2010-11 fiscal, is all set for channel expansion to increase its market penetration. At present the company has around 6,200 distributors and plans to add 1000 more distributors across the country this year.

This is in sync with the growth plans of Dhanuka that has its eyes firmly set on the next milestone of achieving the target gross turnover of Rs 1,000 crore in the next couple of years. With current retail and dealer base of more than 70,000 and 30 offices and warehouses across India, Dhanuka is among the top five in India when it comes to branded sales.

"We have four pesticide units and we are making expansion at our Sanand unit. Dhanuka Agritech has, especially, laid emphasis, in its 30 years of existence in the agro chemicals sector in India, on eco-friendly formulations, low-dose active pesticides, integrated pest and weed management. Numerous measures taken by the company in the line of educating farmers regarding use of pesticides, rain water harvesting and adopting better agricultural practices, coupled with an aggressive growth strategy have contributed to the company’s growth over the years.” said M K Dhanuka, Managing Director, Dhanuka Group.

"Last year, our profit after tax (PAT) was around 9% of net turnover and this year we are expecting around 10% PAT. As we achieved Rs 408 crore net turnover last year (2009-10), we are expecting around 23-24% growth by the year end in the top-line and around 30-35% in the bottom-line. Our existing channel partners have played an important part in the success story and with the expansion plans of the network underway, we are sure to achieve what we are set out to.” he added.

The company’s financials are regularly showing significant growth in turnover, profit, and PE Ratio and giving excellent return to the share holders in terms of dividend. The company is enhancing its manufacturing capacity at Sanand (Gujarat) and Udhampur (J&K) and also modernizing its plant with the help of high tech machineries and plant automation.

For the nine months period ended December 31, 2010, the company recorded an increase in total income by 23.73% to Rs. 36,557.62 lacs from Rs. 29,545.60 lacs. The Net profit for the nine months period ended December 31, 2010, increased by 46.69% to Rs. 3745.09 lacs from Rs.2553.05 lacs. For the financial year 2009-10 the company recorded an increase in total income by 21 % to Rs.40, 872.17 lacs from Rs.33, 741.99 lacs. The Net profit increased by 57 % to Rs.3633.75 lacs from Rs.2320.06 lacs.