Krishi Rasayan Group's new pesticide technical plant was officially opened last year after Mr. Atul Churiwal's interview with AgroPages in September. Mr. Churiwal told us that currently they are operating with 70% capacity of this plant, and they hope to reach full capacity from this October. He also talked about the company's new patented product launched this year and their future product launch plans.
Chairman cum Managing Director at Krishi Rasayan Group
What are the revenue and profit Krishi Rasayan achieved in FY 2021-22? How do you comment on your performance?
As mentioned in my last year’s interview, we have had a flat year. However, we were able to maintain the same top line as last year without any growth. This is mainly because of the average rains in the country, which impacted the consumption of agrochemicals.
What was the domestic and overseas sales performance respectively?
The domestic sale was little lower than last year due to the erratic rain situation and price pressure on the products. Exports were slightly better and we are bullish that we will continue to grow rapidly in overseas market.
What challenges are posed to the development of the Indian agrochemical industry during FY2021-22 by global extreme weather, supply chain turbulence caused by geopolitical conflicts, inflation and energy crisis? Are there any opportunities among the challenges?
There are many challenges in the year 2022. The weather was one of the key factors. In the current year due to conflicts in Ukraine, the energy prices are going up but surprisingly the raw material prices have not seen any impact, which clearly shows the global demand is not there. We are finding this an opportunity for consolidation, which can prove beneficial in the future.
Has the company's new pesticide technical plant been put into operation? How is it operating?
The new technical plant is operational since September 2021. We are currently operating with 70% capacity. We hope to reach full capacity from next month. We find there is good demand of our products.
What new products did the company launch in FY2021-22?
We are continuing with our regular products in the year 2021-22 as our main focus is to start the technical plant. We hope to add 3 to 4 new combination products in the current year.
Krishi Rasayan launched its first patented product Paushak Super Star this May. Could you tell us more about this product?
We are quite upbeat about our launch of our new patented product Paushak Super Star. The response has been very positive and we see huge growth opportunity in the current year. This is one of the 1st patented molecules in the PGR range, which is one of the fastest growing segments in India.
We noticed that not only Krishi Rasayan, but other agricultural companies around the world are talking about the concept of soil health. Why soil health matters, in your opinion? What are the major soil problems in India?
The Indian soil is very deficient particularly in Zinc and Sulfur. Worldwide everyone has started realizing that unless the soil condition improves, which has been heavily degraded due to high chemical use. Once the quality of soil improves and the yield will go up. The focus currently is on improved soil health for a better tomorrow.
Previous experience suggests that the rapid expansion of the industry may bring some environmental concerns. How do you think Indian companies should balance growth and sustainability in the context of global efforts to control carbon emissions?
A lot of new products are coming into India both in technical and intermediates. However, the Indian Environmental Ministry is very strict and permission is only given after thorough evaluation. Though the carbon emission will definitely go up but it will not be so substantial, which can be a cause of concern.
What are Krishi Rasayan' goals for FY2022-23?
The goals for us are to introduce at least 3 more patented molecules in insecticide and herbicide range. Beef up our bio stimulant portfolio and attain full capacity of our technical plant. We have set up 70 retail shops, which cater directly to farmers and want to take it to 100 shops in this year. We propose to expand our technical capacity from next year and take it to 25,000 tons, once we start construction of our new plant.
This article was initially published in AgroPages' '2022 India Focus' magazine.