Crystal Crop looks to launch 3-4 new products every year

Our focus is on agri-inputs which include crop protection products, crop nutrition products like bio-stimulants and seeds, and farm machinery. We will expand in these areas. Crystal has a pan-India presence having deep penetration with stocks supplied through 47 distribution centers to its 5,000-plus distributors.

-Ankur Aggarwal, Managing Director, Crystal Crop Protection

The International Finance Corporation (IFC), a member of the World Bank Group, has invested Rs 300 crore in Crystal Crop Protection Ltd in the form of compulsory convertible debentures (CCDs). Bizz Buzz spoke to Crystal Crop Protection Ltd Managing Director Ankur Aggarwal to know more about his firm and its future expansion plans. Ankur said that this latest investment is a reflection of credibility and the trust of his company. They are planning to use the recent proceeds to further bolster the company's infrastructure and R&D facilities and plans to grow its business rapidly to introduce three to four world-class products every year in crop protection and seeds with continued investment in manufacturing and R&D.

The International Finance Corporation (IFC), a member of the World Bank Group, has invested Rs 300 crore in Crystal Crop in the form of CCDs. How much stake would that amount to?

The fund infusion of about Rs 300 crore by the World Bank Group in our company is a reflection of credibility and the trust that we at Crystal Crop enjoy. It is also testimony of the utmost transparency with which we conduct our businesses and also speaks volume of the best practices that we follow.

The CCDs will be converted into equity at a future date and the stake taken by IFC will be based on an agreed formula which will depend on multiple factors. As such, it is difficult to provide a definite number to it.

How will it help your company?

We will utilize the proceeds in business growth and in improving its infrastructure and R&D facilities, which is one of our focus areas. It helps us deliver superior, safe, and world class formulations which are not only effective but also affordable for farmers. We have established KRDC, its in-house R&D centre at Sonipat, Haryana, which has been recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology.

Investment by IFC is not just financially helpful but also, given the profile of the World Bank body, adds to the credibility of your company. In what ways would it help your image in the corporate sector and among farmers?

Our investors IFC of the World Bank group are highly respected institutions and their investments are regarded with great credibility within the corporate sector and our customers. It is a well-acknowledged fact that trust, integrity and ethics make brand Crystal one of the sought-after companies in institutional partnership. We have a large customer base with more than 100 reputed companies in India and abroad and new partnership with IFC further cements our credibility amongst all our stakeholders including farmers, suppliers as well as our associates.

What was Crystal Crop's turnover last year?

Crystal has a pan-India presence having deep penetration with stocks supplied through 47 distribution centers to its 5,000-plus distributors. Our products reach more than 30,000 retail outlets across the country. All our business verticals are performing well and as a result, we reported a turnover of Rs 2,241 crore last year.

How have been the first six months for the company this fiscal?

The business growth has remained strong this year, led by the seeds business. During H1, Crystal has grown by around 23 per cent in revenue and 36 per cent in gross margin.

Which other segments of the farm sector do you intend to enter in the foreseeable future?

Our focus is on agri-inputs which include crop protection products, crop nutrition products like bio-stimulants and seeds, and farm machinery. We will expand in these areas. Moreover, with the plans to grow its business rapidly and with its strong product pipeline, our company plans to introduce three to four world-class products every year in crop protection and seeds with continued investment in manufacturing and R&D. Crystal also believes that pursuing selective acquisitions, partnerships, and alliances would improve its competitiveness, further diversifying its product portfolio and strengthening its market position.

What kind of government intervention would you recommend to improve science-based inputs in agriculture?

Latest technologies in crop protection products and high-performance seeds have tremendous potential to increase the farm profitability. We would like faster introductions of these technologies, which are fully backed by scientific data.

What are the issues in the agri-industry that need to be addressed?

There is a need to enhance investments in R&D of agri-industry. Investments in R&D need to be further incentivized. With agriculture being a key focus area for the government, it should also encourage startups in agriculture as it will help in addressing some of the critical issues confronting the sector.

Read the original interview at https://www.bizzbuzz.news/markets/crystal-crop-looks-to-launch-3-4-new-products-every-year-1188220?infinitescroll=1