Insecticides India plans to invest Rs 70 cr on expansion

Insecticides India Ltd plans to invest about Rs 70 crore over the next two years on expansion, including setting up a new plant in Rajasthan, a top company official said.

"We are planning to expand the capacity of formulation and technicals in the next two years and for this, the company will set up a new plant in Rajasthan and also ramp up the capacity of the existing five plants," Insecticides India Ltd Managing Director Rajesh Aggarwal told PTI.

At present, the Delhi-based company has five plants in Rajasthan, Jammu and Gujarat, where it manufactures pesticide formulations and technicals (basic chemicals).

Under the expansion programme, the company would ramp up its formulations production capacity to 5 lakh tonnes per annum from the current 3.5 lakh tonnes, while its technicals production capacity would be increased to 22,000 tonnes from 12,000 tonnes at present.

Insecticides India is scouting for land for its third plant in Rajasthan, Aggarwal said.

Asked about the investment involved in the expansion plan, he said, "We will invest about Rs 60-70 crore on expansion."

Aggarwal said the company has a presence in almost all parts of the country.

Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu contribute about 40 per cent to the company's turnover, which stood at nearly Rs 480 crore last fiscal. Its net profit was Rs 32.21 crore in 2010-11 fiscal.

Insecticide India's turnover grew by 20 per cent, while its net profit rose by 14 per cent in 2010-11 vis-a-vis the previous year.

About one-third of the company's revenues come from four products -- Monocil, Lethal, Victor and Thimet.

The company had recently acquired insecticide brand Monocil from Nocil Ltd. Monocil is a systemic insecticide-cum-acaricide that controls a broad spectrum of pests in a wide range of crops.