Top 20 Indian Agrochemical Companies in FY2023-24: Ups and Downs in Performance, Where Does Resilience Originate?

India's economy sustained its robust growth trajectory in FY2023-24.The latest ffgures from the Ministry of Statistics and Program Implementation (MOSPI) project an impressive GDP growth rate of 8.2% for the ffscal year 2024, marking a substantial leap from the 7.0% recorded in the preceding year. This surge is anticipated to propel India's economic scale to an estimated 3.5 trillion US dollars. With the government's ongoing commitment to structural reforms, India has set an ambitious target to escalate its GDP to 5 trillion US dollars by 2027. This aspiration underscores the government's conffdence in the economy's sustained expansion and its anticipation for the tangible beneffts of reform initiatives. 

The agrochemical sector in India has exhibited a remarkable upward trajectory in recent years. Projections indicate that the industry will achieve a value of $8.22 billion by 2024 and is anticipated to soar to $13.08 billion by 2029, registering a compound annual growth rate (CAGR) of 4% from 2024 to 2029. Between the ffnancial years of 2019 and 2023, the export value of India's agrochemicals experienced a swift ascent, growing at a CAGR of 14%, culminating in exports valued at $5.4 billion in the ffnancial year 2023. 

India Agrochemicals Market

(Market Size in USD Billion)

In FY2023-24, the Indian agrochemical sector, much like numerous other industries, encountered a series of unfavorable conditions. Market ffuctuations, challenging market environments, and unpredictable monsoons introduced a degree of uncertainty and posed signiffcant obstacles to the industry's steady growth. Notably, the surge in commodity and raw material costs partially neutralized the positive effects of increased sales. 

Despite these adversities, the resilience and potential for growth within India's agrochemical industry have remained robust, thanks to innovation, strategic investments, and a supportive regulatory framework. The Indian government has placed a high priority on the agrochemical sector, identifying it as one of the "12 industries with the greatest potential for India to achieve global leadership." Initiatives such as "Make in India" and "Atmanirbhar Abhiyan" have been instrumental in streamlining pesticide industry regulations, bolstering infrastructure, and implementing the Production Linked Incentive (PLI) scheme, all aimed at positioning India as a global hub for agrochemical production and exports. Furthermore, collaborations with international partners in research and development, as well as the extensive adoption of biopesticides, are anticipated to enhance agricultural productivity and inject additional impetus into the industry's growth.

Performance of Indian Agrochemical Companies in FY2023-24

Despite market downturn, the revenue threshold for companies to be ranked in the top 20 has risen, increasing from ₹ 1,151.0 crore in the prior ffscal year to ₹ 1,226.0 crore, suggesting intensiffed competition within the industry.

Upon reviewing FY2023-24 rankings, 11 companies surpassed ₹ 2,000.0 crore sales mark, while nine companies fell within the range of ₹ 1,000.0 crore to ₹ 2,000.0 crore in sales. In terms of corporate performance, 10 of the listed companies registered a year-on-year increase in sales in rupee terms, averaging a 6.9% growth. Notably, PI Industries and Safex Chemicals achieved remarkable double-digit growth rates, nearing or exceeding 20% despite the overall trend. Conversely, 10 companies experienced a decline in sales in rupee terms, with an average drop of 15.1%. Among these, the downturn was particularly pronounced for companies such as Sharda Cropchem, Meghmani Group, and SML Group, with the most signiffcant decrease hitting 34.2%.

In FY2023-24, export-oriented agrochemical companies in India, such as UPL, Rallis, and Anupam Rasayan, have achieved signiffcant growth in global market sales. However, they face the dual challenges of price pressure and changes in the international trade environment, making the phenomenon of weak prices a major challenge to their profftability.

During the ffscal year, UPL, a leading multinational corporation in India's agrochemical sector, secured its top position with revenues amounting to ₹ 36,567.0 crore, marking a 22.6% decline from the previous year.Despite this downturn, UPL's crop protection segment experienced a 20% dip in revenue and a more substantial 51% slide in EBITDA. However, through streamlining operations and strategic resource allocation, the company has successfully maintained an equilibrium between growth and profftability. Innovation remains at the core of UPL's strategy, ensuring its competitiveness amidst a volatile business landscape. The company has been diligent in enhancing its portfolio of differentiated and sustainable products, which currently constitute 80% of UPL's extensive $5 billion product line. These innovations are poised to account for a signiffcant portion of the company's new product revenues in the coming years, with an ambitious target set to achieve 50% of sales from such segments by FY2027.Looking ahead, UPL is committed to implementing a series of incremental structural enhancements starting from the ffscal year 2025, aimed at bolstering operational efffciency, profftability, and cash ffow management.

PI Industries company achieved a growth of 19.3% in its agrochemical business in FY2023-24, with revenues reaching ₹ 6,296.5 crore, maintaining a growth trajectory that has always been above trend. More than 70% of the revenue growth came from new products commercialized in the past three years. Thanks to the company's strong performance in exports, PI Industries' EBITDA (including all business segments) increased by 37% year-on-year. At the same time, the company's agricultural chemical exports grew by 19%, driven by the expansion of existing products and the launch of six new products (Eketsu, Claret, Aminogrow, Kadett, PB Knot, PIILIN). The future growth prospects for PI Industries are also optimistic. The company's R&D pyridine amide insecticide Pioxaniliprole received ISO common name approval in the current ffscal year, making it the ffrst enterprise in India to receive such approval. In addition, the company's product pipeline includes more than 20 products under development and registration, providing a clear vision for business growth in the coming years.

Safex Chemicals Company also achieved a remarkable performance in the ffscal year 2023-24, with its agrochemical business growing by 21% to ₹ 1,404.6 crore, securing its ffrst entry into the top 20 Indian agrochemical companies list, and ranking 18th in the annual list. It is worth mentioning that Safex Chemicals had acquired Briar Chemicals, a leading UK agricultural chemical CDMO solutions provider, at the end of 2022, complementing its existing brand business operations in India, and rapidly developing into an integrated company with businesses in all vertical industry sectors.

Despite certain Indian companies encountering challenges such as reduced growth rates or even negative growth, the sentiment remains optimistic regarding the future of the Indian agrochemical market. There is a belief that the sequential improvement in the performance of agricultural input ffrms, alongside better monsoon conditions, will lead to a robust increase in demand for crop protection chemicals during the Kharif season. This surge in demand is seen as a positive sign for an increase in average seeding levels, which in turn, is anticipated to benefft the agrochemical industry as a whole. Although the recovery is likely to be gradual, India's strategic adjustments to long-term structural drivers, including the "China+1" strategy and the push for import substitution, are expected to sustain the expansion of India's share in the global market. Leading companies are concentrating on innovation, cost optimization, and strategic investments to ensure sustainable and robust growth.

Backward Integration + Strategic Reinforcement : Strategic Mergers, Key Partnerships, and Production Innovations…

Numerous Indian enterprises are persistently enhancing their manufacturing capabilities by intensifying their efforts in backward integration and commercial strategies for pivotal off-patent products. This is being achieved through a strategic approach that includes both domestic and international expansion via mergers and acquisitions, forging strategic alliances, engaging in distribution collaborations, and establishing production facilities dedicated to critical ingredients.

UPL: FY2023-24, UPL has implemented a suite of strategic initiatives aimed at bolstering its standing within the global agrochemical sector. In terms of industry chain expansion, UPL acquired Corteva Agriscience's solo mancozeb global fungicide business outside of China, Japan, South Korea, and EU member countries, thereby acquiring the prestigious Dithane® brand, a pioneer in the mancozeb category. In an effort to boost manufacturing capabilities and fortify the stability of its global agrochemical supply chain, UPL made a signiffcant investment in China by initiating the construction of a pesticide formulation facility in Jiangsu with an annual output of 50,000 tons in October 2023. Furthermore, the company has forged strategic alliances with Shanghai Shengnon and Zhongtian Bangzheng, focusing on developing a product supply chain that is responsive to market demands. In the realm of distribution partnerships, UPL has integrated its Brazilian operations with agribusiness giant Bunge to establish Sinova, a new agricultural distributor.Moreover, UPL has recently ffnalized the 100% acquisition of PT Excel, an Indonesian distributor, thereby intensifying its strategic footprint in the Southeast Asian market.

Rallis India: The company demonstrated a commendable ffnancial turnaround, achieving a stronger cash ffow and settling all external debts, which is indicative of the company's solid ffnancial health and improved liquidity. The company has also made a notable capital expenditure at its Dahej facility to augment the production capacity of Pendimethalin by approximately 2,000 metric tons annually, with the anticipation that this versatile plant will become operational within the year. Furthermore, Rallis India has broadened its custom synthesis and manufacturing portfolio by introducing three innovative products, two of which are manufactured at the new Dahej unit, showcasing the company's commitment to expanding its product offerings and meeting market demands.

Tagros Chemicals: To accommodate growing market demands, Tagros Chemicals has declared an expansion of its manufacturing capabilities. The company is set to augment its production of agrochemical active ingredients and intermediates by acquiring an additional 5.50 acres within the Panchayankuppam SIPCOT Industrial Park in the Cuddalore district of Tamil Nadu, India. This strategic expansion is slated for completion by the close of 2024, thereby reinforcing Tagros Chemicals' commitment to enhancing its product supply chain and meeting the evolving needs of the agrochemical sector.

Crystal Crop Protection: In December 2023, Crystal India made strategic moves to strengthen its market presence by acquiring the trademark for the herbicide Gramoxone (active ingredient: paraquat) from Syngenta for exclusive use in the Indian market. The company's Managing Director highlighted that integrating Gramoxone into their portfolio would signiffcantly amplify their market reach in India and is anticipated to deliver notable contributions to their business performance. Furthermore, in a collaborative effort with Bayer, Crystal India introduced two innovative products, Curbix Pro and Kollar.

Best Agrolife: Best Agrolife Limited saw a 7.35% increase in its consolidated revenue for FY2023-24, reaching ₹ 1,873.3 crore, demonstrating its resilience and competitive strength in the agrochemical industry. During this year, Best Agrolife acquired a 99% stake in Kashmir Chemicals, signiffcantly enhancing its formulation production capabilities. Additionally, Best Agrolife secured domestic production registrations for key active ingredients such as Cyhalofop-butyl and Pyroxasulfone in India for the ffscal year. In September 2023, Best Agrolife entered into a sales agreement with Syngenta for the supply of Movondo (85% pyroxasulfone WG), marking the ffrst time an Indian agrochemical company has exported such a key compound molecule to a multinational corporation.

SML Group: In December 2023, SML Group made a strategic announcement regarding a $10 million investment to penetrate the Brazilian market for crop protection solutions. The primary focus of this investment is on crops that are intensively irrigated, as well as sugarcane. The company is diligently working on the development of an extensive suite of innovative products. This includes a variety of nutrients, pesticides, and bioproducts.

The Bio-solution Market Value Continues to Expand, Leading Companies Accelerate Strategic Deployment

The Indian biopesticides market grew to $69.62 million in 2022 and is expected to reach $130.37 million by 2029 (source: Fortune Business Insights). In FY2023- 24, companies such as UPL, PI Industries, and Dhanuka Agritech, which made it to the top 20 Indian agrochemical companies list, have been actively pursuing various avenues. They have been expanding their biopesticides business through establishing research and development collaborations, distribution partnerships, setting up research centers in international markets, and expanding their production bases.

UPL: In 2023, UPL inaugurated the Natural Plant Production (NPP) Research Center in Mexico, a hub for crafting innovative solutions aimed at sustainable agriculture. This cutting-edge research facility is outfftted with state-of-the-art equipment, and its contemporary greenhouse will serve as a focal point for seasoned researchers. The center is designed to enhance collaborative efforts with both local and international academic and research institutions. Moving into 2024, UPL has broadened its biopesticides operations in Brazil, prioritizing the expansion of the Bioplanta factory. Initially acquired with a modest production capacity, the factory is slated for signiffcant upgrades, including the establishment of new labs dedicated to the advancement of biological products. Beyond Latin America, UPL has ventured into Sri Lanka with the establishment of its wholly-owned subsidiary, UPL Lanka Bio. This initiative is poised to expedite the development of groundbreaking products and offer comprehensive biological solutions to farmers, thereby reinforcing UPL's commitment to agricultural innovation and sustainability.

PI Industries: In 2023, PI Industries entered into a strategic alliance agreement with Koppert, aiming to jointly develop a portfolio of biological products and innovate together in the ffeld of bioformulations. In 2024, PI announced the acquisition of Plant Health Care Plc (PHC), a company listed on the UK AIM market, for £32.8 million. By integrating PHC's plant immune-induction technology, PI Industries will be able to create a "dual engine" of biotechnology and innovative chemical products, adding new vitality to its product portfolio in both the Indian and international markets.

Dhanuka Agritech: Dhanuka Agritech signed a letter of intent with Spain's Kimitec in 2023, to explore collaborative business opportunities, including the establishment of a joint venture in India to develop and market bio-products containing natural ingredients, as well as the construction of R&D facilities within the country. Subsequently, the company launched its BiologiQ series of products in India, which includes the biological insecticide Whiteaxe, the biological fungicides Downil and Sporenil, marking its entry into the agricultural bio-products sector.

Coromandel International: Coromandel is a key player in the Indian biopesticide market. In the ffscal year 2024, the company launched two new biopesticides based on neem oil, "Azamax" and "Adhiraj," which have been well received by the market. To diversify its product portfolio, Coromandel International is expanding its range of non-neem products, venturing into other plant extracts, biofertilizers, and microbial crop protection products.