Vertical Integration of The Industry Chain: A Case Study of Picoxystrobin

Under the trend of global resource integration, India's agrochemical industry is rapidly rising and becoming an important player in the global agrochemical market. This article focuses on picoxystrobin in India's agrochemical industry, an important agricultural chemical in the global agrochemical market. It explores the construction and development of its industry chain, revealing the gradual improvement of the country's agrochemical industry support system and its increasingly significant influence in the global agrochemical market. Through this typical case, we can better understand the development direction of India's agrochemical industry, providing valuable references for research and decision-making in related fields.

I. Picoxystrobin in India's Agrochemical Industry

Currently, the rapid development of India's agrochemical industry is supported by multiple factors. According to the latest report from Rubix Data Sciences, India's agrochemical industry is expected to grow at a compound annual growth rate of 9% during the fiscal years 2025 to 2028, with market size projected to increase from the current $10.3 billion to $14.5 billion. This growth is mainly due to government policy support, capacity expansion, domestic and international market growth, and the introduction of innovative products. The Indian government considers the agrochemical industry as one of the "12 industries with the most potential for India to gain global leadership," actively promoting the "Make in India" strategy, simplifying regulations for the pesticide industry, strengthening infrastructure construction, and striving to make India a global center for agrochemical production and export.

Among various agricultural chemicals, methoxy acrylate fungicides occupy an important position in the global agrochemical market due to their unique mechanism of action and broad spectrum. Besides blockbuster products such as azoxystrobin and pyraclostrobin, picoxystrobin is the fastest-growing fungicide in this category. According to Phillips data, in 2022,the global market value of picoxystrobin was $305 million, with Brazilian soybeans being its largest market, valued at about $200 million; global usage exceeded 3,000 tons, with about 2,100 tons applied to Brazilian soybeans; global application area was about 46 million hectares, with about 34 million hectares applied to Brazilian soybeans. These data fully demonstrate the important position of picoxystrobin in the current global agrochemical market, with promising market prospects.

As this industry trend continues to develop, local Indian enterprises are also actively participating in the production of picoxystrobin, gradually building a complete industry chain. It is reported that with the support of the multinational company Corteva, the local picoxystrobin industry chain system has been gradually improved, basically forming an efficient collaborative model covering various links from raw material production to final products. The main participants include Jubilant Ingrevia Ltd（hereinafter referred to as Jubilant）, Navin Fluorine International Ltd（hereinafter referred to Navin）, and Deccan Fine Chemicals India Pvt. Ltd（hereinafter referred to as Deccan）.

JUBILANT, as a global leader in the pyridine industry, occupies a leading position in the production of pyridine and its derivatives worldwide. The company established a wholly-owned subsidiary, Jubilant Crop Protection Limited, in 2021, focusing on the production of agrochemicals, aiming to leverage its advantages in pyridine, methylpyridine, and diketene chemistry to create a complete value chain in the agrochemical field. In 2023, JUBILANT further invested in the construction of multi-functional agricultural intermediate production facilities, laying a solid foundation for its development. The company plays the role of producing upstream intermediates in the picoxystrobin industry chain.

NAVIN is one of India's largest manufacturers of specialty fluorochemicals, with multiple manufacturing bases and advanced R&D centers. The company's expertise in fluorochemicals can provide technical support for the production of key intermediates in the picoxystrobin industry chain.

Deccan specializes in the production of agrochemical active ingredients and intermediates, veterinary medicines, and specialty chemicals, with rich experience in custom manufacturing in the fields of agrochemicals, fine chemicals, and specialty chemicals. The company plays an important role in the final synthesis step of the picoxystrobin industry chain.

II. Industry Chain Construction from Intermediates to End Products

In the synthesis route of picoxystrobin, there are two common methods. The first is to use (E)-3-methoxy-2-(2-halomethylphenyl)-2-propenoic acid methyl ester and 2-hydroxy-6-trifluoromethylpyridine through the Williamson ether synthesis method; the second is to use o-halomethylphenylacetic acid methyl ester as the raw material, first synthesizing the basic skeleton structure of picoxystrobin with  2-hydroxy-6-trifluoromethylpyridine through the Williamson ether synthesis method, and then introducing a methoxymethylene group on the phenylacetic acid methyl ester side chain to achieve the synthesis of picoxystrobin. However, regardless of which synthesis route is used, 2-hydroxy-6-trifluoromethylpyridine is an indispensable key intermediate in the production of picoxystrobin, which largely determines the production cost of the final product.

The production process of picoxystrobin in India is divided into the following 4 steps:

Step 1: Synthesis of 2-methylpyridine from acetonitrile, acetylene, and ammonia;

Step 2: Preparation of 2-chloro-6-trichloromethylpyridine (CTC) from 2-methylpyridine, and then synthesis of 2-fluoro-6-trifluoromethylpyridine (FTF);

Step 3: Finally, preparation of 2-hydroxy-6-trifluoromethylpyridine from 2-fluoro-6-trifluoromethylpyridine;

Lastly, synthesis of the final product picoxystrobin from the key pyridine intermediate.

Based on AGROPAGES research, the general situation of India's picoxystrobin industry chain is summarized as follows.

JUBILANT --- Upstream Intermediate Production

JUBILANT focuses on upstream intermediate production in the picoxystrobin industry chain, mainly producing 2-methylpyridine, 2-chloro-6-trichloromethylpyridine, and further synthesizing to 2-fluoro-6-trifluoromethylpyridine. The company has established a cooperative relationship with Corteva, supplying these related intermediates, leveraging its global leading position in the pyridine industry to provide solid upstream support for the picoxystrobin industry chain. According to customs data, in February 2024, JUBILANT imported 140 tons of 2-methylpyridine from China, indicating that the company is actively expanding its capacity to meet growing market demand.

NAVIN --- Intermediate Production

As one of India's largest specialty fluorochemical manufacturers, NAVIN focuses on producing the key picoxystrobin intermediate 2-hydroxy-6-trifluoromethylpyridine, potentially starting from 2-chloro-6-trichloromethylpyridine or 2-fluoro-6-trifluoromethylpyridine, and finally producing 2-hydroxy-6-trifluoromethylpyridine. The company has reached a cooperation agreement with Corteva, adopting a strategy of 50% custom production and 50% domestic market sales, ensuring Corteva's supply needs while also expanding NAVIN's domestic market. NAVIN's expertise in fluorochemicals provides technical assurance for this key step. According to customs data, in July 2024, NAVIN imported 20.28 tons of 2-chloro-6-trichloromethylpyridine from the United States, possibly to optimize raw material procurement and improve production processes.

DECCAN --- Final Synthesis

Deccan plays an important role in the final preparation of the product in the picoxystrobin industry chain. The company uses 2-hydroxy-6-trifluoromethylpyridine to synthesize the final picoxystrobin. According to customs data, since starting shipments in August 2023, Deccan has supplied 347 tons of picoxystrobin to Corteva in the past 12 months.

In summary, in India's picoxystrobin industry chain, JUBILANT is responsible for upstream intermediate production, NAVIN focuses on key pyridine intermediate production, and Deccan undertakes the final synthesis step, ultimately supplying the product to Corteva. This close collaboration from upstream to downstream not only optimizes the production process but also effectively reduces overall production costs, enhancing the competitiveness of the industry chain.

Furthermore, Corteva's choice to collaborate with local Indian enterprises for picoxystrobin production indicates that India's agrochemical industry has certain competitiveness and development potential. This cooperation model not only provides technical support and market channels for Indian enterprises but also helps Corteva achieve localized production, effectively improving its market response speed.

III. Reference and Enlightenment

From a product perspective, the success of the picoxystrobin industry chain provides valuable experience for the future development of India's agrochemical industry. Thanks to factors such as active government policies, growing market demand, capacity expansion, and continuous technological innovation, its future development prospects are worth looking forward to:

• Capacity Expansion: With the increase in global market demand for picoxystrobin, Indian companies such as JUBILANT, NAVIN, and DECCAN are likely to further expand their production capacity to meet growing international demand.

• Technological Upgrades: Through continuous R&D and technological innovation, Indian enterprises are expected to make new breakthroughs in the synthesis process and purity control of picoxystrobin, further improving product quality and production efficiency.

• Product Diversification: Indian enterprises may leverage existing technologies and production capabilities to develop derivative products of picoxystrobin or new compound formulations to expand their product lines and meet diverse market demands.

• Global Layout: As India's picoxystrobin industry chain matures, related enterprises may consider setting up production bases or seeking partners in other countries and regions to achieve global layout.

This localization of end-product active ingredient supply indirectly reflects the overall rising competitiveness of India's agrochemical industry. This makes Indian agrochemical products more attractive in the international market, helping to further expand export scale.

Overall, the development of the picoxystrobin industry chain not only demonstrates the enormous potential of India's agrochemical industry but also provides an example for the overall upgrade of Indian manufacturing. Through collaborative development of the industry chain and continuous innovation, India may achieve breakthroughs in more high-value-added fields, promoting economic structural transformation and upgrading, and occupying a more important position in the global industry chain. At the same time, India's importance as a production base will continue to increase, potentially attracting more companies to invest in factories or seek cooperation in India.

This story was initially published in the 2024 India Focus. Download the magazine to read more stories.

Please contact Christina Xie at christina@agropages.com if you would like to share your company story, contribute articles or advertising with AgroPages.