Dharmaj Crop Guard Limited: Pioneering Agrochemical Solutions for A Sustainable Future

Founded in 2015, Dharmaj Crop Guard Limited (DCGL) has swiftly become a leading force in the agrochemical industry. Headquartered in Ahmedabad, Gujarat, we are committed to delivering innovative and effective crop protection solutions to farmers across India and beyond. Our journey is defined by growth, strategic foresight, and innovation.

With a formulation production capacity of 25,500 TPA and a multi-purpose facility for intermediates and active ingredients with an 8,000 TPA capacity, we are equipped to meet diverse agricultural needs. Our integrated business model, encompassing Branded Formulations (B2C), Institutional Formulations (B2B), and Active Ingredients (B2B), ensures we provide exceptional value and set new standards of excellence and sustainability in the industry. Through collaboration, adaptation, and expansion, we are redefining excellence in the agrochemical sector, promising an inspiring future for our stakeholders.

Our entire brand sales team is dedicated to improving farmers lives by showcasing our products result on their field by demonstration from Seed to Harvest to more than 1 Mio farmers. Our social media campaign helps more than 6.5 Mio farmers covered & showing trustworthy testaments for us.

Shaping journey from Formulator to Technical Manufacturer

• Increased Manufacturing Capacity: Our expanded facilities now boast a manufacturing capacity of 8,000 MT per annum for technical and intermediate production, enabling us to meet the growing demands of both domestic and global markets. Our technical plant produces over 32 technical and 6 intermediate products in phases.

  
  

• Backward Integration: By integrating our supply chain, we control the quality and consistency of our raw materials, leading to superior end products. This integration also helps in reducing costs and improving delivery times.

Impact on the Agrochemical Industry

With this expansion, Dharmaj Crop Guard Limited is poised to revolutionize the agrochemical industry. Our commitment to innovation and quality ensures that we provide top-notch crop protection solutions that cater to the evolving needs of farmers and agricultural professionals worldwide. This transformation marks a new chapter in our journey, and we are excited to continue delivering excellence in crop protection. Thank you for your continued support and trust in Dharmaj Crop Guard Limited.

Dharmaj has sown the seeds of progress with the establishment of a state-of-the-art greenfield facility dedicated to the manufacturing of agrochemical active ingredients and intermediates. This strategic leap is a testament to our commitment to self-sufficiency and the pursuit of growth in the agrochemicals industry.

Strong Financial Performance

Despite facing challenges in the agrochemical industry, the company achieved remarkable financial performance in FY24. Revenue from Operations soared to a record high of ₹6,541 million, marking a 25% year-on-year increase from ₹5,243 million in FY23. Profitability margins saw significant improvement, with Gross Margins rising from 18% in FY23 to 21% in FY24. Consequently, EBITDA margins also increased from 8% to 10% during the same period.

The last quarter experienced an uptick in Finance Costs and Depreciation & Amortization due to the commissioning of the Saykha plant in Q4. These expenses are expected to stabilize in the coming financial year. For FY24, Net Profits stood at ₹444 million, reflecting a substantial 65% growth from the previous year’s ₹269 million.

Strategic Focus Areas

• Forward Momentum with Backward Integration: Our Saykha facility enhances our capabilities and market reach. We aim to stabilize operations and achieve optimal capacity utilization within three years, maximizing the facility’s potential for internal consumption and external sales.

  
  

• Strengthening Branded Formulations: We are boosting our brand presence through dealer interactions, farmer training, field demonstrations, and digital platforms. By launching innovative products and proactive demand generation, we aim to solidify our market position and expand into new and existing markets.

  
  

• Empowering Institutional Business: Domestically, we will leverage cost competitiveness to attract new accounts and collaborate with MNCs and leading agrochemical companies. Internationally, we will increase product registrations and strategic investments, supported by our active ingredients facility, to enhance export potential.

  
  

• Expanding Public and Animal Health Segments: We are broadening our pyrethroids product line to target public and animal health, supporting government initiatives against diseases like malaria and dengue. Our new facility will drive this vertical’s growth.

  
  

• Exploring Future Opportunities: Strengthening our value chain through backward integration positions us to market licensed formulations for patented molecules and form strategic collaborations with international player.

Comprehensive Product Portfolio

Building and maintaining strong brands is a demanding and ongoing process. Over the past nine years, we have diligently worked to cultivate a robust portfolio of brands that resonate strongly with our primary consumer base – 1 million farmers.

• Extensive Reach: Our strategic marketing activities and on-ground demand generation efforts have successfully covered over 1 million farmers.

  
  

• Quality and Trust: Consistently delivering high-quality products at cost-effective prices has built strong trust with our customers.

  
  

• Innovation: Implementing innovative trade policies and introducing new, improved formulations to meet evolving market needs.

  
  

• Aggressive Growth: These efforts have collectively driven significant growth for our company.

Commitment to Quality and Innovation

DCGL is an ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 17025:2017 & NABL Lab certified company, emphasizing quality and consistency in its products. The company boasts an in-house R&D facility, continuously working on developing new and improved formulations to meet the evolving needs of the agricultural sector.

Expanding Global Reach

With a robust distribution network, DCGL exports its products to over 30 countries, including regions in Latin America, East Africa, the Middle East, and Far East Asia. This global presence underscores the company’s commitment to delivering high-quality agrochemical solutions worldwide. We also expanding our product registration across the globe. Totally we have more than 100 products registration available & more than 100 registrations under process. We have more than 8 products GLP data available & many more yet come.

Awards and Recognitions

DCGL’s excellence has been recognized with several awards, including the Company of the Year Award in 2024. These accolades are a testament to the company’s unwavering commitment to quality, innovation, and customer satisfaction.

Nurturing Growth Beyond the Field

At Dharmaj, our approach to Corporate Social Responsibility (CSR) transcends mere compliance, embodying a profound commitment to our communities. Through the Dharmaj Foundation and strategic partnerships with esteemed trusts and non-governmental organizations, we focus on elevating healthcare and educational standards within our local communities. 

Our commitment to social responsibility is exemplified by our ″Education for All″ campaign, which has reached over 58 K students across more than 550 schools throughout India. This initiative is a testament to our belief in cultivating a holistic ecosystem. We strive to ensure that every stakeholder, from farmers to local communities, thrives under the umbrella of our inclusive growth. As we nurture fields, we nurture lives, understanding that prosperity cultivated with care yields the sweetest fruit.

Outlook - FY25

As we step into FY25, we are optimistic about our company’s prospects. The upcoming year looks promising for the domestic agrochemical markets, buoyed by a favorable rainfall forecast and expectations of a good sowing season, which bodes well for our formulations business. Our enhanced pan-India presence across 24 states, coupled with a robust network of over 5,000 dealers and distributors, positions us well to drive growth in our branded formulations vertical.

In the Institutional Formulations vertical, we continue to perform strongly. The expansion of our product portfolio and clientele serves as key growth drivers. We are witnessing significant traction in the small formulators category and have achieved notable breakthroughs with large agrochemical majors.

Our focus is on ramping up operations at Saykha, which will be a critical determinant of our performance in the coming years. While such a large-scale investment may present initial challenges and require a gestation period to reach its full potential, we are fully prepared to capitalize on its capabilities. We anticipate optimal utilization of Saykha’s capacity within the next three years.

Dharmaj is well-prepared to achieve its growth ambitions in the coming year, driven primarily by the expanding formulations business, complemented by the initial contributions from the newly launched Active Ingredients vertical.

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.