Jan. 22, 2025
Dhanuka Agritech Limited has successfully completed a strategic acquisition worth ₹165 crore, securing international rights for two major fungicides, Iprovalicarb and Triadimenol, from Bayer AG. This acquisition marks a significant milestone for Dhanuka as it ventures into global markets, gaining access to over 20 countries across Latin America (LATAM), Europe, the Middle East, Africa (EMEA), Asia, and India.
The fungicides, developed by Bayer AG, a global leader in agricultural solutions, are recognized for their effectiveness and reliability. This deal strengthens Dhanuka’s portfolio, enabling it to offer advanced solutions to farmers and distributors worldwide.
Iprovalicarb is a specialized fungicide designed to combat Oomycetes diseases in horticultural crops. It is marketed under established brand names such as Melody Duo, Melody Compact, and Melodika. Meanwhile, Triadimenol is a highly effective seed treatment fungicide widely used in cereals, cotton, and coffee. It belongs to the DMI Triazole fungicide family and is classified under the SBI Class 1 category, reflecting its superior efficacy.
This acquisition provides Dhanuka with a competitive advantage in the agrochemical market. Iprovalicarb currently holds a 50% market share, with limited generic competition, while Triadimenol commands a 20-25% market share in Brazil, a high-barrier market critical for sustained growth. The company plans to leverage Bayer’s pre-existing customer base in these markets and aims to revitalize the declining sales of both products through its robust marketing and distribution network.
To enhance cost efficiency and scalability, Dhanuka plans to transition Iprovalicarb’s manufacturing operations to its Dahej facility in Gujarat within the next two to three years. This shift is expected to improve margins and ensure consistent supply to meet global demand.
Speaking about the acquisition, Mr. Harsh Dhanuka, Executive Director of Dhanuka Agritech Ltd., said, ″This acquisition is a turning point for Dhanuka as we enter international markets with Bayer AG’s trusted brands. In 2023, these products generated ₹220 crore in revenue. We are targeting an EBITDA margin of 12-15% post-integration. By FY26, revenue generation in India will commence by Q1, and global operations are expected to scale by Q4.″
Looking ahead, Dhanuka intends to adopt a global B2B model, collaborating with local distributors in international markets while utilizing its extensive network in India. The acquisition also aligns with the ‘Make in India’ initiative, positioning India as a key hub for agrochemical production and export.
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