Dhanuka Agritech starts subsidiary company in Bangladesh

Dhanuka Agritech, Indian agrochemicals and seeds major, has started a wholly-owned subsidiary company for its agrochemical business in Bangladesh.

Dhanuka is also adding new product segments in its kitty, including, crop protection solutions for tea and paddy and further strengthening its offerings in the markets of east and south India, which are the leading producers of tea and paddy, respectively.

The company is in the process of launching “Banmite” that addresses the need of tea planters and “Bambard” for the paddy growers. The company will be putting in place an extensive distribution and sales network, in addition to the existing, in the respective regions to penetrate even in the remote corners.

The company has its eyes firmly set on the next milestone of achieving the target gross turnover of Rs 1,000 crore in the next couple of years. Currently, the company is enhancing the manufacturing capacity at some of its facilities, such as, Sanand (Gujarat) and Udhampur (J&K) along with other modernisation initiatives at its plants involving installation of high tech machinery and automation.

"We are raising Rs 40 crore for enhancing the manufacturing facilities through internal accruals,” said M K Dhanuka, managing director, Dhanuka Agritech. He also said that the company was now producing more than 80 products and had solutions for all the crops across India.

As part of its strategy to intensify market penetration, Dhanuka is undertaking channel expansion. At present, the company has around 6,200 distributors and plans to add 1000 more distributors across the country this year. With current retail and dealer base of more than 70,000 and 30 offices and warehouses across India, Dhanuka is among the top five in India when it comes to branded sales.

Further, on inorganic growth plans, the company is looking at acquiring a seed firm for around Rs 50-crore within a year.