Insecticides India aims to become debt-free by end-FY18

Date:04-24-2017

Agrochemical maker Insecticides (India) is aiming to become debt-free by end of 2017-18 fiscal by focusing on bottomline growth and maximising sales with launch of new products, its top official said recently.

The BSE-listed company has an estimated debt of Rs 200 crore, including the working capital, as on March 31, 2017 of which term loans were Rs 30 crore.

"We want to be debt-free by end of the current financial year. We will focus on bottomline growth, getting maximum returns with minimum investment," Insecticides (India) Managing Director Rajesh Aggarwal said.

There are no major investment plans this year except Rs 30 crore for expansion of the technical synthesis plant at Dahej in Gujarat, he said.

Many new products, mostly in insecticides for all agri- crops, are in the pipeline. "At least half a dozen products will be launched during the kharif season starting June," he added.

To boost bottomline, Aggarwal said, the focus will be on achieving 20 per cent sales growth (both domestic and export) with an aggressive push to be given to a product mix of existing and the new ones.

"We have crossed Rs 1,000 crore sales in 2016-17 fiscal.

We aim to achieve 20 per cent growth in the current fiscal," he said.

The company will shift from generic products to next generation solutions, which will be ready-to-use for farmers, he added.

Aggarwal exuded confidence that the sales targets are achievable this fiscal in the wake of a good monsoon, as has been forecast by the government's weather office -- IMD.

The company's annual turnover had taken a hit in the last two years prior to 2016-17 fiscal because of drought.

The performance for the full 2016-17 financial year is yet to announced.

Insecticides (India) has six formulation units in Chopanki (Rajasthan), Samba and Udhampur (Jammu & Kashmir), Dahej (Gujarat). It also has technical synthesis plants at Chopanki and Dahej to make technical grade chemicals.

The company is also in the process of setting up a GLP research and development facility in Rajasthan for agrochemicals.