GSP Crop Science plans manufacturing expansion in Gujarat, India

Date:03-08-2022

Agrochemical firm GSP Crop Science Pvt Ltd plans to expand its manufacturing capacity of technicals and intermediates at Saykha in Gujarat with an investment of about ₹500 crore over next few years, a move that would help reduce its dependency on China. Bhavesh Shah, Managing Director, GSP Crop Science mentions that the capacity utilisation at its manufacturing units in Gujarat has reached 80 percent prompting the company to go in for expansion plans.

The proposed expansion would reduce the company’s dependency on China for technicals to around 30-40 percent from the current 80 percent. The company has formulation and technical manufacturing units at Nandesari, Saykha in Gujarat and in Jammu.

It currently manufactures around 14 intermediates and plans to add another 4-5 intermediates with the proposed expansion plan, which will be funded largely by the internal accruals. The company sells agrochemicals in segments such as insecticides, fungicides and herbicides under sixty different brands in the domestic market for a range of crops such as paddy, cotton, wheat, soyabean, groundnut and vegetables among others. It also exports agrochemicals to around thirty countries including Brazil and the US. Brazil is the largest export market for the company.

GSP Crop Science also contract manufactures the agrochemicals for both domestic and global firms. The company derives around 45-50 percent of its earnings from its product sales in India, while exports contribute around 30 percent and the rest from contract manufacturing. Shah adds, “We are hoping to touch a revenue of ₹1,350 crore in the current financial year, ₹1,750 crore in the next financial year and ₹2,500 crore by 2025”. GSP Crop Science, which is among the top 20 agro-chemical players in the country, is aiming to be among the top ten in the next 3-4 years.

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