Biostadt India Limited

Introduction

Key Company Snapshot:

The company was founded in 2003. It is present in 22 countries and has more than 2000 employees.
KMPs: Mr. Juzar Khorakiwala (Chairman & Managing Director); Mr. Huzaifa Khorakiwala (CEO & Director); Mr.
Satish Kamath (Group CFO & Company Secretary), Mr. Nitiin R Sonar (COO)
Head Office: Mumbai, Maharashtra
Manufacturing units: Waluj, Bhavnagar, Jammu, Aurangabad and Baroda.

Product verticals:
• Crop Solutions: 45 crop healthcare / protection solutions, spanning from bio stimulants (BILT – Biostadt
Induced Lacto-fermentation Technology in the realm of seaweed science elevates agricultural intelligence and
represents a new era in crop nutrition), insecticides, fungicides, herbicides, and PGR.
• Aquaculture: Probiotics, Feed Additives, Deodorizers, Disinfectants, Minerals Based Feed Additives, Soil
Enricher, Hormone.
• Seed: Hybrid Bajra, Hybrid and Research Paddy, Corn, Forages, SSG, Castor, Mustard, Cumin, Coriander and
other vegetable seeds

Journey over the years

Over the years, Biostadt India Limited has grown organically through product diversification, market expansion,
and adding related businesses like seeds, a separate division for horticulture crops (InGene Organics Pvt. Ltd.),
and also related acquisitions in aquaculture in Vietnam, and the acquisition of Nandi Seeds Pvt. Ltd., in the last
few years.
They plan to continue on this road map for future growth in related agricultural segments. Specifically, they are
working very aggressively with Japanese companies to bring to market patented molecules which will be
commercialized in the next 2-3 years. This will propel the company’s growth to a different level.
(source: Juzar Khorakiwala interview in Enterprise World, 2021)
• 2003 - Biostadt India Limited founded as an independent entity
• 2005 - First Biostadt Aastha Clinic launched. Joint venture with MH Seeds. Establishment of a manufacturing
facility in Jammu
• 2007 - Inauguration of "INGENE" Biological Research Lab, a state-of-the-art R&D facility in Waluj,
Aurangabad.
• 2008 - Launch of brand Maiden in collaboration with Nippon Soda, Japan
• 2009 - Joint venture with VinhThinh Vietnam. Launch of Biostadt Aastha Rath Van
 • 2011 - Set up of state-of-the-art factory in Bhavnagar
• 2013 - Biostadt acquires Nandi Seeds Pvt. Ltd.
• 2015 – Launch of "BILT" in-house technology. Acquisition of Vinhthinh Biostadt Vietnam Hatchery.
• 2017 - Biostadt Group becomes a debt free company.
• 2019 - Expansion of facility in Bhavnagar, Gujarat
• 2021 - Biostadt Group achieves INR 1000 cr turnover.
• 2022 - Re-branding of flagship brand Biozyme accompanied with a nation-wide mass media campaign. Launch
of Biozyme Pragati Scholarship (previously known as Biostadt Astha Scholarship). Nandi Seeds Pvt. Ltd., a
Biostadt Group Company, acquires Biogene Sciences Pvt. Ltd., to expand geographies in South India.
• 2023 - Biostadt acquires exclusive rights from AlzChem Group, Germany to market brands Dormex & Sitofex
in India. Expansion of factory in Waluj, Aurangabad

Key Business Snapshot

Key Financial Snapshot (Rs Mn)

Year-end MAR-2023 MAR-2022 MAR-2021

Net Sales 8,970.5 8,987.9 8,935.6

Total Expenditure 8,238.9 8,297.2 7,824.7
EBITDA 922.5 922.3 1,341.9
EBITDA [%] 10.3% 10.3% 15.0%
PAT 587.8 593.7 924.1
PAT% 6.5% 6.6% 10.3%
SOURCE OF FUNDS
Equity Paid Up 33.0 33.0 33.0
Reserves & Surplus - - 3,189.0
Net Worth 4,260.7 3,674.4 3,222.0
Total Debt/Total Borrowing 206.2 163.1 23.3
APPLICATION OF FUNDS
Net Block 835.7 773.9 604.9
Investments 1,081.9 1,203.2 1,429.0
Cash & Bank Balance 461.9 435.8 292.5
Total Current Assets 6,101.6 5,662.1 5,436.5
Total Current Liabilities 3,396.7 3,419.8 3,107.8
Total Assets 8,030.1 7,473.5 6,886.8
CASH FLOW
Cash Flow from Operations -38.8 428.6 977.6
Cash Flow from Investing 34.7 -82.7 -681.2
Cash Flow from Financing 17.5 -211.9 -178.8
KEY RATIOS
Debt To Equity 0.05 0.04 0.01
Current Ratio 1.8 1.7 1.8
Debt to Assets Ratio 0.03 0.02 -
Asset Turnover Ratio 1.1 1.2 1.3

Promoters Background

Juzar Khorakiwala (Chairman & Managing Director):- Besides being Chairman and Managing Director of Biostadt
India Limited and the Immediate-Past President of IMC Chamber of Commerce & Industry 2021-2022, Juzar
Khorakiwala is also the Chairman and President of BASAI (Biological Agri-Solutions Association of India). He has been
honored with multiple industry positions such as President of the Indo-Vietnam Chamber of Commerce, the Rotary
Club of Bombay Central, Vice-President of the Indo-Canadian Business Council, and Vice-President of The Bombay
Gymkhana, to name a few.

Huzaifa Khorakiwala (CEO & Director):- He is also a Director at InGene Organics Pvt. Ltd. and Nandi Seeds Pvt. Ltd.
Educated in Mumbai, Bangalore, Switzerland, and Boston, he holds a Bachelor's degree in Marketing and Economics
from Suffolk University Boston.

Rationale for merger / partnership

Size and scale: Biostadt India achieved consolidated revenues of INR 8,970 mn in FY23 split as below:
INR mn FY23 % FY22 %
Domestic sales 8,017 90% 8,053 90%
Export 930 10% 921 10%
Total 8,947 8,974
Domestic Sales in FY23 accounted for 89.6% of total sales. Balance came from exports (to more than 20 countries
across the globe).

Strategic fit and portfolio synergy:

Business segments: crop protection chemicals (pesticides, fungicides, herbicides, PGRs), biologicals (using Biostadt
induced Lacto-fermentation Technology to seaweed extracts) – loaded in bentonite clay granules, used in North and
South India for rice and wheat crops, aquaculture inputs, hybrid seeds,
Flagship biological product: Biozyme is the world’s largest selling plant growth stimulant. ‘Biozyme’, ‘Nanozim’,
‘HyZyme’ and globally known as ‘Wokozim’ are novel non-chemical, non-toxic, and eco-friendly seaweed extract-
based bio-stimulants.
The fermentation-based biotechnological inputs are widely accepted by farmers all over the world. Leveraging demand
from the farmer community, Biostadt have also launched new formulation products such as DeLite, Nano Drip,
Rejoice, Amaze XL, and Nanozim NXT. They will also be coming up with Cradle and Mobilizer brands, which are
Mycorrhiza-based products enriched with seaweed.
Ingene Organics Pvt. Ltd. – focused on horticulture segment viz fruits and vegetables.
INR mn FY23 % FY22 %
Crop care 7,411 83% 7,598 85%
Aquaculture 889 10% 821 9%
Others 646 7% 555 6%
Total 8,947 8,974

Digitized supply chain : Manufacturing operations supported by 5 manufacturing facilities; manufacturing and
supply chain processes are completely digitized on the SAP platform ; a wide distribution network with 30 CFAs and
one mother depot.

In-licensed products & marketing agreements: Biostadt India Limited also deals in crop protection chemicals,
representing renowned Japanese multinationals such as Mitsui, Hokko, Sumitomo, Nippon Soda, etc., covering a range
of applications in insecticides, herbicides, fungicides, and weedicides. They have also ventured into a range of
aquaculture products for pond management, with an alert field force to cover the states of Andhra Pradesh, Tamil
Nadu, and West Bengal.
Collab with German PGR Brand: Biostadt acquires exclusive rights from AlzChem Group Germany to market PGR
brands Dormex & Sitofex in India.
Distribution network: Strong distribution network in North and Central India with 3000+ distributors and 25,000
retail centres.

Manufacturing and R&D units: Five state of the art research and manufacturing plants located at Waluj, Bhavnagar,
Jammu, Aurangabad and Baroda.

Ethics, Governance and Financial Fit:

Biostadt is a family business founded by Juzar Khorakiwala & family. Juzar is a pharmacist by education and
President of BASAI (Biological Agri-Solutions Association of India). Juzar attributes Biostadt’s success to high
quality & efficacious products, consistent focus on biologicals, which are ecofriendly and organic, a high
performance culture and professionally run organization.

Financially healthy with EBIDTA of 10.3% in FY23 (it was 15% in FY21), PAT of 6.5% with low leverage
(Debt/Equity of 0.05) and attractive ROCE of 17.8% (FY22 ROCE 21%).

Future strategy:
Biostadt’s growth in the next few years will come from the following: New chemistries, some of which are already
in the pipeline; expanding geographies, higher penetration in rural areas; introduction of new products; strategic
acquisitions.
(Source: Juzar Khorakiwala interview July – Aug 2022, BioAg World Digest)