AGROCHEMICAL INDUSTRY

OVERVIEW
 Industry Overview-
Agrochemical is designed to protect crops from insects, Indian Crop Protection 8.1
diseases and weeds and eventually minimize crop losses. Market(USD Bn)

• The Indian crop protection industry was USD 4.1 billion 4.1 4.2
in FY16 and is expected to grow at a CAGR of 7.8% to
reach USD 8.1 billion by FY 2025
2
2.1 3.9
• India is the 4th largest global producer of agrochemicals
after the US, Japan and China and has emerged as the
13th largest exporter of pesticides globally. 2016 2025

Domestic Exports
 Global Market Overview
Global Crop Protection
Industry (USD Bn)
• The global crop protection industry has registered
a CAGR of 6% p.a. from FY06 to reach USD 48Bn in
FY12.
• The market is expected to grow further owing to
the increasing food and fuel needs and is expected
to grow at a CAGR of 5.4% p.a. to reach ~USD 71.3
Bn by FY18.

Source: FCCI/TATA Strategic Research

  Segmentation of the Indian Agrochemical market

Insecticides Fungicides Herbicides

Domestic Market segmentation
Control insect by type of pesticides
pests, which Prevent and Prevent and T.P-292K( MT)
4%
reduce crop cures fungal cures fungal 2017-18 Insecticide
yields and plant diseases plant diseases 18% Herbicides
quality
T.C-65 K(MT) 54% Fungicides
24%
Insecticides dominate the Indian Agrochemical market Others
(54%) . Herbicides & PGR are emerging as the fastest
growing segment amongst the agrochemicals.

 Plant growth regulators

Plant growth regulators can be defined as chemical substances that enhances the growth and development within
plants. They are also referred to as plant growth hormones or phytohormones.

• The plant growth regulators market was valued at USD 1.98 billion in 2016 and is projected to grow at a CAGR of
6.8% from 2017, to reach USD 2.93 billion by 2022
• India plant growth regulators market stood at over $ 6.1 million in 2017 and is projected to surpass $ 7 million
by 2023.

Note: Others include Bio-pesticides, Plant growth regulators, Nematocides, Rodenticides, Fumigants etc.
Rodenticides and plant growth regulators are the stars of this segment.

Source: FCCI
  Why India is the desirable market for Agrochemical ?
• In three of the four major
crops, India has
significantly low yield
mainly due to low quality
seeds, improper usage of
water and chemical
fertilizer, lack of
awareness of crop
protection solution and
degrading soil quality.

• Active participation of the

public and private players
with farmers is needed to
educate them better
about the role of crop
protection chemicals.

• Agrochemicals (Crop protection products/pesticides) are designed to protect crops from insects, diseases and
weeds. They do so by controlling pests that infect, consume or damage the crops.
• Approximately 25% of the global crop & 35% of Indian output is lost due to attacks by pests, weeds and diseases
which doesn't predict well for farming given the critical challenges ahead and thus agrochemicals have an
increasing role to play.

Source: FCCI
  Agrochemical Trade
• Overall exports have grown at CAGR 12.77%
from FY 2015-19, while imports have grown
at CAGR 5.12%

• Exports are dominated by fungicides and

herbicides segments while imports are
majorly technical raw material.
• Indian agrochemicals imports are mainly
from China (>50%), USA, Germany and
Israel
• Latin America, North America, Europe and
Asia have been top export markets for the
Indian agrochemical industry with 51% share
of total export in FY 19

Exports for Fungicides and

Herbicides have grown at a CAGR of
16.12% and 36.87% during FY15-18
respectively

Source: FCCI
  Crop protection distribution network

Technical Grade manufactures In-house formulators

Formulators Retailers/Dealers Distributors

Distributors Retailers

Retailers End users

• Typically, a company with all India presence have 400-1000 distributors catering to 25,000- 30,000 retailers.
• Companies keep their stocks in warehouses or depots from where it is supplied to distributors.

Multinationals, at times, enter into Syngenta entered into an agreement with Rallis for marketing of
co-marketing and co-distribution its products in India. Mid-size and small scale companies operate
arrangements with Indian companies through direct marketing of their products.

Source: FCCI
 Key Industry Players In India
Company Insecticides Herbicides Fungicides Others
BASF India Y - Y Seed treatment

Bayer Crop science Ltd Y Y Y Seed treatment, PGR

Dhanuka Agritech Limited Y Y Y PGRs, Surfactants

Dow Agro Sciences India Pvt. Ltd Y Y Y PGR

DuPont Y Y Y Growth Enhancer

Excel Crop Care Limited Y Y Y Seed treatment, Garden

Gharda Chemicals Ltd Y Y Y PGR

Meghmani Organics Limited Y Y Y Pesticide Intermediates

Monsanto India Ltd - Y - Maize seeds

Nagarjuna Agrichem Limited Y Y Y Fertilizers, Micro N, Liquid F

PI Industries Ltd Y Y Y Specialty Products

Rallis India Y Y Y Rodenticides, Seed

treatment
Syngenta India Y Y Y Seed treatment

United Phosphorous Limited Y Y Y Fumigants, Rodenticides

Source: FCCI