DSIJ Interview With Sandeep Aggarwal CFO, Insecticides (India) Ltd
"Capitalize On The Make In India Initiative"
Sandeep Aggarwal CFO, Insecticides (India) Ltd
What is your growth strategy?
We will be focusing on following business aspects for growth in coming years:
Phase out Generic Products
1.Gradual reduction in the sale of Generic products (high volume-low margin) for fiscal year is on expected lines
2. Introduction of new products in the Maharatna category
Backward and Forward Integration
1. Moving on the strategic path of backward and forward integration
2. Capitalize on the Make in India initiative
3. Will result in better margins across technicals and formulations
Optimum Capital Structure and Operational Efficiency
1. Strong cash flow generation
2. Capex of Rs.1 bn in next 2-3 years for synthesis facilities in Gujarat and Rajasthan
R& D will results in New product launches
1. Focus on in-house R&D and international partners to launch new products
2. Launched 3 new products during Q1 FY2020
3. Expected 10 new products in full year FY2020
Focussed Approach on Biologicals
1. Developed and commercialized VAM (Vaslcular Arbuscular Mycorrhiaze)
2. Developed and commercialized soil energizer, Kayakalp
3. Development of 3-4 new biological products is in pipeline
Exports
1. Working on registration in new countries with 100+ export agreements
2. Expanding in new geographies: Exporting to 20+ countries Expand to 25+ countries by the end of FY2020
What are your key strengths at Insecticides India?
R & D : NABL QC Labs • In-house R&D Centre • JV with OAT Agrio Co. Japan for dedicated R&D Centre
Manufacturing : 5 Formulations plant • 2 Technical synthesis plants • 1 Biological manufacturing plant*
Marketing : Sale & market development • Branding • International tie ups and collaborations • Evolving media mix
Development & Training : Emphasis on field activities • Farmer awareness • Sales force training
State-of-the-art in house R&D centre established in 2005, augmented by product innovation R&D center, formulation R&D centre and biological
R&D centre : Approved by DSIR, Ministry of Science and Technology • Working on new formulations and new combination products.
Formulation R&D Centre : Development of new generation formulations • Focus on cost reduction, customer friendly and environment safe products.
Biological R&D Centre
1. Equipped with bio assay and product development facilities
2. Looking forward to development of 3-4 new biological products
Product invention R&D center:
A unique initiative of product discovery in India by forming a JV with Japanese company, OAT Agrio Co. Ltd.
1.Equipped with the latest machines and equipment's like NMR, Lab set designed by Kewanee, USA
2. Lead by the internationally renowned scientists with more than 25 years of experience
3. One of its kind breeding centers, bio assay rooms and spray cabinets
Technical collaboration with international partners for manufacturing and marketing innovative products:
1. AMVAC (USA), Momentive (USA), Nissan Chemical Corporation (Japan), Nihon Nohyaku (Japan)
What is your growth outlook for FY2020?
Opportunities : India is currently the world’s fourth largest producer of agrochemicals. Favourable manufacturing opportunities for agrochemical companies in India.
Monsoon : South-west monsoon expected to be near-normal, with 96% rainfall over a long-period average El Nino conditions are projected to weaken, with minimal impact on sowing season of Kharif crops.
Exports Surge : The Company will evaluate and expand in new growth opportunities in the exports market
Public Policy : A stable government, post General Elections, will ensure strong economic growth and provide necessary momentum to transform India into a globally competitive manufacturing hub for agrochemicals and fulfil the objective of doubling the farm incomes by 2020.