Insecticides (India) Ltd is planning to dilute equity this financial year by seven-eight per cent to raise Rs 100 crore. The company will use the funds for its expansion plans.
“We, however, are not going for a fresh public issue for this. We will go for private equity funds,” said Mr Rajesh Aggarwal, Managing Director of Insecticides (India) Ltd, addressing reporters here on Monday.
The company admitted that last year's poor weather conditions across the country had impacted its turnover. It forecast a hike in prices this year.
The promoters hold 75 per cent in the company, which is into chemical pesticides business.
The company registered a turnover of Rs 555 crore last year (Rs 478 crore).
Of the Rs 555-crore, branded products contributed Rs 450 crore with the rest coming from institutional sales.
Re depreciation impact
The company has taken a hit because of the depreciating rupee last year. It posted a loss of Rs 6.5 crore on account of forex fluctuations. “We did hedge but there is a limitation (for hedging).”
Insecticide India has acquired rights to manufacture and sell Nuvan (US) and Hakama (Japan) in India. While Nuvan is an insecticide owned by American Vanguard Corporation, Hakama is a herbicide owned by Nissan Chemical Industries.
“We are expecting the new additions to help achieve the target of Rs 800 crore, with branded sales going up to Rs 600 crore and institutional sales to Rs 200 crore.”
Though it manufactured and marketed about 100 insecticides, fungicides and herbicides, the company earned about one-third of its revenues from four flagship products that include Lethal, Victor and Thimet. Each of this contributed about Rs 40 crore.