India sustained a robust economic growth rate of 8.2 per cent in FY 2023-24, up from 7.0 per cent the previous year, expanding its economy to an estimated $3.5 trillion.
With the ongoing structural reforms, the country aims to achieve a $5 trillion economy by 2027. Among the key industries fueling this growth, the Indian government has prioritised the agrochemical sector, recognising it as one of the “12 industries with the greatest potential for India to achieve global leadership.”
The agrochemical sector has experienced significant progress, with projections estimating its value will reach $8.22 billion by 2024 and grow to $13.08 billion by 2029 at a CAGR of 4 per cent.
However, FY2023-24 brought its share of challenges, including fluctuating markets, rising raw material costs, and unpredictable monsoons.
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Resilient industry
The industry has remained resilient, supported by government initiatives like “Make in India” and “Atmanirbhar Abhiyan,” strategic investments, and a focus on innovation. Increased collaboration in research and development, alongside the growing focus on manufacturing is expected to further drive the sector’s growth.
International magazine Agropages released the rankings of the top 20 Indian agrochemical companies based on their FY 2023-24 performance. The revenue threshold for inclusion in the top 20 list increased to ₹1,226 crore, up from ₹1,151 crore in the previous year, reflecting robust growth among the Indian agrochemical companies.
Among the top 20 companies, 11 surpassed the ₹2,000 crore sales mark, while nine companies reported revenues between ₹1,000 crore and ₹2,000 crore.
Notably, 10 companies posted year-on-year growth, with PI Industries and Safex Chemicals achieving double-digit increases, nearing or exceeding 20 per cent.
On the other hand, 10 companies faced declines in sales, with Sharda Cropchem and Meghmani Group experiencing the steepest drops.
Focus on R&D pays off
One of the standout performers in the Agropages rankings was Best Agrolife Ltd (BAL), which climbed from 16th place last year to 13th in FY 23-24.
The company reported a consolidated revenue of ₹1,873.3 crores for the fiscal year, showcasing its growth and increasing market presence. Interestingly, the company’s growth relied on building its brand business. Its branded business grew by 85 per cent in FY ‘24, while having shifted its focus from B2B to B2C.
The company’s focus on R&D and patented products seems to have yielded a strong product presence in the expanding customer base. Considering the Indian brand business, the company has positioned itself among the top 5 Indian agrochemical brands.
Despite India being the world’s second-largest agrochemical exporter with $5.5 Billion in exports, China leads with $12 Billion.
As the Indian agrochemical industry continues to evolve, companies focused on innovation are poised to play a vital role in shaping the sector’s future. With the support of government initiatives and a focus on newer chemistries and the manufacturing of off-patent molecules, the Indian agrochemical sector is well-positioned to increase its global market share.
The author is Chief Financial Officer at The CFO Centre India