Insecticides India Ltd set to enter the export segment

Insecticides India Ltd (IIL), an agro-chemical manufacturing company with 106 brands under its belt is set to enter the export market to increase its presence.

Rajesh Aggarwal, managing director, of the company said, “At present we have very little exports which caters to only Nepal and Bangladesh but with production commencing from our Dahej plant we will tap international markets like the Middle East, commonwealth of independent states (CIS) countries, African and far east asian countries in the first phase.  We have already started applications for patents in Taiwan and Thailand. We will sell a combination of brands and technicals and  at present we will go ahead with 15 products.”

The company is targetting a turnover of Rs 50 crore from this segment from next year. The Dahej plant is running at a 65 per cent capacity utilisation.

The company is putting its new plant in Rajasthan and ramping up its existing capacities in all its five plants.

It is set to increase its formulation capacity from 3.5 lakh tonne to 5 lakh tonne and its technicals capacity will be increased to 22,000 tonnes from 12,000 tonnes at present.

IIL presently has a liquid capacity of 30 lakh litres, 30,000 tonne granules per annum.

Aggarwal said, “In our Dahej plant we have a present capacity of 10,000 metric tonne but from next year ten technicals will be produced. Formulations are already under production and we will launch our technicals before diwali. Though we are losing the first season we will tap the market next year and we expect our turnover to increase to 900 crore.”

IIL has been looking to raise Rs 70 crore through private equity infusion.

Aggarwal adds, “We are working to raise money through PE and we will do it on a primary level. We  are ready to dilute around sub 10 per cent levels for raising the money. We are doing the fund raising  campaign on our own and it will happen within this calendar year. We are adding one more block here for contract research and manufacturing services (CRAMS) activity which needs funding in addition to our new plant for which we are looking for land. In our research and development center we have done a break through in the agro-chemical intermediary  which will pull down our costs by 10 per cent this will enable us to sell our product at competitive prices in the international market. We are also looking forward to do crams for other companies.” The R&D has been undertaken with the ministry of science and technology.

The company which is facing huge shortage of material is expending Rs 30 crore for expansion.