Insecticides (India) to invest Rs 15 cr in export oriented unit in Gujarat

The listed agrochemicals firm will also invest Rs 100 crore in brownfield projects

Agrochemicals company Insecticides (India) is setting up an Export Oriented Unit (EOU) in Dahej, Gujarat, which is expected to be operational by the end of this financial year.

“We will invest nearly Rs 15 crore in our greenfield EOU to cater exclusively to key export destinations of Africa, CIS (Commonwealth of Independent States), Asean, Europe, US and Latin America,” Insecticides (India) managing director Rajesh Aggarwal told Business Standard here on Thursday.

Bullish on the export market, the company is looking at doubling its export revenues to nearly Rs 125 crore in 2019-20 compared to Rs 60 crore last fiscal. The current export market of agrochemicals is pegged at about Rs 20,000 crore, which is equal to the domestic market size, Aggarwal said.

The Centre had introduced the EOU scheme to boost exports, increase foreign earnings and create employment in various sectors. Such plants are mandated to export their entire production for availing the various government incentives and sops.

The company plans to additionally invest Rs 100 crore in brownfield projects to expand the capacity of existing units operating across different states, including Rajasthan and Uttar Pradesh.

“We also invest Rs 6-7 crore annually in our R&D facilities, while our dedicated product discovery R&D unit at Bhiwadi (Rajasthan) gets annual investment of about Rs 15 crore, of which our Japanese partner infuses the major portion,” Aggarwal claimed.

Meanwhile, Insecticides (India) is targetting more than 10% growth in revenues this fiscal compared to its topline of almost Rs 1,200 crore. “UP is a major market for us and during the last financial year, it accounted for nearly Rs 110 crore in turnover, which we target to increase to almost Rs 150 crore by the end of March 2020,” Aggarwal added.

Replying to a question, he noted any that government scheme, like the Centre’s flagship PM Kisan, aimed at supporting the farm sector, would have a positive impact on all agriculture related segments, including agrochemicals. Pradhan Mantri Kisan Samman Nidhi Yojana (PM Kisan) is aimed at benefitting 120 million small and marginal farmers in India, of which UP comprises the maximum of nearly 21 million or 18% of beneficiaries. PM Kisan is estimated to cost the exchequer Rs 75,000 crore annually and guarantees beneficiaries an annual income of Rs 6,000 annually, payable in installments of Rs 2,000 every four months.

Meanwhile, Insecticides (India), which is listed both on BSE and NSE bourses, on Thursday launched ‘kunoichi’, a miticide against mites affecting major crops. The product has been developed by Nissan Chemical Corporation, Japan. Insecticides (India) and Nissan have joined hands to market its products in the Indian market. Mite attacks on crops are on the rise in India due to widespread use of synthetic parathyroid pesticides. The company has alliances with other firms too.