Multiple long-term triggers for PI Industries

But, near-term global agrochemical demand expected to be soft, with recovery towards end of the year

Cost savings from the joint venture with Japan’s chemical major Kumiai Chemical, higher agrochemicals demand and outsourcing is expected to keep PI Industries’ revenues and operating profit growth steady going ahead. PI on Thursday announced it would start a 50:50 joint venture with the Japanese partner to manufacture and distribute the flagship agrochem product Nominee Gold. The manufacture of the product, which accounts for 15-17 per cent of revenues and profits of PI, will help save 25-30 per cent of manufacturing and logistics costs as well as bring down the working capital intensity, believes Ritesh Gupta of Ambit Capital. The