Agro Shares - Quick Overview
Rallis India
Rallis India
Within agricultural inputs, agrichemicals is equally promising on account of increasing awareness and low per hectare consumption of about 600 grams (the lowest in the world). The Tata group company, Rallis India with a market share of 13 per cent and a large product portfolio, is the second largest agrochemical company in the country. Rallis operates in the crop protection space, with a small portion of its revenues coming from seeds, nutrients and leather chemicals.
The company has been consistently working towards process improvisation with focus on sustaining lower operational costs, which has resulted in a visible improvement in its profitability in the last few years. Its unique sales strategy, through vast distribution network covering about 80 percent of India’s districts and technical collaborations with global majors, aimed at increasing market share and revenue growth, has also borne fruits.
The company has long-term alliances with leading global agrochemical companies such as DuPont, Syngenta, Makhteshim Chemical Works, Bayer and Borax International, helping it bring new molecules and developing new products for the Indian markets.
Simultaneously, the company has also been eying the exports market to de-risk its business. During FY08, the company obtained joint registration for one of its key products in the US market. While exports currently account for about 20 per cent of sales, Rallis expects its share to double to about 40 per cent over the next 2-3 years. Looking at the medium term prospects, the company is setting up multiproduct agrochemical plants in Dahej (Gujarat) and Jammu, which are expected to commence production in 2010. The company recently commissioned a unit to manufacture 100 tonnes of PEKK, which will be supplied to Cytec Engineered Materials of the US and is expected to generate revenues of about Rs 400 crore over the next 3-4 years.
source - businessstandard
(updated - Feb 2009)
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