1β£ SCIL manufactures and distributes agro solution and animal nutrition products in crop protection, storage, pest & rodent control, biopesticides and plant growth regulators including herbicides, insecticides, fungicides, fumigants & plant growth regulators
2β£ Revenue and operating EBITDA grew by 15% and 11% in FY23. Branded contributes 80% in domestic revenue and 30% in export revenue 30% of revenue comes from specialty and 70% from generic 75% revenue comes from domestic and 25% from export
3β£ Indian crop protection market is expected to witness a cagar of 8 to 10% in next 5 year and reach almost 10 billion value
4β£The key problems of Indian farming includes seasonal production glut non remunerative product produce prices slow adoption of advanced technology
5β£ China continues to pose potential threat to the industry with its OPEC policy on production pricing export environment in addition to forex moves
6β£ Counterfeit spurious fake and illegally imported pesticides sold cheap in domestic market post a major threat for the industry
7β£ Continuous emphasis on organic farming in government policies and regularity risk remains high for the industry where product registration processes complex expensive and time consuming. The government move on glyphosate use is a case in point
8β£ The industry is working capital intensive the Indian industry has large imports as well as exports. Drastic movement in foreign exchange markets affects the business dynamics of the industry and need to be managed efficiently
9β£ China+1 procurement model been key element for Indian industry as customers diversifying their supplier base this is expected to lead to exports growing at 15% in near future
π Govt. notification on glyphosate, banning 3 insecticides and prohibiting use of 8 insecticide on some notified crops, order to closure a plant for 3 months due to accident were some of other key risks company faced
Follow @suru27 and youtube.com for more such content. Like and retweet for wider reach
Loading suggestions...