Report on

Indian Pesticides Industry

August 2010

By

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

Table of Contents
Sr. No. 1. Executive Summary Industry Overview
Overview Rationale for Pesticide Use Classification of Pesticides

Topics

Page No.

2.

Industry Features

Low/Medium Capital intensive Fragmented Industry Seasonal demand High Working Capital requirement R&D - A need Increasing Export orientation Low Brand awareness Regulatory Framework

3.

Safety Aspects Human safety and Environmental safety

Impact of non-judicious use of pesticides Steps for Judicious Pesticide usage Regulation monitoring safe usage of pesticides

4.

Demand Drivers
Crop Yield Pest attack Price realization from crops Low level of Farmer awareness in India unlike globally Availability of Credit Focus on bio fuels Area under agricultural crops & production in India

5.

Statistics

Installed Capacity & Production Consumption Domestic Crop-wise Consumption State-wise Consumption Global consumption

6.

Import Export Trend

Imports Exports

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

7.

Cost & Profit Analysis

Cost Analysis Duty Structure Pricing Profit Analysis

8.

Competition Analysis
Domestic Global Key products/brands of major players

9.

Analytical model

I Porters Five Force Model II SWOT Analysis

10.

The Road Ahead

Biopesticides

Integrated Pest Management

Genetically Modified (GM) Crops

11. 12.

Outlook Company Scan

A. United Phosphorus Ltd. B. Rallis India C. Syngenta I Ltd D. Bayers Cropscience Ltd E. BASF India Ltd.

13.

Annexures
I Types of Registration II Statistical data III Insecticides Registered under section 9 (3) of the Insecticide Act, 1968 As on November 13, 2009 V List of Pesticides Refused for Registration VI List of Pesticides Restricted for use in India VII Types of Pesticides & Pests they control VIII MRL Value of Pesticides on Food Commodities IX Company-wise Projects Expected to be completed by 2011

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

Figure Index
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Topic Input in Agriculture operation Classification of Pesticides Industry Structure Index of International Commodity Prices Production trend from 2002-03 to 2008-09 Pesticides Consumption Crop wise 2007 Insecticides Consumption Crop wise 2007 Fungicides Consumption Crop wise 2007 Herbicides Consumption Crop wise 2007 Pesticides Market State wise 2007 State wise Insecticides consumption 2007 State wise Fungicides consumption 2007 State wise Herbicides consumption 2007 Key Export Destination Cost Breakup of key players Operating Profit Margins in FY08 Market Share Global GM seed Market from 2002 2008

Tables Index
Sr. No. 1 2 3 4 Topic Comparison between chemical and biopesticides Company wise working capital requirement R&D expense as a % of sales for Indian Companies R&D expense as a % of sales for International Companies

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Comparison of pesticide residues in food products for India vis--vis World Crop yield for various countries of the world Area under agricultural crops & production in India Trends in agricultural production of key crops Per hectare pesticide consumption in different countries Installed Capacity and Production Category wise consumption of pesticides value wise Category wise consumption of pesticides volume wise state wise pesticide consumption Global Pesticide consumption Imports of Pesticides in Quantity, Value & Price per kg terms Exports of Pesticides in Quantity, Value & Price per kg terms Imported RM as a % of Total RM Pesticide sales of leading MNCs for 2005 to 2009 State-wise Domestic adoption of Bt cotton Biotech Crops in field trial in India 2008 Global area under GM crops Country-wise Global area of biotech crops Industry Average Ratios (%) Price realization p.u. table (domestic) Category wise consumption of pesticides volume wise FY99 FY 05

The report elucidates facts about the Indian pesticides industry, supplemented by latest available data. Emphasis is laid on the following topics to accomplish the report: The current state of the Indian Pesticide industry with past trends. Types of pesticides and rationale for their usage. Safety Aspects human and environment safety due to use of pesticides. Impact of non-judicious usage and steps to be undertaken for judicious usage.

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

Industry features elaborated with respect to seasonality of demand, fragmented structure, low R&D expense and regulatory framework. Demand drivers, state-wise, category-wise and crop-wise pesticides

consumed for the period FY1996-97 to FY2008-09. Import Export trend with quantitative and price data for the period FY200001 to FY2008-09. Details on marketing strategies adopted by Indian companies, their market share, cost analysis and key products/brands. Use of bio-pesticides and Genetically Modified (GM) seeds and its impact on the domestic pesticides industry. Data on global pesticides consumption from 2003 to 2008 and of GM seeds from 2002 to 2008 A brief overview of five major pesticide companies in India with their three years latest available financial data. For an in-depth analysis and CAREs view on the future of this sector, please refer to the exhaustive Report on Indian Pesticides Industry by CARE Research. The subscription to the report on the 'Indian Pesticides Industry', August 2010 by CARE Research includes four quarterly updates on the industry from the date of subscription Kindly click on the link below to subscribe a copy of the same http://www.careratings.com/content/ResourceCenter/IndustryReport.aspx For any queries regarding the content and scope of the report kindly reach us at careresearch@careratings.com

IndIan PestIcIdes Industry

____________________________________________________________________________________________________________________________________________________________________________

Contact
Ms. Revati Kasture Head Industry Research (D): +91-22-6754 3465 Mr. Divyesh Shah Sr. Manager (D): +91-22-6754 3441 Ms. Prajkta Karnik Executive Trainee (D): +91-22-6754 3419 revati.kasture@careratings.com

divyesh.shah@careratings.com

prajkta.karnik@careratings.com

CREDIT ANALYSIS & RESEARCH LTD.

4th Floor Godrej Coliseum, Off Eastern Express Highway, Somaiya Hospital Road, Sion East, Mumbai 400 022 Tel: +91-22-6754 3456 Fax: +91-22-6754 3457

Website: www.careratings.com Email: careresearch@careratings.com

All Rights Reserved. No part of this report may be reproduced or transmitted in any form without prior written permission from CARE

DISCLAIMER
This report is prepared by CARE Research, a division of Credit Analysis & REsearch Limited [CARE]. CARE Research has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Research operates independently of ratings division and this report does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. The opinion expressed in this report cannot be compared to the rating assigned to the company within this industry by the ratings division. The opinion expressed is also not a recommendation to buy, sell or hold an instrument. CARE Research is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this product. This report is for the information of the intended recipients only and no part of this report may be published or reproduced in any form or manner without prior written permission of CARE Research.

Published by Credit Analysis & REsearch Ltd. 4th Floor Godrej Coliseum, Off Eastern Express Highway, Somaiya Hospital Road, Sion East, Mumbai 400 022. Tel:+91- 22-6754 3456 Fax:+9122-6754 3457