PESTICIDE

Crop protection chemicals or pesticides, as they are commonly known as, are chemicals which are used to control pests. The pests may be insects, plant diseases, fungi, weeds, nematodes, snails, slugs, and others. Based on the application, they are classified as contact or systemic. Pesticides that only contact the pest to control them are called the contact type pesticides. Systemic pesticides are those which need to be ingested to be effective. The way that each pesticide attacks a pest suggests the best way to apply it; to reach and expose all the pests

ROLE OF PESTICIDES

The experience has shown that the Pesticides play a pivotal role in saving the agricultural crops from destruction by their enemies like insects, diseases, weeds, rats,etc.

Crop losses up to 40% are saved by use of high quality Pesticides

The Challenge
The world must grow more crops on the currently available land to meet the increasing demand for food, feed and fuel

Bigger challenge of global agriculture ?

By 2025, 1.8 billion people will live in countries with water scarcity

Food and feed demand will be ~50% higher by 2030

The way to feed the world is not to bring more land under cultivation, but to increase yields, science is crucial

Demand Drivers Population growth & land scarcity

World population
2030 >8 billion 2005 6.5 billion 2005 >4 people

People fed each hectare

2030 >5 people

1950 2.5 billion

1960 2 people

 Our knowledge and innovative technology improves the productivity of agriculture worldwide

Technology & Modernization Can Meet The Challenges ---

It is estimated that w/out appropriate pesticide use, up to 40% of all crops would be lost to insects, weeds and diseases

INDIA vs CHINA
Today Chinas population is > 1.3 billion The food grains production is 300-350 million tons Even though the irrigated land in China is less than the irrigated land in India. In India, food grain production of 300 to 350 million tons can be achieved by enhanced and proper use of irrigation, high yielding seeds, balanced use of fertilisers, high quality plant protection, education to farmers etc.

LOSSES DUE TO PESTS IN INDIA

ACCORDING TO THE 37th REPORT OF STANDING COMMITTEE ON PETROLEUM & CHEMICALS PLACED IN PARLIAMENT ON 20.12.2009 The losses from pests, insects and diseases amounts to approx. Rs. 90,000 cores per annum This situation calls for taking enhanced and effective steps for use of pesticides to save crop losses and increase food grain production Industry and Government to take special initiatives to popularize the use of insecticides, herbicides and fungicides to minimize the crop loss

Agriculture - India
Total area : 3,287,590 sq km Gross cropped area: 1958 Lac Ha Net cropped area : 1408 Lac Ha Gross irrigated area : 872 Lac Ha Net irrigated area : 622 Lac Ha Land holding : Marginal < 1 Hec : 63% Small, Medium 1-4 Hec : 30% Medium 4-10 Hec : 06% Large > 10 Hec : 01% Population (2011): Population: 121.01 Crore Growth rate 1.58% Rural population 61.32% 16 Languages & 9 Religions Crops ( World Ranking): No.1 in Fruits Vegs. : 1290 Lac MT No.2 Rice producer : 1240 Lac MT No.2 in Wheat : 800 Lac MT

INDIAN PRODUCTIVITY..?
CROP INDIA WORLD HIGHEST
6.7 (Japan) 8.0 (UK) 1.6 (Australia)

RICE
WHEAT

3.0
2.8

3.9
2.7

COTTON
PULSES GRNDNUT SOYBEAN COFFEE

0.5
0.6 0.9 1.2
0.7

0.7
0.85 1.4 2.5 0.55

1.7 (USA)
6.8 (Israel) 3.6 (Italy) 2.0 (China)

Productivity (MT/ha) - Indicates room for improvement

PARADIGM SHIFT ..
Governm ent Seed, biotech, fertilizer, irrigation
Credit, infrastructure

Down Stream Market Linkages

Heralding Ever Green Revolution & Beyond

12

GLOBAL PESTICIDE CONSUMPTION

YEAR 2003 2004 2005 2006 2007 2008 2009 2010

COMSUPTION (Rs Cr) 133550 154700 160120 151480 166170 172350 186790 198800

GROWTH (%) 16 4 -5 10 4 8 6

GEOGRAPHICAL PEST MRKT SIZE

REGION EUROPE ASIA NORTH AMERICAN FREE TRADE AGREEMENT PEST MKT (Rs Cr) 61400 47180 SHARE (%) 31 24

43200

22

LATIN AMERICA AFRICA/M EAST TOTAL

37300 9720 198800

19 5

CATEGORY WISE PEST MKT IN INDIA VIS-A-VIS GLOBAL % MARKET SHARE

CATEGORY
WORLD HERBICIDE 48 INDIA 21

FUNGICIDE
INSECTICIDE OTHERS - PGRs

24
22 6

20
55 4

TOTAL

100

100

PESTICIDES CONSUMPTION IN DIFF COUNTRIES (ANNUAL AVERAGE)

Country Taiwan
Japan Europe USA INDIA

Kg/ha. 17.0
10.7 2.5-3.0 3.5-4.5 0.480 (g/ha)

India produces 16% of the worlds food grain but consuming < 5% pesticides used world-wide . Hence, there is good potential of growth.

INDIAN PEST INDUSTRY

INDIA IS NET EXPORTER OF PESTICIDES AND 13th LARGEST EXPORTER OF PESTICIDES AND DISINFECTANTS IN THE WORLD. INDIA IS CURRENTLY EXPORTING 35 GENERICS TO OVER 110 COUNTRIES ACROSS THE GLOBE.

INDIAN PESTICIDE MARKET

MANUFACTURING STRUCTURE
TECHNICAL GRADER MFG UNITS FORMULATORS MULTINATIONALS DISTRIBUTION POINTS 125 800 10 1,46,737

PESTICIDE SELECTION CRITERIA

Formulators Market demand Profit margins Active ingredient percent in the formulation Safety and convenience in formulations Distributors Efficacy range Handling and storage convenience High value for investment Low overhead and high demand End Users Efficacy in pest control Economic return on investment (shifted trend from high price sensitivity) Easy handling and application of the product Safety to field workers and consumers

INDIAN AGRICULTURE
The agriculture sector was noticed to have lost vitality in economic contribution and was observed to be on a slower growth trend in 2010. Though there was a decline in the share of agriculture and allied sectors in the GDP from 24 per cent in 2001 to the current 14.2 per cent, it is still considered an essential element of the Indian economy contributing 15 percent of the total exports and 52 percent of the workforce. The sector needs to grow at 8.5 per cent during 2011-12.

PESTICIDE EXPORTS
CATEGORY INSECTICIDE FUNGICIDE HERBICIDE OTHERS - PGRs TOTAL

2001-02 1085 68 44 18 1215

2010-11 3591 468 282 171 4512

INDIA IS IInd LARGEST PRODUCER OF PESTICIDES IN ASIA INDIAN PESTICIDE INDUSTRY HAS BUILT GOOD REPUTATION AS RELIABLE PESTICIDE SUPPLIER DURING 2010-11 PESTICIDE EXPORTS STOOD AT Rs 4512 Cr, A GROWTH OF 25% OVER 2007-08. RISING EXPORTS CAN BE ATTRIBUTED TO THE INDUSTRY FOCUS ON GLOBAL OUTSOURCING AND QUALITY PRODUCTS PESTICIDE EXPORT DESTINATIONS ARE USA, BRAZIL, THAILAND, SINGAPORE, FRANCE, ARGENTINA, UK, BELGIUM, NETHERLAND etc etc

INDIAN CROP PROTECTION MKT 2010-11

RELATIVE SHARE

CATEGORY
INSECTICIDE FUNGICIDE HERBICIDE OTHERS PGRs TOTAL

2008
4000 1350 1550 300 6050

2009
4400 1350 1550 300 7600

% GROWTH YR 2010
10 14 19 0 12 4400 1620 1690 375 8085

% GROWTH 0 20 9 25 6

2009
58 18 20 4 100

2010
55 20 21 4 100

Market grew by ~ 6 % in 2010 as against 12 % in spite of Severe Drought & Floods in a single year of 2009 Intensive usage of Fungicides in Grapes, Potato, Mango and Late Sown Paddy in Kharif increased the Fungicides market by 20 % Demand for Quality Produce and differential prices also driven the growth of Fungicides Herbicides overall market grew by 9 % :- Post Emergent Soybean Herbicides, Paddy weedicide (Bi-spyribac Sodium 10 SC - Nominee Gold), usages in Cotton, Chilly and Groundnut drive the growth Newly launch insecticides viz, Flubendiamide, Coragen, Imida 70 % WG prevents the down slide of Insecticides total market

INDIAN PESTICIDES MARKET 2010-11

2004-05 Rs. 3600 Cr
Herbicides 17% Fungicides 13%
Fungicides 20%

2010-11 Rs. 8085 Cr

Herbicides 21% Others 4%

Others 1%

Growing @ 11 % CAGR

Insecticides 69%

Insecticides 55%

Insecticides relative Share declined from 69 % to 55 % in 2010 Herbicides & Fungicides Growing consistently over the last few Years Scarcity & Cost of Labour Growing concern for Yield/quality Increased incidence of diseases

INDIAN PESTICIDE CONSUMPTION CROP-WISE 2010-11

Pest Consumption Rs. 8085 Cr
Plantation s Wheat 4% 6% Others 12%

Cotton 23%

Oilseeds 5%

Pulses 5% Fruits 6%

Veg. 14%

Paddy 25%

Post Emergent Herbicides Downy Mildew / Late Blight Fungicides / Sheath Blight / Blast Combination molecules in demand (Sucking Pest + Lepidopteran) Focus Crops Paddy, Cotton, Soybean, Fruits, Vegetables, Pulses , S/cane

PESTICIDE SALES 2010-11

COMPANY SALE VALUE Rs Crore 1050 870 800 660 600 530 440 430 400 390 330 1585 8085 MS % 13 11 10 8 7 7 5 5 5 5 5 20 100

BAYER SYNGENTA
RALLIS UPL

BASF DUPONT
EXCEL

DOW
GHARDA PI INDUST INDOFIL OTHERS TOTAL

Top 8 companies contribute to 66% of Sales Volume out

of which 5 are MNCs

MAJOR INSECTICIDES MARKET TREND

2009-10 VOL (KL/MT) VALUE (Rs Cr) Acephate 75 SP 7500 330 Chloropyriphos 20 EC 10000 160 Monocrotophos 36 SL 8000 260 Quinolphos 25 EC 2300 55 Trizophos 40 EC 2200 70 Imidacloprid 17.8 SL 2700 229 Endosulfan 35EC 8000 165 Profenophos 50 EC 1500 60 Buprofenzin 25 EC 1200 132 Chloro 50 + Cyper 5 EC 2200 77 Cartap 4 G 35000 179 Spinosad 45 SC 150 135 Thiamethoxam 25 WG 300 60 Clorfenapyr 10 SC 240 29 Novaluron 10 EC 250 63 Indoxacarb 14.5 SC 400 90 Diafenthiuron 50 WP 90 18 Emamectin Benzoate 5 SG 110 74 Acetamiprid 20 SP 600 60 Abamectin 1.9 EC 20 10 TOTAL 2256 % OF TOTAL INSECTICIDES 51
INSECTICIDE

2010-11 VOL (KL/MT) VALUE (Rs Cr) 6500 234 8000 112 8500 238 2000 40 1700 47 2200 176 7000 133 1300 48 1100 105 2000 70 35000 147 80 80 250 45 200 24 200 44 600 126 150 30 200 120 750 64 40 18 1901 43

% GROWTH VOL VALUE -13 -29 -20 -30 6 -8 -13 -28 -23 -34 -19 -23 -13 -19 -13 -20 -8 -21 -9 -9 0 -18 -47 -41 -17 -25 -17 -17 -20 -30 50 40 67 67 82 63 25 6 100 80 -16

INSECTICIDES - NEW TREND

2009-10
NEW INSECTICIDES

2010-11

% GROWTH
VOL VALUE

VALUE VOL (KL/MT) VAL (Rs Cr) VOL (KL/MT) (Rs Cr)

Acephate 50 + Imidacloprid 1.8 SP Chlorantraniliprole 0.4% GR (Coragen GR) Chlorantraniliprole 18.5 % (Coragen 20 SC) Fipronil 80 WG (Tempo) Flubendiamide 20 WDG (Takumi) Flubendiamide 39.35 SC (Fame 48 SC) Imidacloprid 30.5 % SC (Confidor Super 35 EC) Imidacloprid 70% WG Indoxacarb 15.8 EC Metaflumizone 22 SC (Verismo) Sub - Total (New Insecticides) % of Total Insecticides

60 100 10
11

3 1 10
11

400 350 70
80 80

22 4 70
75 44

567 250 600

627 167

633 300 600

582 144

Thank You
30 18

50
100 70 100 60

55
23 37 23 11 192 4

130
400 180 300 500

143
80 81 60 80 659 15

160
300 157 200 733

160
248 119 161 627 243

INSECTICIDES TREND

Price drop of ~ 15 - 20 % for all old Insecticides compared to 2009 Generics (OP Compound) Volume down by ~ 20 % due to less acreage & farmers preference for new chemistries Launch of Emamectin Benzoate by local Indian Companies brought down the Price Due to less BPH Incidence, the Buprofezin Price went down Flubendiamide & Coragen :- No 1 preference of Pulse farmers Imida 70% WG :- Replacing Imida Liquid for Sucking pest Control and volume grew by 150 % (70 > 180 MT) in 2010-11 Cocktail of Emamectin, Novaluron, Thiamethoxam increasing trend due to dealers push New launches added Rs. 450 Cr in 2010-11 and Insecticides market remain same in the value term (Rs 4400 Cr)

MAJOR FUNGICIDE MARKET TREND

FUNGICIDE Carbandazim 50 WP Mancozeb 75 WP Copper Oxychloride 50 WP Hexaconazole 5 EC & SC Propiconazole 25% EC Captan 50 WP Propineb 70 WP Fosetyl AL 80 % WP Metiram 70% WDG Sulphur 80 WDG Dinocap 48 EC Myclobutanil 10 WP Thiophanate-Methyl 70 WP Validamycin 3 L Streptocycline Chlorothalonil 75 WP Carbandazim12% + Mancozeb 63% WP Cymoxanil 8% + Mancozeb 64 % WP Tricyclazole 75 WP 2009-10 VOL VALUE (KL/MT) (Rs Cr) 1600 52 4000 102 1400 44 3500 98 700 53 300 8 500 16 60 6 200 6 4000 36 40 5 35 5 150 8 200 6 50 13 150 9 1500 57 200 16 800 96 2010-11 VOL VALUE (KL/MT) (Rs Cr) 1800 52 4500 108 1500 43 3800 102 80 60 325 8 60 20 70 7 220 5 4500 41 50 6 50 7 180 10 250 7 60 15 190 12 1600 60 250 19 1000 115 % GROWTH VOL 13 13 7 9 -89 8 -88 17 10 13 25 43 20 25 20 27 7 25 25 VALUE 0 6 -2 4 13 0 25 17 -17 14 20 40 25 17 15 33 5 19 20

TOTAL % OF TOTAL FUNGICIDES

636 47

697 43

10 -8

NEW FUNGICIDES MARKET TREND

2009-10
NEW FUNGICIDES VALUE VOL (KL/MT) (Rs Cr)

2010-11
VOL (KL/MT) VALUE (Rs Cr)

% GROWTH
VOL VALUE

Azoxystrobin 25 SC Captan 70 + Hexaconazole 5 WP Dimethomorph 50% WP Fenaxadone 16.6% + Cymoxanil22.1 % SC Fenamidone 10+Mancozeb 60 WG (Sectin) Hexaconazole 4% + Zineb 68% WP (Avtar) Iprovalicarb 5.5% + Propineb 61% WP (Melody Duo) Kresoxim-Methyl 44.3% SC (Ergon) Metiram 55% + Pyraclostrobin 5% WG (Cabrio Top) Pyraclostrobin 20 WDG (Insignia) Tebuconazole 2 DS Tebuconazole 25 EC Tricyclazole 18 + Mancozeb 62 (Maximate)

20 100 60 10 60 90 40 50 70 5 100 50 40

12 7 15 5 9 5 6 15 7 2 10 7 3

50 150 100 70 100 300 100 140 250 20 150 80 100

26 10 23 32 14 16 14 40 22 7 14 10 7

150 50 67 600 67 233 150 180 257 300 50 60 150

117 43 53 540 56 220 133 167 214 250 40 43 133

TOTAL % OF TOTAL FUNGICIDES

103 8

243 16

133 100

FUNGICIDE TREND Prices of Mancozeb & Carbendazim came down to the level of 2007
o Mancozeb 75 WP :- Rs. 240/Kg in 2010 from Rs. 280

o Carbendazim 50 WP :- Rs. 285/Kg in 2010 from Rs.320

All Fungicides volume grew in 2010-11 ~ 15 - 20 % Tricyclazole 75 WP is the no 1 fungicide in value term :- Rs 115 Cr Mixture Fungicides :- Better acceptance for Integrated Resistance Management

Many New Launches are of Mixture (Systemic + Contact) in 2009-10 & 2010-11
o Syngenta launching Tricyclazole 34.2 + Propiconazole 10.7 SC in 2011 Seed Treatment Fungicides :- The Concept is growing o Carboxin (Vitavax)

o Carboxin + Thiram
o Tebuconazole 2 DS (Raxil) o Pyraclostrobin 5 % WG

HERBICIDE TREND
HERBICIDE
Butachlor 50 EC & EW Pretilachlor 50 EC & EW Cyhalofop Butyle 10 EC Clodinofop 15 WP Sulfosulfuron 75% WDG Metsulfuron Methyl 20 % WP Imazethapyr 10 SL Quaizalofop Ethyl 5 EC (Targa Super) Fenoxaprop p-ethyl 9.3% EC (WhipSuper)

2009-10 VOL VALUE (KL/MT) (Rs Cr) 3500 51 3000 96 50 5 480 93 27 52 30 28 750 101 350 35 350 1700 4000 300 2000 35 52 129 18 46

2010-11 VOL VALUE (KL/MT) (Rs Cr) 2500 37 3000 96 80 8 560 98 10 19 35 32 1100 149 500 50 450 2000 4000 450 2500 44 62 84 17 53

% GROWTH VOL -29 0 60 17 -63 17 47 43 29 18 0 50 25 VALUE -27 0 60 5 -63 14 48 43 26 19 -35 -6 15

Pendimethalin 30 EC Glyphosate 41 SL Glyphosate 71% WDG Paraquat 24 SL New Additions-Bispyribac Sodium 10 SC (Nominee Gold) Quaizalofop P-Terfuryl 4.41 EC (Pantera) TOTAL % OF TOTAL HERBICIDES

50 10

30 11 782 51

140 35

75 32 856 51

180 250

150 191 9 0

 Glyphosate 41% SL Price down since last three years Butachlor is getting replaced by Pretilachlor in Paddy

DSR herbicides getting prominence

Wheat herbicides - Phalaris minor developing resistance

Overall almost declining trend

all

herbicides

prices

showing

CONCERN AREAS - PESTICIDE SAMPLING

Samples upto 90% are drawn of quality & branded pesticides which are mfd by reputed companies Due to vested interests, the very purpose of drawing of samples and punish spurious producers is defeated The existing system of sampling is not serving the purpose for which Insecticide Act 1968 was enacted and introduced There is no such system which says that The Insecticide Inspector be made personally accountable , responsible and penalized for sale of poor quality, spurious and duplicate pesticides in his area This is also common to find that the spurious pesticides are sold using the name of reputed products and companies - The legal action is against the company whose name appears on the label. Hence the industry finds it difficult to tackle the problem due to dereliction of duty and harassment by Insecticide Inspectors The amendments in the Insecticides Act to provide for stringent punishment to the manufacturers of spurious/duplicate pesticides so that crop losses can be saved and farmer should not bear monetary loss

PESTICIDE SAMPLE ANALYSIS STATUS

MAJOR COMPANY WISE STATUS OF THE SAMPLES ANALYSED AT RPTLS DURING LAST 4 YEARS
S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Company BASF Bayer India Crop Health Syngenta Dhanuka Excel Gharda Aventis Indofil IIL Sumitomo Monsanto Northern Minerl DOW Pesticide India Rallis India Sudarshan UPL TOTAL 2006-07 No. of Sampls Analysed Misbranded 20 4 46 15 11 2 10 3 8 4 39 7 10 6 44 19 7 1 12 1 11 3 12 4 39 18 16 1 15 3 70 26 13 4 44 12 427 133 2007-08 2008-09 2009-10 No. of Sampls No. of Sampls No. of Sampls Analysed MisbrandedAnalysed Misbranded Analysed Misbranded 38 60 7 61 1 85 7 72 10 99 18 16 1 32 1 20 11 . 12 1 8 1 30 11 39 6 31 7 44 7 31 7 34 6 16 5 21 1 10 2 67 19 75 2 52 5 22 3 23 5 30 2 45 7 44 8 11 1 11 2 16 3 8 1 46 7 151 24 51 2 71 16 73 12 63 30 34 6 28 7 34 2 26 3 26 8 23 2 114 22 110 25 128 8 33 2 19 6 16 11 66 18 80 14 75 3 775 136 912 147 754 102

ALL THESE 18 COMPANIES HAVE REPEATEDLY FACED PROBLEM OF THEIR PRODUCTS SAMPLES GETTING DECLARED MIS-BRANDED AT THE HANDS OF ILL-EQUIPPED / BIASED GOVT LABS/ AGENCIES

Efforts of Central / State Govt & Industry will result

The corrective measures will enable The industry to increase the production and availability of effective and quality pesticides at affordable price To assist the farmers to protect crop, save crop losses and increase food production to 300 to 350 million tons by year 2025 Increase exports

STATE WISE PESTICIDE SALES

STATE AP MAH PB KARNTK MP WB HAR GUJ TN & KERALA UP BIH OTHERS TOTAL SALE (Rs Cr) 1600 1400 1200 600 500 400 400 400 350 300 100 585 8085 % SHARE 20 17 15 7 6 5 5 5 4 4 1 10 100

TOP 8 STATES CONSUME 81% PESTICIDES

PEST SALE PLAN MATIX MKTG ZONE

STATE WB BIHAR EAST UP JHARKHAND ORISA TOTAL SALE (Rs Cr) 400 100 120 40 70 730 MATIX PLAN Ist YR 4 3 3 0.30 0.30 10.6 %MKT SHARE 1.0 3.0 2.5 0.8 0.4 1.45 II 6 5 5 0.50 0.50 17 III 7 7 7 0.75 0.75 22.5 IV 9 9 9 1 1 29 V 10 10 10 1 1 32

ESTIMATED PROFIT IN PEST BUSINESS IS ~ 5% ASSUMING Ist YEAR BUSINESS - Rs 11 Cr LIKELY PROFIT - Rs 0.55 Lacs

PROPOSED PESTICIDE RANGE FOR MATIX

Insecticides Cartap 4 G Fipronil 0.3 G Endosulfan 35 EC Chloropyriphos 20 EC Cypermethrin 5 + Chloropyriphos 50 EC Imidacloprid 17.8 SL Triazophos 40 EC Fungicides Cabendazim 12 + Mancozeb 63 WP Carbendazim 50 WP Mancozeb 75 WP Metalaxyl 8 + Mancozeb 64 Sulphur 80 WDG Sulphur 80 WP Herbicides 2,4 - D 80 WP (Sodium Salt) Atrazine 50 WP Clodinofop (Piroxofop-propinyl 15 WP) Glyphosate 41 SL Isoproturon 75 WP Pendimethalin 30 EC Pretilachlor 50 EC Sulfosulfuron 75 WDG

ROAD AHEAD OPPORTUNITIES FOR MATIX

Matix after establishing urea brand AS THE MOST PREFERRED, then to diversify into pesticides business Labour shortage farmers switching over to Herbicides to save their crop Spurious pesticides estimated sale is Rs 3000 Cr which has huge existing potential to give a quantum jump to sales of quality pesticide products With increased awareness amongst farmers about the losses due to pests and quality conscious consumers, the pesticide consumption is growing pest consumption more than doubled in the last 6 years Collaboration with MNC for new emerging molecule(s) Partnership from introduction stage