Insecticides looking at exports to West Asia, Australia

Insecticides (India) Ltd (IIL), a pesticide, herbicide manufacturing company is looking forward to exporting to West Asian countries, Australia, Far East Countries, Latin American countries and African countries.

The company has already registered itself in these countries and is awaiting approval. The exports are likely to take place by 2009.

Talking to Business Standard, Rajesh Aggarwal, Managing Director, Insecticides (India) Ltd, said, "By 2009 we will be exporting our products to West Asian countries, Australia, Far East , Latin American countries and also in Africa. We have already registered our products in these countries for the exports. We are awaiting the approval. There is a huge export potential in India in the agricultural pesticide market. The export market is slowly opening and India has the capability to tap most of this market. By 2009 the export market is likely to mature."

"At present the export market of pesticides in India is quite limited but in a few more years it will mature and anticipating that we have already taken this initiative. For this we are increasing our manufacturing capacity also. The total market for pesticides in India is Rs. 4,500 crore per annum. Out of that 60 per cent of the share is pesticides while 20 per cent share is of herbicides. The rest is pesticides used in homes and in urban areas."

"The market is shifting towards herbicides as more and more farmers are using herbicides to remove weeds from their farms. Traditionally the removal of weeds used to be done manually, but now farmers have an option and they can afford the herbicides. The market of herbicide is going to grow manifolds in the forthcoming years. So it is likely that the focus of pesticide manufacturing companies will shift to herbicides," Aggarwal said.

On the performance of the company Aggarwal said that the company's sales during 2006 was Rs 191 crore and the growth is 47 per cent.

The company has 80 products in its product basket including pesticides and herbicides for agricultural use and pesticides for home use.

Company is likely to add some more brands in its cache after its planned expansion of manufacturing facility.

Presently, IIL has two manufacturing plants, one each in Samba, Jammu and Copanki in Rajasthan. The company plans to add two more plants, a formulating plant at Jammu based-manufacturing facility and a pesticide synthesis plant at Rajasthan's existing facility.

The company is also planning to set up a research and development centre in Rajasthan. The company is raising Rs 32 crore to Rs 37 crore from an initial public issue to fund this expansion.

The IPO offers 32.10 lakh equity shares of Rs 10 each for cash. The issue price band is Rs 97 to Rs 115 per equity share.