Insecticides India looks to invest Rs 200 cr in 3 yrs on expansion

Agro-chemical firm Insecticides India plans to invest Rs 200 crore on expansion of its existing plant over the next three years and set up new units in Gujarat and Rajasthan for further growth of the business.

The Rs 1,100-crore company is expecting 10-15 per cent growth in its revenue this fiscal banking on forecast of normal monsoon rains and launch of 7-8 new products, its MD Rajesh Aggarwal told reporters here.

"We are launching today three insecticides products and one fungicides that will help farmers in protecting crops like cotton, paddy, pulses and vegetables," he said.

All the four new products -- Encounter, Sofia, Alkido and Hercules -- are based on the combinations of two products that will provide synergistic effect in terms of better control and efficacy, he added.

 

On revenue outlook, Aggarwal said: "We are expecting about 10-15 per cent growth if there is a good monsoon with well-distribution of rains."

Asked about expansion plan, he said the company is expanding capacity in its existing plant at Dahej in Gujarat and Chopanki in Rajasthan.

That apart, the company's MD said the company would set up two new synthesis facilities and one export-oriented unit at the existing plant. "We have applied for necessary approvals for expansion".

On investment, Aggarwal said it would be around Rs 200 crore over the next three years. In this fiscal, he said the company would be investing anywhere between Rs 25 crore and Rs 50 crore on expansion.

Insecticides India plans to fund its expansion through internal accruals, debt and equity, he added.

Earlier this week, the company reported 5 per cent increase in its net profit at Rs 7.68 crore in the fourth quarter of last fiscal.

Total income fell to Rs 169.3 crore during January-March of the 2017-18 fiscal from Rs 183.43 crore in the previous year.

During the full 2017-18 fiscal, Insecticides reported 41 per cent rise in net profit at Rs 83.97 crore against Rs 59.39 crore in the previous fiscal. Total income rose to Rs 1,109.63 crore in the last fiscal from Rs 1,083.09 crore in the previous year.