China challenge for Indian agrichemicals firm PI Industries

One positive from PI Industries' perspective is the diversification of its revenue base into pharmaceuticals

The stock of agrichemicals major PI Industries is down 11.3 per cent over the last two trading sessions, pulled down by worries that competition for a key product could hurt the company’s revenues. The stock was under pressure for a second consecutive session despite the management indicating no impact on Financial Year 2023-24 (FY24) guidance or growth.

The Street’s concern is the recent announcement by China's Shandong Weifang Rainbow Chemical to set up a 2,000 million tonnes per annum facility to manufacture an herbicide called pyroxasulfone. It is the third Chinese company to announce a capacity for pyroxasulfone, increasing pressure on