Indian Chem 2018

Indian Agrochemical Market

Scenario and opportunities

Mr. Harsh Dhanuka

Vice President,
Dhanuka Agritech Ltd.
1 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

2 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

3
INDIA – COUNTRY OF VAST
OPPORTUNITY
RURAL
TOTAL LAND POPULATION POPULATION

329 Mil Ha 1.34 25%

Billion
7th LARGEST IN
WORLD WORLD’S RURAL
2nd LARGEST
POPULATION IN
INDIA

156 Mil Ha 1.7%

EXPECTED TO BE MOST
WORLD’S 2nd POPULATED IN NEXT
LARGEST 10 YRS

TOTAL ARABLE POPULATION

LAND GROWTH

All these are strong demand drivers for Agricultural products

Source: FAOSTAT (as on 26.12.2016), World Bank data

4 Largest country
by total area
with 2.4% share
of world’s land

Largest
Agriculture
area with 11%
share of the
total arable
land of world
Source: FAOSTAT (as on 26.12.2016)
5

Highest Population in the world with 17.6%

share of world population
Highest number of people living in Rural areas
with 25.6% share of world’s rural population
of total population is directly dependent on
agriculture
Source: FAOSTAT (as on 26.12.2016)
6 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

 WORLD POPULATION VS ARABLE LAND
7

World population is
expected to reach
more than 9 billion
by 2050 from 2.5
billion in 1950.

However world
arable land is
reducing continuously
from 0.52 ha per
person to 0.2 ha per
person which is a
matter of concern.

We have to increase global average productivity to feed rising population

AGRICULTURE VALUE /WORKER VS % GDP
8 70000 66,236 40
63,269

60000 35 % GDP
US$
49,723 30
50000 46,045
25
40000 36,625
20
30000 27,240
15

20000
10
9,674
10000 5
476 495 527 688 876 1,018 1,166
0 0

Agriculture $ added/ worker % GDP

Low value for India due to small farm holdings and low productivity
Agriculture value added per worker is a measure of agricultural productivity. Value added in agriculture measures
the output of the agricultural sector
Agriculture (% GDP) includes forestry, hunting, and fishing, as well as cultivation of crops and livestock production.

Source: http://data.worldbank.org/indicator/NV.AGR.TOTL.ZS
MARKET PERFORMANCE 2017
9
Crop Protection – Brazil surpassing the USA
as No 1 market in 2017 Key changes
CP sales in 2017 by country (in US$ m)
• Brazilian CP market
9,000
8,000
increased by 14% and
7,000 takes the No.1 spot
6,000 from the USA
5,000 • India surpassed
4,000
Argentina and France
3,000
in market value as those
2,000
1,000
markets declined and
0
India grew

Global CP sales 54,150 US$ m in 2017.

India has emerged as 5th largest in Domestic CP Market

Kleffmann Group ©2018
CROP PROTECTION MARKET TRENDS
10
Pesticide sourcing compared – India vs. China 2010 - 2016

Value of exported pesticides (in US$ m)

There is growing
9,000 trend of sourcing
8,000
7,000
both formulated
6,000 product and
5,000 technical material
4,000
3,000
from India
2,000
1,000
0

2010 2011 2012 2013 2014 2015 2016

Pesticides sourced out of China Pesticides sourced out of India

As China relook into their regulatory and environment laws, India

can emerge as the main sourcing country for Crop Protection products
INDIA : GLOBAL PERSPECTIVE
Good
11
• Fastest growing economy
• 4th largest producer of crop protection chemicals
globally.
• Robust regulatory system in place
• Per-capita consumption of chemicals is still lower.
Opportunity to Grow
• Increasing population, decreasing per capita availability
of arable land & focus on increasing agricultural yield.
• Pool of scientific talent ; strong R&D capabilities
• Strong manufacturing skills

Suggested improvements
• Improve enforcement and stewardship
• Incentive for bringing in new products/innovation-
Encourage RD
• Ease of doing business

India Can become major sourcing hub for Crop Protection products
12 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

13

In world, India accounts for 7.68% of global

agricultural output
per hectare productivity is very low at 3 MT
per hectare vs world average of 4 MT per
hectare due to lack of scientific methods of
agriculture
INDIAN AGRICULTURE
Source: FAOSTAT (as on 26.12.2016)
14 CROP DIVERSITY

Fruits &
Rice Cotton Pulses
Vegetables

Sugarcane Soybean Tea Wheat

Onion Potatoes Grapes Pomegranate

Groundnut Jute Mustard Citrus

India grows the highest number of crops in the world

15
AGRICULTURAL PRODUCTIVITY IN
INDIA
GLOBAL INDIA GAP IN
AREA
CROP PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY
RANK (%)
(MT / HA) (MT / HA)
Cotton 1 1.34 0.96 28
Soybean 5 2.4 1.1 54
Rice 1 5.0 3.0 40
Sugarcane 2 70.6 70.4 0.3
Maize 4 5.6 2.6 54
Tomato 3 28.0 19.6 30
Potato 3 18.0 19.9 -11
Groundnut 1 1.3 0.9 31
Onion 2 19.4 16.1 17
Pulses 1 9.9 6.6 33
Opportunity to help farmer to Grow More and Grow Better

Source: FAOSTAT (as on 26.12.2016), agricoop.gov.in

16 INDIAN AGRICULTURE
OTHERS
12%
WEEDS
37%
DISEASES
22%

INSECTS
29%

Losses in Indian Agriculture amount to USD

50 Billion, i.e.,12.46% of Total Agricultural
output – USD 401.3 Billion.
Source: World Bank national accounts data, agricoop.nic.in
17 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

18 INDIAN AGROCHEMICALS MARKET

$ Domestic Market Size of India @72 INR per

USD
Brazil market size is 5 times the market size of
India
Brazil’s agricultural area in comparison to
India (Higher consumption of Agrochemicals)
There is huge opportunity for Indian market to
grow fast with expected CAGR - 8%

Source: World Bank national accounts data, TSMG report

19 INDIAN AGROCHEMICALS MARKET

EXPECTED MARKET SIZE IN BILLION

USD @8% CAGR
3.7
3.4
3.1
2.9
2.7
2.5

2017 2018 2019 2020 2021 2022

20 SEGMENT DIVISION – WORLD – INDIA

International Segment wise Share Indian Segment wise Share

Others
Insecticides Others
3% 4%
27% Herbicides
20%
Herbicides Insecticides
43% 50%

Fungicides
Fungicides 26%
27%

Highest Crop losses due to weeds (37% share) and very low
usage of herbicides (20% share)
21
Indian Agrochemical – Value - Export - Import

VALUE IMPORT –
Net Export

13150
EXPORT

11269
10000 8244
9852

9747
7362
6492 6006
7946

5310
5000

4906
3907
3741
3360
2636

0
2012-13 2013-14 2014-15 2015-16 2016-17

Net Export (In Crore)

2012- 2013- 2014- 2015- 2016-
13 14 15 16 17
Net Export of agrochemicals
Export of agrochemicals continuously increasing and
(Technical and formulations) acting as an export driver.
is very high compared to
Import resulting into TRADE The Export of agrochemicals is
SURPLUS. playing a significant role to
counter trade deficit in Chemicals
Sector.
Source: Ministry of Chemical & Fertilizer, GOI
22 REQUIREMENT OF INDIAN
AGROCHEMICAL INDUSTRY

Newer and Safer products

Integrated Agrochemical Plants

Export Oriented Plants

Fast Registration of New Technology

23 CONTENTS

India - Country Of Vast Opportunity

Indian Agriculture

Global Outlook

Indian Agrochemicals Market

Government Thrust and Support

24 GOVERNMENT THRUST ON
AGRICULTURE

Source: Ministry of Agriculture and Farmers Welfare

25 GOVERNMENT THRUST ON
AGRICULTURE IN INDIA

Source: CNBC TV 18 News report

26 GOVERNMENT THRUST ON
AGRICULTURE IN INDIA

Crop
Insurance
Scheme for
farmers

Credit
Facilities for
Farmers

Source: india.gov.in
27 EASE OF DOING BUSINESS

Infrastructure Development

Defined Chemical Zones and Special

Economic Zones are available

Make in India – to benefit companies

setting up their facilities in India
28 EASE OF DOING BUSINESS
29 INDIAN MARKET OPPORTUNITY

Opportunity to establish new

chemical plant in India

Availability of Qualified and

skilled manpower at reasonable
cost

We invite you to come to India

for your business expansion and
growth
30 CONCLUSION

India has vast opportunity available due to its
population and high dependence on agriculture

India is 2nd highest in agricultural production globally,
but per hectare productivity is low

Indian agrochemical market has high potential to
grow for both domestic consumption as well as for
exports

Tremendous support from government for agriculture
and for supporting business in India

Favorable environment for agrochemical companies
to set up operation in India and bring, new safer
chemistry to Indian market
Thank You