Agrochemical Channel Checks: Assessment of present competitive environment
- ULALA ‐ Insecticide by United Phosphorus: United Phosphorus (UPL) has launched ‘Ulala’, a systemic insecticide for controlling the sucking pests for all crops. UPL has collaborated with a Japanese company, Ishihara Sangyo Kaisha (ISK), for this insecticide. Company has performed the field trial on Cotton and Paddy crop effectively. Ulala will be available in the packs of 30gm, 60gm and 150gm. In the recent post result conference call, management has indicated that UPL has three-year exclusivity in this product in India.
- OSHEEN ‐ Insecticide by PI Industries: PI Industries has launched a product called ‘Osheen’, an insecticide for all crops, primarily for Paddy and Cotton. Osheen carries a price tag of Rs8K-9K/Kg and is likely to compete with Rallis India’s ‘Applaud’ and Bayer Crop science’s ‘Confidor’. Our channel check suggests that farmer response is quite positive for Osheen.
- TOKEN ‐ Insecticide by Indofil Industries: Indofil, a K.K. Modi group flagship company, launched the highly effective insecticide ‘Token’ for the management of Rice Brown Plant hopper (BHP). Token has been made with collaboration with Mitsui Chemicals Agro Inc., Japan. Farmer has to pay Rs11K/Kg of Token and it is likely to compete with Rallis India’s ‘Applaud’.
- NUVAN, HAKAMA and PULSOR, by Insecticide India: IIL has launched three products – Nuvan, Hakama and Pulsor recently. Nuvan is an insecticide and can be used to control pests in most crops including paddy, pulses and sugarcane. Nuvan is priced at Rs0.65K/litre. IIL has tied up with US-based American Vanguard Corporation (AMVAC) for manufacturing and marketing the product in India. Hakama is a herbicide used in crops like soyabean, groundnut and cotton. Hakama is priced at Rs1.6K/litre and IIL has tied up with Nissan Chemicals, Japan for Hakama. Pulsor is a systemic preventive and curative fungicide for paddy. IIL has tied up with Nissan Chemicals Industries, Japan for Pulsor and it will be exclusively marketed by IIL in India.
We need to adopt a wait-and-watch approach to the new products launched as it is too early to gauge the success of these products. On the agrochemical space, industry has witnessed a tough time in H2FY12. However, hike in MSP, uptick in agriculture commodity prices and better pre-placement (higher by 5-10% YoY) for Kharif season is a positive indicator in the near term. Industry has taken a price hike by 5-10% to pass on higher cost led by rupee depreciation. Prabhudas Lilladher remains cautious in the short term on the agrochemical space on account of uncertainty in monsoon (could lead to lower acreage and pest attack). However, they maintain their positive stance on the space from a longterm perspective.
Click here to read the full report
Prabhudas Lilladher has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.
For more information please write in to firstname.lastname@example.org
Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.
Have a question?
- Agrochemicals: Quarter likely to be muted
- Agri Products & Chemicals: Aggregate PAT to increase by 20.1% y-o-y
- Agri Products & Chemicals: Q4F13E to be non-event for complex fertilizer companies
- Capital Goods: India's Capex J-curve - Comforting, yet troubling!
- Agri products & chemicals: Strong growth to continue
Also On IndiaNotes.Com
- Things to know before filing your Income Tax Return (ITR) for AY 2014-15!
- Benefits of converting your pension fund to QROPS
- Weekly Pick: Sell Reliance Infra between CMP & Rs762
- Escorts Q1FY15: Revenue in-line, PAT below estimates