India Pesticides Ltd - Stock Valuation and Financial Performance

India Pesticides is an R&D driven agro-chemical manufacturer of Technicals with a growing Formulations business. It is one of the fastest growing agro-chemicals company in terms of volume of Technicals manufactured. It is the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide, in terms of production capacity. Since commencing its operations in 1984, it has diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (APIs). It also manufactures herbicide, insecticide and fungicide Formulations. It has a strategic focus on R&D and its R&D capabilities include two well-equipped in-house laboratories registered with the DSIR. Its efforts are led by a dedicated R&D team that comprises PhDs, masters graduates in chemistry and abiotechnological engineer. Its R&D efforts have led to development of processes to manufacture three generic off-patent Technicals since Fiscal 2018 and it is currently in the process of developing processes for certain Technicals, including two fungicides, two herbicides, two insecticides and two intermediates.

The company currently have two manufacturing facilities located at UPSIDC Industrial Area at Dewa Road, Lucknow and Sandila, Hardoi in Uttar Pradesh, India that are spread across over 25 acres. Each of its manufacturing facilities has the ability to manufacture a wide range of products, which provides it with the flexibility to cater to changing demands in the market, thereby reducing dependence on any one major product category. It also has pilot facilities to test commercialization of its products. Its facilities are periodically audited and appraised by its customers including various multinational corporations. It has also commenced construction of two manufacturing units at its Sandila facility, which are proposed to be used for herbicide Technicals.

Business area of the company

The company has two distinct operating verticals, namely, Technicals; and Formulations. The company manufacture generic Technicals that are used in the manufacture of fungicides and herbicides as well as APIs with applications in dermatological products. It also manufacture and sell various formulations of insecticides, fungicide and herbicides, growth regulators and Acaricides, which are ready-to-use products.

Major events and milestones

• 1984: Incorporation of the company as ‘India Pesticides Private Limited’.
• 1987: Acquisition of entire assets and liabilities of the partnership firm ‘India Pesticides’ by Company.
• 1991: Commencement of commercial production at Company’s manufacturing facility situated at Dewa Road, Chinhat, Uttar Pradesh.
• 1993: Classification of Company as a ‘deemed public company’ under Section 43A (1A) of the Companies Act, 1956 and removal of the word ‘Private’ from the name of Company.
• 2003: Conversion of the company into a public limited company.
• 2009: Registration of Company’s in-house research and development unit situated at Tiwariganj, Chinhat, Lucknow with the DSIR.
• 2015: Commencement of commercial production at our Company’s manufacturing facility situated at Sandila, Hardoi, Uttar Pradesh.
• 2018: Commencement of export of herbicide Technicals manufactured at Company’s manufacturing facility situated at Sandila, Hardoi, Uttar Pradesh.
• 2020: Registration of Company’s in-house research and development unit situated at Tiwariganj, Chinhat, Lucknow and Sandila, Hardoi with the DSIR until March 31, 2023.

Awards, accreditations and recognitions:

• 2019: The company was awarded for its excellent performance as “Most Cooperative Partner” for Financial Year 2018-19 by Rallis India Limited.
• 2020: The Quality Management System of Company’s Corporate Office and manufacturing facility situated at Dewa Road, Chinhat, Lucknow, Uttar Pradesh and the research and development facility situated at Tiwariganj, Chinhat, Lucknow, Uttar Pradesh have been certified to conform to ISO 9001:2015 for manufacturing, export and sales of pesticides, chemicals and bulk drugs pursuant to a certificate dated November 28, 2020 until November 27, 2023.
• 2020: The Customer Satisfaction and Complaint Management System of Company’s Corporate Office and manufacturing facility situated at Dewa Road, Chinhat, Lucknow, Uttar Pradesh and the research and development facility situated at Tiwariganj, Chinhat, Lucknow, Uttar Pradesh have been certified to conform to ISO 10002:2018 for manufacturing, export and sales of pesticides, chemicals and bulk drugs pursuant to a certificate dated November 28, 2020 until November 27, 2023.
• 2020: The Quality Management System of Company’s manufacturing facility situated at Sandila, Hardoi, Uttar Pradesh has been certified to conform to ISO 9001:2015 for manufacturing, export and sales of pesticides, intermediate and agro-chemicals pursuant to a certificate dated September 15, 2018 until September 14, 2021.
• 2020: The Occupational Health and Safety Management System of Company’s manufacturing facility situated at Sandila, Hardoi, Uttar Pradesh has been certified to conform to ISO 18001:2007 (OHSAS) for manufacturing, export and sales of pesticides, intermediate and agro-chemicals pursuant to a certificate dated September 15, 2018 until September 14, 2021.