From 2,000 to 6,000 MT-India Pesticides Ignites a New Era of Agrochemical Might

India Pesticides Limited (IPL) has declared a significant upgrade in its production capabilities, increasing its annual capacity of Pretilachlor Technical to 6,000 MT from 2,000 MT. This strategic enhancement in the Sandila plant reflects IPL's desire to increase its market share in the agrochemical industry, particularly in the high-demand herbicide market.

 

Key Highlights:

 

Capacity Expansion: IPL has expanded the Pretilachlor Technical capacity by three times, from 2,000 MT to 6,000 MT annually, at its Sandila plant. This is under a larger scheme of increasing the overall technical capacity to cater to increased domestic and export demand for herbicides, especially for rice farming.

 

Backward Integration: The firm successfully initiated the first phase of the backward integration of Pretilachlor Technical, gaining more control over raw materials and lowering dependence on imports. The expansion rides on IPL's indigenous R&D and engineering capabilities, enhancing supply chain strength.

 

Investment and Expansion: With a net capex spending of ₹140 crore planned till FY23, IPL is hoping for strong asset turnover and looks to see significant revenue and margin growth from the new capacity. The company envisions EBITDA margins being strong, ranging between 29–33%, as it expands production and adds new products.

 

Strategic Vision: The expansion is also in line with IPL's "Make in India" vision, enabling both farmer productivity and India's standing as a global agrochemical supplier. The firm is also advancing on a greenfield plant in Hamirpur, further consolidating its manufacturing presence.

 

Market Impact: The increased capacity sets up IPL to take advantage of accelerating herbicide demand, propel profitable growth, and provide more value to shareholders in the near and medium term.

 

Sources: Indian Chemical News, NSE Announcements, BSE Filings