Dharmaj Crop Guard Limited is an agrochemical company incorporated in 2015 at Ahmedabad. The company is in the business of manufacturing, distributing and marketing a wide range of agrochems i.e. insecticides, fungicides, herbicides, antibiotics etc to B2C & B2B customers. They also market agrochem products through brands in-licensed or owned by them and generic brands. They export products to 25 countries including Latin America, East Africa, Middle East and Far East Asia. They also sell chemical products for Public Health protection and crop protection solutions to farmers for higher productivity and profitability.
The global pesticide market has grown at a CAGR of 2.5% in the 5-year period 2017-21, from USD 62 billion to USD 68 billion.
India is the fourth largest agrochemicals producer in the world after USA, Japan and China. Indi is a net agrochem exporter and 13th largest pesticides exporter globally.
The Indian pesticides and other agrochem industry is estimated to grow at a CAGR of 7.5%-8.5% by 2026-27 on account of higher demand in international markets and higher domestic usage.
Growth in population especially in Asia Pacific region and focus on intensive farming with augmented methods bodes well for the agrochemical industry as a whole.
Strengths And Risks + Experienced Promoters & Management: : The promoters of the company have a rich professional experience in the agrochemical industry before setting up the company. Senior management’s experience, knowledge and relationships with key suppliers and customers are a key factor in growth.
+ Diversified Product Portfolio: : The company has a multiproduct portfolio across segments that cover a wide agrochem industry and derisks business from single category focus. They additionally cater to Public and Animal Health segment. They have more than 154 institutional products.
+ Established DIstribution Network: : The company has pan-India sales with a strong distribution network in 17 states, with 4,362 dealers, 16 stock depots that cater to 600 customers in India and overseas markets. They export their products to 66 customers in 25 countries.
+ Strong R&D Capabilities: : They have an in-house R&D centre and NABL accredited quality control laboratory. They have 464 IP registrations for agrochem formulations from CIB&RC and 154 trademark registrations for branded products.
Strong Operational & FInancial Performance: In a short span of 7 years, the company has established itself as a significant player with stable customer base in India and overseas. The revenue and profitability has grown consistently since inception.
- Cyclical Factors: : The company’s business is cyclical in nature and the demand can be impacted by unfavourable weather patterns in future due to climate change, a growing concern globally.
Competition: Domestic market is the company's primary target market and it faces tough competition from domestic players as well as multinationals e.g. Bharat Rasayan, Rallis India, Punjab Chemicals & Crop Protection etc
- Alternate products: : There is an increase in demand for alternate products for pest control and crop protection measures e.g. biotech products, organic farming, pest resistant seeds or genetically modified crops can impact demand for agrochemicals.
- Strict Quality Controls: : Agrochemical industry is subject to strict technical specs, quality requirements, audits and accreditations. Any change in norms or failure to maintain quality standards can impact the company’s business.
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