Nova AgriTech is an agri-input manufacturer offering ecologically sustainable and nutritionally balanced soil and crop management products. They manufacture a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) bio stimulant products; (d) bio pesticide products (e) Integrated Pest Management products; (f) new technologies; and (g) crop protection products.
The company has received a total of 720 product registrations, a total dealer network of approx 11,722 dealers in 16 states. Significant part of revenue is generated from three southern states of Andhra Pradesh, Karnataka and Telangana. They run a farmer outreach program called Nova Kisan Seva Kendra program (NKSK) through which they educate farmers on various crop management practices.
Strengths And Risks![](../../../assets/images/arrow.svg)
+ One Stop Solution: Nova AgriTech has a diversified branded product portfolio and offer varied range of products as a complete solution for agricultural requirements such as comprehensive range of soil health management, crop nutrition and crop protection. Company has the license to manufacture 720 products in various categories.
+ Strong Farmer Outreach: Nova AgriTech runs a farmer outreach program called Nova Kisan Seva Kendra program (NKSK), through which they educate farmers on various crop management practices. Other than 24 coordinators, the company is associated with 96 Kisan Mitras and 142 Kisan Sevaks at a grass root level.
+ Technology Driven Product Development : Company uses technology enabled solutions, e.g, Bhuparikshak is first-of-its-kind novel device capable of detecting soil health in just 90 seconds through an embedded mobile application. Company is launching Nova Agribot Drones that can help farmers to optimize the inputs (seed, fertilizers, water), to react more quickly to threats (weeds, pests, fungi), to save time crop scouting (validate treatment/actions taken) and estimate yield from fields.
- High Debt: Company’s total outstanding debt is Rs. 44 crores resulting in negative cash flows from financing activities. Nova aims to repay part of the debt through IPO proceeds. There is high working capital requirement in the business for manufacturing plant, raw materials and expansion.
- Climate Impact: The business is sensitive to weather conditions such as rains, drought, floods, cyclones and natural disasters, as well as events such as pest and disease infestations. Growing concern about carbon dioxide and emissions can further impact agri business negatively.
- Change in Govt. Policies: Any changes in Government policies relating to the agriculture sector, such as withdrawal of or changes in incentives and subsidies to farmers, adverse changes in commodity prices, or minimum support prices could affect the ability of farmers to spend on crop enrichment.
protection products, which in turn could adversely affect our business and results of operations.
FAQs![](../../../assets/images/arrow.svg)
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