Rallis India plans to set up plants in Gujarat, Jammu

Kolkata: Rallis India Ltd is working on plans to set up a formulations manufacturing unit in Jammu and an agro chemicals manufacturing facility at the Special Economic Zone at Dahej in Gujarat at an estimated aggregate investment of Rs 100-200 crore.

Besides, as part of its corporate roadmap, Rallis India wants exports to account for a higher share of its overall turnover. Presently, exports account for 22 per cent of the company’s turnover.

The company is also planning to take up contract manufacturing and build up on its seeds business portfolio. It is also looking at entering into the business of speciality chemicals that are “complementary to Rallis’ competitiveness and business portfolio”.

The company presently has three manufacturing units in Maharashtra and one each in Gujarat and Andhra Pradesh.

This was stated by Mr R. Gopalakrishnan, Chairman of Rallis India Ltd, and Mr V. Shankar, Chief Executive Officer & Executive Director of the company, at a press conference held here on Friday to announce the launch of the ‘Takumi’ brand of insecticide that is meant for caterpillar control.

Global plan

Mr Gopalakrishnan said the company’s roadmap was aimed at facilitating its rise to the No. 1 spot in the Indian agro-chemicals business. In the agro chemicals industry, exports account for around 35 per cent of most company’s turnover.

As such, Rallis would like to increase its share of international business with a view to having a better domestic-export revenue mix.

According to him, India has 180 million hectares of cultivable land. This was more than what China has. However, China produces more foodgrains on account of higher productivity.

Crop loss to insects

The value of crop lost to insects annually in India has been pegged at Rs 90,000-1,50,000 crore. “In India, we use 0.5 kg of agro chemicals per hectare compared with 4 kg per hectare in France and 15 kg per hectare in Japan,” he said, adding that it would be imperative to use “high-efficiency insecticides that have low residue”.

Takumi, he said, has the potential to become the largest selling product in the Rallis portfolio.

The size of the Indian market for agro chemicals has been pegged at the Rs 3,500-4,000 range. Products specifically meant for caterpillar control account for one-third of the overall agro chemicals market, it was stated.