Future plans and sustainable pesticide solutions
Danuka agricultural technology: In modern agriculture, pesticides play a pivotal role in ensuring crop productivity and sustainability. They replenish soils with essential nutrients, promote plant growth and significantly increase food production to meet the needs of a growing world population.
Pesticides are essential to agricultural success as they are important in reducing the gap between potential and actual crop yields. Dhanuka Agritech is a company deeply involved in the agrochemical industry and embraces sustainable practices that not only contribute to agricultural productivity but also benefit the environment and society.
As a company, they invest in cutting-edge technology and eco-friendly products to maximize the effectiveness of pesticides while minimizing their environmental impact. Through continuous innovation, Dhanuka Agritech helps farmers adopt practices that lead to long-term agricultural sustainability and community well-being.
With its commitment to providing high-quality pesticides, Dhanuka has seen good growth, resulting in a 97% year-on-year increase in its stock price. Let’s take a look at the company’s performance.
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Industry Overview of Dhanuka Agritech
The global crop protection chemicals market reached USD 88 billion in 2022 and is expected to grow at a CAGR of 4.28% to reach USD 116.5 billion by 2028. Crop protection chemicals such as herbicides, pesticides, and fungicides play an important role in managing pests, weeds, and diseases. , thereby increasing crop yield and productivity.
The Agricultural Inputs, Including Crop Protection Chemicals market was valued at USD 64.1 million in 2021 and is expected to grow at a CAGR of 2.9% to reach USD 76.09 million by 2028. India’s pesticide market has emerged as a significant market, reaching nearly USD 6 billion in 2022, driven by strong exports and domestic demand.
The Indian market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2028, reaching nearly USD 9.82 billion by 2028. India is the 4th largest producer and 13th largest exporter of pesticides globally.
that much agricultural technology However, the industry has been facing a slowdown in the last two years due to various factors. Supply chain disruptions due to the pandemic, sharp volatility in raw material prices, and erratic monsoon patterns have made it difficult to meet demand and maintain growth momentum.
Additionally, China’s tightened environmental regulations have impacted global supply chains, affecting the availability and price of raw materials for pesticide production.
In the future, the adoption of biopesticides has increased, driven by government support and awareness of eco-friendly and non-toxic alternatives, which has also influenced the growth of conventional pesticides. However, biopesticides are still a small sector and are expected to complement rather than replace traditional pesticides in the near future.
Dhanuka Agritech Company Overview
Danuka agricultural technology It was established as a business that manufactures various pesticides, including pesticides, herbicides, fungicides, and plant growth regulators, in various forms such as liquid, powder, dust, and granules. The company was founded on February 13, 1985 and began commercial production in 1986.
The company’s three production facilities are located in Udhampur, Jammu & Kashmir, Keshwana, Rajasthan and Sanand, Gujarat. With an extensive network of three manufacturing facilities, 39 warehouses and over eight branches across India, the company serves approximately 80,000 dealers and 6,500 distributors, reaching out to 10 million farmers.
Apart from this, we have presence across all major states of India through branches and warehouses. We boast top-tier NABL accredited laboratories and collaborate globally with top companies in the US, Japan and Europe.
The company generated revenue from various segments, including 28%. herbicideat 44% Pesticideat 16% disinfectant For other products it is 12%. Dhanuka Agritech Limited was listed on the Stock Exchange of India on July 1, 2011 at a price of Rs 89.
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Financial Overview of Dhanuka Agritech
In fiscal year 2023, Dhanuka Agritech achieved revenue of Rs 1,700.22 crore, up 15.05% as compared to Rs 1,477.78 crore in fiscal year 2022. The company’s net profit also increased by 11.78% to 233.5 crore rupees. 208.89 crore rupees in the previous year.
After analyzing three years from FY 2021 to FY 2023, the company recorded a compound annual growth rate (CAGR) of 14.93%. The increase in sales and net profit was driven by new product launches, increased interest in specialty portfolios, post-Covid economic revival, relatively better monsoon and higher crop prices.
In FY 2023, Dhanuka Agritech maintained favorable financial metrics with return on equity (ROE) of 23.10% and return on capital employed (ROCE) of 28.87%.
Future Plans Danuka agricultural technology
Dhanuka Agritech plans to aggressively launch new products in the coming quarters, including powerful insecticides for horticultural crops and new herbicides for soybean and groundnut crops. They are confident that new product launches along with existing products will drive double-digit sales growth next year.
Dhanuka Agritech has signed a non-binding letter of intent with Spain-based Kimitec to explore opportunities for development and commercialization of sugar-based biological products. molecule From natural resources. They see the potential of bionutrition, biocontrol and biostimulant products in India, which is currently a ~Rs 5,000 crore market growing at a CAGR of 15-16%.
Dhanuka aims to achieve EBITDA plus at its Dahej plant in the next two to three years as it develops more of its own products at its R&D facility. They also said Dahej’s initial revenue guidance of Rs 80-100 crore for FY25 may be revised downward due to headwinds in the technology market.
In FY25, the company is confident of achieving double-digit revenue growth, driven by good monsoon forecasts and strong new product launches. They aim to maintain the 200bps gross margin improvement achieved in FY24.
conclusion
Dhanuka Agritech has established itself as a formidable player in the agriculture sector, delivering consistently solid performance through innovative product offerings and strong market presence. The company’s commitment to research and development has enabled it to introduce a range of advanced pesticide solutions that cater to the diverse needs of farmers across India.
By utilizing cutting-edge technologies and sustainable practices, Dhanuka Agritech has not only improved crop productivity but also contributed significantly to environmental stewardship. With the agricultural sector growing with government support, the company is poised to have a good future. What do you think about the future of Dhanuka Agritech? Let us know in the comments below.
Written by Pavunkumar VM
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