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Global Crop Protection Chemical Sector

In 2020, Market size was valued at 63.7 billion USD

To Tackle Crop Damage

Herbicides

Weed Damage

Insecticides

Bugs

Fungicides

Diseases

Applications

Grains and Cereals

Pulses and Oil Seeds

Fruits and Vegetables

Commercial Crops

Other Applications

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Indian Story

Rising Retail Participation

Rising Demand for agricultural land
Less taxes for agricultural income, making it attractive

Agricultural Growth

Rising Exports of crops such as wheat, rice, cotton, soya beans, etc
Government Incentivizing agricultural activities to make India self sustainable

Overall Growth

Increasing population leading to rising demand of food products
Crop damages becoming a concerning issue

Higher awareness regarding prevention of crop damages.

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Sharda Cropchem

Founded in 1987 by MR R.V. Bubna

(Chemical Engineer from IIT Bombay)

Asset Light Model
Demand Pull Concept
Customer Driven

*Circled – Company Outsources it

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Business Verticals

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Margins and Growth Analysis

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Add a Slide Title - 2

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Industry Outlook

Short Term View

Ease in supply chain issues
According to the director, they are anticipating inflation to top up by the half of FY23, helping in input prices
Firm view on maintaining the current levels of operating margins, as they say, “worst is behind us now”.
Expecting NAFTA region to gain traction in terms of customer base and operating margins
Increase in demand of agricultural commodities and chemicals seen, post pandemic.
Non-Agro Chemical Business to gain momentum in the coming quarters

A steady rise is seen in the global crop protection chemical market. It is seen that whole sector can grow at a CAGR between 3-7%

But it is also seen that most of the demand will come from Asia-Pacific region, accordingly, it growth rate varies from a wide 4%-18% CAGR.

Saturation of big players already seen in Europe and NAFTA region, time for Asia-Pacific to gain in terms of competitiveness

Long Term View

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My Valuation Model

CMP – 700

TGT – 909.62

*Disc – Not an Investment Advice

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My Story for the Company

Global Crop Protection Chemical sector, is a sustainable sector in the coming uncertain future, as government regulations are getting stricter around it, showcasing demand will stay intact.
As more and more experienced the companies become and with better costing facilities, it can disrupt the current saturated organized companies across the globe.
India, is a rapidly growing country, with large agricultural exports. Currently, the company does not have a sustainable revenue stream here. Hence it can explore this region with more resources, catering to the rising demand for the same.
India, population and quality of living both are rising simultaneously. As a result, government can also push towards tighter regulations helping to cater demand from un-organized players to organized players.
I believe, the company at the current level, handled supply-chain, inflation and war situation quite maturely, compared to the competitors. Hence, it in itself creates a mote for the company. But how well the company utilizes the same, is the picture we need to see in the coming quarters.!!!!

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