Pesticides and Other Agro-Chemical Products in India ISIC 2421

PESTICIDES AND OTHER AGRO-
CHEMICAL PRODUCTS IN INDIA:

ISIC 2421
Euromonitor International
February 2017
PESTICIDES AND OTHER AGRO-CHEMICAL PRODUCTS IN INDIA: ISIC 2421 Passport I
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Market Trends .............................................................................................................................. 1
Production Trends ........................................................................................................................ 2
Competitive Landscape ................................................................................................................ 3
Prospects ..................................................................................................................................... 4
Industry Overview ......................................................................................................................... 4
Table 1 Key Industry Indicators 20102015 .............................................................. 4
Table 2 Key Industry Indicators: Annual Growth 20112015 .................................... 5
Chart 1 Production vs Nominal GDP 20002020 ...................................................... 5
Chart 2 Producer Volume Index vs Producer Price Index 20002015 ...................... 5
Industry Sectors ........................................................................................................................... 6
Table 3 Production by Sector: Value 20102015 ...................................................... 6
Table 4 Production by Sector: Annual Growth 20112015 ....................................... 6
Table 5 Production by Sector: Share of Total 20102015 ......................................... 7
Chart 3 Industry Sectors Growth Indices 20002020 ............................................... 7
Firmographics............................................................................................................................... 7
Table 6 Number of Companies by Employment Size 20102015 ............................. 7
Table 7 Number of Companies by Employment Size: Annual Growth 2011
2015 ............................................................................................................. 8
Table 8 Number of Companies by Employment Size: Share of Total 2010
2015 ............................................................................................................. 8
Table 9 Production by Employment Size 20102015................................................ 8
Table 10 Production by Employment Size: Annual Growth 20112015 ...................... 8
Table 11 Production by Employment Size: Share of Total 20102015 ....................... 9
Table 12 Industry Leaders: Company Production Shares in 2015 .............................. 9
Import and Export ......................................................................................................................... 9
Table 13 Import and Export 20102015 ...................................................................... 9
Table 14 Export Destinations 20102015 ................................................................. 10
Table 15 Importing Countries 20102015 ................................................................. 10
Chart 4 Import vs Export Growth 2000-2015........................................................... 10
Market and Buyers ..................................................................................................................... 11
Table 16 Key Market Indicators 20102015 .............................................................. 11
Table 17 Key Market Indicators: Annual Growth 20112015 .................................... 11
B2b Buyers ................................................................................................................................. 12
Table 18 B2B Sales Structure 20102015 ................................................................ 12
Table 19 B2B Sales Structure: Annual Growth 20112015 ...................................... 12
Table 20 B2B Sales Structure: Share of Total 20102015 ........................................ 13
Key B2b Buyer analysis.............................................................................................................. 13
Table 21 Key Statistics 20102015 ........................................................................... 13
Chart 5 Production vs GDP 20002020 .................................................................. 14
Chart 6 Costs vs Spending on Pesticides and Other Agro-chemical Products
20002015 ................................................................................................. 14
PESTICIDES AND OTHER AGRO-CHEMICAL PRODUCTS IN INDIA: ISIC 2421 Passport II
Chart 8 Costs vs Spending on Pesticides and Other Agro-chemical Products

20002015 ................................................................................................. 15
Suppliers .................................................................................................................................... 16
Table 23 Supply Structure 20102015 ...................................................................... 16
Table 24 Supply Structure: Annual Growth 20112015 ............................................ 16
Table 25 Supply Structure:Share of Total 20102015 .............................................. 16
Chart 9 Supply Structure (Rs million, in 2015) ........................................................ 17
Labour Costs .............................................................................................................................. 17
Chart 10 Number of Employees vs Average Salary 20002015 ............................... 18
Chart 11 Output per Employee vs Average Salary 20002015................................. 18
B2b Suppliers ............................................................................................................................. 18
Table 27 B2B Supliers 20102015............................................................................ 18
Table 28 B2B Suppliers: Annual Growth 20112015 ................................................ 19
Table 29 B2B Suppliers: Share of Total 20102015 ................................................. 19
Key B2b Suppliers Statistics....................................................................................................... 20
Chart 13 Price and Expenditure Dynamics 20002015 ............................................ 21
Chart 15 Expenditure Dynamics 20002015 ........................................................... 23
Industry Attractiveness Index ..................................................................................................... 23
Table 32 Attractiveness Index Composition .............................................................. 23
Chart 16 Attractiveness Index of Pesticides and Other Agro-chemical Products
Among Other India Industries .................................................................... 24
Chart 17 Binary Diagram of Attractiveness Index ..................................................... 24
Attractiveness Index: Explanation .............................................................................................. 25
Future Outlook............................................................................................................................ 27
Table 33 Forecasts 20162021................................................................................. 27
Definitions................................................................................................................................... 27
Pesticides and Other Agro-chemical Products ....................................................................... 27
PESTICIDES AND OTHER AGRO-CHEMICAL PRODUCTS IN INDIA: ISIC 2421 Passport 1
PESTICIDES AND OTHER AGRO-

CHEMICAL PRODUCTS IN INDIA: ISIC
2421
HEADLINES
Pesticides and other agro-chemical products market slows to 1.3% growth in 2015 as cotton
output contracts by 12% to 30.5 million bales
In 2015, government introduces subsidies for insecticides for cotton farmers of up to 50%
supporting pesticides growth
Turnover of pesticides and other agro-chemicals continues to grow, by 3.6% in 2015, driven
by growing exports and increasing domestic market share
Indian pesticides market remains disadvantaged by subsidies for specific products
Pesticides and other agro-chemical products turnover expected to post CAGR of 10.8% over
2015-2020 as agriculture industry continues rapid development and pesticide patents worth
US$6.3 billion are about to expire
MARKET TRENDS
The pesticides and other agro-chemical products market saw growth slow down to 1.3% in
2015 and reach Rs405 billion. While agriculture industry turnover increased, production of
grain remained at the same level and cotton output, the main pesticide consumer in India,
declined. Although the government offered a subsidy of up to 50% (depending on the region)
on insecticides for cotton growers, it was not enough to sustain growth of the pesticides
market as the main users stalled or declined. Moreover, the pesticide application rate
compared to other countries remains low in India. In addition, non-genuine pesticides remain
an issue in the market, negatively affecting both market size and confidence in genuine
pesticide producers.
Despite agriculture industry turnover growth of 9.5%, pesticides sales to the agriculture
industry declined by 1.2% in 2015. As the Indian government is aiming to reach self-
sufficiency in the agricultural sector, it is paying specific attention to boosting production and
supporting Indian farmers. However, in 2015 grain volumes increased only marginally, by 0.21
million tonnes to 252.2 million tonnes. Agriculture output per hectare of arable land in India is
smaller than in more developed countries such as Japan. Rice production in India is 2.4
tonnes per hectare, less than half that of Japan, at 5.2 tonnes per hectare. Indian yields are
low partly due to disproportional use of fertilizers though partly due to improper and
insufficient use of pesticides. Thus the Indian pesticides and agro-chemicals market has much
room to grow in the long term.
As cotton growers were responsible for nearly 50% of total pesticides consumption shaping
the pesticides market in India. During 2015, production of cotton decreased by 12% to 30.5
million bales (170kg each bale) in India. The average price of cotton continued to contract, by
15% in 2015, down to Rs70.4 per pound reducing the purchasing power of the farmers
growing cotton. In addition, the area harvested contracted by 7% requiring less volume of
pesticides to cover the entire area. The cotton price plunge and reduced area for harvest
slowed growth of the pesticides market in India.
The government has also decided to intervene in the cotton industry and offered a 50%
subsidy on pesticides required to control pests for cotton growers in the Muktsar district. Only
two high-quality pesticides were cleared in order to receive subsidies. One of them was
Oberon, a BayerCropScience Co insecticide, killing white fly at the nymph stage. The subsidy
scheme was also available in the entire Malwa region where cotton is grown, although the
level of subsidy also depended on the exact location. However, the programme of subsidising
insecticide use on cotton was not continued in 2016.
In the first half of 2015, heavy unseasonal rains damaged many crops. To compensate for the
losses, in the second half of 2015 farmers increased their use of pesticides. Nevertheless,
corn and wheat production in volume fell at record rates of 9.8% and 9.7%, respectively,
leaving India to face a serious shortage of these commodities. To tackle increasing food
prices, the Indian government has cut import taxes on wheat from 25% to 10%, and on
potatoes from 30% to 10% during October 2015-February 2017.
India loses some 35-45% of crops due to low or inefficient implementation of crop protection.
Consumption per capita of pesticides in India stood at 0.6kg/ha in 2015, which is one of the
lowest in the world, compared to 13kg/ha in China and 7kg/ha in the US. The reason for such
low consumption is low purchasing power of Indian farmers and small land plots per farmer.
It is estimated that the market for non-genuine pesticides amounted to 25% of the total in
2015. Not only does the government lose income from taxation of such pesticides, but
consumers risk being poisoned and genuine pesticide producers lose the confidence of
farmers. Such high levels of illicit activities in India also played an important role in reducing
total turnover of the pesticides and other agro-chemicals industry in India.
Imports of pesticides and other agro-chemicals declined by 7.6% and accounted for 18% of
the market in 2015, after recording a 27% surge in 2014. Imports of fungicides and
rodenticides contracted by 17% in 2015 mainly due to increased production in the domestic
market. Imports from the US continued to decline to a total share of 14% in 2015, in
comparison to 18% in the previous year. Meanwhile, imports from China continued to grow to
41% in 2015 as China is able to offer cheap alternatives.
PRODUCTION TRENDS
The turnover of pesticides and other agro-chemical products in India continued to grow, by
3.6%, in 2015 supported by growing exports of agro-chemicals and an increase in domestic
market as imports contracted. Industry profitability remained relatively stable though labour
and business-to-business (B2B) costs continued to grow. Indian pesticide producers remain
rather disadvantaged in comparison to other agro-chemical producers, as their product prices
are not subsidised thus distorting the agro-chemicals market to the disadvantage of
pesticides.
Exports of pesticides and other agro-chemicals increased by 4.8% to a 24% share of
turnover, supporting agro-chemicals turnover growth in 2015. Exports to the US increased to
18% of turnover during 2015 in comparison to 16% during 2014. Appreciation of the US dollar
in comparison to the Indian rupee, by 5%, added to the attractiveness of Indian products in
the US.
Industry profitability declined by 0.1 percentage point to 10.4% in 2015 as costs continued to
grow quickly. Labour costs increased by 4.7% to Rs34 billion in 2015 despite a 2.5% decline
in the number of employees, as average wages grew by 7.4%. Meanwhile, business-to-
business (B2B) costs increased by 3.8% to Rs268 billion in 2015.
Intra-industry trade purchases of agro-chemicals used in further processing to derive other

products remained high, at 51% of turnover. The costs of intra-industry trade increased by
3.8%, undermining the profitability of the agro-chemicals industry in 2015.
Investment in the Indian pesticides industry remains rather scarce. The government position
towards pesticide promotion in the short term remains unclear as insecticide subsidies for
cotton producers are about to be discontinued. Subsidies have a profound effect on markets
in India, as in other agro-chemical markets, eg urea, over-application due to the use of
subsidies is creating market imbalance. The government wants to transfer subsidies directly
to farmers and abandon the practise of subsiding prices of separate agro-chemicals or
equipment. Thus, farmers would be forced to decide for themselves what is more useful and
important for their crops.
COMPETITIVE LANDSCAPE
The number of companies engaged in the pesticides business increased by 1.8% in 2015, to
a total of 7,845. The agro-chemicals industry is highly concentrated, as the 15 largest
companies, with over 100 employees, account for 42% of industry turnover.
United Phosphorus Ltd (UPL) is an India-based subsidiary of Bio Win Corp Ltd. UPL operates
in three segments: agro chemicals, industrial chemicals and others. The agro chemicals
segment consists of agro-chemicals technical and formulations. The industrial chemicals
segment consists of industrial chemicals and speciality chemicals. The others segment
consists of traded products. The company offers a range of products that includes
insecticides, fungicides, herbicides, fumigants, plant growth regulators and rodenticides. UPL
has 30 manufacturing sites, including 13 in India, seven in Europe, four in Latin America, one
in North America and three in the rest of the world. The company acquired 40% of the
Brazilian firm Sinagro Group in July 2015.
Bayer CropScience India Ltd is an India-based subsidiary of Bayer AG. The company
operates in the crop protection, and bioscience and environmental science fields. It develops
and markets crop protection products, including herbicides to combat weeds, fungicides to
combat fungal diseases, insecticides for pest control, seed treatment products, and plant
growth regulators. In June 2015, the company acquired Hyderabad-based SeedWorks India
Pvt Ltd, which specialises in breeding, production and marketing of hybrid seeds further
increasing synergies between the seeds and pesticides industries.
Syngenta India Ltd is a crop protection products manufacturing company, with a production
site located in Santa Monica, in the state of Goa. The Santa Monica site hosts manufacturing
and R&D facilities. It produces four active ingredients and 12 different formulated fungicides,
herbicides and insecticides. The site also has an elaborate set-up for filling and packaging.
Globally, Syngenta Ltd has over 25,000 employees in over 90 countries. In 2015, the
company decided to initiate divestment of its Goa site and received approval from the
Competition Commission of India for the sale of the site to Deccan Fine Chemicals (India) Ltd
in April 2016.
PI Industries Ltd is an India-based company engaged in the production of agro-chemicals as
insecticides, fungicides, herbicides and speciality products. The company operates three
formulation and two manufacturing facilities in India. PI Industries Ltd entered a joint venture
with Mitsui Chemicals Agro Inc in May 2016.
Rallis India Ltd has determined its business segment as Agri Inputs consisting of pesticides,
plant growth nutrients and seeds. The other business segment consists of polymers. The
companys agricultural business includes pesticides, seeds, fertilizers, household products
and seed treatment chemicals. The crop protection chemicals comprise a domestic
formulation business, an institutional business and an international business. Its

manufacturing facilities are located in Akola, Akleshwar, Lote/Chiplun and Dahej, India.
PROSPECTS
Turnover of the pesticides and other agro-chemicals industry in India is expected to post a
CAGR of 10.8% over 2015-2020 and reach a value of nearly Rs571 billion by 2020. The
agriculture industry will remain a major driver of the pesticides market, recording a CAGR of
11.5% over the forecast period. Indian producers should gain from expiring pesticide patents
and seize the opportunity to increase exports. In addition, pesticide application rates are very
low in India, thus organic market growth will be an important factor awaiting the redistribution
of subsidies to the agriculture industry. However, as there are no signs of proper control of
non-genuine pesticides in the Indian market, this will continue to hamper growth of the
industry.
Indian pesticide producers are expected to gain from expired patents of agro-chemical
products. By 2020, patents of pesticides worth US$6.3 billion are expected to expire. India
could gain through exports of expired agro-chemical products as it has lower production costs
and potential in both domestic and foreign markets.
Meanwhile, Indias low application rates, of just 0.6kg/ha in 2015, continue to open doors in
terms of future potential. Education of farmers by the government and companies as well as
direct subsidies would encourage farmers to intensify pesticide use. Discussions around
changing the agro-chemical subsidy scheme should also contribute to the positive change in
the structure of farm spending on agro-chemicals in favour of pesticides.
The presence of non-genuine pesticides in the market is not good news for domestic
producers and consumers in India, but the damage that such pesticides have caused in the
last few years is gaining momentum. The damage is estimated to be as much as Rs100
billion. In addition to the health issues fake pesticides may cause, they can reduce farm yield
dramatically. If actions are not taken in the near future, the pesticides and other agro-
chemicals industry in India will be negatively impacted.
INDUSTRY OVERVIEW
Table 1 Key Industry Indicators 20102015
2010 2011 2012 2013 2014 2015
Production 172,922 258,196 236,273 309,624 330,585 342,618

(Turnover)(Rs million)
Value Added (Rs million) 33,374 55,735 57,519 66,570 72,229 74,458
Profit (Rs million) 16,364 29,403 30,840 32,353 34,816 35,620
Profit Margin (%) 9.5 11.4 13.1 10.4 10.5 10.4
Producer Volume 162 239 209 263 262 263
Index(2005=100)
Producer Price 111 113 118 123 132 136
Index(2005=100)
Number of Enterprises 8,536 7,903 7,991 7,450 7,705 7,845
Number of Employees 106,366 151,142 141,825 168,755 171,683 167,381
Output per Employee(Rs 1,626 1,708 1,666 1,835 1,926 2,047
'000)
Average Salary (Rs '000) 133 146 160 175 190 204
Source: Euromonitor International from official statistics, trade associations, trade press, company research.
Table 2 Key Industry Indicators: Annual Growth 20112015
2011 2012 2013 2014 2015
Production (Turnover) (%) 49.3 -8.5 31.0 6.8 3.6

Value Added (%) 67.0 3.2 15.7 8.5 3.1
Profit (%) 79.7 4.9 4.9 7.6 2.3
Profit 1.9 1.7 -2.6 0.1 -0.1
Margin(Percentage points)
Producer Volume 47.8 -12.5 25.8 -0.4 0.4
Index(2005=100, %)
Producer Price 1.1 4.6 4.2 7.2 3.2
Index(2005=100, %)
Number of Enterprises (%) -7.4 1.1 -6.8 3.4 1.8
Number of Employees (%) 42.1 -6.2 19.0 1.7 -2.5
Output per Employee (%) 5.1 -2.5 10.1 4.9 6.3
Average Salary (%) 9.1 9.5 9.6 8.4 7.4
Chart 1 Production vs Nominal GDP 20002020
Chart 2 Producer Volume Index vs Producer Price Index 20002015
INDUSTRY SECTORS
Table 3 Production by Sector: Value 20102015
Rs million
2010 2011 2012 2013 2014 2015
Insecticides 128,974 200,197 175,473 225,051 239,571 246,083

andHerbicides
Plant Growth 8,864 13,844 11,847 15,163 16,213 16,232
Regulatorsand
Disinfectants
Fungicides 35,083 44,155 48,952 69,410 74,800 80,303
andRodenticides
Total 172,922 258,196 236,273 309,624 330,585 342,618
Table 4 Production by Sector: Annual Growth 20112015
%
2011 2012 2013 2014 2015
Insecticides 55.2 -12.3 28.3 6.5 2.7

andHerbicides
Plant Growth 56.2 -14.4 28.0 6.9 0.1
Regulatorsand
Disinfectants
Fungicides 25.9 10.9 41.8 7.8 7.4
andRodenticides
Total 49.3 -8.5 31.0 6.8 3.6
Table 5 Production by Sector: Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
Insecticides 74.6 77.5 74.3 72.7 72.5 71.8

andHerbicides
Plant Growth 5.1 5.4 5.0 4.9 4.9 4.7
Regulatorsand
Disinfectants
Fungicides 20.3 17.1 20.7 22.4 22.6 23.4
andRodenticides
Total 100 100 100 100 100 100
Chart 3 Industry Sectors Growth Indices 20002020
FIRMOGRAPHICS
Table 6 Number of Companies by Employment Size 20102015
Number of companies
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 8,489 7,854 7,942 7,398 7,652 7,791
Extra small(10-19 14 14 14 15 15 15
employees)
Small (20-99 employees) 21 22 22 23 23 24
Medium(100-499 employees) 10 11 11 11 12 12
Large (500+ employees) 2 2 2 3 3 3
Total 8,536 7,903 7,991 7,450 7,705 7,845
Table 7 Number of Companies by Employment Size: Annual Growth 20112015
%
2011 2012 2013 2014 2015
Micro (0-9 employees) -7.5 1.1 -6.8 3.4 1.8

Extra small(10-19 0.0 0.0 7.1 0.0 0.0
employees)
Small (20-99 employees) 4.8 0.0 4.5 0.0 4.3
Medium(100-499 employees) 10.0 0.0 0.0 9.1 0.0
Large (500+ employees) 0.0 0.0 50.0 0.0 0.0
Total -7.4 1.1 -6.8 3.4 1.8
Table 8 Number of Companies by Employment Size: Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 99.4 99.4 99.4 99.3 99.3 99.3

Extra small(10-19 0.2 0.2 0.2 0.2 0.2 0.2
employees)
Small (20-99 employees) 0.2 0.3 0.3 0.3 0.3 0.3
Medium(100-499 employees) 0.1 0.1 0.1 0.1 0.2 0.2
Large (500+ employees) 0.0 0.0 0.0 0.0 0.0 0.0
Total 100 100 100 100 100 100
Table 9 Production by Employment Size 20102015
Rs million
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 14,172 20,462 18,201 23,406 24,638 25,277

Extra small(10-19 20,123 29,452 26,463 34,269 36,255 37,330
employees)
Small (20-99 employees) 71,261 105,451 95,657 124,632 132,460 136,829
Medium(100-499 employees) 49,152 73,864 67,943 89,299 95,544 99,158
Large (500+ employees) 18,214 28,966 28,010 38,018 41,688 44,023
Total 172,922 258,196 236,273 309,624 330,585 342,618
Table 10 Production by Employment Size: Annual Growth 20112015
2011 2012 2013 2014 2015
Micro (0-9 employees) 44.4 -11.1 28.6 5.3 2.6

Extra small(10-19 46.4 -10.2 29.5 5.8 3.0
employees)
Small (20-99 employees) 48.0 -9.3 30.3 6.3 3.3
Medium(100-499 employees) 50.3 -8.0 31.4 7.0 3.8
Large (500+ employees) 59.0 -3.3 35.7 9.7 5.6
Total 49.3 -8.5 31.0 6.8 3.6
Table 11 Production by Employment Size: Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 8.2 7.9 7.7 7.6 7.5 7.4

Extra small(10-19 11.6 11.4 11.2 11.1 11.0 10.9
employees)
Small (20-99 employees) 41.2 40.8 40.5 40.3 40.1 39.9
Medium(100-499 employees) 28.4 28.6 28.8 28.8 28.9 28.9
Large (500+ employees) 10.5 11.2 11.9 12.3 12.6 12.8
Total 100 100 100 100 100 100
Table 12 Industry Leaders: Company Production Shares in 2015
United Phosphorus Ltd 6.2

Bayer CropScience India Ltd 3.7
Syngenta India Ltd 3.2
PI Industries Ltd 2.4
Rallis India Ltd 2.2
Other 82.2
IMPORT AND EXPORT

Table 13 Import and Export 20102015
2010 2011 2012 2013 2014 2015
Trade Balance(Rs million) 14,222 22,456 33,298 53,910 35,745 45,386

Trade Balance (%) -24.9 57.9 48.3 61.9 -33.7 27.0
Imports CIF (Rs million) 30,577 35,243 42,143 50,442 64,191 59,317
Imports CIF (%) 32.5 15.3 19.6 19.7 27.3 -7.6
Imported Products 17.8 13.9 18.8 17.8 19.9 18.2
inTotal Market (%)
Exports FOB (Rs million) 44,799 57,699 75,441 104,352 99,936 104,703
Exports FOB (%) 6.6 28.8 30.8 38.3 -4.2 4.8
Exported Products 20.8 18.1 25.3 26.7 23.8 24.0
inTotal Products Output
(%)
Note: Imports CIF (Costs, Insurance and Freight) is imports value with freight, insurance and other costs
incurred during transportation of goods from the port of origin. Exports FOB (Free on Board) is exports
value including freight cost up to the port of origin but excluding all other costs.
Table 14 Export Destinations 20102015
% share of exports
2010 2011 2012 2013 2014 2015
USA 11.2 13.2 16.1 17.0 16.3 17.8

Brazil 8.9 10.2 16.4 15.7 16.3 12.4
France 3.3 4.1 4.6 4.3 5.3 4.3
Belgium 2.1 2.9 3.0 2.8 3.8 3.6
Australia 2.7 2.6 1.9 2.0 2.0 3.3
Other 71.8 67.0 58.0 58.2 56.3 58.6
Total 100 100 100 100 100 100
Table 15 Importing Countries 20102015
% share of imports
2010 2011 2012 2013 2014 2015
China 25.2 27.9 33.6 36.8 40.5 41.2

USA 30.9 25.2 24.5 23.8 17.8 14.3
Germany 9.0 9.7 9.8 8.4 8.0 10.1
Japan 8.0 8.6 7.8 10.6 8.5 9.4
Israel 5.2 3.3 3.5 3.8 4.8 7.4
Other 21.7 25.3 20.8 16.6 20.4 17.6
Total 100 100 100 100 100 100
Chart 4 Import vs Export Growth 2000-2015
MARKET AND BUYERS

Table 16 Key Market Indicators 20102015
2010 2011 2012 2013 2014 2015
Market Size (Rs million) 207,866 303,564 274,991 348,350 399,590 404,979
inTotal Market (%)
Share of 82.2 86.1 81.2 82.2 80.1 81.8
LocallyProduced
Products (%)
Trade Margins(Rs million) 43,968 60,323 64,811 83,519 95,596 98,475
Trade Margins(% of 21.2 19.9 23.6 24.0 23.9 24.3
Market Size)
B2B Sales (Rs million) 208,217 302,633 273,998 346,901 398,167 403,598
Change in Stock(Rs -351 931 993 1,449 1,423 1,380
million)
Table 17 Key Market Indicators: Annual Growth 20112015
2011 2012 2013 2014 2015
Market Size (%) 46.0 -9.4 26.7 14.7 1.3

Imported Products -3.9 4.9 -1.0 2.1 -1.7
inTotal
Market(Percentage points)
Share of 3.9 -4.9 1.0 -2.1 1.7
LocallyProduced
Products(Percentage
points)
Trade Margins (%) 37.2 7.4 28.9 14.5 3.0
Trade -1.3 3.7 0.4 -0.1 0.4
Margins(Percentage
points)
B2B Sales (%) 45.3 -9.5 26.6 14.8 1.4
Change in Stock (%) -365 6.6 45.9 -1.8 -3.0
B2B BUYERS
Table 18 B2B Sales Structure 20102015
Rs million
2010 2011 2012 2013 2014 2015
Agriculture 98,796 138,963 125,043 150,607 180,099 177,914

Pesticides and 73,035 112,917 100,218 137,119 152,075 157,825
OtherAgro-chemical
Products
Basic Chemicals 22,531 33,683 29,976 36,800 40,317 41,402
Wood and Wood Products 5,511 6,073 6,530 8,104 9,101 9,714
Construction 2,162 2,955 3,431 4,133 5,013 4,979
Fertilisers and 1,719 2,410 2,402 2,479 2,826 2,878
NitrogenCompounds
Cargo 1,094 1,411 1,548 1,923 2,265 2,313
Handling,Warehousing
and TravelAgencies
Tobacco Products 1,031 1,153 1,365 1,598 1,738 1,581
Basic Iron and Steel 426 560 610 731 836 889
Production, 323 430 507 628 743 778
Collectionand
Distribution
ofElectricity
Other 1,590 2,078 2,368 2,779 3,155 3,325
Total 208,217 302,633 273,998 346,901 398,167 403,598
Note: Other sources of revenue include: remaining buyers expenditure on industrys
products/services, and changes in buyers inventories.
Table 19 B2B Sales Structure: Annual Growth 20112015
%
2011 2012 2013 2014 2015
Agriculture 40.7 -10.0 20.4 19.6 -1.2

Pesticides and 54.6 -11.2 36.8 10.9 3.8
OtherAgro-chemical
Products
Basic Chemicals 49.5 -11.0 22.8 9.6 2.7
Wood and Wood Products 10.2 7.5 24.1 12.3 6.7
Construction 36.7 16.1 20.5 21.3 -0.7
Fertilisers and 40.2 -0.3 3.2 14.0 1.8
NitrogenCompounds
Cargo 29.0 9.7 24.2 17.7 2.1
and TravelAgencies
Tobacco Products 11.9 18.3 17.1 8.8 -9.0
Basic Iron and Steel 31.5 8.9 19.9 14.4 6.3

Production, 33.3 17.9 23.9 18.4 4.8
Collectionand
Distribution
ofElectricity
Other 30.8 13.9 17.4 13.5 5.4
Total 45.3 -9.5 26.6 14.8 1.4
Table 20 B2B Sales Structure: Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
Agriculture 47.4 45.9 45.6 43.4 45.2 44.1

Pesticides and 35.1 37.3 36.6 39.5 38.2 39.1
OtherAgro-chemical
Products
Basic Chemicals 10.8 11.1 10.9 10.6 10.1 10.3
Wood and Wood Products 2.6 2.0 2.4 2.3 2.3 2.4
Construction 1.0 1.0 1.3 1.2 1.3 1.2
Fertilisers and 0.8 0.8 0.9 0.7 0.7 0.7
NitrogenCompounds
Cargo 0.5 0.5 0.6 0.6 0.6 0.6
and TravelAgencies
Tobacco Products 0.5 0.4 0.5 0.5 0.4 0.4
Basic Iron and Steel 0.2 0.2 0.2 0.2 0.2 0.2
Production, 0.2 0.1 0.2 0.2 0.2 0.2
Collectionand
Distribution
ofElectricity
Other 0.8 0.7 0.9 0.8 0.8 0.8
Total 100 100 100 100 100 100
KEY B2B BUYER ANALYSIS

Agriculture
Table 21 Key Statistics 20102015
2010 2011 2012 2013 2014 2015
Production 17,197,6 19,478,2 22,067,3 25,221,5 26,892,4 29,442,1

(Turnover)(Rs million) 64 15 50 93 49 90
Profit Margin (%) 42.4 43.3 43.3 43.0 43.1 42.0
Costs (Rs million) 9,911,117 11,048,562 12,523,059 14,365,891 15,306,389 17,068,598
Expenditure 98,796 138,963 125,043 150,607 180,099 177,914
onPesticides and
OtherAgro-chemical
Products(Rs million)
Share of Pesticides 1.0 1.3 1.0 1.0 1.2 1.0
andOther Agro-
chemicalProducts (% of
costs)
Number of Companies 31,555,404 30,776,909 31,318,032 31,125,052 31,019,964 30,770,548
Chart 5 Production vs GDP 20002020
Chart 6 Costs vs Spending on Pesticides and Other Agro-chemical Products 2000

2015
Basic Chemicals
2010 2011 2012 2013 2014 2015
Production 835,271 1,110,238 1,142,216 1,242,232 1,286,283 1,360,034

Profit Margin (%) 10.4 11.3 10.7 5.5 5.7 5.6
Costs (Rs million) 748,561 985,277 1,019,664 1,173,514 1,213,526 1,283,264
Expenditure 22,531 33,683 29,976 36,800 40,317 41,402
onPesticides and
OtherAgro-chemical
Products(Rs million)
Share of Pesticides 3.0 3.4 2.9 3.1 3.3 3.2
andOther Agro-
chemicalProducts (% of
costs)
Number of Companies 40,198 36,145 36,213 33,604 34,548 34,702
Level of 8.6 8.6 8.7 8.7 8.7 8.7
Concentration(% of
productionattributable
to thelargest companies)
Chart 8 Costs vs Spending on Pesticides and Other Agro-chemical Products 2000

2015
SUPPLIERS
Table 23 Supply Structure 20102015
Rs million
2010 2011 2012 2013 2014 2015
B2B Purchases 139,548 202,461 178,754 243,054 258,356 268,159

Labour Costs 14,200 22,012 22,623 29,514 32,546 34,078
Taxes Less Subsidies 2,811 4,319 4,055 4,704 4,867 4,760
Costs 156,558 228,793 205,433 277,271 295,769 306,998
Table 24 Supply Structure: Annual Growth 20112015
%
2011 2012 2013 2014 2015
B2B Purchases 45.1 -11.7 36.0 6.3 3.8

Labour Costs 55.0 2.8 30.5 10.3 4.7
Taxes Less Subsidies 53.7 -6.1 16.0 3.5 -2.2
Costs 46.1 -10.2 35.0 6.7 3.8
Table 25 Supply Structure:Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
B2B Purchases 89.1 88.5 87.0 87.7 87.4 87.3
Labour Costs 9.1 9.6 11.0 10.6 11.0 11.1

Taxes Less Subsidies 1.8 1.9 2.0 1.7 1.6 1.6
Costs 100 100 100 100 100 100
Chart 9 Supply Structure (Rs million, in 2015)
LABOUR COSTS
2010 2011 2012 2013 2014 2015
Labour Costs (Rs million) 14,200 22,012 22,623 29,514 32,546 34,078
Number of Employees 106,366 151,142 141,825 168,755 171,683 167,381
Output per Employee(Rs 1,626 1,708 1,666 1,835 1,926 2,047
'000)
Average Salary (Rs '000) 133 146 160 175 190 204
Chart 10 Number of Employees vs Average Salary 20002015
Chart 11 Output per Employee vs Average Salary 20002015
B2B SUPPLIERS
Table 27 B2B Supliers 20102015
Rs million
2010 2011 2012 2013 2014 2015
Pesticides and 73,035 112,917 100,218 137,119 152,075 157,825

OtherAgro-chemical
Products
Basic Chemicals 34,822 48,082 42,668 56,991 58,271 58,953
Monetary Intermediation 3,484 4,521 3,742 5,355 5,005 5,453
Wholesale 2,951 3,926 3,365 4,798 4,747 5,126
Sale, Maintenance 3,162 3,702 3,156 4,518 4,316 4,642
andRepair of
MotorVehicles, Retail
Sale ofAutomotive Fuel
Refined PetroleumProducts 2,328 3,567 3,212 4,573 4,219 4,437
Production, 2,727 3,289 2,528 3,527 3,408 3,638
Collectionand
Distribution
ofElectricity
Road Passenger 2,085 2,530 2,086 2,998 2,895 3,186
andFreight Transport
Photochemicals,Explosive- 2,333 3,015 2,756 2,606 2,708 2,882
s and OtherChemicals
Wood and Wood Products 1,299 1,552 1,311 1,899 1,847 1,964
Other 11,321 15,362 13,713 18,669 18,864 20,054
Total 139,548 202,461 178,754 243,054 258,356 268,159
Table 28 B2B Suppliers: Annual Growth 20112015
%
2011 2012 2013 2014 2015
Pesticides and 54.6 -11.2 36.8 10.9 3.8

OtherAgro-chemical
Products
Basic Chemicals 38.1 -11.3 33.6 2.2 1.2
Monetary Intermediation 29.7 -17.2 43.1 -6.5 8.9
Wholesale 33.1 -14.3 42.6 -1.1 8.0
Sale, Maintenance 17.1 -14.7 43.2 -4.5 7.5
andRepair of
Refined PetroleumProducts 53.2 -10.0 42.4 -7.7 5.2
Production, 20.6 -23.1 39.5 -3.4 6.8
Collectionand
Distribution
ofElectricity
Road Passenger 21.3 -17.5 43.7 -3.4 10.0
Photochemicals,Explosive- 29.2 -8.6 -5.4 3.9 6.4
Wood and Wood Products 19.5 -15.5 44.8 -2.8 6.3
Other 35.7 -10.7 36.1 1.0 6.3
Total 45.1 -11.7 36.0 6.3 3.8
Table 29 B2B Suppliers: Share of Total 20102015
%
2010 2011 2012 2013 2014 2015
Pesticides and 52.3 55.8 56.1 56.4 58.9 58.9

OtherAgro-chemical
Products
Basic Chemicals 25.0 23.7 23.9 23.4 22.6 22.0
Monetary Intermediation 2.5 2.2 2.1 2.2 1.9 2.0
Wholesale 2.1 1.9 1.9 2.0 1.8 1.9
Sale, Maintenance 2.3 1.8 1.8 1.9 1.7 1.7
andRepair of
Refined PetroleumProducts 1.7 1.8 1.8 1.9 1.6 1.7
Production, 2.0 1.6 1.4 1.5 1.3 1.4
Collectionand
Distribution
ofElectricity
Road Passenger 1.5 1.2 1.2 1.2 1.1 1.2
Photochemicals,Explosive- 1.7 1.5 1.5 1.1 1.0 1.1
Wood and Wood Products 0.9 0.8 0.7 0.8 0.7 0.7
Other 8.1 7.6 7.7 7.7 7.3 7.5
Total 100 100 100 100 100 100
Note: Intra-industry trade (the industry itself is among its major suppliers) refers to the exchange of products
within the same industry definition range. The industry classification can include a wide variety of supply
chain components from raw materials to finished or semi-finished goods. Consequently, it is not
uncommon that one part of a product is produced by one company and then sold to another enterprise in
the same industry to be included in the production of a final product. This trade enables the industry
players to specialise in a limited range of production and reap the advantage of increasing returns.
KEY B2B SUPPLIERS STATISTICS

Basic Chemicals
2010 2011 2012 2013 2014 2015
Market Size (Rs million) 1,901,853 2,450,811 2,547,279 2,849,925 3,070,526 3,192,292
inTotal Market (%)
Share of 58.3 59.2 51.8 51.0 51.1 56.7
LocallyProduced
Products (%)
Expenditure on 34,822 48,082 42,668 56,991 58,271 58,953
BasicChemicals (Rs
million)
Pesticides and 1.8 2.0 1.7 2.0 1.9 1.8
OtherAgro-chemical
ProductsShare of
Supplier'sMarket (%)
Producer Price 119 128 138 142 147 147
Index(2005=100)
Production 835,271 1,110,238 1,142,216 1,242,232 1,286,283 1,360,034

Level of 8.6 8.6 8.7 8.7 8.7 8.7
Concentration(% of
productionattributable
to thelargest companies)
Chart 13 Price and Expenditure Dynamics 20002015
Monetary Intermediation
2010 2011 2012 2013 2014 2015
Market Size (Rs million) 4,350,695 5,039,318 5,743,023 6,636,286 7,291,204 8,247,150
inTotal Market (%)
Share of 96.0 95.8 95.7 95.7 95.7 96.2
LocallyProduced
Products (%)
Expenditure on 3,484 4,521 3,742 5,355 5,005 5,453
MonetaryIntermediation(R-
s million)
Pesticides and 0.1 0.1 0.1 0.1 0.1 0.1
OtherAgro-chemical
ProductsShare of
Supplier'sMarket (%)
Production 4,242,952 4,895,556 5,573,366 6,438,195 7,070,375 8,035,308
Chart 15 Expenditure Dynamics 20002015
INDUSTRY ATTRACTIVENESS INDEX

Table 32 Attractiveness Index Composition
Weight (%) Rating
Attractiveness in Stable Economic Environment 25
- Industry Growth 10 38
- Demand Stability 5 46
- Profitability 10 40
- Bargaining Power over Suppliers 5 92
- Bargaining Power over Buyers 5 17
- Entry Barriers 5 65
- Foreign Competition 5 32
- Foreign Opportunities 5 83
Attractiveness in Turbulent Economic Environment 29
- Industry Growth 5 87
- Industry's Cyclicality 5 100
- Industry's Dependence on Households 5 0
- Durability of the Products/services 5 100
- Influence on Other Industries 12.5 83
- Dependence on Other Industries 12.5 25
- Resistance to Drop in GDP 5 28
Overall Attractiveness Index 54
Chart 16 Attractiveness Index of Pesticides and Other Agro-chemical Products Among

Other India Industries
Chart 17 Binary Diagram of Attractiveness Index
ATTRACTIVENESS INDEX: EXPLANATION

The Industry Attractiveness Index has two parts, evaluating:
the industrys performance in a stable economic environment;
the industrys performance in a turbulent economic environment and the industrys resistance
to economic downturn.
The first part of the index represents the industrys performance in a stable economic
environment in the period of 20132015. It covers several criteria of the industrys performance:
Industrys growth: the compound annual growth rate of the industrys production (turnover).
Demand stability: coefficient of variation of year-on-year growth indexes of demand.
Coefficient of variation is a ratio between the standard deviation and sample mean. It
complements the measure of average growth rates by giving the growth stability
characteristic.
Industrys profitability: average Profit share of production (turnover) over five years of stable
economic environment.
Bargaining power over suppliers: the measure is calculated as the industrys average
percentage share in its three major suppliers sales. It shows the industrys potential power to
negotiate the prices and other supply conditions of its major intermediate purchases.
Bargaining power over buyers: the measure is calculated as the industrys average
percentage share in its three major buyers costs. It evaluates the potential power of the
industry to negotiate the price of its production and set other sales conditions.
Barriers of entry: a share of large companies in the total number of companies within the
industry. The share of big companies is a proxy for entry barriers and concentration measure
within the industry.
Foreign competition: average annual import share in market size, average of five years. It
shows how strong local companies are in comparison with foreign competitors.
Global opportunities: export share of industrys production (turnover), the average of five
years. It shows the external industrys possibilities to supply the foreign markets and implicitly
demonstrates the competitiveness of the industrys products/services abroad.
The second part of the index reflects the industrys vulnerability in economic downturn. It is
calculated during recessionary years (20102013) and based on several criteria:
Industrys growth: the compound annual growth rate of production (turnover).
Dependence on capital purchases: ratio of non-investment (B2B) purchases of industrys
products/services to investment purchases of industrys products/services. Usually, goods
and services that are treated as capital by companies are pro-cyclical, their reaction to
changes in economic conditions is more sensitive in comparison with B2B purchases.
Dependence on household consumption: the average ratio of household consumption
expenditure to business purchases of the product is used to evaluate the sensitivity of the
specific production category. Usually B2B goods and services experience amplified
fluctuations in their demand compared to final consumption spending categories, which
exhibit lower levels of volatility and are less sensitive to economic downturn.
Durability of the industrys product: time between the purchase and the complete wearing out
of a product/service. The longer the time the more durable the good is. Demand for durable or
semi-durable goods usually has greater sensitivity to economic slowdowns as time of service
can be prolonged for these goods.
Industrys resistance to changes in a countrys GDP: measured as the elasticity coefficient of
how sensitively the industry reacts to changes in a countrys GDP.
Industrys dependency on other industries (forward linkage): the variable, measured as the
horizontal sum of all coefficients of Leontiefs matrix inverse. It measures the cumulative
output decrease in the sector, if the final demand for the production of all sectors were to
decrease by one unit. In a period of economic downturn, it is a measure representing the
power of other industries to affect the industry of interest.
Industrys ability to affect other industries in the economy (backward linkage): measured as
the vertical sum of the coefficients of Leontiefs matrix inverse. It shows how much influence
the industry has on other industries and how strong these links are. It measures the extent to
which a unit change in the demand for the product causes production increases in all the
industries of the economy. Being one of the key industries in the economy gives additional
strength and resistance to economic shocks.
Each measure of the industrys performance is compared across all industries in the country
and is then attributed to a corresponding percentile judged on its performance (scale from 1 to
100). The better the value of criteria the higher percentile the industry reaches. The percentiles
are then weighted by their relative importance and the final score is calculated as the weighted
average.
FUTURE OUTLOOK
Table 33 Forecasts 20162021
Turnover by category (Rs million)

2016 2017 2018 2019 2020 2021
Insecticides 272,009 303,058 334,035 369,579 409,719 454,421

andHerbicides
Plant Growth 17,957 20,210 22,423 24,975 27,875 31,128
Regulatorsand
Disinfectants
Fungicides 86,360 93,746 105,215 118,579 133,878 151,189
andRodenticides
Total 376,326 417,015 461,674 513,133 571,472 636,738
DEFINITIONS
Pesticides and Other Agro-chemical Products

Pesticides and other agro-chemical products is an aggregation of Insecticides and herbicides,
Plant growth regulators and disinfectants and Fungicides and rodenticides.
Insecticides and Herbicides

This category includes manufacture of insecticides and herbicides.
Plant Growth Regulators and Disinfectants

This category includes manufacture of anti-sprouting products, plant growth regulators,
disinfectants (for agricultural and other use).
Fungicides and Rodenticides

This category includes manufacture of fungicides and rodenticides.

Pesticides and Other Agro-Chemical Products in India ISIC 2421

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PESTICIDES AND OTHER AGRO-

CHEMICAL PRODUCTS IN INDIA:

LIST OF CONTENTS AND TABLES

Chart 8 Costs vs Spending on Pesticides and Other Agro-chemical Products

PESTICIDES AND OTHER AGRO-

Intra-industry trade purchases of agro-chemicals used in further processing to derive other

formulation business, an institutional business and an international business. Its

2010 2011 2012 2013 2014 2015

Production 172,922 258,196 236,273 309,624 330,585 342,618

Table 2 Key Industry Indicators: Annual Growth 20112015

2011 2012 2013 2014 2015

Production (Turnover) (%) 49.3 -8.5 31.0 6.8 3.6

Chart 1 Production vs Nominal GDP 20002020

Chart 2 Producer Volume Index vs Producer Price Index 20002015

Insecticides 128,974 200,197 175,473 225,051 239,571 246,083

Table 4 Production by Sector: Annual Growth 20112015

Insecticides 55.2 -12.3 28.3 6.5 2.7

Table 5 Production by Sector: Share of Total 20102015

Insecticides 74.6 77.5 74.3 72.7 72.5 71.8

Chart 3 Industry Sectors Growth Indices 20002020

Micro (0-9 employees) 8,489 7,854 7,942 7,398 7,652 7,791

Table 7 Number of Companies by Employment Size: Annual Growth 20112015

Micro (0-9 employees) -7.5 1.1 -6.8 3.4 1.8

Table 8 Number of Companies by Employment Size: Share of Total 20102015

Micro (0-9 employees) 99.4 99.4 99.4 99.3 99.3 99.3

Table 9 Production by Employment Size 20102015

Micro (0-9 employees) 14,172 20,462 18,201 23,406 24,638 25,277

Table 10 Production by Employment Size: Annual Growth 20112015

2011 2012 2013 2014 2015

Micro (0-9 employees) 44.4 -11.1 28.6 5.3 2.6

Table 11 Production by Employment Size: Share of Total 20102015

Micro (0-9 employees) 8.2 7.9 7.7 7.6 7.5 7.4

Table 12 Industry Leaders: Company Production Shares in 2015

United Phosphorus Ltd 6.2

IMPORT AND EXPORT

2010 2011 2012 2013 2014 2015

Trade Balance(Rs million) 14,222 22,456 33,298 53,910 35,745 45,386

Table 14 Export Destinations 20102015

USA 11.2 13.2 16.1 17.0 16.3 17.8

Table 15 Importing Countries 20102015

China 25.2 27.9 33.6 36.8 40.5 41.2

Chart 4 Import vs Export Growth 2000-2015

MARKET AND BUYERS

2010 2011 2012 2013 2014 2015

Table 17 Key Market Indicators: Annual Growth 20112015

2011 2012 2013 2014 2015

Market Size (%) 46.0 -9.4 26.7 14.7 1.3

Agriculture 98,796 138,963 125,043 150,607 180,099 177,914

Table 19 B2B Sales Structure: Annual Growth 20112015

Agriculture 40.7 -10.0 20.4 19.6 -1.2

Basic Iron and Steel 31.5 8.9 19.9 14.4 6.3

Table 20 B2B Sales Structure: Share of Total 20102015

Agriculture 47.4 45.9 45.6 43.4 45.2 44.1

KEY B2B BUYER ANALYSIS

Table 21 Key Statistics 20102015

2010 2011 2012 2013 2014 2015

Production 17,197,6 19,478,2 22,067,3 25,221,5 26,892,4 29,442,1

Chart 5 Production vs GDP 20002020

Chart 6 Costs vs Spending on Pesticides and Other Agro-chemical Products 2000

Table 22 Key Statistics 20102015

2010 2011 2012 2013 2014 2015

Production 835,271 1,110,238 1,142,216 1,242,232 1,286,283 1,360,034

Chart 7 Production vs GDP 20002020