Political stablity in the country will help Agro-chemical industry to prosper: Tirth Shah, Executive Director, GSP Crop Science
GSP Crop Science Pvt. Ltd. has been the leading force in Agro-chemical industry over few decades now. Initiated as a manufacturer of phosphorus, the company aims to offer the best and most effective techno-chemical crop protection solutions to Indian Agriculture and the farmer. It produces technical grade ingredients and formulates insecticides, fungicides, and herbicides, as well as intermediates, biopesticides, seed treatment chemicals, and public health products. The company has already cemented its foothold in the country and over 45 countries outside India.
With 48 patents, and quest to secure 100 more, GSP Crops is brainstorming over an idea to launch a 500-crore IPO by next year in order to generate funds which would help them to expand their business. However, the plan is still in its initial stage and company is also open to explore more ways in order to generate funds. The Agro-chemical industry is having a bright future ahead as the challenging weather and decreasing quality of fertile brings more opportunity for the stakeholder to explore.
In a candid conversation with The Quotes, Tirth Shah, Executive Director, GSP Crop Sc ience commented on the dynamics of Agro-chemicals in the country, company’s future plan and how it is heading towards establishing itself as the most prominent Agro-chemical stakeholder in the global market. Excerpts of the conversation.
According to a Government estimate, pest and insect problems in India are so sizable that about 35% of crop yields are eaten away by them, growing population, degradation in quantity and quality of the land used for farming are the prevailing issue in producing quality crops in the country. In such situation, agrochemical industry can provide blanket solution by revitalizing land fertility to meet increasing demands, while at the same time saving the crops from the threat of pests and infections. As a credible stakeholder in the industry how do you see the current situation and GSP Crop’s plan to capture the market.
A. The Indian agriculture industry has the biggest potential than any other country in the world. The sheer size of agricultural land we have is enough to prove how mighty we can be compared to other developed markets.
According to us, India is still a treatment-based market. When there is an attack, farmers use Crop protection to fight off the issue, whereas many other developed markets adopt prevention-based approach.
Even in India, certain farmers have adopted this method and we have noticed incredible amounts of yield. The mindset of farmers is improving with the changing times. Better ways have developed in the recent years to send information that benefits the farmer community. At GSP, we have kept the future in mind and plan on moving ahead with products that suit the markets accordingly.
The agrochemical sector is all set to make a comeback after the Covid-19 pandemic halted its growth in the last two years. By 2030, the market size is expected to grow to $280 billion, at a Compounded Annual Growth Rate (CAGR) of 2.8% from 2022. Before the pandemic, China was one of the largest producers of agrochemicals in the world. The supply chain suffered due to the import restrictions that Covid-19 brought about in its wake. How do you see the situation from India’s perspective and what we can do to grab the global market.
India is a super power when it comes to agrochemical manufacturing. Pandemic halted the supply chain and the global market was severely affected by it.
With political stability in the country, the Agro-chemical industries will surely prosper and some incredible developments are in the pipeline which will revolt the industry.
We are heading into the right direction and believe it’s the right time to explore the expansion in various aspects. I would not refute the presence of challenges but I am confident about our approach and with sheer determination and correct measures, GSP Crops will surely achieve its aspirations.
GSP Crop intends to launch its IPO next years. What does company want to achieve with such landmark step?
We are basically mulling several sources to generate funds for our expansion. Releasing an IPO is one of many possibilities that we are currently exploring at the moment. We are brainstorming over various ideas with the best in the business and hoping to come up with something substantial and significant in nearby future.
The company intends to launch new products and set up a new production line at Dahej in Gujarat to reduce its dependency on other countries such as China. Moreover, its plan is to go from being 60-70% dependent to 20-30% dependent. Kindly explain the magnitude of your import currently and what are the products which you wish to manufacture by yourself to reduce your import from China?
We are constantly working on several plans but as things are at the initial stage, we cannot reveal the name of the products. I apologize but even if the plant was functioning it wouldn’t be possible to release this information as these things are bit confidential.
What makes GSP Crop different from others in the market and how its innovations and products are improving the cultivation of crops in the country.
We have filed for over 140 patents in the past few years and have successfully been awarded around 48 out of those. Indian R&D is getting stronger and we aim for a future where Indian companies are competing head on with foreign MNC’s to provide the markets with best new technology and molecule in the coming years. A recently approved patent is a combination product which is sold under the brand name SLR525 is one such example.
The online market for Agri-input products is growing across India. The Agro Input Dealers Association has expressed its dissent with companies selling their products through online platforms. Manmohan Kalanti, President of Agro Input Dealers Association has requested all the companies to stop their sale of products through online platforms citing mis-branded products being sold through online platforms. What’s your take on the prevailing issue?
Mis-branding has been a new issue rising in the markets for sure and online seller are a big part of it. The sale of our products online is still a very small amount since most of the products sold are in bulk and most of the times dealers can provide better prices. We hope and urge relevant stakeholders to create a smooth bridge so that every area can prosper with the product.