5 minute read
MAYANK SINGHAL
the world? How do you plan to increase the market share?
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Overall, we have 15 multi-purpose plants across various locations in West India. We have invested in Capex over the years and continue to invest to meet the growing demand from customers. Domestically, PI operates in a limited set of products and enjoys a significant market share and leadership position in those products. PI also figures amongst the top 5 players globally in the agro chem CSM space, particularly in the early stage molecules.
Mayank Singhal, Vice Chairman & Managing Director, PI Industries Limited shares his views on trends on crop protection chemicals, R&D, production capacity, CSR activities, outlook and much more. Excerpts of the interview:
What are the global trends in the
Crop Protection Chemicals industry in 2021 and how will this impact India?
This year we expect the global crop protection chemicals industry to grow at 2-3 per cent. LATAM and Asia markets will be the growth regions and the same will be the case in India. COVID-19 may have distorted the global supply chains but overall there is minimal impact. Stringent regulations causing some products to go off the market and diversification of the global supply chain will be the major trend.
Please take us through key R&D initiatives in 2021?
PI is known for its R&D capabilities across the globe. We continue to make significant investments in our Process R&D and various technologies to cut down costs. This year, we are focusing
How do you look at R&D Services, more on scaling up products through
CSM Services and Distribution sustainable green initiatives.
Services concerning Crop Protection Chemicals? Key milestones achieved by PI In-
Although historically there has been a dustries in FY 2020-21 and what limited opportunity in R&D services, are the plans for FY 2021-22? New prodthis has considerably changed. Global ucts where you are focusing and how majors find space (Field trials, toxicol- will it impact PI Industries? ogy studies, etc.) to outsource to Indi- Key milestones during FY 2020-21 inan CROs and we expect this will grow. clude integrating Isagro with PI thereGrowth in CSM Services is a major suc- by maximizing synergies and capacity cess story and for PI in particular. Major utilization. We created a differentiated factors including geopolitical tensions, focused strategy on horticulture crops cost advantage, respect for IP, and ac- through Jivagro and integrating the cumulated expertise will make se- manufacturing operations with lect Indian players continue to that of PI’s CSM business. We grow in this space, provided commissioned four molsafety and sustainable “There are 5-6 ecules at the Isagro site. practices are stringently pipeline molecules We successfully scaled up followed. at various stages Awkira, launched Londax
With a large Indian of development to powder, and completed agriculture space and a be commercialized recertification audit for limited number of regis- during 2021-22” ISO 17025 at PNL & JMB tered agro chem products, and (QMS) IMS audit. We we see plenty of opportunity in raised Rs. 2,000 crore via QIP distribution services in India. CO- route (which generated 6x interest) VID-19 accelerated the move to online to pursue inorganic growth opportunimarketing and reaching out to farmers ties (diversification into adjacencies, indirectly but there is still a long way to go. cluding pharma). For FY 2021-22, we have 5-6 mol-
What is the company’s production ecules at various stages of development capacity? How is it spread across and ready to be commercialized. Anoth-
er is that MPP to be made ready besides high visibility of sustainable growth. We are actively evaluating pharma assets and continue building a strategic roadmap of diversification, leveraging on existing strengths. We are looking at new IP for deepening our technological capabilities, de-risking current operations, and opening up newer opportunities We aim to demerge the B2C business of Isa-
gro to Jivagro and merge Isagro’s manufacturing business with PI CSM. basis. For FY 21-22, while our business plans are still in the process of finalization, we aim to maintain the growth momentum and achieve PAT growth of around 20 per cent.
The demand for key commercialized molecules remained strong. There has also been an additional contribution from Isagro and robust momentum in PI’s leading brands. We have also man-
aged to have strong control on overhead costs accompanied by healthy collections.
Company’s performance expected in terms of revenue and profit during FY 2020-21 and in FY 2021-22?
For our 9M FY21, our top line has grown by around 35 per cent YoY and PAT has grown by around 61per cent YoY and we expect to exceed our original guidance to grow by around 20 per cent on a YoY
Capex invested in FY 2020-21 and what is the plan for FY 2021-22? What are the plans related to automation and digitisation?
In FY20-21, we have invested Capex of more than Rs. 600 crore. In FY21-22, we will continue to invest in new MPP, technologies, and pharmaceuticals. To give you examples of our digitisation initiatives, during this year, we have deployed sales order applications across all zones, allowing mobile and webbased order placement by sales force and channel partners. The automated Fleet Management of Application Spraying services and ARIBA sourcing platform are being planned as well.
How is the company striking a balance between environmentfriendly policies and sustainable growth? Are key CSR initiatives being undertaken by the company?
With a firm conviction in the business case of sustainable development, we have been steadily imbibing it with increasing investments in social and environmental aspects. We undertake various initiatives on clean technology, energy efficiency, renewable energy, and water conservation to address global environmental issues such as climate change and global warming. Our manufacturing facilities are also equipped with the amenities that help recover, recycle and preserve and reduce water consumption, which in turn, contribute to our Green Initiatives.
Empowering local communities is the foremost constituent of PI’s sustainability policy. Our efforts at water conservation through community programs won us CII’s National Award for Excellence in Water Management 2020.
Our CSR strategy consists of the integrated and all-around development of the communities in which we operate. Over the years, we have worked on propagated Direct Seeded Rice technology amongst farmers; mobile Healthcare Vans around our plant location, facilitated through PI’s Swasthya Seva initiative and Blood Bank services; women empowerment programs; learning enhancement programs for providing quality education to school children; and 1,800+ youth gained employment post completion of, free of cost, employability linked skill training and market initiatives at our skill development centre in Bharuch.
