Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-
An Article in a Agricultural Magazine worth a Read...
PI Industries
By Editorial Team on June 23, 2011
An agrochemicals company that provides inputs and solutions to farmers in key areas of crop protection chemicals, specialty products and plant nutrients
The company was founded in 1947. The company is headquartered in Udaipur. The company manufactures onsecticides, fungicides, herbicides and plant nutrient. PI is popular with farmers for its VEGFRU brand products and services. PI is ranked amongst the top Indian agrochemical manufacturers, marketers and exporters.PI exports its products to over 35 countries across Americas, Asia Pacific, Europe, Africa
and Japan, avers Mr.Dinkar Joshi, DGM, marketing.
The major areas that the company deals in are agri inputs, fine chemicals (CRAMS Contract Research and Manufacturing Services), polymers and engineering services.While agri-input accounts for over 60% of the companys total business,CRAMS forms the rest over 30%. Till December 2010, polymer compounding segment used to form the balance of the total business, which has since been divested.
With a pan-India presence and over 25,000 retail points, PI has a vast distribution network. The company has three formulation and two manufacturing facilities and four multi-product plants under its three business units in Jammu and Gujarat.Our business is equally distributed among India as we are trusted by all states and all categories of farmers, maintains Mr. Joshi.
Insecticides
PI produces a range of insecticides which includes phorate, profenofos, ethion, propargite, and thiamethaxam, besides others.They all are very cost-effective for all category (small, medium and large) farmers, maintains Mr. Joshi.
Herbicides
In collaboration with Kumiai Chemical Co Ltd Japan, PI has introduced the new technology of post emergent herbicides (Nominee Gold) for rice crop in India. This technology not only saves precious water in transplanted rice but also controls most of the weeds in the direct sown rice, which contributes more than 50% of Indian rice acreages and Indian rice acreages, in the want of such cost saving technical enabler.
This technology promoted by PI jointly with various NGOs, government extension machinery has been accepted as a big human labour cost and water saving technology in the various rain fed rice growing districts of the country. PI is actively working with State Agriculture University, state agriculture departments and NGOs by free distribution of DSR planters for promoting DSR among farmers, says Mr. Joshi.
The company also provides guidance to the farmers about applying the herbicides, insecticides, and fungicides. PI Industries is actively working for responsible care to environment and society by promoting safe and judicious use of pesticides. PI has
done nationwide training of trainers, farmers and various other stakeholders on the subject matter. Thousands of safety kits are freely being distributed to the farmers and farm labourers every year to educate them on this aspect, maintains Mr. Joshi.
Speaking about the reasons behind to the success of PI Mr. Joshi aver, Our keys to success are:
Upholding a reputation for integrity, honesty, straight-forward and just dealings
Being committed to the quality of our products
Being committed to our customers
Being innovative in approach and thought
Being open, friendly, sincere and human in behaviour and attitude
Contributing to the community as a part of our social responsibility.
Collaborations
PI has collaboration with other companies locally and internationally for its products. We have collaboration with many leading chemical companies in Japan like Sony Corporation, Mitsui Chemicals Agro, Kumiai Chemical Industry Ltd, Nihon Nohyaku; Bayer & BASF in Europe and almost all leading companies in India.
PI has also opened a research centre in partnership with Sony in Udaipur, PI-Sony Research Centre. The partnership looks to develop synthetic organic chemicals for applications in the electronic industry. While the high technical capabilities of Sony and large chemical manufacturing facilities of PI would help the venture develop the synthetic organic chemical produce in a cost-effective manner, the joint patenting will
benefit PI to improve on its profitability.
R&D
PI has an agro-chemical research and development facility in Rajasthan. Globally, PI offers end-to-end solutions in the fine and specialty chemicals space to the multinationals in Japan, the US and Europe.
PI is one of the first few companies to have its R&D facilities recognized by Department of Science and Technology, Government of India since 1976, for
pesticides and chemicals. These facilities are also certified by ISO / IEC 17025:1999 for Chemical Testing by NABL (National Accreditation Board for Testing and
Calibration Laboratories, DSIR, Govt of India), maintains Mr. Joshi.
Economics
Speaking about the economic viability of the products economically for small and marginal farmers Mr. Joshi says, We always come up with the products which are
affordable to small farmers; we are manufacturing the granule insecticide which is the most economical solution for many difficult to manage insect pests. At PI, our focus always remains creating value to the Indian farmers through innovative solution.
Product Features
Mr. Joshi maintains all PI products are safe for the environment. All our products are safe and tested by various government labs before commercialization. For more than a decade, PI is promoting a seas weed based product Biovita, which has helped increase the yield and quality of output of the end produce, says Mr. Joshi.
PI exports its products to over 35 countries across America, Asia Pacific, Europe, Africa and Japan.
Future Growth
Going ahead, the company aims at 40-45% growth from its current businesses in FY12. After selling off its polymer compounding business to France-based chemicals major Rhodia in 2010, the company now focuses on agri-inputs and custom synthesis segments, which together form a major chunk of PIs revenue. The company has lined up a capex of Rs 125 crore for the next two years to boost capacity and inorganic
growth.
PIs CSR Activities
The company has been involved in various corporate social responsibility(CSR). PI adopted Dungarpur, a tribal district in Rajasthan in order to develop the tribal
community. Under the agriculture extension programme of CII, Dungarpur, PI focuses on capacity building for increasing crop production and supporting in seed production technology (covering wheat, Barley and Gram crops).
PI is motivating the farmers to adopt improved technology through weather insurance support. With the support of Rajasthan State Seed Corporation (RSSC) we had arranged distribution of wheat and gram foundation seed on 50% price to farmers for seed production at their farm.
Under self-seed production programme farmers got trained for seed production technology with special focus on nutrient management for quality seed production by 45 training camps under the banner of PI Industries, says Mr. Joshi. NEFORD (Nand Educational Foundation for Rural Development) is a not-for-profit organization committed to transforming the quality of life for the rural poor and under privileged in the Eastern part of Uttar Pradesh.
Under the NEFORD Agriculture Development Program, PI is working with the organization for the dissemination of appropriate technologies in rice cultivation. PI is imparting free of cost training to the extension workers of the NEFORD, supporting the farmers fairs and helping grow Direct Seeded Rice more profitably.
Mr. Joshi is an agriculture graduate. This industry gives me opportunity to interact with farmers of all directions in India and empathize with them as they contribute to more than 60% of Indian population, he adds.
