Dhanuka Agritech Limited with more than 321 registrations including Herbicides, Insecticides, Fungicides and Plant Growth Regulators /Bio- Stimulants and with over 330 active SKUs has one of the most extensive market penetration in agri-input industry. Dr R G Agarwal, Chairman Emeritus, Dhanuka Agritech talks about the emerging scenario of agrochemicals as well as his company’s future plan: 

How has the overall performance of Dhanuka Agritech been in 2024 and what are your expectations from 2025?  

Dhanuka Agritech Limited has been progressing well beyond its expectations. During 2024, the annual turnover of Dhanuka Agritech increased by about 17 per cent, from Rs. 1,758 crore to around Rs. 2,035 crore which was more than the expected target. It is imperative that such a market response speaks about its superior efficacy and popularity among the farmers. During 2025, Dhanuka is expected to reach the figure of around Rs. 2,500 crores due to the widening of our product portfolio with exclusive solutions developed in coordination with Japanese companies. 

Given the current geopolitical scenario and tariff war, how would you explain the emerging scenario of agrochemicals in India?  

The recent imposition of a 26 per cent discount tariff by the United States on Indian imports has significantly increased the cost of Indian agrochemical exports to the US. This move could reduce demand for these products in the short term. The same has been deferred by the US for 3 months.   

However, despite the hike in tariff, it is 26 per cent for India but it remains lower than that of major competing countries such as China, where the total tariff stands at 54 per cent and has been further increased to 225 per cent.

In comparison, the customs duty imposed on other countries like Vietnam (46 per cent), and Bangladesh (37 per cent) are still higher than India’s. This scenario could provide Indian agrochemical companies with a relative advantage in the US market, as Indian supplies would be subject to lower customs duties. If Indian companies can maintain competitive pricing strategies, they could significantly benefit from this opportunity. 

However, the imposition of higher tariffs on Chinese agrochemicals in the US may lead Chinese firms to dump their excess supply to other markets at reduced prices. This could intensify competition for Indian exporters in non-US markets. We must adopt a wait-and-watch approach to assess how the situation evolves.  

The trend of diversifying supply chains away from existing core manufacturing markets, influenced by geopolitical factors, could present India as a preferred destination for agrochemical manufacturing. The conflict in regions like Ukraine has disrupted food supplies in the European Union, leading these nations to turn to India and other regions for their agricultural needs, potentially boosting Indian agrochemical exports to the EU.    

Your recent acquisition of fungicides like Iprovalicarb and Triadimenol from Bayer AG marks a significant step into global markets. What inspired this move, and how do you expect it to impact Dhanuka’s growth trajectory? 

Dhanuka Agritech has been a strong player in the Indian agrochemical market for more than four decades. This takeover of two new molecules from the agrochemical giant Bayer AG will enrich Dhanuka’s portfolio. Additionally, it will also strategically serve to provide a vaulting platform to ingress into the markets of over 20 countries across Latin America, Europe, the Middle East, Africa, and Asia, including India. This will result in the transition of these products from a domestic angle to a global outlook. Our company was not a player in the international market, but with the acquisition of these two products, it will become easier for our company to export other pesticides to these markets. 

Dhanuka anticipates a substantial increase in its topline product solutions. In 2023, these two products generated approximately Rs. 220 crore in revenue.Dhanuka aims at a 12-15 per cent EBITDA margin following the acquisition of these molecules thereby, improving the overall profitability. We project the revenue generation in India to commence by the first quarter of FY26, with global operations scaling up by the fourth quarter. Our team is completing the formalities of documentation in the countries for the transfer of the registration and brand ownership from Bayer to Dhanuka’s name.  

What is Dhanuka’s overall expansion plan for 2025-30?  

In the coming years, Dhanuka Agritech plans to grow its business by focusing on sustainability by increasing the development and promotion of sustainable agricultural solutions, such as biopesticides, biostimulants, and other eco-friendly green molecules. The company’s strategies for developing consortia of pesticides and biopesticides would not only increase the broad-spectrum efficacy but also provide a means for resistance management against pests thereby providing sustainability to commercial agriculture as well as organic farming. We believe that organic pesticides alone may not be successful on a large scale. A combination of organic and inorganic pesticides is likely to be the roadmap for the future. 

We also plan to expand into new international markets, apart from where we already hold Bayer registration, and also for our other products. At our technical plant in Dahej, we are manufacturing Bifenthrin Technical with over 98 per cent purity and plan to register this product in multiple countries. Additionally, we aim to develop tailored products and strategies to meet the specific needs and requirements of different countries, regions, and crops. 

We are exploring strategic acquisitions and partnerships to enhance product offerings, gain access to new markets, and strengthen the company's competitive position in the industry. We are also in negotiations with various international companies for the contract manufacturing of various intermediates. 

With plans to expand into over 20 countries, what strategies are you employing to ensure Dhanuka stands out in the competitive international agrochemical market? 

Dhanuka has introduced a range of new pesticides, including insecticides, fungicides, herbicides, and microbial fertilizers. While Iprovalicarb and Triadimenol will provide a strong initial entry, we are continuously exploring opportunities to widen the product portfolio of the company, introduce novel consortia of chemicals and or biologicals, and develop new formulations relevant to the international markets. We will conduct thorough market research to understand the specific crop protection challenges and farmer needs in each target country and offer tailored products accordingly.  

We plan to explore and introduce more sustainable and environmentally friendly agrochemical solutions, aligning with the growing global emphasis on green agriculture. We will penetrate new geographical markets domestically and internationally to capture a larger customer base and capitalize on emerging opportunities in agriculture. 

From drones to precision agriculture tools, technology is reshaping farming. How is Dhanuka leveraging these advancements to empower farmers and enhance productivity? 

To promote the evaluation, awareness, and dissemination of new and proven advanced technologies in the remotest villages of the country, Dhanuka is forging collaborations with public institutions. By leveraging the resources and expertise of both partners, this Public-Private Partnership (PPP) approach aims to contribute to a more vibrant and sustainable agricultural ecosystem in India. 

As part of this initiative, Dhanuka has already signed a Memorandum of Understanding (MoU) with ICAR and has begun working with various stakeholders, including agricultural universities, ICAR research institutions, and Krishi Vigyan Kendras (KVKs), to transfer new technologies to farmers. We have signed MoUs with 15 agricultural universities, fostering mutual support. In addition to conducting live demonstrations, training sessions, and extension activities, we are also sponsoring scholarships and participating in student training programs furthering our shared commitment to agricultural development. 

With increasing pressure to adopt eco-friendly practices, how is Dhanuka balancing profitability with sustainable innovation, such as your partnerships with Japanese firms for green chemistry? 

Dhanuka Agritech has adapted to changing market conditions. It envisages its industry roadmap to reach consumer preferences by focusing on research and development to create innovative products tailored to meet the demands of modern agriculture. We have expanded our product range to include sustainable and eco-friendly biological solutions with 6 different categories of biopesticides, biostimulants, and PGRs in response to growing consumer interest. Further, we are marketing various digital technologies tools including automatic weather stations, and precision sensors to monitor the irrigation requirement, nutrients, etc. Dhanuka also has invested in agri-drone manufacturer IoTechWorld Avigation for standardization of crop-specific SOPs for precise application of smart farming solutions, helping farmers increase efficiency and productivity. 

Dhanuka has a reputation for supporting Indian farmers. Can you share a specific initiative—like the Dhanuka Agritech Research and Technology Centre (DART)—and its impact on smallholder farmers? 

Dhanuka has always been a pioneer in the sector of agrochemicals and always strives to provide innovative and novel product solutions to farmers. We are also engaged in trial demonstrations to have a comparative study between the framer practice and Dhanuka’s technology. One of the demonstration trials was conducted by Dhanuka for the production of groundnut using its novel product solutions at PDKV (Punjab Rao Deshmukh Krishi Vidyapeeth), Akola. In the demonstration plot, an 81 per cent yield increase in the groundnut was attributed to Dhanuka’s agritechnology. This enhancement resulted from a combination of factors including higher pod count per plant, increased shelling percentage, heavier (1000 kernel) test weight, and a premium of Rs. 1,000 per quintal in the market.  

The increase in productivity of groundnuts because of the application of Dhanuka’s product solutions following GAPs was duly certified by PDKV, Akola. Such demonstrations encourage farmers to follow GAPs to enhance their production and productivity as one of the most important principles of extension is “Seeing is Believing”. One of the key interventions was seed treatment with Vitavax Power, which prevented early-stage plant mortality. As a result, the increased plant population contributed significantly to the overall yield improvement. 

You have been a pioneer in R&D. What new agrochemical products Dhanuka launched in 2024 and what are in the pipeline for 2025?  

In 2024, we launched Lanevo, the broad-spectrum protection against sucking & chewing insect-pest together; Purge, a herbicide developed in collaboration with Nissan Chemicals, Japan for the Soyabean crop; Mycore Super, an AMF with 100 per cent endomycorrhiza that establishes a faster symbiotic relationship with the roots and facilitates better nutrient & water uptake by the crops. We also launched Miyako, a Cyenopyrafen 30 per cent SC (acaricide) having control on all types and all stages of mites; and Roxa, a pre-emergent herbicide, designed to control resistant Phalaris minor in wheat.  

The upcoming products in the pipeline for 2025 includeDinkar, a weedicide; Melody Duo, a fungicide acquired from Bayer; and Melody Compact Fungicide acquired from Bayer. 

What do you see as the biggest challenges facing the agrochemical industry in the next decade, and how is Dhanuka preparing to address them? 

The major challenge that looms over the agrochemical industry in the next decade is the large-scale prevalence of parallel grey market and spurious agrochemicals in the market.  

Dhanuka has taken various steps to address this menace. We have signed a comprehensive MoU with ICAR, marking a significant milestone in our collaborative efforts to strengthen research and extension activities aimed at benefiting farmers across the country. By leveraging the collective resources and expertise of both organizations, we are poised to make substantial advancements in agricultural practices and contribute to the welfare of farmers. We have made video film, and Do’s and Don’t’s posters for the farmers' awareness to purchase all the agri inputs after scanning through the QR code against original bills. 

We appreciate the proactive measures taken by the Ministry of Agriculture in canceling the registrations and licenses of approximately 7,000 companies that failed to comply with the KYC requirements prescribed by the CIB&RC. The remaining 2,600 companies are now required to undergo the next round of KYC, which includes providing comprehensive details of their manufacturing units, infrastructure, machinery, laboratories, instruments, manpower, production capacity, and more. 

We regularly work with various state and central agriculture departments on multiple reforms in the sector. The new Integrated Pesticide Management System (IPMS) has been finalized with active contributions from the industry, in which our company is a participating member. However, the system has not yet been launched but it should be launched at the earliest possible to ensure transparency and efficiency. 

Pesticides play a critical role in safeguarding agricultural output and should be used judiciously, strictly following recommended guidelines. Our company has deliberately exited from the production of red triangle-labeled products and is committed to using only safe molecules.