Agri-solutions company Coromandel International has said its crop protection business is a key enabler for future growth. The Murugappa group firm’s crop protection business registered the highest-ever turnover during 2021, growing 20% to Rs 2,511 crore.
According to the company, the crop protection business has committed itself to a long-term transformation journey that should help the business achieve its true growth potential over the next few years through both organic and inorganic means. The crop protection business introduced six new products including two novel combinations spanning herbicides, insecticides, and fungicides.
“The new launches have received encouraging responses from the market. Looking forward, with the shift in the market towards differentiated combinations, the business is making significant efforts in upgrading its portfolio from old generics to patented combinations,” Arun Alagappan, executive vice chairman of Coromandel International, told the shareholders in its annual report 2022.
Coromandel is also looking at various growth opportunities in adjacent areas that can complement the existing businesses and create new prospects for the organisation. It has set up a separate structure for looking at investment in new start-ups and agri-tech ventures, said Sameer Goel, MD of Coromandel International.
The company continues to strengthen its supply chain, manufacturing excellence, R&D, new product development, digital marketing & branding capabilities. It is investing in the backend supply chain to ensure the availability of critical raw materials to support its expansion plans. Coromandel has initiated a sulphuric acid brownfield expansion project at its Visakhapatnam plant, which is expected to be completed in the first half of 2023.
“For the first time, the company has invested in a rock phosphate mine project in Senegal. It is entering into long-term contracts with diverse supply sources to mitigate business risk and ensure continuity,” Goel said.
Coromandel is embarking on long-term initiatives which include strengthening of backend supply chain across businesses, an overhaul of the IT infrastructure and ramping up of the digital and analytics capabilities through a digital transformation programme and investing in emerging business model start-ups in the agri-tech ecosystem, among others.