Report Summary
Agriculture is the lynchpin of Indian economy. Ensuring food security for more than 1 bn Indian population with diminishing cultivable land resource is a herculean task. This necessitates use of high yielding variety of seeds, balance use of fertilizers, judicious use of quality pesticides along with education to farmers & use of modern farming techniques.
It is estimated that India approximately loses 18% of the crop yield valued at Rs. 900 bn due to pest attack each year. The use of pesticides help to reduce the crop losses, provide economic benefits to farmers, reduce soil erosion & help in ensuring food safety and security for the nation.
The Indian pesticide industry with 82000 MT of production for 2005-06 is ranked second in Asia (behind China) and twelfth globally. In value terms, the size of the Indian pesticide industry was estimated at Rs 68 bn for 2006, including exports of Rs. 28 bn.
Globally, due to consolidation in the industry, the top 5 global MNCs control almost 60% of the market. In India, the industry is very fragmented with about 30-40 large manufacturers and about 400 formulators.
Per hectare consumption of pesticide is low in India at 381 grams when compared to world average of 500 grams. Low consumption can be attributed to fragmented land holdings, low level of irrigation, dependence on monsoons, low awareness among farmers about the benefits of usage of pesticides, etc. India, being a tropical country, the consumption pattern is also more skewed towards insecticides which accounted for 67% of the total pesticide consumption in FY06.
India due to its inherent strength of low cost manufacturing and qualified low cost manpower is a net exporter of pesticides to countries such as USA and some European & African countries. Exports formed 41% of total industry turnover in FY06 and have grown at a CAGR of 18% from 00-01 to 05-06.
Prior to 2005, i.e. in the process patent regime, Indian companies focused on applied research and concentrated on marketing generic and off-patent products. Due to this R&D expense by Indian companies was lower at approximately 1% of turnover. Global companies focused on high-end specialty products and dominated the market for patented new molecules. However, with onset of product patent regime in India since 2005, Indian companies will need to increase R&D expense to meet competition from MNCs. Alternatively Indian companies can be competitive in the area of CRAMs.
With the advent of the IPM technique, the use of biopesticides & GM seeds has increased. Globally, GM seeds are used mainly for commercial crops like cotton, maize, soyabean & canola. In India Bt cotton is widely used and the acreage stood at 3.80 mn ha (42% of total cotton area) for 2006. Use of GM seeds may diminish use of insecticides but use of herbicides may improve.
Report Outline
Chapter 1 Introduction
1.1 Rational for Pesticide Use
1.2 Type of Pesticides
1.3 Category wise Pesticide usage in India vis-à-vis world
Chapter 2 Industry Features
2.1 Low/Medium Capital Intensive
2.2 Fragmented Industry
2.3 Seasonal Demand
2.4 High Working Capital Requirement
2.5 R&D-A Need
2.6 Increasing Export Orientation
2.7 Low Brand Awareness
2.8 Regulatory Framework
Chapter 3 Safety Aspects-Human Safety & Environment Safety
3.1 Impact of non-judicious use of pesticide
3.2 Steps for judicious pesticide usage
3.3 Regulation monitoring safe usage of pesticide
Chapter 4 Demand and Supply
4.1 Demand drivers
4.2 Consumption trends
4.3 Supply
Chapter 5 Import-Export Trend
5.1 Import Statistics
5.2 Export Statistics
Chapter 6 Cost & Price Analysis
6.1 Cost Analysis
6.2 Duty Structure
6.3 Pricing
6.4 Operating Profit Margins
Chapter 7 Competition and Consolidation
7.1 Market Share of Players
7.2 Key Products of Major Players
7.3 Marketing Strategies
7.4 Generics and Patented Market Shares
7.5 Data Protection
7.6 Consolidation
Chapter 8 Analytical Models
8.1 Porter's Five Force Model
8.2 SWOT Analysis
Chapter 9 The Road Ahead
9.1 Integrated Pest Management
9.2 Biopesticides
9.3 Genetically Modified Seeds
Chapter 10 Outlook
10.1 Low usage an opportunity
10.2 Low cost manufacturing hub-Exports to grow
10.3 R&D expenditure needs to increase
10.4 Diversification & consolidation
10.5 GM crops-a threat?
10.6 Entry of retail players
Chapter 11 Company Scan
11.1 UPL
11.2 Rallis India Ltd.
11.3 Syngenta I Ltd.
11.4 Bayer CropScience Ltd.
11.5 BASF India Ltd.
Annexure I Types of Registration
Annexure II MRL
Annexure III List of banned pesticides in India
Figures
Figure 1.1 Inputs in agricultural operation
Figure 1.2 Pesticide classification on type of pest they control
Figure 1.3 Categorywise pesticide usage in India & world valuewise (2005)
Figure 2.1 Industry structure
Figure 4.1 Cropwise consumption of pesticides in India
Figure 4.1 Cropwise consumption of pesticides outside India
Figure 4.3 Pesticide consumption pattern in India quantitywise (1997 & 2005)
Figure 4.4 Pesticide consumption pattern in India valuewise (1997 & 2005)
Figure 5.1 Export destination for 2006
Figure 5.2 Import-Export graph valuewise
Figure 5.3 Import-Export y-o-y growth valuewise
Figure 6.1 Cost break-up of key players
Figure 6.2 Operating profit margins for key players
Figure 7.1 Market share of key players (2003 & 2006)
Figure 9.1 Global GM seeds market valuewise
Figure I.1 Current registration process
Figure I.2 Proposed registration process
Tables
Table 1.1 Crop yields (q/ha) in various countries
Table 1.2 Comparison between chemical and biopesticides
Table 2.1 FG inventory and Debtors outstanding in days
Table 2.2 R&D expense as a % of sales
Table 3.1 Pesticide residue levels
Table 3.2 List of pesticides restricted for use in India
Table 4.1 Consumption pattern of pesticides in various countries (kg/ha)
Table 4.2 Industry size
Table 4.3 Groupwise domestic consumption of pesticides (MT)
Table 4.4 Valuewise domestic consumption of pesticides (Rs. Cr)
Table 4.5 Statewise consumption of pesticides (MT)
Table 4.6 Production data (MT)
Table 4.7 Capacity Utilization (%)
Table 5.1 Imports quantity (MT)
Table 5.2 Value of imports
Table 5.3 Price per kg of imported pesticides
Table 5.4 List of pesticides imported
Table 5.5 Exports quantity (MT)
Table 5.6 Value of exports
Table 5.7 Price per kg of exported pesticides
Table 5.8 List of pesticides exported
Table 6.1 Domestic pesticide price realization per kg
Table 7.1 Pesticide sales of leading MNCs from 2002-2006 (USD Mn)
Table 9.1 Consumption of biopesticides from 1997-2001 (MT)
Table 9.2 Area under GM crops globally (Mn ha)
