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Favorable Export Climate Buoys the Indian Crop Protection Chemicals Market - The consistent supply and value gain over Chinese manufacturers in the export market and emerging application segments have seen the Indian crop protection chemicals market break out of a slump to garner substantial revenue
Favorable Export Climate Buoys the Indian Crop Protection Chemicals Market

 

NewswireToday - /newswire/ - Mumbai, India, 2008/11/07 - The consistent supply and value gain over Chinese manufacturers in the export market and emerging application segments have seen the Indian crop protection chemicals market break out of a slump to garner substantial revenue.

   
 
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India is finally poised to compete on par with China, despite the latter’s low-priced goods, as Chinese production costs are on the raise.

New analysis from Frost & Sullivan (chemicals.frost.com), Indian Crop Protection Chemicals Market, finds that the market earned revenues of $1.62 billion in 2007 and estimates this to reach $2.6 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of Indian crop protection market, then send an email to Remi Chatterjee/ Nimisha Iyer, Corporate Communications, at remi.chaterjee[.]frost.com/ niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

India has raised the level of its export competency with a consistent quality and supply record and possession of a vast unexplored market. Chemicals manufacturers have targeted product awareness campaigns at Indian farmers, as the country’s affordability has increased with the cultivation of high-value crops.

“The per capita consumption of pesticides in India is still very low compared to the developed countries and manufacturers need a smart ‘get to market’ strategy to achieve better reach and acceptance of products,” says Frost & Sullivan Senior Research Analyst V. Chaitra Narayan. “The demand will also be driven by the rising food grain demand and increasing awareness about pesticide usage among the farmer community.”

Such favorable market factors have sustained and even consistently increased the profitability of manufacturers, despite the rising prices of raw materials.

The herbicides and fungicides segments are growing much faster than the insecticides segment, which has slowed down considerably because of the introduction of new plant varieties with lower pest infestations. Synthetic chemicals will continue to rule the roost in the chemical pesticide market, since the development of eco-friendly pesticides and new approaches such as organic farming and integrated pest management (IPM) will take more than a decade to gain a foothold in the chemical pesticide market.

The Indian market appears lucrative for all types of manufacturers, considering there is no clear market leader, as even the company with the maximum revenues has only 17 percent of the market share.

To maintain their stakes in the market, chemicals manufacturers have to align their products with the agriculture cycle and provide holistic solutions with innovative products. Process improvisation is expected to improve profit margins and help companies gain a greater influence on the export market.

The future of the industry lies with companies that can provide solutions for the entire gamut of the food supply chain management by integrating crop production with protection.

“Understanding the end-user needs and working more strongly on the backward as well as vertical integration is the need of the hour,” notes Narayan. “Further, controlling major inputs, setting up efficient distribution services, and adopting international practices relating to crop management will enable Indian companies to carve a niche for themselves.”

The market shares are almost equally divided between multinationals and Indian companies. While the multinationals benefit from their improvised products, the Indian companies leverage their strong distribution set up.

Indian companies still trail their foreign counterparts in R&D because of the level of investments required and the demanding regulatory framework. In this scenario, the rapid rates of mergers and acquisitions are likely to persist for a few more years.

However, post 2014, it will become crucial for Indian companies to shed their generic manufacturer image and venture into new molecular discovery as well as optimize the registration procedures.

Indian Crop Protection Chemicals Market is part of the Chemicals & Materials Growth Partnership Service program, which also includes research in the following markets: Indian performance chemicals industry, Indian polymer additives market, and Middle East construction chemicals market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting, and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

Indian Crop Protection Chemicals Market
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Favorable Export Climate Buoys the Indian Crop Protection Chemicals Market

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Publisher Contact: Remi Chatterjee / Nimisha Iyer 
+91.22.4001 3419 remi.chaterjee[.]frost.com / niyer[.]frost.com
 
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