Management reveals a critical competitive advantage in crop protection: access to newly launched and superior products through strategic alliances, giving them first-mover advantage with the latest chemistries.

“You see, 70% of Indian crop protection chemical business is through generics, so only 30% is patent or niche products. But regarding product uniqueness, as Mr. Bel mentioned, because of our relationships, we're getting some products in the year of launch. We don't have to wait for 2-3 years after a product is launched elsewhere to access it - that's our uniqueness.”

“Secondly, depending on soil type and farmer spending behavior, we maintain a diverse portfolio. For example, for stemborers and leaf folder segments, we sell Axiom Pair chemistry, Cartap hydrochloride, and Fipronil. These are in different price bands for different soil types. This approach is common across companies, and we implement a similar strategy.”

— Mr. Bel (CEO/Senior Management)

Management identifies a structural shift in global fertilizer supply dynamics, with China becoming an unreliable supplier due to domestic reprioritization of phosphoric acid toward EV battery production.

“No, I'm just saying that China, from being a very steady supplier of PNK [Phosphorus, Nitrogen, Potassium] fertilizers and even Urea to some extent, has now become an 'off and on' kind of party for the last 3 years. Their reasons are internal - they may be diverting some part of the phosphoric acid capacity into battery manufacturers for electric vehicles, or they could be doing it for geopolitical reasons. Whatever the cause, the fact is the global supply from China is now fluctuating to some extent, as opposed to them being a steadier player over the last 3-4 years.”

This means that for certain types of PNK products, we have to shift our sourcing to other geographies such as Morocco, Saudi Arabia, Jordan, Russia, or even the US. The dynamics keep changing, but I am confident that overall, the supply situation in the world is steady. However, because of the geographical concentration of where the raw material is found, there are monopolies that get created, which creates problems in terms of how the trade plays out.

“This is different compared to Urea or ammonia, which has a much more open market with many suppliers, so it evens out the competitive situation and gives you better negotiation capability.”

— Mr. Bel (CEO/Senior Management)

“Management reveals a significant shift in government policy toward DAP imports to a "cost-plus mode," making imports viable again after prior challenges.”

“If I get you right, Jesh is asking what our stance on DAP imports is likely to be for Kharif season. I would say the government has made suitable adjustments and has gone to a kind of cost-plus mode. We are also participating - almost 1 lakh and 30,000 tons has been contracted to date, which includes volumes of TSP [Triple Super Phosphate] as well. Going forward, should this policy continue, we have no hesitation in increasing volumes in this area, subject of course to various geopolitical uncertainties. The facts are that we are in a somewhat uncertain situation today, but nevertheless, we feel that we will be able to surpass our volumes of last year.”

— Mr. Bel (CEO/Senior Management)