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INDUSTRY TRENDS
N,N,N,N-Tetramethyl Ethylene Diamine
Indian agrochemicals fi rms to see drop in revenue

for the fi rst time in a decade: Crisil
(TMEDA)
An analysis of 48 companies rated ded global agrochemicals companies to price erosion. With product realisation
by Crisil Ratings, accounting for nearly increase inventory by 45 days between bottoming out and demand likely to pick
90% of the Rs. 78,000-crore agrochemi- January and June 2023. The subsequent up from the third quarter, operating profi t-
cals sector as of fi scal 2023, indicates destocking amid a slowing global eco- ability should improve sequentially. Yet
that for the fi rst time in a decade, the nomy led to slump in exports from India it will be lower at 10-11% this fi scal,
companies will see a drop in revenue – in the fi rst half of this fi scal. However, compared with 15.2% last fi scal.
by up to 3% on-year in fi scal 2024. with global manufacturers restocking DIETHYL HYDROXYLAMINE 85% & 98%
The fall in turnover is attributed to fall- before the onset of the cropping season Mr. Shounak Chakravarty, Associate
ing prices globally following a supply in Latin America and the US – which Director, CRISIL Ratings, said, “With (DEHA 85% & 98%)
deluge from China; muted demand for accounts for 55% of India’s exports – sectoral challenges constraining cash
exports (53% of revenues) owing to a recovery in overseas demand should fl ows, prudence in capital spending is 2-ETHYLHEXYLAMINE
destocking by global manufacturers and begin from November 2023.” imperative. CRISIL Ratings rated agro-
the impact of lower reservoir levels on chemicals companies are expected to (MONO, DI, TRI)
rabi sowing. Volume growth within India will be lower their annual capex by up to one-
in the low single-digit this fi scal given third this fi scal to about Rs. 4,000-crore
Operating margins, too, may plunge that inventories with domestic manufac- to reduce reliance on external debt and DIETHYL TOLUAMIDE
by 400-450 basis points (bps) to a turers are high because of lower exports. keep debt metrics at adequate levels.
decadal low of 10-11% this fi scal, due Erratic monsoon, resulting in low reser- Due to lower profi tability, interest cover- (DEET)
to lower volumes and realisations, im- voir levels and posing a risk to rabi sow- age and the ratio of total debt-to-Ebitda
pacting cash accruals for agrochemicals ing, which typically accounts for 35% of are expected to moderate yet shall
players. The current tepid demand is domestic pesticide consumption, could remain comfortable at ~6.4 times and ~1.5
prompting agrochemicals manufacturers also be a challenge. times, respectively, this fi scal, compared
to prune capital expenditure (capex) with 10 times and 1.0 time, respectively,
plans. That, along with healthy balance Crisil Ratings said that sluggish last fi scal.”
sheets for most, should provide suffi - exports and domestic demand will weigh
cient headroom to withstand business on the operating profi tability of agro- Demand momentum, both in
pressures, Crisil said. chemicals manufacturers. Already, the domestic and abroad, weather conditions
operating margin of most of them had in key export markets and prices of key
Ms. Poonam Upadhyay, Director, shrunk 700-1,000 basis points on-year in products and raw materials, especially
Crisil Ratings, said, “Increased supplies the fi rst quarter of this fi scal due to sub- Chinese, will bear watching in the road
of low-priced products from China prod- stantial inventory losses following steep ahead, Crisil Ratings added.

Autobiography of Dr. Rama Rao released Contact
Contact
Eminent chemical engineer and former cal Technology (IICT), Hyderabad. turing into the pharmaceutical industry
Director of Institute of Chemical Dr. Rao, the former Director of IICT- post-retirement, an uncommon feat for
Technology-ICT (formerly UDCT), Prof. Hyderabad, is the Founder Managing a scientist.
M. M. Sharma, released the autobio- Director of Avra Labs, which is a pioneer
graphy of Dr. A.V. Rama Rao, titled in outsourced R&D work for the global Dr. D. Srinivasa Reddy, Director of
“My Life My Way” on 14th October, 2023. drug giants, as well as Indian. He holds IICT, mentioned that Dr. Rao is a great
30 patents, for chemical synthesis and visionary leader, outstanding scientist,
The autobiography was launched isolation processes, many of which are successful entrepreneur and a role model
as a part of joint book release pro- in use with drug manufacturers in the to the scientifi c fraternity. He thanked Hyderabad : Commerce Centre Pharmachem Pvt. Ltd., Tel.: 040-2341 3413/4/5/6 Fax: 040-23413412
gramme and Alumni association meet US and India. Prof. Sharma commended Dr. Rao’s generosity in agreeing to build Email: commercecentre.in@gmail.com
at the CSIR-Indian Institute of Chemi- Dr. Rao’s extraordinary courage in ven- a 100-room girls hostel at CSIR-IICT.

134 Chemical Weekly October 24, 2023 Chemical Weekly October 24, 2023 135

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