IPO/FPO Research

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Aries Agro IPO

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India Infoline / 11:41, 17-Dec-07

Aries Agro Ltd (AAL) has a wide range of products spread across five

main categories namely, multi-micro nutrient fertilizers, chelated micro

nutrient fertilizers, specialty soluble fertilizers, anti-bacterial products

for agricultural use and nutritional products for animals. Of these, the

first three segments contribute approximately 92% of the total sales.

These categories can be grouped under three segments namely, plant

nutrients, insecticides and veterinary products. It has total capacity of

21,600tpa with manufacturing units located at Mumbai, Bangalore,

Kolkata and Hyderabad.


Investment rationale


Pioneered in Chelation technology

AAL has pioneered in Chelation technology, especially for micro-nutrients, which makes them more environmentally

friendly as elements present in soil/plants are chemically inert. This technology makes it very efficient as there is no loss

of nutrients, resulting in higher yield and leading to cost-benefit in favour of farmers.


AAL is highly customer centric

AAL has a reach of approximately 65,000 dealers, which gives an instant access to the requirement of farmers. The sale

of micronutrient largely depends upon the soil type, which differs across farmlands. Their marketing team visits each

and every field to check the soil type, provide live demonstration and prescribe the required micronutrient. Its huge

database acts as a barrier to the new entrants in the industry because building up such a database requires not only

huge capital but also years of experience. AAL’s presence in the micronutrients segment for more than 30 years has

enabled it to establish a database right from grass root levels.


Healthy distribution network

AAL has a wide distribution network of 25 branches spread across 20 states in India. Its distribution channel comprises

4,700 distributors and more than 65,000 retail dealers. AAL is able to reach 375 fertilizer consuming districts.


Wide range of product portfolio

AAL product range is spread across five main categories namely, Multi- micro nutrient fertilizers, Chelated micro nutrient

fertilizers, Specialty soluble fertilizers, Anti-bacterial products for agricultural use and Nutritional products for animals.

All their products are branded and Agromin (chelated micronutrients) and Chelamin (chelated zinc) are flagship brands

of the company. In order to protect and brand their products, they have already registered 18 trade marks and have

registered or renewed 24 trademarks.


Experienced promoter with strong manpower

Promoters have more than three decades of experience. The company has 561 employees under permanent rolls. To

develop and establish strong relationship with the farmers, their marketing team directly visits villages to educate the

farmers on the concept of chelation and the various benefits of micronutrients. With 256 marketing and sales force, AAL

plans to add 100 more people at plants and 210 people for mobile marketing.

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