bharat rasayan ltd share price Management discussions


Despite the three shocks of COVID-19, Russian-Ukraine conflict and the Central Banks across economies led by Federal Reserve responding with synchronized policy rate hikes to curb inflation, leading to appreciation of US Dollar and the widening of the Current Account Deficits (CAD) in net importing economies, agencies worldwide continue to project India as the fastest-growing major economy at 6.5-7.0 per cent in FY23. (Source: PIB)

Despite the global slowdown, Indias economic growth rate is stronger than in many peer economies and reflects relatively robust domestic consumption and lesser dependence on global demand. Despite the global slowdown, exports performed well, probably because of the depreciated currency against the dollar. A strong digitization drive the world over, cost-cutting measures by businesses to deal with the impending slowdown, and the growing trend of remote working increased demand for exports of services in technology, where India has a comparative advantage. Interestingly, the share of business and professional services in total services exports also increased as companies globally now prefer outsourcing a wide range of professions, such as accounting, audit, R&D, quality assurance, and after-sales service.

IMF estimates India to be one of the top two fast-growing significant economies in 2022. Despite strong global headwinds and tighter domestic monetary policy, if India is still expected to grow between

6.5 and 7.0 per cent, and that too without the advantage of a base effect, it is a reflection of Indias underlying economic resilience; of its ability to recoup, renew and re-energize the growth drivers of the economy. Indias economic resilience can be seen in the domestic stimulus to growth seamlessly replacing the external stimuli. The growth of exports may have moderated in the second half of FY23. However, their surge in FY22 and the first half of FY23 induced a shift in the gears of the production processes from mild acceleration to cruise mode.

India is the third-largest economy in the world in PPP terms and the fifth largest in market exchange rates. As expected of a nation of this size, the Indian economy in FY23 has nearly "recouped" what was lost, "renewed" what had paused, and "re-energized" what had slowed during the pandemic and since the conflict in Europe.

Economic development and substantial infrastructure development have constituted regional revenue generation. Further, the patterns associated with domestic production, import and export, and consumption have helped market participants to analyze and capitalize on potential opportunities.


The global market for agrochemicals has been estimated to be USD 235.2 billion in 2023 and is projected to grow at a rate of 3.7% between 2023 and 2028. The agrochemicals market is projected to grow at an exponential rate due to factors such as rising demands for food, climate change-induced pest damage, growing population, declining arable land and demand for high crop yields.

The Cumulative Impact of COVID-19, the Russia-Ukraine Conflict, and High Inflation is expected to have significant long-term effects on the Global Agrochemicals Market. The high inflation in developed economies globally has resulted in an overall price surge over the past two years. The cumulatively eroding overall purchasing power is expected to impact developing economies significantly and is considered helpful in numerous ways.

North America was the largest region in the agrochemicals market in 2022. Asia-Pacific is expected to be the fastest-growing region in the upcoming period.

The increasing population and consequent rise in food demand are expected to propel the growth of the agrochemicals market going forward. Food refers to the substance consisting of protein,

carbohydrates, fat, and other nutrients used in the body of an organism for sustaining growth, and vital processes and furnishing energy. The steady growth in the population is directly proportional to food demand and growth in the agrochemicals market. For instance, according to United Nations, a US- based intergovernmental organization, the worlds population has been expected to increase by 2 billion people in the next 30 years, from 7.7 billion in 2021 to 9.7 billion in 2050. Also, according to Intechnopen, a UK-based publisher of journals and books, the global demand for food has been expected to increase by 70% by 2050. Therefore, the increasing population and consequent rise in food demand will drive the growth of the home infusion therapy market.

The agrochemical market consists of sales of chemical fertilizers, antibiotics, and plant hormones. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Herbicides segment is estimated to account for the largest share in 2023 with a CAGR of 3.6%. Herbicides are widely used to effectively manage weeds at a cheap cost. They make up the main section of crop protection chemicals for most countries in all regions. Additionally, the use of Pesticides in agriculture has changed because of GMOs. Herbicide use has increased because of genetically modified (GM) crops that are herbicide resistant.

The main causes driving the worldwide herbicide market are changing climatic conditions, dwindling arable land, and rising food consumption. Integrated pest management is opening the door for pest control without endangering the environment, despite several regulatory norms limiting the use of Herbicides. This presents a fantastic opportunity for herbicide producers to capitalize on the market potential to produce green Herbicides, which are expanding more quickly.

Soil active herbicides also known as weed killers are herbicides that act on seeds, roots, or shoots of undesired plants, also known as weeds. Soil active herbicides are incorporated into the soil to control the growth of weeds and unwanted plants. Herbicides get rid of weeds that will otherwise compete for light, moisture, and nutrients with the crops, affecting the quality and quantity of produce. The main product types of soil active herbicides are synthetic herbicides, and bio-herbicides. Synthetic herbicides are made to mimic plant hormones affecting cell growth, development, and tropism and have the potential to influence plant disease by several mechanisms. These are used for cereals and grains, oilseeds and pulses, fruits and vegetables, and others in pre-plant, pre-emergence, and post-emergence uses.

The global soil active herbicides market is expected to grow from $6.47 billion in 2022 to $6.83 billion in 2023 at a compound annual growth rate (CAGR) of 5.6%. The soil active herbicides market is expected to grow to $8.35 billion in 2027 at a CAGR of 5.1%. The growth of the population and changing dietary preferences towards plant-based food are expected to drive the growth of the soil- active herbicides market going forward. The population is increasing due to an imbalance between births and deaths, lack of family planning, migration, and others. Plant-based food refers to food that is completely obtained from plants and has no dairy, or meat products. People in developed and developing countries are getting cautious about their health and maintaining a regular diet that includes plant- based food. The rise in population needs more production of food to feed which increase the use of herbicides and other natural or chemical fertilizer which gives higher yield. In addition, according to a report by Bloomberg Intelligence, a US-based business and financial data, news, and insights firm, in 2020, plant-based dairy and meat sales reached over $29 billion and are expected to increase to $162 billion by 2030. Thus, the growth of the population and changing dietary preferences towards plant- based food will drive the growth of the soil-active herbicides market.

Global Economy saw a tremendous improvement in business environment in FY 2021 compared to the total lockdown in FY2020. According to the IMF, global economic output had a growth of 6.1% in

FY2021. For goods trade, the recovery has been swift. But growth momentum slowed considerably by the end of FY21 in large economies like China, the European Union (EU), and the United States (US), as the effects of fiscal and monetary stimuli evaporated, and major supply chain disruptions emerged. Innovative digital solutions have enabled economic transformation around the world and put the global economy on a path towards green, resilient, and inclusive growth. The digital drive offers an opportunity to strengthen social protection systems, health and education services. The Russia-Ukraine conflicts have dented the global growth prospects and imposed inflationary pressure as they account for a large share of global energy exports, as well as exports of range of metals, food staples and agricultural inputs. Additional fiscal support in advanced economies and the continued rapid adoption of digital technologies could help sustain a more robust global economic recovery than projected.


The agrochemical refers to synthetic and commercially generated chemicals that are employed in farming and to regulate ecosystems in agricultural areas. Agrochemicals contaminate the nearby lands and waterways and enter the food chain, where they cause bioaccumulation. Excessive usage of such pesticides produces a sizable number of residues, which influences crops.

Despite the decline, it continues to be the largest source of livelihood for about 58% of Indias population and its growth ensures inclusive economic growth of the country. The Indian agrochemical sector has risen at an annual rate of 7.6% over the last six years. Although the Pandemic has affected the economy in all walks of life, the Indian agrochemical industry is one of the industries which has successfully fought the wrath of the pandemic.

Crop protection chemicals are a type of pesticide that are used to protect crops against insects and pests. Crop protection chemicals are an important part of the chemical industry. Many crops would suffer significant losses if they did not exist. Plant diseases and pests have become more common because of changing environmental conditions. Also, climate fluctuations have a substantial impact on crop productivity.

The crop protection industry has been transforming over the years, with robust growth and changing crop mix trends and environmental regulations. Growing population, declining arable land, food security, trends of people shifting to vegetarian food and the need for augmented agricultural productivity are the significant factors driving the demand for higher agricultural output, thus boosting the growth of the crop protection industry globally. The market growth is dependent on pest attacks, crop yields, and agriculturists awareness levels and capacity to buy products depending on their availability of credit. Increasing demand for insecticides across the globe is also a major factor driving the market growth.

Agriculture inputs play a decisive role in enhancing crop production. With arable land declining, production of crops can only be increased by using quality inputs through a scaled-up country-wide effort. Concerted efforts are being taken to transform agriculture, improve farm productivity and farmer prosperity, achieve food security and environmental sustainability.

Agrochemicals are chemicals that help boost crop productivity through prevention of destruction of crops by pests such as insects, weeds, fungus, etc. The global economy, in general, and Indian is facing a multitude of challenges such as to feed an evergrowing population, reducing arable land bank and dealing with adverse climatic changes. Under such circumstances, the traditional methods of growing more crops are rendered inadequate. There is a growing acceptance to launch advanced agrochemical solutions to achieve higher field productivity.

The industry and policymakers are expected to work in the direction of bringing newer technologies, enhancing manufacturing infrastructure, and creating proper policy environment to help improve productivity as well as foreign investment in the country to increase the share of agrochemicals in the GDP of the country by utilizing the huge untapped market still available within India. The agrochemical sector is expected to emerge as a major global supply hub. To obtain a competitive edge, agrochemical

companies will increasingly focus on incorporating next-generation formulations into their R&D capabilities and product mix.

It is projected that Indias agrochemicals business will grow more quickly because of the nation integrating farming practices and positive trends. The landmass can be utilized for agriculture, but because of the rising influence of urbanization, it is rapidly diminishing, which encourages farmers to use various agrochemicals to raise land productivity and maintain soil health.

However, farmers are spending more money on agrochemical seed treatments that assist in ensuring disease resistance as well as better and more uniform germination. With 13,175 Metric Tonnes (MT), the state of Maharashtra occupies the top spot in terms of chemical pesticide consumption. This is followed by the states of Uttar Pradesh (11688 MT), Telangana (5090 MT), Jammu & Kashmir (4086.32 MT), and so on. As of FY 2022, the biggest volume of agrochemical exports was for insecticides, valued at INR 364.97 billion, followed by fungicides, INR 119.75 billion, and herbicides, INR 72.98 billion.

India also plays a big part in the global supply chain, and the government has recognized the potential of agrochemicals as one of the champion pillars of its economy. Indias crop protection industry is increasingly making use of its R&D facilities as it advances to create better solutions that are safer, more efficient, and compliant with international standards.

The challenges for the domestic plays are compounding primarily on the back of a higher base of last year, coupled with higher inventory provisions amidst a falling raw material cost scenario and higher sales return (particularly in the insecticides grades, which, in turn, is likely to exert pressure on margins in the near term).

Agrochemical inventories have been at elevated levels after the kharif season because demand was significantly impacted by erratic rainfall. This led to crop damage, low levels of pest infestation and loss of sprays because farmers tend to not spray during rains, as pesticides applied to crops can get washed away.

The Government of Indias Kisan Drones project to use drones for crop assessment, digitization of land records, and spraying insecticides to boost productivity is an excellent example of making technology more readily available for small farmers.


Climate change is primarily attributed to disproportionately high cumulative emissions, both historical and high per capita annual emissions of greenhouse gases (GHGs) of the developed countries.

Government of India is aware about the impact of climate change on agriculture and farmers lives. Extensive field and simulation studies were carried out in agriculture by the network centres located in different parts of the country. The climate change impact assessment was carried out using the crop simulation models by incorporating the projected climates of 2050 & 2080. In absence of adoption of adaptation measures, rainfed rice yields in India are projected to reduce by 20% in 2050 and 47% in 2080 scenarios while, irrigated rice yields are projected to reduce by 3.5% in 2050 and 5% in 2080 scenarios. Climate change is projected to reduce wheat yield by 19.3% in 2050 and 40% in 2080 scenarios towards the end of the century with significant spatial and temporal variations. Climate change is projected to reduce the kharif maize yields by 18% and 23% in 2050 and 2080 scenarios, respectively. Climate change reduces crop yields and lower nutrition quality of produce. Extreme events like droughts affect the food and nutrient consumption, and its impact on farmers.

Government of India has formulated schemes/plans to make agriculture more resilient to climate change. The National Mission for Sustainable Agriculture (NMSA) is one of the Missions within the National Action Plan on Climate Change (NAPCC). The mission aims at evolving and implementing strategies to make Indian agriculture more resilient to the changing climate.

Agriculture also employs a significant section of the population, and is a vital source of sustenance for millions of people. Despite the large-scale development of soil-water-and crop-based technologies to optimize and sustain agricultural productivity in recent years, extreme weather events such as heat waves, a recurring feature of climate variability, have become a common and serious concern for farmers as well as common people.

Climate change is anticipated to turn the wheat-producing Indian lowlands into a heat-stressed, short- season production environment, greatly impacting potential yields. The surging thermal stress further impacts levels of feed intake in livestock, reducing animal productivity, and adversely affecting their physiology and disease resistance. Similarly, poultry and fishery are also affected by the resulting increase in temperature. Climate change reduces crop yields and lower nutrition quality of produce. Extreme events like droughts affect the food and nutrient consumption, and its impact on farmers.

Rise in temperature damages crops in multiple ways. It hastens crop development, shortening the seed filling duration. It speeds reproductive development and pollen formation, leading to development of smaller seeds.

The warmer and humid climate created due to climate change is creating more horizons for pest infestations. Those climate-resilient technologies that are technically sound and economically viable must be framed using an interdisciplinary approach to mitigate climate change. Climate change has the potential to increase the pest population and its migration, which can have an adverse impact on agricultural yields and even viability, as the pest population depends mainly on abiotic factors such as humidity and temperature.


The industry is closely working with the Government for necessary policy support and on making agriculture activities even more organized. The transformative agriculture reforms enacted will lead to faster adoption of necessary technologies across the agriculture value chain and improve the quantity and quality of the agriculture produce providing growth opportunities to seeds, crop protection and crop nutrition.

Demand for pesticides continues to be healthy, with the herbicides category continuing to lead the pack, followed by fungicides.

India is projected to be a key beneficiary of the global move towards China plus one sourcing strategy of companies, which is expected to provide further momentum to Indias crop protection sector. Industry is collaborating with the Government in building an enabling ecosystem to make India an agrochemical powerhouse.


Various safety measure taken at factory site


Work permit system


Close loop sampling for exposure control


Various training


Close loop charging system


Implementation of Process control


PSV, RD at critical equipment




Providing job specific PPEs


Parcial PLC control


Dedicated HAZ Waste storage areas for organic, inorganic, contaminated plastic and liners, used oil, spent solvents, e-waste, bio-waste are in place.

Disposal process is through Manifest generation and disposal to authorized disposer with appropriate MOU in place. Ensuring generated waste disposal before 90 days of its actual generation, Ensuring generated HAZ waste is within consented limits. TSDF vehicle meant to transport HZW waste to be equipped with GPS tracker for tracking the vehicles location during transit.


We have installed effluent treatment plant. All effluents generated at plant are segregated into hazardous and non-hazardous categories and they are effectively treated, recycled and reused, wherever possible.


Being actively engaged in product and process development activities across various segments of its businesses, Research & Development (R&D) is an integral part of the Companys operations. We have dedicated R&D plant at Bahadurgarh, Haryana is certified by the Ministry of Science and Technology, Government of India with pilot plant having a qualified team. We also have R&D Plant at Dahej, Gujarat having NABL Certification from National Accreditation Board for Laboratories as a certified research lab, alongwith pilot plant. Both the plants are working round the clock working on new chemistries.


In addition to ISO 9001:2015 for Quality Management, the professional commitments of high order have earned the rating of ISO 14001:2015 for Environment Management System and also ISO 45001:2018 Certification for Occupational Health & Safety norms. The Company is also registered with global mercantile data compiler and rating agency Dun & Bradstreet. ISO 50001:2018 is the newly revised international standard for Energy Management providing the most robust framework for optimising energy efficiency in public and private sector organizations.


Your Company has highly qualified and dedicated team of professionals in various work profile to focus on quality improvement in existing products, marketing the products to prevailing customers and exploring new domestic and overseas customers for the Company. Your Company achieved a turnover of Rs.1253.68 crores registering a decline of about 4.79% over previous year turnover of Rs.1316.79 crores and earned a Profit before Tax (PBT) of Rs.180.22 crores and Profit after Tax (PAT) of Rs.130.83 crores.

Apart from loyal customer base that the Company is enjoying since last several years now, many newer domestic as well as overseas customers are added to the portfolio of the Company during the year & same is expecting to increase in near future due to Companys commitment of supplying high quality product in a time bound manner.

Moving ahead, the Company remains poised to implement key initiatives across functions to enable itself to face market challenges and leverage the emerging opportunities. It remains focused on improving revenue growth and profitability, driven by high growth segments such as seeds and nutrients.

The Company foresees huge untapped growth potential for Indias chemical industry and strives to bank on the growth opportunities by remaining committed to maximize its return on investment and create value for its esteemed stakeholders.


The Companys total expenses decreased by 1.25% from Rs.1050.12 crores in FY 2021-22 to Rs.1037.04 crores in FY 2022-23. Major expense items of the Company comprise cost of material consumed, purchase of stock-in-trade, power and electricity, freight & forwarding outward, employee benefits expenses, depreciation and amortisation expenses and finance costs.

Cost of materials consumed decreased by 7.88% from Rs.927.70 crores in FY 2021-22 to Rs.854.52 crores in FY 2022-23 due to decrease in major raw material prices.

Power and Electricity expenses decreased by 15.11% from Rs.33.07 crores in FY 2021-22 to Rs.28.07 crores in FY 2022-23.

Employee benefit expenses decreased by 4.66% from Rs.91.31 crores in FY 2021-22 to Rs.87.05 crores in FY 2022-23.

Finance costs decreased by 14.81% from Rs.6.82 crores in FY 2021-22 to Rs.5.81 crores in FY 2022-23.


Risk management comprises all the organizational rules and actions for early identification of risks while doing business and the management of such risks along with identification of opportunities.

Despite the strong growth drivers, Indian agrochemicals industry faces challenges in terms of low awareness among large number of end users spread across the geography. Managing inventory and distribution costs is a challenge for the industry players in the wake of volatility in business environment.

The agrochemical industry is highly dependent on weather conditions. The uneven rainfalls affect the overall business.

The changes and fluctuations in raw material prices due geopolitical tensions, supply chain disruptions, inflation etc. can be a challenge to growth of the Company.

The performance of the crop protection industry and other agri-inputs is dependent on monsoons, pest and disease incidences on crops. As this years monsoon failure has shown, major fluctuations in total rainfall and its distribution affect the crop acreages and overall productivity and have a direct correlation with sales. Agrochemical companies face issues due to seasonal nature of demand, unpredictability of pest attacks and high dependence on monsoons.

Compliance to growing regulatory norms is a continuing requirement and could lead to delays in obtaining necessary approvals. Changes in guidelines or policies in various geographies may also lead to sudden disruption of business in specified products.

The Companys Internal Audit department plays a critical role in coordinating with various department heads to ensure strict adherence to processes established for key business risk identification. It recommends corrective actions to improve the Companys processes pertaining to risk identification and risk handling and ensures adequate mitigating measures are in place. The Company continuously reviews emerging risks such as global consolidation in the crop protection industry, regulatory changes and a probable ban on select active ingredients. These risks are also opening up new opportunities for the Company to grow and it continues to focus on developing novel, effective and compliant products and formulations to tap these emerging opportunities.


The Company has created internal control systems which are commensurate with the size, scale and complexity of its operations. The Company has also identified entity level controls for the organization, covering integrity and ethical values, adequacy of audit and control mechanisms and effectiveness of internal and external communication, thereby strengthening the internal controls systems and processes with clear documentation on key control points. The internal controls are formulated and implemented by the management with an objective to achieve efficiency in operations, optimum utilization of resources and effective monitoring and compliance with applicable laws.


The Company invested in a strong workforce and working environment to report sustainable growth, reflected in the continuous improvement in operating processes and new product introduction. The Company believes in a performance-driven culture.

The Company organized training programmes based on emerging requirements, covering technical, behavioral, customer orientation, safety, code of ethics, product training and other needs. The Company continued to recruit skilled scientific, technical and managerial personnel.


Certain Statements made in this report relating to Companys objectives, outlook, future plans etc. may constitute "forward looking statement" within the meaning of applicable laws and regulations. Actual performance may differ materially from such estimates or projections, whether express or implied. Important factors that could make a difference to the Companys operations; include Government Regulations, Tax regimes, Economic developments within India and countries in which the company conducts business and other allied factors.