Insecticides India Ltd Management Discussions

Global Economy

In 2024, the global economy demonstrated remarkable resilience, expanding by 3.3% despite the backdrop of geopolitical tensions, fluctuating trade dynamics, and evolving monetary policies. However, the latest IMF World Economic Outlook (April 2025) projects a tempered growth of 2.8% for the coming year, underscoring the urgent need for enhanced global collaboration and cohesive economic strategies.

This downward revision is primarily driven by shifting trade policies, most notably the reintroduction of tariffs by the USA, which have intensified pressure on global supply chains and pricing structures. In this evolving environment, agile policy coordination and sound fiscal stewardship will be critical to cushioning global markets from deeper disruptions.

On the inflation front, global disinflationary trends are expected to continue, with inflation easing to 4.3% in 2025 and 3.6% by 2026. However, upward revisions in inflation expectations for the US (from 3.3% to 4.3%) and the UK (from 3.2% to 3.9%) reflect enduring price pressures in services, a resurgence in core goods inflation, and the impact of newly imposed tariffs. Global inflation is set to ease, reaching 4.3% in 2025 and 3.6% in 2026, with advanced economies progressing faster than emerging markets. This downward trend is supported by cooling labour markets and lower energy prices. However, geopolitical conflicts like the Russia-Ukraine and Israel-Gaza wars may cause localised inflation spikes, particularly in energy and food. Divergent monetary policies across regions are also expected to influence capital flows, investments, and exchange rates, adding complexity to the global economic environment.

Global trade, while moderated by recent tariff hikes and geopolitical complexities, is expected to grow at a modest 1.7% in 2025. Yet, global supply chains continue to evolve, displaying resilience through diversification, digital transformation, and forward-looking trade agreements. These trends signal a global marketplace that, while challenged, is steadily adapting—fuelled by innovation, strategic collaboration, and a shared commitment to long-term growth.

In terms of individual economies, the USA is expected to grow at 1.8% in 2025, following a strong 2.8% expansion in 2024. The European economy is projected to experience a gradual recovery, with euro area GDP growth forecasted to accelerate

India continues to lead among emerging markets, with the ImF projecting strong GdP growth of 6.5% in Fy2025, driven by robust domestic demand, infrastructure investments, and stable fundamentals. chinas growth is expected to ease to 4.0% amid structural adjustments and softer external demand.

to 0.8% in CY 2025 and 1.2% in CY 2026, following a modest 0.9% expansion in CY 2024. This recovery is expected to be supported by monetary policy easing, continued implementation of Next-Generation EU spending, and a gradual recovery in external demand. Chinas growth is projected to decline to 4.6% in 2025 and 4.5% in 2026, reflecting weak consumer confidence, a sluggish labour market and persistent challenges in the real estate sector. India continues to be a bright spot, with growth projected at 6.2% in 2025 and 6.3% in 2026, propelled by robust private consumption, particularly in rural sectors.¹

outlook

In todays rapidly shifting global landscape, businesses are navigating a complex mix of slowing growth, evolving policy priorities, and economic divergence. While global expansion is showing signs of moderation, the resilience of select economies, particularly in Asia which continues to unlock promising and focused opportunities. However, rising protectionism, trade disruptions, and geopolitical tensions are driving up costs and reshaping global supply chains. To navigate this uncertainty, clear policy direction, regional collaboration, and agile strategies will be essential to ensure stability and sustainable progress.

IndIan Economy

Even in FY25, the Indian economy continued to emerge as of the fastest growing economies in the world, but at a sluggish pace compared to the previous years. Tepid growth in the first half of the fiscal (6%) led the RBI to revise the annual projection to 6.6% (down from an earlier projection of 7%). However,

1 https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025 according to the second advance estimates, Indias real GDP is expected to have grown at 6.5% in FY25 and nominal GDP tripling from Rs106.57 lakh crore (2014–15) to Rs331.03 lakh crore (2024–25)². This growth forecast is underpinned by sustained government spending, steady private sector capital investment, and growing domestic consumption. Additionally, moderating inflation and the possibility of interest rate cuts are expected to further stimulate economic activity, reinforcing Indias position as one of the fastest-growing major economies.

Amid the broader economic upswing, rural consumption has taken centre stage as a key growth engine—driven by stronger agricultural performance and rising rural incomes. The agriculture sector recorded a healthy 4.6% growth in 2024–25, buoyed by favourable monsoon conditions that set the stage for both essential and discretionary spending to rise. A promising kharif harvest, improved rabi sowing, and robust festive season demand have further fuelled this positive momentum. Together, these factors point to a sustained rise in domestic consumption, reinforcing the rural economys growing role in shaping Indias growth story.

outlook

Indias economic outlook remains optimistic, buoyed by strong domestic demand, accelerating technological innovation, and the momentum of structural reforms. A young and growing workforce, coupled with rising income levels, lays a firm foundation for long-term growth. Strategic policy initiatives are making India more competitive on the global stage, drawing in investment and fostering an environment where businesses can thrive. As the nation continues to evolve into a global economic force, the synergy between rising consumption, robust manufacturing, expanding services, and rapid digital transformation is set to power its next chapter of progress, one marked by inclusive prosperity and sustainable development.

IndIan aGrIculturE Industry

In recent years, Indias agricultural sector has shown remarkable resilience and consistent growth, bolstered by proactive government policies aimed at boosting productivity, encouraging crop diversification, and enhancing farmers incomes.

Key Highlights of union budget 2025-2026 on agriculture sector

The government, in partnership with states, has launched the ‘Prime Minister Dhan-Dhaanya Krishi Yojana to support 100 underperforming districts by integrating existing schemes with targeted interventions.

the scheme targets five key objectives: boosting agricultural productivity, promoting crop diversification, encouraging sustainable farming, and strengthening post-harvest storage at the panchayat and block levels to reduce losses and improve market access.

The scheme aims to enhance irrigation infrastructure and improve access to both short- and long-term loans, benefiting approximately 1.7 crore farmers by boosting productivity and financial stability.

In partnership with states, the ‘Rural Prosperity and Resilience initiative will drive rural development through technology, investment, and skill-building. By strengthening the rural economy and addressing underemployment in agriculture, it aims to make migration a choice, not a necessity.

Best practices from global and domestic sources will be adopted, with support from multilateral development banks. Phase 1 will cover 100 developing agri-districts.

Key schemes announced in the budget

Key schemes launch of Pm dhan-dhaanya Krishi yojana: The PM Dhan-Dhaanya Krishi Yojana is a targeted initiative aimed at revitalising agriculture in 100 districts marked by low productivity, moderate crop intensity, and limited access to credit. This programme focuses on enhancing agricultural output through crop diversification and the adoption of sustainable farming practices. It also aims to improve post-harvest storage infrastructure at the panchayat and block levels, upgrade irrigation facilities, and ensure better access to both long-term and short-term credit for farmers

Impact

This transformative scheme is expected to positively impact the lives of over 17 million farmers, reshaping Indias agricultural landscape. It will also catalyse growth across key agri-input sectors including seeds, warehousing, agri-finance, and agritech. By improving access to modern technology and strengthening market linkages, the programme holds the potential to significantly increase farmers incomes and foster a more resilient rural economy.

Key schemes

launch of rural Prosperity and resilience Programme: The Rural Prosperity and Resilience Programme, to be implemented in collaboration with state governments, aims to tackle underemployment in agriculture by promoting skill development, investments, and adoption of modern technologies. The first phase will span 100 emerging agricultural districts, with a special focus on empowering rural women, young farmers, small and marginal landholders, and landless families.

Impact

As a multi-sectoral initiative, this programme is poised to generate rural employment, promote economic empowerment, particularly of women, and introduce best practices from both domestic and global agricultural models. The involvement of multilateral agencies will further strengthen its implementation and impact.

Key schemes mission for aatmanirbharta in Pulses & Programme on Vegetables and Fruits: In a decisive move toward self-reliance in food production, the government will launch a six-year Mission for Aatmanirbharta in Pulses, with a sharp focus on boosting the production of Tur, Urad, and Masoor. Additionally, a comprehensive programme will be rolled out in partnership with states to enhance the production, processing, and supply chain efficiency of vegetables and fruits, ensuring better price realisation for farmers.

Impact

These programmes are expected to reduce Indias dependence on pulse imports, encourage crop diversification, and improve access to nutritious food. By creating stronger market linkages for farmers and Farmer Producer Organisations (FPOs), these initiatives will promote income stability and long-term self-sufficiency in key food crops.

Key schemes national mission on High-yielding seeds: The government will launch a National Mission on High-Yielding Seeds (HYV) to strengthen agricultural research and innovation. The mission will focus on developing and promoting seed varieties with high yield potential, resistance to pests, and resilience to changing climatic conditions. It will also facilitate the commercial rollout of over 100 advanced seed varieties released since July 2024.

Impact

This mission is expected to energise Indias seed sector, enabling faster adoption of high-performance seed varieties and attracting increased public and private sector investments. Ultimately, it will empower farmers with access to more robust and productive planting materials, supporting higher agricultural productivity across the board.

other Key announcements

makhana board will be established in the state of bihar to improve production, processing, value addition, and marketing of makhana.

Government will bring in an enabling framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High seas launch of ‘mission for cotton Productivity a 5-year mission to facilitate significant improvements in productivity and sustainability of cotton farming in India

Facilitation of credit through Kisan credit cards (Kcc), modified Interest subvention scheme and support to ncdc new Fund of Funds for startups, with expanded scope and a fresh contribution of Inr 100 million expected to boost agritech ecosystem.

As a global agricultural powerhouse, the Indian agriculture industry is the livelihood of 55% of Indias population and contributes approximately 16% to the nations GDP. The Indian agriculture leads in the cultivation of wheat, rice, and cotton. It is the top producer of milk, pulses, and spices, and ranks second in the production of fruits, vegetables, tea, farmed fish, sugarcane, and more. With the second-largest area of arable land in the world, Indias agriculture sector not only feeds its people but also employs nearly half of the nations workforce..

The adoption of modern farming techniques, such as precision agriculture, has significantly boosted both productivity and sustainability on the ground. Complementing these advances, flagship government programmes like the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and the Digital India Land Records Modernization Programme (DILRMP) have made meaningful strides in enhancing irrigation infrastructure and streamlining land record management, empowering farmers with greater efficiency, transparency, and access to resources.

As per government estimates, Indias agriculture industry is poised for steady growth, expected to reach Rs31 lakh crore by

FY25 and further expand to Rs38 lakh crore by FY30, growing at an annual rate of around 4%.³ This growth trajectory is being shaped by evolving consumer preferences, the adoption of modern farming practices, and the increasing integration of technology into agriculture, all contributing to a more efficient, responsive, and future-ready agri-sector. The Indian agriculture sector grew by 3.8% in FY25, driven by record Kharif production and strong rural demand.⁴

Key demand drivers for the Indian agriculture sector

Growing population and rising income

Population growth: Indias continuously growing population fundamentally drives the demand for food grains and other agricultural commodities to ensure food security.

rising incomes: Increased disposable incomes, both in urban and rural areas, and an expanding middle class are leading to higher overall food consumption and a shift towards more diverse and higher-value food products.

changing consumer preferences and dietary habits

urbanization and lifestyle changes: As the population urbanizes and lifestyles evolve, theres a noticeable shift in dietary patterns. Consumers are increasingly seeking protein-rich foods such as meat, dairy products, eggs, and fish.

Various government schemes aimed at enhancing agricultural productivity, promoting crop diversification (e.g., towards horticulture and millets like ‘shree anna), improving irrigation facilities (e.g., ‘Per drop more crop), and increasing farmers incomes play a role in shaping demand.

Health and wellness consciousness: A growing awareness of health and nutrition is boosting the demand for fruits, vegetables, and, increasingly, organic and sustainably produced agricultural products.

demand for processed and convenience foods: The demand for processed and packaged food items is on the rise due to changing lifestyles and the need for convenience.

Government initiatives and policy support

Various government schemes aimed at enhancing agricultural productivity, promoting crop diversification (e.g., towards horticulture and millets like ‘Shree Anna), improving irrigation facilities (e.g., ‘Per Drop More Crop), and increasing farmers incomes play a role in shaping demand. Support for allied sectors like livestock, fisheries, and horticulture, which are often more demand-driven and market-oriented, is also a key factor. Investment in agricultural infrastructure, including storage, cold chains, and market connectivity (like e-NAM), helps in better realization of demand.⁵

strong performance of allied sectors

livestock and fisheries: These sub-sectors have emerged as significant growth engines within agriculture, driven by the increasing consumer demand for protein-rich foods. The livestock sector, including dairy, meat, and eggs, and the fisheries sector have shown impressive growth rates.

Horticulture: The demand for fruits and vegetables has led to a boom in the horticulture sector, which has been outpacing the growth of traditional field crops like cereals.

Industrial demand for agricultural raw materials: The agriculture sector supplies essential raw materials to various industries, including textiles (cotton), sugar (sugarcane), and increasingly, the biofuel industry (e.g., ethanol production from sugarcane, maize and sorgham), thereby creating consistent demand.

technological advancements and agri-tech

While adoption is still evolving, the increasing use of technology in agriculture (agritech), including digital platforms for market access, precision farming techniques, and better irrigation methods, can enhance efficiency and connectivity, indirectly

From targeted irrigation to precise use of fertilisers and pesticides, these innovations are enhancing productivity, reducing waste, and promoting sustainable practices. In India, tools like GPs-guided equipment and soil sensors are helping farmers boost yields while minimizing environmental impact.

influencing how demand is met and perceived. In essence, the demand for Indian agricultural products is shaped by a complex interplay of demographic shifts, economic growth, changing consumer tastes, global market dynamics, and supportive government policies, with a notable trend towards diversification into higher-value and processed agricultural goods.

Here are a few innovations to drive change in the Indian agriculture industry smart farming for a sustainable future: Precision farming is revolutionizing agriculture by enabling farmers to make real-time, data-driven decisions using technologies like satellite imagery, IoT sensors, and drones. From targeted irrigation to precise use of fertilisers and pesticides, these innovations are enhancing productivity, reducing waste, and promoting sustainable practices. In India, tools like GPS-guided equipment and soil sensors are helping farmers boost yields while minimizing environmental impact.

Vertical farming gaining popularity: With land becoming an increasingly limited resource—especially in Indias bustling urban landscapes—innovative solutions are no longer optional, they are essential. Vertical farming has emerged as a game-changer in this context. By growing crops in stacked layers within controlled indoor environments, this modern farming technique makes efficient use of space while drastically reducing water consumption compared to traditional methods. In Indian cities like Bengaluru and Delhi, startups are already cultivating fresh produce closer to consumers, reducing reliance on rural farms and cutting the carbon footprint of food transport. Vertical farming offers a promising path toward food security in our rapidly growing urban centers.

Increased usage of modern technologies: Drones are rapidly transforming agriculture, becoming vital tools for modern farmers. From capturing high-resolution crop images to monitoring plant health, irrigation, and pest infestations, they enable precise, data-driven decisions. In India, drones are being used across crops like rice, wheat, and sugarcane to enhance yields and prevent diseases. AI-powered drones can even identify specific field areas needing nutrients or pest control. Additionally, drone-based spraying improves efficiency while reducing water and labour needs.

Increased usage of biopesticides and biofertilizers: With growing environmental awareness, the demand for organic and sustainable farming is on the rise. Biopesticides and biofertilizers offer natural alternatives to chemicals, protecting crops, improving soil health, and reducing ecological harm. Biopesticides target pests without affecting pollinators, while biofertilizers boost soil fertility by supporting beneficial microbes. Together, they can work on plant & soil health, promoting greener, more responsible agriculture, incidence of disease & pests can be reduce on healthy crops using technologies.

Increased usage of artificial intelligence (aI) and machine learning in agriculture: Imagine knowing the best time to plant, spotting diseases early, and using water efficiently, even before sowing begins. Thanks to AI and machine learning,

In India, a significant portion of potential crop production is lost due to pests, weeds, and diseases. to address this issue, there is a growing emphasis on improving crop productivity through effective pest management and weed control practices. this is now possible. By analyzing data from weather patterns, satellite imagery, and soil sensors, AI empowers Indian farmers with precise, real-time insights. These smart solutions help boost yields, improve crop health, and adapt to climate change, paving the way for a more resilient and sustainable agricultural future. It helps the companies to access the occurance of pests incidence in advance to plan their strategy.

IndIan aGrocHEmIcals Industry

Agrochemicals, commonly known as crop protection products or pesticides, play a vital role in safeguarding crops against insects, diseases, and invasive weeds. Indias agrochemicals industry is on a growth path, driven by the countrys expanding population, rising incomes, and a growing shift towards healthier and more diverse food choices. As demand for higher agricultural productivity intensifies, the sector is fast becoming a cornerstone of Indias journey toward food security and sustainable farming. The push for higher agricultural productivity is no longer just about feeding a growing nation—its about ensuring food security and nutritional well-being for all.

In India, a significant portion of potential crop yield is lost each year to pests, weeds, and plant diseases, posing a serious challenge to the nations food security. As a result, there is a growing focus on enhancing agricultural productivity through smarter, more effective pest and weed control solutions. Farmers today increasingly recognise the value of agrochemicals in protecting their crops and ensuring better harvests. This shift in awareness, coupled with the rising adoption of modern farming techniques, is fuelling robust growth in the crop protection market.

At the same time, the industry is navigating critical concerns—ranging from environmental impact and regulatory scrutiny to the evolving threat of resistant pests. Yet, innovation continues to pave the way forward. With cutting-edge technologies, government support, and the introduction of next-generation, eco-friendly solutions, the sector is well-positioned for sustainable growth—empowering farmers to grow more, waste less, and secure a better future.

The Indian agrochemical industry is on a steady growth trajectory, with its market size projected to reach USD 8.53 billion by the end of 2025. Looking ahead, it is expected to expand further to USD 10.38 billion by 2030, growing at a CAGR of 4%. India stands as the fourth-largest producer of agrochemicals in the world, backed by a vast and expanding domestic market.

Insecticides dominate the segment, accounting for nearly 60% of Total agrochemical consumption, followed by fungicides and herbicides. Despite being a net exporter, Indias per-hectare usage of agrochemicals remains significantly lower than that of developed nations, highlighting substantial room for growth and wider adoption within the country.

The agrochemical industry in India is broad and well-distributed, comprising around 125 technical-grade manufacturers, 800 formulators, and over 3.25 lac dealers outlets/ retailers dealing in agri inputs including pesticides and 35,000 distributors in the country. However, a major share of the raw materials required for technical-grade production continues to be imported, primarily from China, leading to elevated production costs and tighter margins. While the governments "Make in India" initiative aims to reduce this dependency and strengthen domestic manufacturing, the path to true self-reliance in the sector is still evolving and demands sustained focus and investment.⁶

Key growth drivers for the Indian agrochemical industry

Indias prospects for the agrochemical industry in the future seem quite encouraging.

Growing demand for food security: The availability of arable land per capita in India has been steadily declining in recent years, largely due to rapid urbanization, and this trend is expected to continue. At the same time, a growing population is placing increasing pressure on food production. In this context, pesticides are poised to play a vital role in enhancing crop yields per hectare, helping farmers make the most of limited land resources.

Rising technology adoption: With increasing digital penetration across the agricultural landscape, more companies are leveraging technology to raise awareness and engage farmers, ultimately driving demand for agrochemicals. The growing promotion of pay-per-use technology solutions is also expected to accelerate tech adoption, making advanced tools more accessible to small and marginal farmers.

Growing consumer awareness: Efforts by both public and private sectors to educate farmers on the scientific and responsible use of agrochemicals are beginning to yield results. As awareness of the benefits, such as increased yields, crop protection, and long-term soil health, continues to rise, a corresponding boost in agrochemical sales is expected.

With increasing digital penetration across the agricultural landscape, more companies are leveraging technology to raise awareness and engage farmers, ultimately driving demand for agrochemicals.

Agrochemical trade reforms: The introduction of a single-window clearance system for approvals related to manufacturing, marketing, and exports is expected to streamline operations and support industry growth. Simplification of the export registration process and compliance requirements will further aid Indian exporters. Additionally, a re-evaluation of banned and restricted molecules specifically for export manufacturing could open new international markets.

India as a global manufacturing hub: Indias push for self-reliance (Atmanirbhar Bharat) and reduced dependence on imports, particularly from China, has created a favourable environment for domestic players. The Production Linked Incentive (PLI) scheme for the agrochemical sector is awaited. With numerous agrochemical products going off-patent, Indian manufacturers are well-positioned to emerge as a global leader.

Strengthening R&D capabilities: Public-Private Partnership (PPP) models are increasingly being used to drive research and innovation. Promoting collaborative R&D investments, especially among small and regional players, can foster innovation at scale.

Enabling policy environment: Supportive policies are encouraging the optimal use of safer, export-compliant molecules, in line with international food safety standards. Enhanced MRL (Maximum Residue Limit) testing infrastructure is improving accessibility and lowering testing costs. Additional policy incentives focused on capacity expansion, export-oriented manufacturing, and MSME growth are strengthening the sector. Improvements in R&D infrastructure and a more efficient licensing and registration regime further reinforce a positive outlook for the industry.

Growing export opportunities: Indias agrochemical exports have gone up in recent years, and the country is in a good position to witness the greater demand for crop protection chemicals in the world. With correct investment in research and development, it could become one of the key players worldwide.

Focus on sustainability: Looking at agrochemicals and sustainability in agriculture, responsible use of these products is gaining importance. There is a growing concern about the production of products that are effective in pest control while causing the least harm to the environment. This is not at odds with the worldwide trend toward eco-friendly and sustainable farming practices.

modern Farming Practices

The growing adoption of mechanisation and precision agriculture is transforming weed management practices across India. Herbicides, once a relatively underutilised input, are now emerging as one of the fastest-growing segments in the Indian agrochemical space. While the industry was traditionally led by insecticides, a notable shift is underway as farmers increasingly turn to herbicides in response to rising labour shortages, escalating wage costs, and the need for more efficient, timely weed control.

This shift is particularly evident in crops like rice, maize, cotton, and soybean, where effective weed management plays a critical role in protecting yields and improving profitability. Greater awareness among farmers, improved access to crop-specific and selective herbicides, and the growing cultivation of high-value commercial crops are all contributing to this rising demand.

With continued innovation in herbicide formulations and the steady move toward modern, mechanised farming, herbicides are becoming an indispensable part of Indias agricultural evolution, helping farmers boost productivity while sustainably managing their fields.

Key challenges faced by the Indian agriculture industry

slow registration process: The lengthy and costly registration process for new agrochemical molecules hinders innovation and delays the introduction of advanced crop protection solutions. Streamlining approvals would benefit both manufacturers and farmers.

Volatility in raw material prices: Indias agrochemical industry relies heavily on raw material imports from China, making it vulnerable to global price and currency fluctuations. Increasing domestic production can reduce this dependence, lower costs, and improve profitability for manufacturers.

Environmental and health issues: Concerns around agrochemical use stem from health and environmental risks caused by improper handling, storage, and application. Reducing these risks requires proper education and training for farmers.

resistance to agrochemicals: Continuous and Non-judicious use of agrochemicals can lead to pest resistance, reducing their effectiveness. Integrated Pest Management (IPM) and ongoing agrochemical research are key to addressing this challenge. New molecules are seeing their pathway in India at a good speed.

outlook

India holds immense promise as a growing force in the global agrochemicals industry. Yet, to unlock its full potential, several challenges must be addressed. By prioritising sustainability, fostering product innovation, and boosting domestic manufacturing, Indian agrochemical companies can play a pivotal role in securing the future of Indian agriculture.

Collaboration between the government and industry stakeholders is essential to resolve key issues such as regulatory delays, supply chain constraints, and environmental concerns. With a growing focus on sustainable practices and forward-looking solutions, the outlook for Indias agrochemical sector remains optimistic and full of opportunity.

company overview

Started operations in 2001, Insecticides (India) Limited (IIL) has grown from a single-formulation unit into one of Indias leading agrochemical companies, proudly known for the iconic Tractor Brand. With eight state-of-the-art manufacturing facilities and a strong pan-India presence, IIL offers a wide portfolio of insecticides, herbicides, fungicides and biologicals, & PGRs, trusted by farmers for their quality, innovation, and performance.

Through continuous R&D, capacity expansion, and modernised, cost-efficient production, IIL delivers differentiated crop protection solutions that boost productivity and profitability. Backed by flagship brands like Pulsor, Hachiman, Green Label, and Shinwa, and supported by a growing distribution network, IIL strives to be a farmer-first, future-ready brand, affordable, accessible, and aligned with the ‘Make in India vision for sustainable agricultural growth. It also makes available latest technology products through Japanese Collaborations at competitive prices.

Business strengths

Growing product portfolio

At IIL, innovation drives our expanding product portfolio, enabling us to address the evolving needs of Indian agriculture. From insecticides and herbicides to fungicides and biologicals, & plant growth regulators, our diverse and well-Balanced offerings cater to a wide range of crops and climatic conditions. By continuously introducing differentiated formulations, and premium products, we have strengthened our market presence, enhanced farmer trust, and reinforced our position as a one-stop solution provider for crop protection and farm productivity.

Brand equity and promotion

IILs strong brand equity is anchored in trust, performance, and farmer-centric innovation. The iconic Tractor brand, along with a portfolio of high-impact products like Pulsor, Hachiman, Green Label, and Shinwa, has earned widespread recognition across rural India. Our focused promotional strategies, ranging from grassroots farmer engagement and field demonstrations to digital outreach, have strengthened brand visibility and customer loyalty. By combining consistent product quality with effective marketing, IIL continues to enhance its brand presence and deepen its connection with Indias farming community.

Building on our infrastructure capabilities

At the core of IILs competitive edge lies a robust infrastructure powered by in-house R&D capabilities and strategic international collaborations. Our state-of-the-art research facilities enable the development of innovative, farmer-centric solutions tailored to diverse agro-climatic needs. Complementing this is our expansive manufacturing network, comprising eight advanced plants across India, that ensures high-quality, cost-effective production at scale. Together, our integrated R&D and manufacturing ecosystem positions IIL to respond swiftly to market demands, accelerate product development, and deliver excellence from lab to land.

Enduring dealer relationships

IILs strength lies in its deeply rooted dealer network, built on trust and partnership over generations. With multi decades of association, many of our dealers have shared a legacy spanning three generations. This long-standing relationship is a testament to our credibility, consistency, and commitment, creating a strong foundation for market reach, customer loyalty, and sustainable business growth across India.

FY25 Consolidated Financial performance review

Revenue from operation achieved during FY2025 was Rs1,999.95 crores, as against Rs1,966.39 crores in the previous year, registering 2% year-on-year growth. Profit before tax (PBT) was recorded at Rs192.77 crores against Rs131.89 crores during the previous year. Profit after tax (PAT) for the year stood at Rs142.02 crores against Rs102.07 crores in the previous year. For FY2025, EBITDA grew by 36% YoY to Rs221.22 crores, compared to Rs162.32 crores in FY2024. EBITDA margin for FY2025 stood at 11.1%, improved by 281 bps on a YoY basis. Various cost control measures, coupled with better market dynamics, led to higher growth in EBITDA.

IILs strong brand equity is anchored in trust, performance, and farmer-centric innovation. The iconic Tractor brand, along with a portfolio of high-impact products like Pulsor, Hachiman, Green Label, and Shinwa, has earned widespread recognition across rural India. consolidated Financial performance summary

( Rs in crores)

	Fy25	Fy24	% change
revenue	1,999.95	1,966.39	2%
Gross profit	640.83	501.36	28%
EbIdta	221.22	162.32	36%
Depreciation	29.15	29.25
Finance cost	6.86	10.89
Profit before tax (Pbt)	192.77	131.89	46%
Profit after tax (Pat)	142.02	102.07	39%

Key financial ratios on standalone basis

	Fy25	Fy24	% change	reasons
Debtors turnover	5.87	6.63	-11.46%	-
Inventory turnover	1.62	1.76	-7.95%	-
Interest coverage ratio	29.3	13.18	122.31%	Higher of Profit has led to increase in the ratio
Current ratio	1.83	1.90	-3.68%	-
Net debt-to-equity ratio	0.1	0.09	11.11%	-
Operating Profit Margin	10.93	8.30	31.69%
Net Profit Margin	6.98	5.22	33.72%
Return on Net Worth (RoNW)	12.92	10.15	27.29%	Higher of Profit has led to increase in the ratio
Return of Capital Employed (RoCE)	16.55	12.94	27.9%

Note: Other important ratios are also provided at Note No. 51 of financial statement.

outlook

Your Company is well-positioned to tap into the growing demand for agrochemicals and drive sustained growth in the years ahead. This momentum is being fuelled by our strategic focus on product premiumization, ongoing investments in R&D, and a steady pipeline of innovative product launches. We are also strengthening our capabilities through global partnerships and a steadfast commitment to strong corporate governance, key pillars in our journey towards sustainable progress. With ambitious plans to broaden our product portfolio, we are working tirelessly to offer a more comprehensive and impactful range of solutions to support and empower farmers around the world. Our new expansions are poised to build world class facilities to meet the Global demands.

risk management

A thorough risk-management framework allows us to preemptively monitor risks emanating from the internal and external environment. As a result, we have been able to consistently create value for all our stakeholders, despite industry cycles and economic headwinds.

our risk mitigation plan

The Board takes the following steps as a part of its risk management and mitigation plan:

Defines the roles and responsibilities of the Risk

Management Committee

Participates in major decisions affecting the organizations risk profile

Integrates risk-management reporting with the Boards overall reporting framework our risk management process

Identification and assessment approach

Forecasting and calculating the probability of occurrence, magnitude, category and rating of the risk.

Prevention and control strategy

Devising plan of actions to prevent risk, temper its strength and reduce its aftermaths.

monitoring

Gauging the potency of controls, reacting to the revelations and continuously honing the method.

reviewing and reporting on the risk

Overseeing the process at regular intervals (at least annually).

risk management

risk	description	mitigation strategy
Demand Risk	Reduced demand for agrochemicals poses a potential threat to the Companys operational effectiveness and long- term growth trajectory.	IIL has built strong relationships with a farmer base of more than 40,00,000 farmers and an extensive distributor network across its three core product segments. The Company also mitigates demand concentration by regularly introducing products within key Focused Maharatna and Maharatna product lines, thereby reinforcing its long-term growth trajectory.
Client concentration risk	Dependence significantly on any single region or on a small farmer community could expose the Companys operational risks.	With a customer base exceeding 40 lakh farmers, the Company also engages with several B2B players in India and abroad, maintaining a well-Balanced revenue mix. The Company actively explores new business opportunities to enhance market reach and minimize client dependency.
Raw material risk	Supply disruptions or raw material price volatility may impact the Companys profitability.	With a robust risk management framework, the Company effectively navigates raw material price fluctuations. Strategic sourcing flexibility preserves product quality and performance, while strong backward capabilities and enhanced usage of modern technologies enable us to manage manufacturing cost.
Manufacturing operations risk	Any disruption, slowdown, or shutdown at manufacturing facilities may impact business operations and, in turn financial performance.	The Companys integrated manufacturing are designed with adaptable capacities, enabling seamless production shifts between different product categories. This flexibility ensures business continuity and reduces operational risks. Also, the multi-location of plants ensures uninterrupted supplies to network.
Quality risk	Loss of certifications or noncompliance with quality standards may impact customer confidence and hinder business growth.	Sustainability lies at the core of the Company operations, reflected in its eco-friendly production practices and strict adherence to industry regulations. The Companys R&D and manufacturing processes are guided by advanced quality assurance protocols, reinforcing its unwavering commitment to operational excellence, environmental responsibility, and long-term stakeholder value.
Regulatory risk	Failure to meet regulatory requirements may impact the Companys operations and sales performance.	The Company actively collaborates with regulatory authorities to ensure full compliance with applicable legal and industry standards. Comprehensive audits, both internal and external, strengthen financial transparency and operational integrity. Audit findings are regularly reviewed by the Audit Committee, strengthening accountability and fostering a culture of ethical governance.

Internal control system and adequacy

The Company has established a robust internal control framework that is well-aligned with the scale and complexity of its operations. We believe that safeguarding our assets and ensuring operational efficiency go hand in hand with implementing effective internal controls and standardizing key processes. Our internal control and risk management systems are thoughtfully designed and implemented in line with the principles and best practices outlined in the organizations corporate governance framework. These systems are deeply embedded in the Companys overall organizational structure, both at the entity and Group levels, and rely on seamless collaboration across various teams and functions. The Board of Directors plays a pivotal role by offering strategic oversight and guidance to the Executive Directors and management, supported by dedicated monitoring and advisory committees.

Human resource

IIL attributes its success to its resolute and resilient employees, who have been instrumental in propelling the Company to new heights. Recognizing the crucial role of its workforce, IIL has continuously enhanced its HR-related processes, practices, and systems to further align with its organizational objectives. Through on-the-job training, workshops and external training programmes, the Company ensures that its employees receive adequate opportunities for professional growth and development. The ability to attract and retain top-notch talent has been a key driver in furthering IILs business goals. The Company fosters cordial industrial relations, with employees enjoying the strong support of the senior management in ensuring their safety and well-being. This commitment to nurturing a skilled and motivated workforce has been a cornerstone of IILs success, enabling the Company to capitalize on emerging opportunities while navigating industry challenges effectively.

IIL surpasses the customary boundaries of human resource management. This extends beyond mere compensation, performance appraisals, and professional development. The Company embraces a comprehensive approach, encompassing the entirety of its employees professional journeys, providing them with timely guidance to cultivate fruitful and enduring careers. IILs workforce comprises seasoned professionals with profound industry knowledge. The Company takes immense pride in their invaluable contribution to its remarkable success.

Employee composition of the company

Health and safety measures

At IIL, the health and safety of our workforce is a top priority. We are dedicated to upholding the highest standards of occupational health and safety by implementing stringent practices across all our operations. Our facilities are certified under ISO 45001, reflecting our commitment to maintaining robust health and safety management systems that proactively identify, assess, and mitigate workplace risks.

Creating a safe work environment involves not only strong systems but also well-informed people. To that end, during the year, we conducted several health and safety trainings like Basic Fire Fighting, Unsafe Act & Condition, Fire Mock Drills at our manufacturing facilities. These sessions help raise awareness and prepare employees and contract workers to respond effectively to potential risks. We also run a dedicated Worker Protection Programme, under which all new recruits handling pesticides and insecticides receive mandatory safety training within 15 days of joining.

Recognizing the diversity of our workforce, we ensure that communication is clear and inclusive. Trainings are delivered in five regional languages to ensure comprehension, and for those with limited literacy, we provide symbol-based learning using pictograms to effectively convey safety instructions

cautionary statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government regulations, tax laws & other statutes & other incidental factors.