Super Crop Safe Ltd Management Discussions

ECONOMIC OVERVIEW

Agrochemicals are designed to protect crops from insects, diseases, and weeds. It has been a major contributor in making any country self-reliant in food production. The use of agrochemicals primarily aims to ensure abundant food supply for humans, but it may have a negative impact on soil biological activity and diversity through direct or indirect actions.

? The Indian pesticide market presents significant growth opportunities for global investors, driven by the expanding agricultural sector and increasing demand for food production. A key trend in the market is the increased use of herbicides, which is expected to continue due to their efficiency and cost-effectiveness in managing weeds and enhancing crop yields. Another emerging trend is the expanding applications of nano-insecticides, which offer superior efficacy, reduced environmental impact, and increased safety for farmers and consumers. However, the market also faces challenges, including the presence of alternative techniques for pesticide use, such as organic farming and integrated pest management. ? Additionally, stringent regulations regarding the use and disposal of synthetic pesticides are increasing, which may limit market growth. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on developing innovative, sustainable, and cost-effective pesticide solutions that meet regulatory requirements and address the evolving needs of Indian farmers. Additionally, partnerships and collaborations with local players and government agencies can help companies gain a strong foothold in the market and build long-term relationships with customers.

The demand for agrochemicals is growing due to demand for food supply in order to meet the needs of a growing world population from 8 billion to 9.8 billion in 2050 and 11.2 billion in 2100. The global market is predominantly driven by the increasing demand for crop protection products in the agricultural field across the globe. Growing food demand, increasing adoption of precision farming methods, shrinking arable land due to increasing population, and rapid urbanization & industrialization across the globe are some also among the key factors driving the market. Approximately 25% of the world crop output is lost every year due to diseases and attacks by pests & weeds. Hence, agrochemicals play a vital role in enhancing crop yield and production. In India, about 15-25% of potential crop production is lost due to pests, weeds, and diseases. The need for improving crop productivity with a focus on the effective use of pest control measures and the adoption of weed management practices has been recognized as an important factor in increasing agricultural output. These factors are aiding the use of agrochemicals in agriculture to increase output.

The India Agrochemicals Market size is forecast to increase by USD 12.90 billion, at a CAGR of 10.17% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing use of herbicides, growing demand from India, and technological improvements leading to efficient methods of agriculture. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

? Expanding applications of nano -insecticides is the upcoming trend in the market. o Nanotechnology and nano particles are revolutionizing the development of eco-friendly insecticides in the global market. Horticulturists and toxicologists are adopting this technology to create safer alternatives in sectors such as pharmaceuticals, medical devices, and chemicals. The toxic nature of traditional insecticides has raised concerns among agro scientists, leading them to explore nanotechnology as a potential solution. By improving insecticides through research and development, the quantity required for crop application can be significantly reduced. o This market trend is anticipated to fuel growth during the forecast period. Nano particles offer a promising solution to address the safety concerns associated with conventional insecticides, making them a valuable investment for the agricultural industry.

? Presence of alternative techniques for pesticides is a key challenge affecting the market growth. o The Indian pesticide market faces hindrances in growth due to the adoption of alternative farming methods, such as crop rotation and integrated pest management (IPM). IPM practices enable farmers to develop pest-resistant crop varieties, employ mechanical pest traps, use predatory insects to eliminate plant-eating pests, and remove pest nesting places via tillage under harvested crops. This shift towards sustainable farming methods is driven by growing public awareness of the potential negative effects of pesticide use. o As a result, the market expansion for pesticides in India is anticipated to be restrained during the forecast period.

One of the countrys core advantages lies in its abundant pool of skilled human resources combined with lower production costs and an expansive consumer market. The country stands out in terms of demographics and the availability of technical talent. Its unique geographical advantage with major refineries and petrochemical plants along the coastline provides easy access to petrochemical feedstock and key demand centers, facilitated by efficient port infrastructure. The rising income levels and a youthful population have fuelled a consumption-driven economy, driving demand across various sectors. This combination enables Indian manufacturers to offer competitive pricing for generic agrochemicals, attracting global attention and driving export volumes. The cost-effectiveness and quality of Indian agrochemical products places the country as a preferred destination for agrochemical manufacturing. Moreover, the Centres "Make In India" initiative has been instrumental in propelling the agrochemical industry forward. By promoting domestic manufacturing, reducing regulatory barriers, and facilitating infrastructure development, this initiative has created an enabling environment for industry players. Alongside Aatmanirbhar Bharat Abhiyan which emphasises self-reliance and resilience in key sectors of the economy including agrochemicals to promote domestic manufacturing, reduce dependency on imports, and enhance competitiveness. The government also plans to implement a production-linked incentive system for the agrochemical sector, offering output incentives ranging from 10 per cent to 20 per cent. This scheme aims to boost domestic manufacturing, create employment opportunities, and enhance Indias global competitiveness.

Indias stringent laws and regulations regarding the manufacturing of chemicals, including fertilizers, have gained recognition globally. Before being released into the market, pesticides in India undergo rigorous checks and balances mandated by the Insecticides Act of 1968 and The Insecticide Rules of 1971. These regulations oversee the import, manufacture, sale, transportation, and distribution of insecticides to ensure the safety of humans and animals. The Central Insecticides Board and Registration Committee play a pivotal role in advising the government on insecticide manufacturing under the Industries (Development and Regulation) Act of 1951. They evaluate insecticides based on their toxicity, suitability for aerial application, dosage, frequency of use, and potential threats to handlers. This adherence to global standards builds trust among consumers worldwide and reinforces Indias reputation as a reliable source of high-quality agrochemicals.

Indian agrochemical industry struggled with challenges such as the limited availability of certain raw materials and the absence of mega-production facilities for a long. However, these challenges are addressed by strategic interventions such as capacity building for backward integration, R&D investments to enhance process efficiencies and reduce costs, and fostering a conducive regulatory environment to encourage innovation and sustainability. The Indian agrochemical industry has made significant strides in establishing state-of-the-art manufacturing facilities to meet both domestic and global demands. This has resulted in a notable decrease in the import of agrochemicals over the long term. Renowned worldwide for its production efficiencies, product efficacy, quality, and competitive pricing, the industry continues to thrive.

One of the primary drivers behind Indias growth in the agrochemical sector is the backward integration of production processes. Indian companies have strategically invested in producing off-patent molecules, thereby reducing their dependence on imports from China. Furthermore, there is a concerted effort to register off-patent products and foster relationships with distributors to increase volumes at more accessible price points.

To encourage innovation and technological advancements, the government provides support for R&D activities in chemicals and agrochemicals. This includes funding programs, collaboration opportunities with research institutions, and incentives for developing new products and processes. These government initiatives collectively aim to promote growth, innovation, and sustainability in the agrochemicals and specialty chemicals industries, Collaboration between domestic agrochemical manufacturers and global entities has catalysed technology transfer and knowledge sharing. This collaboration has spurred innovations in manufacturing processes, the development of new molecules, and a heightened focus on environmentally sustainable practices. Manufacturers are increasingly focusing on sustainable raw materials, exploring bio-pesticides, and developing formulations requiring minimal quantities for effective pest control. In essence, agrochemicals play a pivotal role in driving agricultural productivity and ensuring food security for Indias population of 130 crore people. The governments adherence to fast-tracking agrochemical projects indicates a positive trajectory for the industry, with export revenues projected to reach $10 billion in the coming years. The future of Indias agrochemical industry looks promising, with revenues estimated to grow significantly driven by favourable government initiatives, increased exports, and stable domestic as well as global demand.

This year, monsoon in India is predicted better. This should help recover farm and related economic growth. El Nino effects are gradually fading in India and paving way for La Nina, which would be inductive to more rains and consequently increased farm production. This will translate into a better demand for crop protection chemicals. Input prices for crop protection chemical companies are likely to remain subdued in the near future which will impact selling prices for farmers. Due to this, while the market could grow in volume terms, but in value terms, growth would be moderate. The long-term drivers like increasing population, current low capita consumption of pesticides, decreasing arable land, focus on productivity and increasing purchasing power would continue to remain intact and will drive the global crop protection market.

Formation of Farmer Producer Organizations (FPOs) to counter the difficulties faced due to land fragmentation

Availability and dissemination of appropriate technologies that depend on quality of research and extent of skill development

Plan expenditure on agriculture and in infrastructure which together with policy must aim to improve functioning of markets and more efficient use of natural resources

Governance in terms of institutions that make possible better delivery of services like credit, animal health and of quality inputs like seeds, fertilizers, pesticides and farm machinery

The Indian crop protection market is dominated by Insecticides, which form almost 60% of domestic crop protection chemicals market. The major applications are found in rice and cotton crops. Fungicides and Herbicides are the largest growing segments accounting for 18% and 16% respectively of total crop protection chemicals market respectively. As the weeds grow in damp and warm weather and die in cold seasons, the sale of herbicides is seasonal. Rice and wheat crops are the major application areas for herbicides. Increasing labor costs and labor shortage are key growth drivers for herbicides. The fungicides find application in fruits, vegetables and rice. The key growth drivers for fungicides include a shift in agriculture from cash crops to fruits and vegetables and government support for exports of fruits and vegetables. Bio-pesticides include all biological materials organisms, which can be used to control pests. Currently bio- pesticides constitute only 3% of Indian crop protection market; however there are significant growth opportunities for this product segment due to increasing concerns of safety and toxicity of pesticides, stringent regulations and government support.

The Company is having direct presence in the states covering more than 44% share in Indias Agro-chemical market.

Organic farming preserves soil quality and diversity in crop production, and avoids hazards to the environment on a long-term basis. Organic farming as a means to sustainable agriculture has benefited farmers. The certified cultivated area under organic farming has grown from 4.55 lakh ha in 2009-10 to 7.23 lakh in 2013-14, with around 6 lakh farmers practicing it. But, still, the total area under organic farming is insignificant compared to the net sown area of 140 million hectares. In terms of exports also, exports of organic food at about 1.6 lakh tonnes and at an estimated value of USD 220 million is less than 1 per cent of global exports. Against this backdrop, to provide a major fillip to organic farming in India, the existing components of organic farming under the NMSA have been put together under a new programme called "Paramparagat Krishi Vikas Yojana". The programme envisages development of 10,000 organic clusters and provides chemical-free inputs to farmers and increase the certified area by 5 lakh hectare within a period of 3 years. Under this, every farmer in a cluster will be provided an assistance of Rs. 50,000 per hectare in 3 years towards conversion to and adoption of organic farming and towards market assistance. In line with governments Organic Farming initiative the Company has started its Bio-Technology Division for research and development work in the field of Organic Farming and development of organic fertilizers. At Bio-division of the Company VAM, Maycorrhizal Bio-fertilizer with brand name SUPER GOLD is developed and commercially marketed in last year.

SUPER GOLD is licensed product for which production from root level to formulation is developed in Bio Division, which is done by only few Companies in India. It increases roots in crops and increases reach of roots to absorb more fertilizers and water which remains untouched otherwise. Use of this product will reduce the use of chemical fertilizers and water that will result in low cost farming to Indian farmers.

Super Crop Safe Ltd enjoys the unique distinction of having strong brand equity in agrochemicals and Bio fertilizers. Built on a foundation of trust and respect for quality product are increasingly recognizing the mutual benefit of distributors and farmers working with your Company. Domestic agri-inputs focus on developing strong brands backed by quality supply for the Indian market. These are high performance, high potential, early stage products, which Super Crop Safe Ltd enjoys early entry benefits.

The domestic agri-inputs operation has shown consistent growth over the past few years and all this was possible with continuous farmer connect initiatives, strong and extensive distribution capabilities and professional marketing team with experience and straightforward and transparent dealings with all stakeholders.

The Company has diversified into Microbial biotechnology (Mycorrhiza, Spirulina) and further our need based R & D is going on to develop sustainable Botanicals and active pharmaceutical ingredients (API) for Ayurvedic, Herbal and Microbial Therapeutics (Nutraceutical & Nutri-theraputics). Products developed as a result of this R&D activity will be marketed with the existing strong marketing network of the Company.

1. Mycorrhiza VAM (Vesicular Arbuscular Mycorrhiza) a complete Biofertilizer, under the brand name Super Gold The main benefit of this, to the farmer is, it reduces the dose of phosphatic fertilizer by fifty percent, and hence there is no any additional expense. It increases the yield up to 20 percent besides many other benefit to improve the soil structure, pH & maintaining the rhizosphere microbial community, organic carbon (OC) responsible for the optimum C:N ratio an index of soil fertility. Mycorrhiza (VAM); an important component of soil life and soil chemistry, responsible for nutrient mineralization, solubilisation particularly (P, Zn, Fe, Mg, Mn, Mo, Cu Etc...) transport is developed as Granule, Powder and Liquid Bio Fertilizer for sustainable agriculture, horticulture and plantation. Mycorrhiza (VAM) increases 10 100 fold roots potential to absorb the nutrient from rhizosphere and imparts natural defense against various pathogens. It reduces the use of chemical fertilizer up to 50% and enhances the yield up to 40% of plants. A consortium of natural companion species of Glomus developed and being produced by nurse culture approach.

2. Spirulina: Dietary supplement under the brand name Superlinaa

A highly nutritional and therapeutic micro-algae; Protein 60 % (approx) hence a good admixture of food supplements for malnutrition. High Concentration of Iron, Calcium, Phosphorus, Potassium, Zinc, Selenium and Iodine works well for iron deficient children, pregnant women. Good for cardio vascular disease due to potassium (k) and rheumatism due to selenium (Se). Rich in Antioxidants by virtue of higher concentration of Vitamin B12, Beta-Carotene, Phycocyanin and Polynuclear Aromatic Hydrocarbon (PAH) help to work as blood purifier hence antiaging.

3. Super Wonder: A super protector against pest and disease

SUPER WONDER is a biological insecticide based on botanical extract produced by Nano technology & formulated as balanced poly-botanicals WS (Water Soluble Concentrate) with nano concentration of Co-factors for plant defines enzymes.

Actions: Protect from sucking pests Like, Aphids, Jassids, White Fly, Thrips, Mites etc and fungal pathogens (Mildews, Wilt, Damping off, Leaf spot etc). It has ovicidal effects. Minor insect is easily killed by different natural plant extracts. Besides Poly-botanicals, the extract contains various natural elements responsible for the growth of the plants. Boost crops immunity and over all biomass hence yield.

4. Soil Reclaim: Reclaim alkalinie& sodic soil

Plant absorbs nutrition at pH ranging between 5.5 to 7.5. Above pH 7.5 are alkaline where as below pH 5.5 are acidic. Both the conditions are unfavorable for crops growth and development. Degraded alkaline soil is called sodic soil since there is no exchangeable calcium (Ca), pH is more than 8.5. Seven million hectare of Indian soil is either alkaline or sodic hence non-productive for crop. It is a great challenge for scientist to reclaim these soils. We are at the verge of development of a combination of natural alkaline / sodic microbes with green chemicals having great potential to reclaim it slowly. Bio-resources conservation and sustainable utilization as per National Biodiversity Authority (NBA) is an important regulation guideline to be followed while working in this arena, however since we have already ventured into Microbial Biotechnology (Bio-fertilizer, Bio-fungicide & Bio-pesticide), we have decided to develop a state of the art R & D institution to develop cell as bioreactor, a recent trend in biotechnology to develop chemicals, pharmaceuticals & therapeutic molecules in-house in completely closed/controlled environment without any hazardous waste hence with green chemistry approach.

Development of In-house medicinal plants garden

Development of High-tech nursery for mass propagation

Development of Plant Tissue Culture for mother stock

Development of Cell line approach for the production of APIs

Development of nutritional & therapeutically important yet un-explored bio resources

The agrochemical industry has seen structural changes on the back of relative increase in purchasing power of the farmer largely and to a certain extent on account of enhanced farm dynamics. The cost benefit of usage of pesticides has improved with continual increase in MSPs and the changing food habits of the rising middle class. Higher labour cost has also given boost to agrochemical consumption in the country. As a result, agrochemical industry has witnessed sustained growth in the last decade, driven by volume growth as well as change in product mix followed by pricing growth. The Government of India, together with several private players continues to take incremental efforts to push higher penetration of agri-inputs in India. Within agrochemicals, fungicides and herbicides are expected to show healthy growth on the back of increased acreage under horticulture, rising horticulture produce prices and emergence of organised retail (largely used in fruits and vegetables).

Given the moderation in the environment overall, the outlook for your Companys agri-inputs business in FY 2025-26 looks cautiously optimistic and performance would reflect continued growth momentum although at a controlled pace. The key factors that would drive sustained growth include pattern and distribution of the upcoming annual monsoon rainfall together with upsides from products launched in the past few years. This growth would be further propelled with the introduction of more than 45 new products in 2025-26, which would have distinctive competitive advantage over the target molecules. In addition, your Company will strengthen and expand its reach into new underdeveloped markets and crop segments which will further improve prospects going forward. Institutional tie-ups with the Corporate, for supply of agrochemicals have also started yielding fruits and will contribute to growth.

Your Company considers people as its biggest assets and "Believing in People" is at the heart of its human resource strategy. Lot of efforts are put in talent management, strong performance management, learning and training initiatives in order to ensure that your Company consistently develops inspiring strong and credible leadership. Your Company believes that people perform to the best of their abilities if they feel a sense of ownership. Consequently, the Company has strengthened the working environment to make it inclusive, progressive and flexible and promoting an excellence-driven culture. The Company reinforced its vision, mission and values among employees. The Company fosters a performance-driven and merit-linked remunerative environment. It acknowledges the contributions of performers, preparing them for more challenging roles. The Company organised training programmers covering technical, behavioral, safety issues, code of conduct, product training and other needs.

The Company continued to recruit scientific, technical and managerial personnel (graduates and postgraduates) of experience in the field of agrochemical industry. A structured development programme, aligned to business needs, helped groom fresh hires into prospective leaders. As on March 31, 2025, the total employee strength stood at 50 and industrial relations remained cordial.