Kiran Kumar Atukuri, Promoter and Managing Director, Nova Agritech Limited

20 Jan 2024 , 08:08 AM

Run us through the business model of the company.

Established in 2007, Nova Agritech is an agri-input company engaged in the manufacturing, marketing, and distribution of a diverse range of products, including soil health management, crop nutrition, and crop protection categories. We focus on technology-based, farmer-driven solutions, have strong research and development (R&D) capabilities and are committed to delivering ecologically sustainable and nutritionally balanced products.

We have 720 product registrations, with an additional pipeline of 36 products. Our extensive dealer network spans across 16 states, spanning about 11,722 dealers. We have a farmer outreach program called NKSK (Nova Kisan Seva Kendra). We are into new technologies such as the NKSK application for farmer registration. We are working on drone technology and soil testing device Nova BhuParikshak.

We also have MOU tie-ups with various universities for process know-how, innovation, R&D, knowledge, and technical transfer. Our in-house R&D facility is equipped with both laboratory and land resources for product testing.

How do you stand out in a competitive industry? What are the USPs of the company?

The company's strengths lie in its comprehensive approach to agri-solutions, covering soil health management, crop nutrition, and crop protection products. The diverse product range includes various sub-categories under each segment. For instance, in soil health management, there are sub segments like organic fertilizer, biofertilizer, and soil conditioner.

Under crop nutrition, the company provides 100% water-soluble micronutrient formulations, beneficial element fertilizers, dried nitrogen fertilizers, and dried potassium fertilizers. In integrated pest management, offerings include chromatic traps, sticky pads, among others. We recent received approvals for biostimulants and biopesticides. We are actively involved in new technologies such as soil testing devices and drones.

We have a robust network of 11,722 dealers across 16 states. Our farmer outreach program, NKSK, operates on a three-tier system, involving coordinators who are all trained agri graduates. Under them there are Kisan Mitras and Kisan Sevaks who work at the field-level. This unique distribution model focuses on providing full solutions to farmers, extending beyond our product offerings.

The management team is a key asset, with a strong blend of executive and non-executive directors. The board comprises individuals with extensive experience in agriculture, technical manufacturing, banking, and academia. The Key Personnel team has demonstrated strong execution capabilities over the years. Our dedication to R&D and a visionary approach has positioned our company as a leading player in the agri-input sector.

Run us through the company’s strategies aimed at driving future growth.

The company is strategically well positioned in various segments to drive future growth. We see immense potential in the market for our products, as industry reports consistently highlight their effectiveness. Specifically, we operate in segments such as pesticides, where the market has evolved significantly. For instance, in 2007, the pesticide market was valued at $61 billion, and it is projected to reach $79 billion in the next four years.

Diving deeper into our product segments, we cover a range of areas, including 100% water-solubles, micronutrient formulations, beneficial element fertilizers, liquid nitrogen fertilizers, and straight potashic fertilizers. Each of these areas presents significant opportunities for growth, with some being in the early stages of development and others already well-established in the market. In the case of 100% water-solubles, we have a sub-category that includes specialty nutrients, showing promising growth.

Although our current market share may be relatively modest, considering the vast potential and growth factors in the industry, we are optimistic about our trajectory. We are committed to expanding our presence and leveraging these growth opportunities to foster our overall development.

What is your company's strategy on ESG?

We foresaw the need for ecologically sustainable and nutritionally-balanced products quite some time ago, and we have been actively working towards it. Recognizing the depletion of soil health due to the excessive use of chemical fertilizers and pesticides, we are committed to addressing this issue and are gaining government support. In the realm of soil management, our focus extends to organic fertilizers, bio-fertilizers, and soil conditioners, all integral components of an ecosystem that support sustainable agriculture practices.

Recently, we obtained registrations for bio-pesticides and bio-fertilizers. Embracing integrated pest management practices not only streamlines the approval process but also aligns with our commitment to creating a safe environment. Our strategies emphasize the importance of the right usage of our products, preventing overuse that could lead to soil or environmental depletion.

Our NKSK initiative underlines our commitment to educating farmers. Through this initiative, we provide information on products, usage, technologies, and methodologies, offering farmers solutions that contribute to a healthier environment.

What are your expectations from the upcoming budget?

In the agricultural sector, there is heavy reliance on subsidies. The upcoming challenges, particularly in managing debt, often lead individuals to seek support through subsidies. Last year alone, the sector utilized subsidies amounting to nearly Rs. 2,25,000 Crore, reflecting the significant role subsidies play in the agricultural landscape.

At present, our focus is not on products falling under subsidized categories. Instead, we are dedicated to developing solutions that empower farmers with alternatives, offering better outcomes than traditional subsidized fertilizers. For instance, our emphasis on liquid nitrogen fertilizer aims to reduce reliance on other nitrogen fertilizers that are currently subsidized.

While recognizing the importance of government support and other products, our approach is more grassroots-oriented. We prioritize educating farmers about nutrients and providing them with solutions that can enhance their agricultural practices. This empowers farmers to move beyond dependency on government subsidies and create a more advantageous situation for themselves, ultimately leading to higher returns.