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Debt free, cash rich, fastest growing globally operating chemical manufacturer

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Current Market price on the date of publishing this report: 286 Rs


Incorporated in 1984, IPL has been at the forefront of the Agro-Chemicals and Active Pharma Ingredients (API) manufacturing industries. The company has established itself as a pioneer in the production of both Technicals and Formulations.

IPL’s primary business in Agro-Chemicals is the manufacture, marketing, and distribution of insecticides, fungicides, herbicides, and a variety of other agrochemical products.

The company’s manufacturing capacity is strategically distributed across two important areas in Uttar Pradesh, demonstrating its dedication to satisfying the agrochemical and pharmaceutical sectors’ demands.

The company has a Technicals production capacity of 2,100 metric tonnes per year (MTPA) on Dewa Road in Lucknow. Furthermore, it has a formidable Formulations capacity of 3,000 MTPA, demonstrating its ability to offer a diverse range of high-quality goods.

The corporation greatly increases its production capacity in Sandila, Hardoi. Technicals’ manufacturing capacity here is exceptional at 21,900 MTPA, showing the company’s industry leadership. In addition, the Formulations capacity has been set at 3,500 MTPA, increasing the company’s ability to meet a wide range of market demands.

These capabilities not only establish the company as a key player in both agrochemicals and medicines, but also position it to efficiently fulfil the company’s ever-increasing demand for its goods.

Notably, IPL is the isolated Indian manufacturer and is among the top five manufacturers in the world for various Technicals, including Fungicides and Herbicides. This accomplishment demonstrates the company’s dedication to quality and innovation.

IPL’s diverse product portfolio includes a variety of specialist and high-quality items, as well as value-added services. This one-of-a-kind combination establishes the organisation as a key supplier to markets throughout the world, including the United States, Australia, Europe, Africa, South America, and Asia.

The major focus of the company is on in-house Research and Development (R&D) initiatives focused at improving processes and technologies. Furthermore, IPL specialises in the production and distribution of a diverse range of agrochemicals and APIs, making it a well-rounded participant in these critical areas.

IPL has established itself as a renowned maker of Captan, Folpet, and Thiocarbamate Herbicide, thoroughly establishing itself as a market leader in both the home and foreign markets. As of March 31, 2023, the company’s installed capacity for Technicals had increased dramatically, reaching an outstanding 24,000 MT, up from 21,500 MT as of March 31, 2022.

IPL has effectively entered markets in over 29 countries across the world through its export operations. This worldwide reach demonstrates the company’s dedication to serve a diversified and large consumer base.

Subsidiary: Shalvis Specialities Limited 

Shalvis Specialities Limited (SSL) has obtained the required Environmental Clearance (EC) for its ongoing project, which is presently under development. Furthermore, the company has set up Rs. 60 crores for this project in Hamirpur.

SSL is licenced to operate in a variety of industries, including the production of Agrochemicals, Intermediates, API, and Fine Chemicals for export and local consumption. As stated in their memorandum of association, their scope includes the manufacturing, formulation, sale, and trading of various agricultural chemicals and pesticides.

The Hamirpur project is situated on a sprawling plot of approximately 25 acres. Plans for this project are geared towards commencing commercial production in the fourth quarter of the fiscal year 2024.

Business Products

The company boasts a diversified product portfolio categorized into two main segments:

  • Technicals & API (Active Pharma Ingredients) : This category is further subdivided into:
    • Herbicides
    • Fungicides
    • Insecticides
    • Intermediates
  • Formulations

This comprehensive product range underscores the company’s commitment to serving various industries and meeting a wide spectrum of customer needs.


The company specialises at producing generic agrochemical Technicals, which include a wide range of vital items like as fungicides, insecticides, and herbicides. The firm is highly devoted to promoting modern agriculture while prioritising sustainable crop production practises. 

IPL is happy to provide Active Pharmaceutical Ingredients (APIs) as part of its wide range. These key ingredients constitute the backbone of the pharmaceutical business, playing critical roles in the development of diverse pharmaceutical products. APIs from IPL are critical in achieving the required therapeutic effects in final pharmaceutical formulations. Their importance in the creation of drugs meant to successfully address dermatological conditions, such as anti-fungal and anti-scabies therapies, is important.

Company also manufacture a significant amount of thiocarbamate herbicides, which are utilised on field crops like wheat and rice. 

Some of the Key products include: 

– Cymoxanil

  • Type: Fungicide
  • Use: Used to control downy mildews in grapes, potatoes, vegetables, and various other crops.

– **Prosulfocarb**

  – Type: Herbicide

  – Use: Utilized in field crops, such as wheat and potatoes.

– **Pretilachlor**

  – Type: Herbicide

  – Use: Widely employed for protecting rice crops.

– **Captan**

  – Type: Fungicide

  – Use: Used to protect fruits, vegetables, and ornamental plants.

– **Folpet**

  – Type: Fungicide

  – Use: Employed to control fungal growth in vineyards, cereals, and crops. It also serves as a biocide in paints.

– **Diafenthiuron**

  – Type: Insecticide

  – Use: Used specifically on cotton plants.

– **Thiamethoxam**

  – Type: Insecticide

  – Use: A versatile systemic insecticide with numerous applications in various conditions.

– **Ziram**

  – Type: Fungicide

  – Use: Employed for safeguarding apples, almonds, peaches, pears, and other crops.

– **Pyriproxyfen**

  – Type: Insecticide

  – Use: Used in field crops.

– **Etridiazole**

  – Type: Fungicide

  – Use: Greenhouse.

– **PEDA**

  – Type: Intermediate

  – Use: Used for Pretilachlor.


The company’s R&D team has successfully produced unique formulas with a committed focus on quality and an unrelenting devotion to research. These formulations prioritise environmental sustainability and appropriate agricultural practises in addition to increasing crop yields.

The company’s comprehensive product line includes insecticides and fungicides, as well as herbicides and plant growth regulators, all of which are of high quality. These high-quality solutions are developed to satisfy the individual demands of diverse crops, allowing farmers to efficiently handle pest and disease concerns.

Some of the key products and their application 

Hebicide: Grip, Pendizet, Trisol, Clogold, Midash, Safer, Elimminator, Penda, Aatish 

Fungicides : Dollar, Vardhan, Vecto, Trim, Sodhit, Captax-50, Natraj, Sanjeevani, Talwar 

Insecticides : Carbo, Amida, Frem, Byprten, Immidiator, Tridev, Difen, Frame, Soldier, Crotax 

Others : Star, Talvar, Contanol, Guru, Shakti, Sparkle, Chakra, Namaskar 

Capex and New Product Launches 

The company made considerable achievements in fiscal year 2023, releasing a total of 14 new items. This outstanding lineup included ten formulas, three technicals, and a critical intermediate. Furthermore, the company increased its installed capacity by 2,500 metric tonnes, bringing it up to an amazing yearly capacity of 24,000 metric tonnes.

The company’s subsidiary project at the Hamirpur facility is proceeding as planned as part of its growth plans. The first facility is expected to be operational by the fourth quarter of fiscal year 2024, marking an important milestone in the company’s growth trajectory.

– Installed Technicals Capacity: Due to the addition of 200 MT capacity during Q1 FY24, the company’s installed capacity for Technicals has climbed to 24,200 MT.

– Planned Capex: IPL has set aside Rs. 50 crores for Capex in FY24, whereas Shalvis Specialities Limited (WOS) has set aside Rs. 60 crores for planned investments.

– Shalvis Hamirpur Project: The Ministry of Environment and Forests (MOEF) has granted the business Environmental Clearance (EC) for its Shalvis Hamirpur Project. Operations are planned to begin in the fourth quarter of fiscal year 24.

– Efforts at Diversification: The firm is broadening its portfolio by entering the stabiliser and additive markets.


For the Year Ended March 23

In FY23, the company achieved significant financial milestones:

  • Total Revenue amounted to INR 898 crores, marking a remarkable 23% increase compared to FY22.
  • In Q4 FY23, the company registered an EBITDA of INR 45 crores, boasting an EBITDA margin of 22.4%. 
  • For the entire fiscal year, EBITDA reached INR 210 crores, maintaining a robust EBITDA margin of 23.4%.

The revenue breakdown for FY23 showcased a strong performance:

  • Exports generated INR 480 crores in revenue, signifying substantial growth from INR 330 crores in FY22.
  • Domestic revenue stood at INR 402 crores, compared to INR 379 crores in FY22.
  • The company’s revenue streams were further delineated into INR 704 crores from Technicals and INR 178 crores from Formulations.

Notably, the company’s international business segment exhibited impressive performance, with export sales growing by an exceptional 45% during the year.

  • The company recorded a net profit of INR 144 crores, which represents a modest 9% decrease compared to the previous year’s performance.
  • The company achieved a robust 27% compound growth rate in profits over 3 Year period and 35% compound growth rate in profits over 5 Year period.
  • The compounded sales growth of 3 and 5 year period stood at 23% and 29% respectively.

For Q1 FY 24

  • In June 2023, the company reported net sales amounting to Rs. 201.44 crore, reflecting a 7.79% decrease compared to the Rs. 218.46 crore recorded in June 2022.
  • For the same quarter in June 2023, the net profit stood at Rs. 15.45 crore, marking a significant decline of 62.4% when compared to the Rs. 41.10 crore recorded in June 2022.
  • The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for June 2023 amounted to Rs. 26.02 crore, demonstrating a decrease of 55.89% from the Rs. 58.99 crore recorded in June 2022.
  • Notably, India Pesticide’s Earnings Per Share (EPS) saw a decline, falling from Rs. 3.56 in June 2022 to Rs. 1.35 in June 2023.
  • Cash and cash equivalent at the end of Q1 was Rs. 136 crores 

Management’s comments

In the upcoming period, the company’s management anticipates a 10% growth in the top-line, considering the current pricing landscape as of August.. They are dedicated to sustaining EBITDA margins of 20% or above and are continually looking for ways to enhance, notably through the judicious selection of compounds.

The business intends to launch four new items this year, three of which are technical and one of which is intermediate. There are also plans to develop over ten combination formulations for B2C sales. The Hamirpur factory is currently under development, with the first product launch scheduled for Q4 FY24.

Previously, management had set lofty goals of 20% to 25% annual sales growth. However, as raw material and product prices have been rationalised, they are now projecting a more prudent 15% increase in FY25. Looking forward five years, management has a long-term vision of 20% growth. This optimism stems from their belief in the effective implementation of growth plans, which are projected to contribute significantly to the company’s overall income.


India Pesticides, a company with a 39-year legacy, stands as a testament to innovation, growth, and financial prudence. It has emerged as one of India’s fastest-growing global chemical producers, operating debt-free and with a healthy cash reserve. India Pesticides, which operates in a variety of industries ranging from agrochemicals to medicines, exhibits its dedication to excellence via a diversified product range and steadfast commitment to quality.

India Pesticides is positioned for ongoing success, thanks to recent expansions in manufacturing capacity, a strong focus on R&D, and deliberate diversification into new products and markets. Its capacity for innovation, resilience in the face of market fluctuations, and dedication to sustainability have propelled it to the forefront of the market, both nationally and globally.

India Pesticides’ incredible path of expansion and flexibility makes it worth investigating in the ever-changing environment of the chemical manufacturing sector. Its commitment to responsible practises, continuous revenue growth, and strong long-term prospects highlight its importance as a compelling industry leader primed for success.