(i) Indofil Chemicals Limited was incorporated in 1962 as a subsidiary of Rohm and Haas Company, US. In 1985, the Company was merged with a listed company called Modipon Limited (MPL) and operated as a division of MPL till 2006. Thereafter, in 2007, Indofil was separated from MPL and transferred and vested with Indofil Organic Industries Limited (IOIL). Further, in 2010, IOIL was rechristened as Indofil Industries Limited (Indofil).
(ii) Indofil Industries Limited (Indofil) is a fully-integrated, multi-product chemical company, part of the K. K. Modi Group of Companies. Its expertise lies in the manufacturing, distribution, and marketing of agrochemicals and specialty chemicals.
(iii) Indofil provides high-quality crop care products to farmers and plays a significant role in helping them implement best practices in crop protection. Indofil has been able to augment growth with a focus on Research and Development (R&D) based product development and structured business, coupled with appropriate technologies and distribution networks.
(iv) Over the years, Indofil has provided best-in-class chemicals, both to the domestic and international markets. The products are accredited with international quality standards such as ISO 9001, OHSAS 18001, and ISO 14001. A consistent focus on innovation drives Indofil’s ambition to create an enterprise value of 2 billion dollars in the next three years.
Business Overview of FY18-19
1. R&D Investment of 45 Cr.
2. No. of Products Brand 100+
3. Geographical Presence of 96+ Countries.
4. No. of Employees 1080.
5. No. of Patents held = 8
A large portion of the Company’s future growth is expected to be driven by the Company’s International business. The Company already has a sales presence in more than 95+ countries through its distributors, commissioning agents, etc.
In the last 2-3 years, the Company has extensively invested in its key international markets like Europe, Brazil, and some AsiaPacific markets with an objective to:
a) Come closer to some of its key markets and customer.
b) Provide better client service to its customers.
c) Engaging in Value Added Distribution (VAD) activities by replicating its successful domestic distribution model in these countries.
d) Expanding its registration portfolio which requires local presence in these markets.
|Name of the Subsidiary Company||Country of Incorporation||Principal Activities||(%)|
|Indofil Industries (Netherlands) B.V.||The Netherlands||Marketing & Distribution
|Indofil Bangladesh Industries Pvt. Ltd.||Bangladesh||Marketing & Distribution
|Indofil Costa Rica S.A.||Costa Rica||Marketing & Distribution
|Indofil Industries DO Brasil Ltda||Brazil||Marketing & Distribution
|Indofil Philippines, Inc||Philippines||Marketing & Distribution
|Indofil Industries (International) B.V||The Netherlands||Holding Company||100%|
|Good Investment (India) Ltd. 100%||India||Investment||100%|
|Quick Investment (India) Ltd. India||India||Investment||100%|
Joint Venture Operations:
The Company had entered into a Joint Venture with Shanghai Baijin Group, China for the manufacture of Carbon – Di –Sulphide (CS2) as part of its backward integration strategy for key raw materials. The Joint Venture has ensured uninterrupted supply of this important raw material to Company, thus eliminating the need for import of CS2 and saving on foreign exchange outflow.
1. THANE, MAHARASHTRA, 20,000(TPA)
2. DAHEJ UNIT 1, GUJARAT, 31,000 (TPA)
3. SYNTHESIS PLANT, DAHEJ UNIT 2, GUJARAT,4,000(TPA)
1. EBDC PLANT, GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION (GIDC), DAHEJ, GUJARAT, 35,000(TPA).
2. INNOVATIVE SOLUTION PLANT, GIDC, DAHEJ, GUJARAT, 35,000(TPA)
The Company drives 50% of the revenues from the International market.
Highlights of FY19-20
1. Commenced re-packing unit in Bangladesh, first-of-itskind outside India.
2. Expanded capacity, revamped supply chain, streamlined internal processes and developed capabilities of Indofil
in line with customer aspirations.
3. Successfully shifted operations from Thane to Dahej without any hindrance from labour unions or local
4. During the year under review, the Company’s Consolidated Income was down from 2,264 crores to 2,236 crores, recording a decrease of 1%. The Consolidated Profit Before Tax for the year stood at 66 crores for the year under review, as against 229 crores for the previous year.
5. The year under review was filled with challenges across all business units. On domestic front, heavy rain and hailstorm impacted yield and reduced farm income considerably.
6. On the International business front, the Company successfully sustained business volumes despite challenging global AgroChemical market conditions, aggressive pricing and competition. The Company has four operational Subsidiaries in Europe, Brazil, Philippines and Bangladesh. In Bangladesh, a new re-packing unit has been set up, the Company’s first facility outside India.
Export Market Highlights
1. For Indofil, Europe remains the largest market outside India. The European operations have been represented by Indofil Industries(Netherlands) B.V. which has been in operations since 2015. France, Italy, Spain remains the key focus areas.
2. Brazil stands as the largest Agrochemical Market in the world. Business in Brazil is also going strong with a variety of projects being carried out in two-way and three-way mixtures of Indofil products, along with the products of major agrochemical companies in Brazil and other multinationals.
3. Indofil Philippines Inc. had commenced commercial operations from May-2018. Besides, sourcing products from Indofil India, Indofil Philippines Inc. has also procured its product portfolio through in-licensed products from other agrochemical companies as well.
4. Bangladesh has been one of the first export markets for Indofil and remains one of the most strategic markets due to its similarities with the Indian market. They have established their presence in Bangladesh mainly focusing on developing our market, product acceptance, registration development and customer service.
Domestic business in FY19-20
International Business FY19-20
|Total Available Shares:||500|
|Face Value:||₹ 10 Per Equity Share|
|Lot Size:||25 Shares|
|Current Unlisted Share Price:||₹ Best in Industry Per Equity Share|
|Retail Discount:||Bulk Deal (1%)|
|Profit Before Tax||62||102||153||211||280||242||228||65|
|Profit After Tax||62||90||145||163||218||213||185||78|
|EPS per Share Basic||44.02||44.75||69.68||76.48||102.12||100.19||88||37|