Hyderabad|India|June'2012: Nagarjuna Agrichem Limited (NACL), one of India's leading crop protection companies and an integral part of the Rs.20,000 crores Nagarjuna Group, unveiled its latest state of the art R&D Centre at Shadnagar, Hyderabad (AP). This facility which is intended to further assist the company in leveraging the substantial opportunities in the crop protection business was formaly inaugurated by Mr. K.S. Raju, Chairman, Nagarjuna Group. A part of the R&D centre will be used for setting up GLP (Good Laboratory Practices) Lab facilities.

The state-of-the-art corporate R&D centre and GLP Lab at Shadnagar has four laboratories and will have world - class equipment such as Nuclear Magnetic Resonance Spectrometer, Gas Chromatograph – Mass Spectrometer (GC-MS), Liquid Chromatograph – Mass spectrometer (LC-MS), etc. The existing R&D facility at Srikakulam will also be integrated with this current facility to create a centralised R&D centre. The main objectives of the R&D centre are to develop cost effective processes for the manufacture of Active Ingredients (AI) and the Intermediates for Herbicides, Insecticides and Fungicides and to develop new formulations of pesticides. A portion of the R&D Centre will be carved out as an OECD accredited GLP Lab.

Speaking at the occasion of the inauguration, Mr. K.S. Raju, Chairman, Nagarjuna Group, said, “The Indian economy and polity is grappling today with the challenges of growth and the task of managing this well. With the growing population, limited land and water there is ever increasing need to improve the productivity in Agriculture. In this context the role of crop protection assumes very significant dimensions indeed. The Indian agrochemicals business is at a very exciting growth stage. We are not only witnessing a surge in the domestic demand but are also emerging as a desirable and cost-effective alternative in contract manufacturing on the world stage. Our new R&D plant here at Shadnagar will help us and the Group is serving the growing needs of the market and bringing India to the fore on the world stage in this market. ”

The Centre consists of 25 scientists and chemists and is headed by Dr. B Saha, Chief R&D Officer. Dr Saha is a very senior scientist having International recognition. He was a receipient of the Homi Bhabha Gold Medal by Government of India in 2007. The R&D Centre will actively carry out the relevant research to identify cost efficient processes of the various existing generic molecules and also on some of the products that are coming out of patent in next few years. Research will also be conducted on formulations. The GLP Lab will test for physical and chemical properties of any pesticide, and is largely meant for captive use.

NACL has significant growth plans for the Domestic and Exports markets. The opportunities for growth in the Domestic Market will be exploited by bringing in best of the global products to Indian farmer for the first time through exclusive marketing tie-ups with Japanese, European companies. NACL has already signed agreements with a few companies in Japan. The company is also in advanced stage of negotiation with European companies. These products are likely to add to the bottom line starting FY13. NACL has also tied up with leading pesticide companies to launch 4 new products this season. These products will expand the company’s portfolio in fast growing Herbicide and Fungicide sectors.

NACL has initiated steps to further strengthen its pan India distribution network. The company has one of the largest direct all India agrochemical dealer networks in the country with a base of 9,000 active direct channel partners and is planning to further strengthen this by adding 2,500 more in the next two years.

NACL’s growth in Exports is mainly being driven by leveraging on its ability to manufacture high quality Active Ingredients (AIs) at Srikakulam and fully utilizing its capacity. With the support of the R&D Centre it will be able to offer more cost effective AIs. The growth is largely expected to take place by leveraging on the relationships with the existing players. NACL has developed cost efficient processes in 2 AIs / Intermediates to be manufactured for an existing leading MNC in the later part of the current year. Leading International players are clients of NACL.

According to Mr. V Vijay Shankar, MD, NACL, “We have always been focused on creating the best value for our customers and our shareholders. The Company has started improving after a difficult phase with the revenues of 11-12 at Rs 650 crores having grown by 13% over the previous year, mainly due to stabilisation of the Srikakulam plant and growth in Exports. The profits are also improving. A series of initiatives have been taken to improve profitability the results of which are expected to be felt from this year onwards. The company intends to fully utilize assets for both contract manufacturing and domestic requirements.. At the same time the company has worked out a road map for the growth in exports and a strong focus on the domestic market. The domestic crop protection market is currently estimated at Rs 10,000 crores and is growing at 8 to 10% annually. We aim to be one of the top 3 Indian players in the domestic market.

It is also with a sense of pride that I announce that NACL is one of the few pesticide companies in India to have commissioned a ZLD (Zero Liquid Effluent Discharge) facility in our plant at Srikakulam with an investment of Rs 30 crores. We have also invested in debottlenecking and improving utilities. Our new R&D centre here at Shadnagar is another step in our efforts to match the best practices in R&D and leverage on the opportunities available globally.”