Godrej Agrovet launches Nissan Chemical's Gracia insecticide in India

BY A STAFF REPORTER:   Godrej Agrovet Ltd launched insecticide Gracia in India. Gracia is a patented chemistry developed by Japan-based Nissan Chemical Corporation. Godrej Agrovet will import, rebrand and sell Gracia in India with a long-term view to replace generic insecticides.

According to Balram Yadav, managing director, Godrej Agrovet, Gracia will be margin accretive at segment and group level. The company aims to launch a new product every one or two years as it seeks to exit generic insecticides business completely, he added.

"It is a solution that exhibits excellent control of chewing and sucking pests such as larva, caterpillars and thrips in farms producing pulses, hot pepper, cole crops, tomatoes, brinjal and okra," the company said in a statement.

Godrej Agrovet is banking on the wide uptake of Gracia as it is cost effective at 1,800 rupees per acre for one application, lower than other such solutions available in the market.

The crop protection business of Godrej Agrovet took a hit in 2021-22 (Apr-Mar) due to erratic monsoon in many parts of the country.

In the nine months ended December, revenue from Godrej Agrovet's crop protection business fell 10% on year to 4.4 bln rupees and net profit was down 40% on year to 800 mln rupees. The Mumbai-based company's operating margin plummeted to 18.2% against 27.2% a year ago.

According to Yadav, margins are likely to improve as demand for new insecticide gathers pace. The company is also banking on a property of Gracia that reduces applications needed as compared with generic insecticides.

In the nine months ended December, the company's consolidated profit fell 1.7% to 2.8 bln rupees year-on-year, while revenue rose 29% on year to 62.5 bln rupees.

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Source : Eureka

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