• The Company had entered into a Joint Venture with Shanghai Baijin Group, China for the manufacture of Carbon–di– Sulphide (CS2) as a 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. It has also optimized the cost of inputs. The Joint Venture has been successfully catering to the entire requirement of Indofil and is also actively catering to other customers in market. 
• During the year 2018-19, the Joint Venture has generated Profits before Tax of ₹8.3 crores against ₹26 crores during the Previous Year despite an overall increase in the revenues. The reduction in margins is mainly on account of increase in the cost of inputs.
• During the year 2018-19, the Company has also tied up with Reagens, Italy to enter into a Joint Venture namely, Indo Reagens Polymer Additives Pvt. Ltd. for manufacture and distribution of Stabilizers.
• This JV would address the portfolio gaps in our Plastic vertical and pave way for strong future growth in this business.
• Besides, Indofil has also tied with Grace Breeding Technologies Limited, an Israeli research firm engaged in the development of Nitrogen Fixation Bacteria Technology. Grace Breeding Technologies Limited is currently working on a patented technology which would eliminate the need to artificially induce Nitrogen in crops. The Company has picked up a 15% stake in Grace Breeding which would give it the first right of refusal for the commercial exploitation of this technology with a possibility of setting up a JV in India for the manufacturing of the products.

Agriculture:

• The Indian agriculture sector remains a key constituent of the economy. The sector has been undergoing through some legacy challenges and the government is rolling out several initiatives to address those challenges and improve farm productivity, to achieve its target of doubling farmers’ income by 2022.
• In addition to the sector-specific schemes aimed at overcoming the ongoing challenges, the Government has significantly increased its budgetary allocation towards comprehensive rural welfare schemes, which is likely to lead to increased investments in India’s agricultural infrastructure.
• The above developments in agriculture sector shall directly bear a positive impact on agrochemicals industry.

Agrochemicals:

• India offers significant opportunity due to its vast population and high dependence on agriculture. The Indian agrochemicals market offers high growth potential for domestic consumption as well as exports.
• With the government’s focus on increasing farm productivity, the business environment is extremely favorable for agrochemicals companies to set up operations in India and bring, new safer chemicals to the domestic market.

Specialty Chemicals:

• The chemicals sector, which is knowledge-based andcapital intensive, provides important building blocks for downstream industries such as textiles, papers, paints, soaps, detergents, and pharmaceuticals, among others. Competitive manufacturing costs, availability of skilled manpower, stringent intellectual property protection laws and favorable government policies will be the major growth drivers for the Indian Specialty Chemicals industry.
• The production cut in China due to the implementation of stricter environmental norms offer significant opportunities for Indian companies to scale up and increase their share in the global market in chemical industry.

• Robust distribution network
• Strong and diversified product portfolio
• Experienced and professional management
• Increased international presence
• Modernised production facilities
• Strong applied R&D capabilities
• Total Revenue increasing at a CAGR of 9.79% from 2016 to 2019.
• Total Assets increasing at a CAGR of 15.88% from 2016 to 2019. 
• The Company has a Debt-Equity Ratio of 0.61 and a Current Ratio of 1.41 making it fairly solvent. 

• Time consuming product registration process.
  
• Low level of process awareness among farmers in respect of availability and use of advanced agrochemical products.
• The operating profit margin has dropped from 21.40% in 2017 to 17.07% in 2019.
• Return on Equity has declined to 9.27%.

• Agriculture reforms targeted at doubling farmer income over next five years
• Government’s support to improve consumption of agri inputs for improving crop yields
• Technology dissemination in rural India through JAM (Jan Dhan, Aadhar enablement and Mobile penetration) to improve farmer’s connectivity and improve marketing opportunities
• Good growth in used industries

• Unpredictable weather conditions
• Competition from national and international companies
• Lower commodity prices