Agrochemical round-up: Prabhudas Lilladher

United Phosphorus (UPL) has launched ‘Ulala’, a systemic insecticide for controlling the sucking pests for all crops. UPL has collaborated with a Japanese company, Ishihara Sangyo Kaisha (ISK), for this insecticide. Company has performed the field trial on Cotton and Paddy crop effectively. Ulala will be available in the packs of 30gm, 60gm and 150gm. In the recent post result conference call, management has indicated that UPL has three-year exclusivity in this product in India. 

PI Industries has launched a product called ‘Osheen’, an insecticide for all crops, primarily for Paddy and Cotton. Osheen carries a price tag of Rs8K-9K/Kg and is likely to compete with Rallis India’s ‘Applaud’ and Bayer Crop science’s ‘Confidor’. Our channel check suggests that farmer response is quite positive for Osheen.

Indofil, a K.K. Modi group flagship company, launched the highly effective insecticide ‘Token’ for the management of Rice Brown Plant hopper (BHP). Token has been made with collaboration with Mitsui Chemicals Agro Inc., Japan. Farmer has to pay Rs11K/Kg of Token and it is likely to compete with Rallis India’s ‘Applaud’.

IIL has launched three products Nuvan, Hakama and Pulsor recently. Nuvan is an insecticide and can be used to control pests in most crops including paddy, pulses and sugarcane. Nuvan is priced at Rs0.65K/litre. IIL has tied up with US-based American Vanguard Corporation (AMVAC) for manufacturing and marketing the product in India. Hakama is a herbicide used in crops like soyabean, groundnut and cotton. Hakama is priced at Rs1.6K/litre and IIL has tied up with Nissan Chemicals, Japan for Hakama. Pulsor is a systemic preventive and curative fungicide for paddy. IIL has tied up with Nissan Chemicals Industries, Japan for Pulsor and it will be exclusively marketed by IIL in India.

We need to adopt a wait-and-watch approach to the new products launched as it is too early to gauge the success of these products. On the agrochemical space, industry has witnessed a tough time in H2FY12. However, hike in MSP, uptick in agriculture commodity prices and better pre-placement (higher by 5-10% YoY) for Kharif season is a positive indicator in the near term. Industry has taken a price hike by 5-10% to pass on higher cost led by rupee depreciation. We remain cautious in the short term on the agrochemical space on account of uncertainty in monsoon (could lead to lower acreage and pest attack). However, we maintain our positive stance on the space from a long term perspective.

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.