The global agrochemicals market share for FY 2020 was valued at $225 billion. Growing at a CAGR of 2.9 percent from 2021 to 2030, the agrochemical industry is estimated to reach $315.3 billion by FY 2030. About 27.2 percent of the global revenue in 2020 was generated by the Asia Pacific. The majority of that contribution was made by India, China, and Japan. Furthermore, India ranks fourth in agrochemical consumption with a market value of $4.5 billion, estimated to be $8.1 billion by 2025. The Indian agrochemical industry contributes 7.5 percent to the country's GDP. The export market from India is estimated to grow at a rate of 8.6 percent and reach $4.2 billion in the coming years. The Indian agrochemical industry represents a substantial opportunity for the future.
In an effort to boost India’s GDP in the agrochemical sector, Kothari Industrial Corporation is one such firm that has thoroughly explored the current landscape of the agrochemical industry. Founded in 1917 by ChandulalMotilal Kothari, the firm has spent years mitigating the risks involved and making its products safer for both people and the planet. KICL manufactures quality products that are tailor-made to meet the specific needs of the Indian farming community. KICL aims to constantly innovate to provide its customers with the best possible solutions. "The fertilizer sector is growing, and requirements are increasing with the growing population. The demand is outstripping supply, and we can better serve the farming community by supplying quality products at the appropriate times. The growth prospects are great, and the firm can grow exponentially”, shares Dr. J. Rafiq Ahmed, Managing Director, Kothari Industrial Corporation Limited.
Mitigating Through Challenges
The major stumbling block for players in this segment is India’s shrinking agricultural holdings due to the ever-increasing population and infrastructural projects. Moreover, because of a lack of education, Indian farmers have an insufficient understanding of precision farming and judicious agrochemical use, resulting in substantial losses. These coupled with the use of unsuitable dosage and inappropriate application frequency further add to this problem. The agrochemical market in India has a good share of non-genuine products, such as counterfeits and spurious products.
The firm follows the concept of 'Six Sigma', which is a set of tools and techniques to improve quality. Each KICL product goes through several rigorous quality checks to ensure product quality. The raw materials are strictly examined in the lab for their quality and specifications, and the finished sample products are tested through specific SOPs. Even the end product has to go through some more random checks before it is finally dispatched. Kothari Industry’s team is a combination of highly educated individuals with extensive experience.
Exceptional Management
A wholesome concept of the firm has been dealing with quality, which has been an integral part of its management’s philosophy, right from the beginning. Extra measures are taken to control the deviation aspects from beginning to end. There are several specific manning points to perform quality assurance. The team is led by Karthikeyan, an accomplished former Marketing Director of a Public Sector Company. Amongst the team members are also some highly qualified IIT and IIM graduates with immense experience. Additionally, farmers receive formulations and application techniques that are site-specific from the firm’s agro experts. With an experience in related industries, the organization is developing a concrete roadmap to growth, keeping quality and services as the nucleus.
KICL has also teamed up with Coromandal Fertilizers Limited an SSP unit in Ennore that stretches over 56 acres, who are adept at state-of-the-art technology in the agrochemical field. This collaboration has led to the modernization of the fertilizer division plant boosting the production
rate with the consistency and quality of the products. With products reaching all over states - Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Telangana, and Pondicherry - the Kothari horse brand boasts a dominant presence among its customers for the last six decades. In addition, the firm has marketing set up all over south India and seven centers of fertilizer mixing units throughout Tamil Nadu. With a production capacity of 100 MT of bakery products per month, the firm’s food division unit at Ponneri, produces rusk as its mainstay and the famous Pattukottaimess at various locations in Tamil Nadu, have thriving business.
KICL emphasizes on spreading awareness amongst the farmers, executed by a network of 20,000 dealers who make it possible for the company to communicate with farmers in the most remote areas. The farmers are educated about new-age precision farming, the right amount of dosage, and applications. This massive network of dealers also enables the firm to ensure timely delivery of agro-inputs to the farming community through its delivery system.
A Robust Roadmap Ahead
Despite being the market leader in themixer fertilizer sector, KICL is also a big player in the SSP sector. KICL is currently working on setting up an organic and bio-pesticide unit in Assam. With its drone division, the firm plans to implement precision farming techniques in the application of agro-inputs
throughout the country, which will benefit farmers. The firm has also formed a strategic alliance with the Dredging Corporation of India to supply sand for the construction of projects for NHAI. Furthermore, KICL emerging on project to establish a giant fertilizer factory in Qatar to produce 13 lakh MT of DAP every year. Besides this, KICL plans to investaround Rs. 1,000 crores in a joint venture with Everan, a Thailand-based footwear firm.
Rafiq took over the firm under very demanding circumstances, but with grit and business acumen, the Managing Director brought several changes and reforms that lifted the firm out of the abyss. His leadership has resulted in the company diversifying further into Airline Cargo Clearing, Food division, Health division, Minerals and Metals division, Drones, Geo-Spatial division, and Digital division. His untiring efforts have resulted in the company getting directed on a growth path and aiming to become a professional, growth, and service-oriented firm. Rafiq has also been honored with the position of Commissioner of ECOWAS (Economic Community of West African States), which will benefit the entire business community with the opportunity to have better social and economic relations with ECOWAS countries.
Giving Back to the Community
Besides leading the agrochemical industry in India, KICL is also involved, in many social service activities, such as providing quality education to children through Kothari Public School. KICL was also in service during the great flood tragedy in 2015 and provided safety apparatus and health services during the COVID pandemic. Keeping the motto 'Quality First Service First' in mind, the firm strives to provide a better future for the community.
'The other divisions, such as health, food, airline cargo clearing, drones, schools, and digital, are also experiencing growth. It is inevitable that these products and services, closely linked to the daily lives of the general public, will experience rapid growth in the future'. Rafiq further adds, “KICL is anticipating integrated, all-around growth, with service as its primary motto and corresponding growth opportunities in all lines of business. With agriculture as its foundation, the firm intends to move forward with allied products to achieve self-sufficiency in the country, thereby simultaneously growing itself”.
Kothari Drone Division
KICL has made a series of technological advancements with its drone division that have massively contributed to its expansion. The firm utilizes drone technology for the precision application of the desired agrochemicals in the interior fields of the farmers. The drone technology empowers KCIL to assist its clients with planning, designing, executing, monitoring, and managing their projects and resources across geographical spaces through GIS, Remote Sensing, and other related geospatial consultancy services.
The drone division specializes in forestry, wildlife, fisheries, wetlands, and geospatial services. A key characteristic of the firm's work is its attention to clients, its application of the latest technology and science, the production of results of the highest quality, and its commitment to the preservation of the environment.
While we observe that we have merit, we do not undermine others, we do not skim the market, and we always keep the prices affordable to the final customer
The firm’s services include Digital Photogrammetry, LiDAR, Mobile LiDAR, ORTHO, GIS, CAD, PLS CAD, BIM, Remote Sensing, Total Station/DGPS Survey, and UAV(DRONE Survey). With a competitive pricing structure and quality-assured services, KCIL ensures its customers are satisfied. The police, border security, and coastal and shipping sectors are some industries that KCIL's surveillance drones are tailor-made to serve. The firm also performs river mapping and river morphology analysis using underwater drones. Other services include mining, urban planning, property tax assessment, agricultural mapping, and forest mapping.
As part of the strategic initiative, the firm is starting a Remote Pilot Training Organization (RPTO) where drone pilots will be trained and certified. It also intends to conduct an agricultural drone spraying campaign in the state of Tamil Nadu and the union territory of Pondicherry. Through the support of 15 certified drone pilots and 180 geospatial engineers, KCIL's drone division has completed 65 projects and delivered over 100 satisfied clients with 98 percent higher productivity, increased efficiency, and damage prevention.
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