Nagarjuna Agrichem to invest Rs 250 crore for capacity expansion
To launch five new products in 2010
Tweet-- Nagarjuna Agrichem Limited (NACL), one of India's leading crop protection companies, plans to expand its production capacity by 9000 tonnes by 2011 at a total cost of Rs 250 crore.
NACL's plans to expand capacity include setting up a greenfield facility at a cost of about Rs 205 crore in the Special Economic Zone near Vishakapatnam, within the Petroleum, Chemicals and Petrochemical Investment Region. The facility to be commissioned in 2011 will focus on Technicals (Active Ingredients).
NACL recently concluded its de-bottlenecking initiatives at Srikakulam and Ethakota facilites at a total cost of Rs 40 crores that enhanced its capacity.
Announcing the expansion plans, Ashok Muni, Director and Chief Operating Officer, NACL said, "In line with our Vision 2015, we have already started expanding our capacity through de-bottlenecking and re-organising production at our current facilities. The new facility is a key addition in our plans to emerge as a leading player in the global contract manufacturing space. The new facility will add 7000 tonnes per annum and can be further up-scaled in modules as we continue our growth in domestic and global markets."
NACL's Vision 2015 includes rapid growth in domestic and global markets by launching new branded products and entering untapped domestic and global markets.
In the next two years, the company plans to launch five new branded products to strengthen its portfolio in pesticides and for crops like Paddy, Wheat, Tea, etc. It also plans to enhance its distribution in hitherto lesser tapped markets of Bihar, Madhya Pradesh and North East by setting up around 500 new dealers in these states.
"We hope to further strengthen our position as a global player by launching our branded products in US, Far East and select south American markets through aggressive organic and inorganic growth strategies", Mr Muni added.
In the export markets, NACL has enjoyed the fastest growth rate in the last five years among all Indian companies with a CAGR of 14% per cent from 2004-2009. NACL exports grew from Rs.54 crores to Rs 293 crore.
NACL recorded annual revenues of Rs 607 crore for 2008-2009 with net profit of Rs.49 crore and H1 revenues of Rs 339 crore for 2009-2010 and a net profit of Rs 29 crore for the same period.