Rallis India Ltd. Overview
Company Headquarters: India
Founded: 1948
Workforce: ~ 1,716
Company Working:
Rallis India Ltd. engages in the manufacture and marketing of agricultural inputs primarily in India. The firm offers crop protection products, including insecticides, fungicides, and herbicides; seed treatment chemicals, and seeds, such as hybrid rice, maize, pearl millet, sunflower, vegetable, cotton, paddy, mustard, and wheat. It also provides household products, such as Termex, an insecticide for termite control, Sentry, a synthetic pyrethroid insecticide, and Hippo, a household insecticide for control of houseflies and cockroaches. In addition, the firm offers contract manufacturing services for crop protection chemicals, specialty chemicals, polymers, and intermediates, plant growth nutrients, and agri services to the farming community. It is a subsidiary of Tata Chemicals. Rallis business segments are further divided into six divisions: domestic crop protection, international business, contract manufacturing, seeds, plant growth nutrients, and agri services. The company through its domestic crop protection division offers crop protection products, seed treatment chemicals, and house hold products. Rallis produces 200 million tons of food grain. Rallis produces crop protection products includes insecticides, fungicides and herbicides. Rallis' international business division offers pesticides to over 70 countries. The company's international business division's product portfolio consists of herbicides, insecticides and fungicides. The key focus areas of this division include addressing regional registration requirements, product development, alliance partnership in the field of registration based sales and contract manufacturing. The company provides contract manufacturing services in partnership with companies such as agrochemicals, fine chemicals, specialty chemicals, polymers and pharmaceutical intermediates. Rallis through Metahelix, a seeds research company, offers hybrid rice, maize, pearl millet, sunflower, vegetable products. The company’s seed products include hybrid BT cotton, hybrid maize, hybrid paddy, hybrid pearl millet (Bajra), mustard, and wheat. The company through its plant growth nutrients division involved in providing crop nutrition products. Its products include gluco beta, ralligold, solubor, tata bahaar, tata uphaar, and tracel. Rallis’ agri services division offers GeoGreen, a soil conditioner. It is also involved in the manufacturing of hand sprayers. The company operates through two business segments: Agri Inputs, and Others. In FY2020, the Agri Inputs segment accounted for 98.8% of the company’s total revenue, and the remaining 1.2% was contributed by others. Rallis operates under three categories: Products, Services and Others. In FY2020, the Products category accounted for 99.4% of the company's total revenue, followed by Services with 0.02%, and Others with 0.6%. Geographically, the company categorizes its operations into seven geographical regions: India, Asia (other than India), North America, South America, Africa, Australia, and Europe. In FY2020, the India accounted for 69.9% of the company’s total revenue, followed by Asia (other than India) 16.1%, followed by North America 8%, followed by South America 4%, followed by Africa 1.3%, followed by Australia 0.03%, and the remaining 0.7% was contributed by Europe.
Strategy
The domestic business grew by 25% during the quarter despite a soft Rabi season, led by price hikes and volume growth. The company plans on focusing on underserved markets like Madhya Pradesh, Uttar Pradesh, and Rajasthan through new product launches. During the quarter, the herbicide segment grew by 20%, while the insecticide and fungicide segments grew by 5% each. For its export business, the company is focusing on increasing its formulation share. From the current revenue contribution of 35%, the company plans to increase its revenue contribution of the international business to 40% by FY25E.
