Indofil Industries Limited is uniquely involved in Specialty and Performance Chemicals (SPC) as well as in Agricultural Chemicals (ABD) business.Indofil has two multi-product, state-of-the-art, PLC-based (Programmable Logic Control) manufacturing facilities and multiple toll units across various locations in India. The facilities are ISO 9001 and ISO 14001 certified, and the processes are fully automated with advanced equipment and environmentally-compliant machines, ensuring faster throughput and safe working conditions.Indofil promotes ‘Crop Care Concept’ throughout the crop districts, where the relevant problems and needs of the crops are identified and appropriate solutions are suggested. Indofil Industries Limited is also a leading manufacturer and supplier of speciality performance chemicals used in industries such as Leather, Coating (architectural coatings and decorative paints), paints and textile.
The first plant of Indofil at Thane, commissioned in 1962, continues to possess one of the most modern production facilities in the industry. It is one of the world’s largest EBDC fungicide plants, producing popular fungicides, including Mancozeb, Zineb, Maneb, Cymoxanil, Tricyclazole, Myclobutanil, Metalaxyl, Dodine and Propergite. Indofil’s manufacturing facility is at Dahej SEZ (Special Economic Zone) and is ranked among the top 10 SEZs in the world by Financial Times, London.
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The company is lead by a highly skilled and successful sales team that believes in learning and interacting with the customers as partners – thus, developing the products and services around core issues, to meet the future needs.The vision of the organization is simple, Global Leader in Growth with Customer Success. Keeping its vision as simple as it can get, the mission of Indofil Industries Ltd.
is to achieve leadership in Growth Rate. We all leverage our efficient R & D, Registration, Manufacturing and Marketing Competencies through our Committed and proficient team.We will strive to make our customers successful by providing High Quality Products, services and solutions in domestic and global markets.
To expedite growth, we will use Collaborations, Acquisitions and Manufacturing Proximity to the market in the segments of Crop Care, Speciality and Performance chemicals.ManufacturingIndustryManufacturing industry generally refers to thoseindustries which deal with manufacturing and processing of items and lead toeither creation of new commodities or results in value addition. The endproduct can either serve as a finished goods for sale to customers or asintermediate goods to be used in further production processes.
It is thebiggest private sector employer in India. More than 30 million people are partof this sector through organized or unorganized ways. Indian Government hasaimed to achieve 25 per cent GDP share and create 100 million new jobs by 2022in the manufacturing industry. Make in India campaign launched back in 2014with the aim of attracting manufacturers and FDI has been so far a success withthe Government aiming to establish India as a global manufacturing hub.
Themanufacturing industry has diversified itself deeply into private sector withthe sector occupying 70 % of the total manufacturing industry. In India, there are six major manufacturing clusterswhich are home to some of the biggest industries of the manufacturing sector.They are – 1. Hyderabad2. Mangalore3.
Jamnagar4. NCR5. Pune6. Haldia7. Chennai GROWTH INMANUFACTURING SECTOR One should alsonote that the manufacturing sector has grown at a CAGR of 9.87 per cent betweenFY12 and FY17. On the other hand, WPI or Wholesale Price Index, in respect ofmanufacturing goods grow upto 4.4 per cent in 2016-17.
As per National IndustrialClassification, some of the industries which sums up to form manufacturingsector is food products, textiles, furniture, chemicals and chemical products,basic metals, electric equipment, motor vehicles, amongst others.If we take alook at GVA or Gross Value Added, the manufacturing sector at basic pricesbased on 2011-12 price series was US$ 350.4 billion in 2016-17. The contribution of manufacturing sector withrespect to GVA at 2011-12 prices was at 17.98 percent for 2016-17.
When itcomes to GDP, the contribution of manufacturing industry increased to 5355.42INR Billion in the third quarter of 2017 from 5131.39 INR Billion in secondquarter of 2017. Another important fact which cannot be ignored is that the GDPfrom Manufacturing in India averaged 4269.80 INR Billion from 2011 until2017, reaching an all time high of 5355.42 INR Billion in the third quarter of2017 and a record low of 3305.81 INR Billion in the fourth quarter of 2011.
If one analyses the gross capital formation persector industry, the manufacturing industry was second behind Real Estate atUS$ 102.96 billion in 2016-17 based on constant prices. Thus, the sector saw apositive growth at about 9.33 per cent in FY17.
The electronic goods industry is one of the fastestgrowing industries and is expected to be worth US$ 400 billion by 2020.Government is working on an export-oriented policy for Electronic products. Theidea behind this policy is to promote greater exports of electronics and drivelarger investments by setting up port-based electronic manufacturing clusters.Also, as of November 2017, Ministry of Electronics and Information Technologyis going to come up with a new electronics manufacturing policy and is inprocess of setting up industry-specific groups.India is expected to have spending worth US$ 40billion on defence purchases over the next 3-4 years.
The inclusion of When one considersthe most diversified industrial sectors, chemicals industry has an array ofmore than 70,000 commercial products covered under it. If the stats ofApril-June 2017 are considered, total Foreign Direct Investments (FDI) inchemicals (excluding fertilisers) stood at US$ 679 million whereas cumulativeFDI till June 2017 from April 2000 was US$ 13.972 billion. While being thesixth largest producer of chemicals globally, India is the third largestproducer in Asia in terms of output. The country ranks third globally in theproduction of agro chemicals and has an effective contribution of around 16 percent to the global dyestuff and dye intermediates production. Some of theindustries sharing high percentage of agro-chemicals include UPL, IndofilIndustries, Bayer CropScience, Rallis India amongst others.
As a result, theIndia agrochemical market for FY17 contributed roughly around $7 billion to thecountry. Theabove statistics gives an insight into the global 10 companies based on revenuefor 2017. The values are based on the 2017 Financial Times Global 500 list.Numberone on the list of the top 10 chemical companies in the world in 2017 is BASFSE. this is the largest chemical producer in the world, serving at least300,000 customers across the globe.
BASF operates over a total of five segmentsnamely: Chemicals, Performance Products, Oil& Gas, Functional Materials & Solutions and Agricultural Solutions.Some of the products within the Agricultural Solutions Segment areinsecticides, fungicides, and herbicides.TheUS market is dominated by Chemical Industries such as Dow Chemical andLyondellBasell Industries. On the other hand, three of the Germany’s chemicalindustries are considered to be some of the largest industries in the world.
BASF, Bayer, and Linde together generated 141.5 billion U.S. dollars worthrevenues. Market Trends The world ofindustrial manufacturers inhabit a world littered with uneasiness. Global demandfor manufactured products has grown at a snail’s pace.
Expected increase inoutput was merely just 3.1 percent in 2016 and 3.4 percent in 2017 according toIMF.
However, the newer generation Industrial Revolution referred to asIndustry 4.0 is powered by advancements that include smart manufacturing,robotics, artificial intelligence and IOT. The manufacturing industry isglobally expected to invest $267 billion in IOT by 2020. Some of the trendsexpected for IM&C industries by 2022 are – 1. Increasedaftermarket service revenue2. Omnichannelcustomer engagement and consumer-grade buying experience3. Cross-industrynetworks to increase the operational efficiency across the asset lifecycle4.
Pay-per-usebusiness models5. Plugand produce to increase manufacturing agility6. Smartproducts, equipped with edge intelligence and IoT capabilities7.
Increasedrevenue through new services using IOT.8. Moresoftware and firmware in products9. Virtualreality and augmented reality in daily operations10. Big Data and machine learning inmanufacturing planning and scheduling These trends have evolved considering theirdesirability and viability, based on the very assumption that manufacturingcompanies globally want to:1. Increaserevenue2. Increaseprofitability3.
Improvecustomer experience and satisfaction4. Increasethe transparency in business and market5. Improveemployee satisfactionBy 2019, 50% ofmanufactures are expected to collaborate directly with consumers for new andimproved product designs through VR and product virtualisation, cloud-basedcrowdsourcing, realising up to 25% improvement in product success rates. Also,by end of 2020, one-third of all manufacturing supply chains are expected touse analytics-driven cognitive capabilities hence, improving service performanceby 5 percent and cost efficiency by 10 percent. Another report from IDC inNovember, 2017 states that 25% of manufacturers in selected sub-sectors by 2020will have balanced production and through intelligent and flexible assets areexpected to achieve greater customization. MARKET COMPETITION UPL Limited leads the ranking with revenue for thefourth quarter of FY17 coming in 6.1% higher than the estimated figure ofRs.5032 crore.
UPL’s consolidated revenue for the Q4FY17 stand at Rs.5341 Crregistering 20.5% yoy increase. If the sales figures are to be compared, thenet sales stood at 6938.72 Cr as of March 2017.Some of the reasons for suchsales numbers and a successful FY17 is due to growth of its African and Brazilbusiness despite various headwinds alongwith bumper export sales of itsproducts due to good monsoon.
The future scopes for similar growth remain dueto Bayer tie up and the decision of the company to keep cash in hand as a warchest for interesting opportunities. Bayer CropScienceplaces itself atsecond position inIndian market, supported by its strong research capability and continuedrelease of patented product. Insecticide was one of the best performance inthis year with growth rate reaching 40%; additionally Bayer’s 2 novel cropprotection products Lesenta and Solomon have become very popular. With marketcapitalisation of 15,675 Cr, Bayer CropScience registered a net profit of190.60 Cr for the quarter ending September 2017 and had net sales of 2802.80 Cras of March 2017.
Rallis India, another leading agrochemicals company,part of Tata Group of Companies, had revenues of Rs.588 Crposted attributableto its business restructuring and release of new brands leading to a stablegrowth; its international sales which accounts for 30% of the total salesbenefited from the strong demand from Asia and Latin America, including Brazil,having increased very significantly. The company launched 3 products, namely,Cenator(fungicide for the management of sheath blight in Paddy), Pulito (abroad spectrum fungicide on fruits and vegetables) and Odis(a broadspectrum insecticide for the management of sucking pest).Indofil Industries with gross turnover of 1753.
82 Crin 2015-16, ranks No.4; to cope with the change of the Indian agriculture andagrochemical industry, Indofilby adjusting its strategy through shifting itspast focus on crop protection product into crop solutions and providingselected product packages for different crops according to market demand homeand abroad has made into top 5 agro-chemical firms in the country. The companythis year entered Brazilian agrochemical market while launching newer productslike IMPRESSION (triple action based combination of Azole and Triazole).Gharda Chemicals achieved sales of INR 14 billion,ranking No.5.
MAJOR DEVELOPMENTS OF MANUFACTURING SECTORThe MAKE IN INDIAdrive has helped India in developing itself as a hub for hi-tech manufacturingas global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either setup or are in process of setting up manufacturing plants in India with Apple beingthe latest addition to the list of companies. A major reason for such growth inthe incoming of global industries is due to the presence of more than a billioncustomers in the Indian market and their increasing purchase power. Cumulative ForeignDirect Investment (FDI) in India’s manufacturing sector reached US$ 70.
51billion by June 2017. Some of the recentinvestments and developments in the manufacturing sector are as stated – JSW Energy has signed a memorandum of understanding (MoU) with the Government of Gujarat, for setting up an electric vehicle (EV) manufacturing unit in Gujarat at an estimated cost of Rs 4,000 crore (US$ 608.88 million). With an aim to increase its presence in India, Denmark-based heating ventilation and air-conditioning (HVAC) giant, Danfoss, is planning to take its manufacturing localisation to 50 per cent as well as double its supplier base in India by 2020. Cochin Shipyard Ltd, which recently completed its initial public offer (IPO), will utilize the funds from the issue to implement expansion projects worth Rs 2,800 crore (US$ 437.3 million), which are already in its pipeline. Indian biscuits giant, Britannia Industries Ltd (BIL), is setting up its largest plant ever, in Ranjangaon, Maharashtra, with an investment of Rs 1,000 crore (US$ 156.
89 million). The plant will have an annual capacity of 120,000 tonne and will be completed by FY19. IKEA, a Swedish furniture company, aims to manufacture more than 30 per cent of its products in India in the coming years, stated Mr Patrik Antoni, Deputy Country Manager, IKEA.
Volvo India Pvt Ltd, Swedish luxury car manufacturer, will start assembly operations near Bengaluru in India by the end of 2017. The company is targeting to double its share in India’s luxury car segment to 10 per cent by 2020. Larsen & Toubro (L&T) has bagged a contract worth US$ 669.34 million from the Ministry of Defence, Government of India, to supply 100 artillery of 155mm/52 caliber tracked self-propelled guns for the Indian Army, under the Make in India initiative. Berger Paints has entered into a partnership with Chugoku Marine Paints (CMP), thereby marking its entry into the marine paints segment, which has an estimated market size of Rs 250 crore (US$ 38.82 million) and is expected to grow at 25 per cent annually for the next five years. SAIC Motor Corp, China’s largest automaker, has signed a deal to buy General Motors (GM) India’s Halol plant in Gujarat. Dabur India Ltd set up its largest manufacturing plant globally, spread over 30 acres, at a cost of Rs 250 crore (US$ 38.
82 million), in Tezpur, Assam, which will produce Dabur’s complete range of ayurvedic medicines, health supplements, and personal care products among others. Apple Inc is looking to expand its Taiwanese contract manufacturer, Wistron’s, production facility in Bengaluru, India, where it started manufacturing iPhone SE in May, 2017. China based LCD and touchscreen panel manufacturer, Holitech Technology, has announced plans to investing up to US$ 1 billion in India by the end of 2017. TristoneFlowtech Group, the Germany-based flow technology systems specialist, has set up a new facility in Pune, which will manufacture surge tank as well as engine cooling and aircharge hose for the Indian market.
The company plans to start the production at the plant in the fourth quarter of 2017. Honda Motorcycle & Scooter India plans to invest around Rs 600 crore (US$ 90 million) to add a new line to produce additional 600,000 units at its Narsapura facility in Karnataka. To push themanufacturing sector through MAKE IN INDIA campaign, the government has takenvarious initiatives- · TheGovernment of India has introduced several policy measures in the Union Budget2017-18 to provide impetus to the manufacturing sector.
Some of which includereduction of income tax rate to 25 per cent for MSME companies having turnoverup to Rs 50 crore (US$ 7.5 million), MAT credit carry forward extended to 15years from 10 years and abolishment of Foreign Investment Promotion Board(FIPB) by 2017-18.· TheGovernment of India has launched a phased manufacturing programme (PMP) aimedat adding more smartphone components under the Make in India initiative therebygiving a push to the domestic manufacturing of mobile handsets.
· TheGovernment of India is in talks with stakeholders to further ease foreigndirect investment (FDI) in defence under the automatic route to 51 per centfrom the current 49 per cent, in order to give a boost to the Make in Indiainitiative and to generate employment.· TheMinistry of Heavy Industries and Public Enterprises, Government of India, hasapproved the setting up of four Centres of Excellence (CoE) in areas of textilemachinery, machine tools, welding technology and smart pumps, which will helpraise the technology depth of the Indian Capital Goods Industry.· TheMinistry of Defence, Government of India, approved the “Strategic Partnership”model which will enable private companies to tie up with foreign players formanufacturing submarines, fighter jets, helicopters and armoured vehicles.
· TheUnion Cabinet has approved the Modified Special Incentive Package Scheme(M-SIPS) in which, proposals will be accepted till December 2018 or up to anincentive commitment limit of Rs 10,000 crore (US$ 1.5 billion). THE EMPLOYMENT ADVANTAGEThe sector remains to be the largest organizedemployer employed in it with more than 30 million people employed by thesector. The National Manufacturing Policy of 2011 aims to create 100 million by2022.