Agrochemical firm GSP Crop Science Pvt Ltd. plans to expand its manufacturing capacity of technicals and intermediates at Saykha in Gujarat with an investment of about Rs 500 crore over the next few years, a move that would help reduce its dependency on China.
Bhavesh Shah, Managing Director, GSP Crop Science said the capacity utilisation at its manufacturing units in Gujarat has reached 80% prompting the company to go in for expansion plans.
The proposed expansion would reduce the company’s dependency on China for technicals to around 30-40% from the current 80%.
The company has formulation and technical manufacturing units at Nandesari, Saykha in Gujarat, and Jammu.
It currently manufactures around 14 intermediates and plans to add another 4-5 intermediates with the proposed expansion plan, which will be funded largely by the internal accruals, Shah said.
GSP Crop Science is a debt-free entity and Oman India Joint Investment Fund is the only institutional investor in the company. The Shah family owns around 85% stake in the company.
The company sells agrochemicals in segments such as insecticides, fungicides, and herbicides under 60 different brands in the domestic market for a range of crops such as paddy, cotton, wheat, soyabean, groundnut, and vegetables among others.
It also exports agrochemicals to around 30 countries including Brazil and the US. Brazil is the largest export market for the company, Shah added.
GSP Crop Science also contract manufactures agrochemicals for both domestic and global firms.
The company derives around 45-50% of its earnings from its product sales in India, while exports contribute around 30% and the rest from contract manufacturing.