Agrochemical major UPL is hoping for a rebound in the current rabi season after a muted performance in Kharif. The company is introducing new rice and sugarcane technologies that it believes will help drive growth.
"Rabi should do well in India. It is our most important quarter globally. We should be able to keep growing," said Jai Shroff, Global CEO of UPL.
Unfavorable weather conditions during the Kharif season reduced demand for key target crops, resulting in flat revenue growth in the Indian market. UPL's Indian operations generated 907 crore in revenue in the December quarter, compared to 906 crore in the same period last year.
"Draft in Madhya Pradesh and cyclonic weather in Andhra Pradesh impacted the Indian market. We are confident that the Indian market will grow further this year," Shroff said.
Flupyrimin- A Rice Insecticide
UPL recently received approval to market Flupyrimin, a rice insecticide, in India. Flupyrimin was licensed by UPL from Meiji in Japan. "That technology will be available this quarter." "We anticipate strong growth as a result of this," Shroff said.
Shroff also stated that the company's herbicide portfolio is in high demand from farmers, owing to an increase in the price of glyphosate, a widely used herbicide, in recent quarters.
"A lot of supply disruption from China has resulted in very high glyphosate prices." As a result, demand for all herbicides has increased. "Our herbicide portfolio, which includes Metribuzin, S-metolachlor, and Glufosinate, has benefited from the high prices because farmers who are unable to obtain glyphosate are obviously switching to these technologies," Shroff added.
In recent years, UPL has emerged as a strong herbicide company. "UPL was only an insecticide company ten years ago." "In the last ten years, we've built a strong portfolio of herbicides, and it's become a very important segment for UPL," Shroff added.
Herbicides accounted for more than 30% of the company's revenue, according to Anand Vora, Chief Financial Officer. Herbicides are the fastest-growing segment this year, Vora said.
Shroff commented on the impact of commodity price increases on the sector, saying, "Corn, wheat, and soyabean prices are high, which is causing farmers to focus on maximizing yields using as much technology as possible to increase yields." This is advantageous to the agricultural sector. I believe it will remain for some time."
