India's crop protection sector defied the challenges posed by the Covid-19 pandemic and grew at a healthy clip of 13% in fiscal 2021, supported by robust domestic demand following a favorable monsoon and high reservoir levels, and steady exports.
Despite increase in rural income this fiscal, erratic distribution of rains is likely to moderate domestic growth prospects for crop protection products. Exports, on the other hand, will continue to grow at healthy pace with players capitalising on the China+1 policy of overseas buyers and increase in acreage in key export markets.
Raw material prices have been on the rise since the second half of fiscal 2021, due to increase in crude prices and supply shortage of imported inputs from China. This could impact the margins of formulators and partially integrated players this fiscal. That said, well-integrated technical and intermediate players will gain from the increase in prices.
In this milieu, how are players in the crop protection sector managing working capital? Is an increase in capital spending on the anvil? What does all that imply for the credit profiles of the players?
To answer these questions, CRISIL is hosting a webinar titled 'The alchemy of green blooms', where its experts will share their views on:
Structural and 'here and now' drivers of the sector
Revenue outlook for the near-to-medium term
Profitability expectations and their drivers
Capital spending and credit quality outlook
This will be followed by a panel discussion with sector experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
