Crystal Crop Protection eyes 15% increase in revenue to Rs 2,600 cr this financial year
Agrochemical company Crystal Crop Protection Ltd expects a 15% growth in revenue this financial year to around Rs 2,600 crore on better sales, its managing director Ankur Aggarwal has said.
The Delhi-based company last week raised Rs 300 crore from IFC to fund its expansion and growth plans.
“We will use the fund for future growth, including capacity expansion of existing plants and working capital needs,” he told PTI.
Crystal Crop, which has seven manufacturing plants in different states, recorded revenue of Rs 2,283 crore in the previous financial year.
“We expect revenue to reach around Rs 2,600 crore in this financial year,” Aggarwal said when asked about the outlook.
Sales in the rabi (winter sown) season are expected to be strong due to the end of the monsoon, he added.
Regarding the acquisition of new brands, Aggarwal said the company continues to seek suitable opportunities in the normal course of business.
To grow its business, Crystal Crop has made nine acquisitions to date, including six in the past five years.
The company has four operational formulation manufacturing plants, two in Jammu, one in Sonipat, Haryana and another in Anand, Gujarat. With its recently commissioned technical manufacturing facility in Nagpur and a completely new technical factory in Dahej, Gujarat, Crystal now has three technical factories, the first being in Sonipat.
Crystal Crop is also active in the seed business, which is currently very small compared to its agrochemical vertical.
Last week, Crystal Crop said that “the investment of Rs 300 crore (approximately US$37 million) by IFC and IFC Emerging Asia Fund (EAF)” will help the company increase agricultural productivity, reduce disruption to supply chain and to put in place a robust infrastructure for the sustainable production of phytosanitary products.
The International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets. The IFC Emerging Asia Fund, launched in 2016, makes equity and equity-like investments in all sectors of Asia’s emerging markets alongside IFC.
IFC has invested the amount in the form of mandatory convertible debentures (CCDs) and these will be converted into shares at a later stage, Aggarwal said.
The fund will support Crystal’s growth plans, allowing it to focus on innovation and strengthen its research and development (R&D) capacity.
“This investment will further solidify the company’s position in the Indian market and reinforce its commitment to sustainable cropping solutions to increase agricultural profitability for Indian farmers by leveraging R&D and technology,” said Aggarwal.
The investment will also help the company improve its IT infrastructure and the automation of its factories.
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