Building India’s Agrochemical Backbone: Excel Industries on Securing the Future of Intermediate Manufacturing
19 June 2025 As global supply chains recalibrate and companies seek alternatives to China’s manufacturers, India’s chemical manufacturing sector stands at a pivotal crossroads. In this interview, AgriBusiness Global speaks with Pradeep Ghattu, President and COO of Excel Industries Limited, to explore how India can strengthen its position as a reliable supplier of agrochemical intermediates.
ABG: How do you view the country’s evolving role in global intermediate manufacturing amid shifting supply chain dynamics with China?
Pradeep Ghattu, Excel Industries
Pradeep Ghattu: India has solidified its position as a global force in the agrochemicals sector, now standing as the world’s fourth-largest producer. This industry is a significant contributor to the nation’s economy, with an estimated US $5.5 billion in exports, making it a net foreign exchange earner. This success is partly attributable to a robust domestic manufacturing base for certain intermediates, which has been crucial in India’s dominance in categories like organophosphorus insecticides and synthetic pyrethroids. However, this impressive growth is tempered by a pronounced reliance on China for various key intermediates and key supply materials (KSMs). China’s competitive advantages, including vast production capacities, cost-efficient manufacturing, readily available feedstock, and strong industry-academia collaboration, have historically driven this dependence.
Looking ahead, the evolving global landscape—marked by increasing regionalization, frequent supply chain disruptions, and heightened geopolitical influences—underscores the urgent need for India to bolster its domestic supply chain for KSMs and intermediates. Availability of a local supply base will be a critical success factor for India to not only maintain but also expand its standing in the global agrochemicals industry. Given these overarching macro conditions and trends, developing a localized supply chain for intermediates and KSMs must be an integral part of India’s agrochemical strategy. Achieving this will require a multifaceted and concerted approach, including increased focus on research and development (R&D) by the private sector, policy-driven initiatives to invest in feedstock capacities, and the establishment of R&D centers of excellence within academic institutions to spearhead research in product, process, and technology development.
ABG: What strategic steps have Excel Industries taken that can serve as a model for other companies aiming to build resilience and self-reliance in intermediate chemical production?
PG: Excel has emerged as a crucial supplier of certain key agrochemical intermediates, bolstering India’s global standing in the end molecules these intermediates support. We’ve established global-scale capacities for these vital materials, ensuring a reliable, safe, cost-efficient, and nearly Just-In-Time domestic supply chain that is resilient to disruptions from China. To further enhance this, local transporters have developed a robust system featuring dedicated fleets, trained drivers, and stringent safety measures for the secure transport of these chemicals. For instance, our liquid, hazardous intermediate, is primarily supplied in tankers, a significant safety improvement over traditional drum import. Additionally, for a powdered/flaked product, we’ve collaborated with customers to transition from drum packaging to specialized tote bins, providing technical guidance to establish the necessary handling infrastructure at their facilities, which has substantially improved transportation and handling safety. These initiatives exemplify Excel’s commitment to building resilience and self-reliance in intermediate chemical production.
Continuing this legacy, Excel is actively pursuing new product development initiatives that prioritize supply chain security. Last year, we launched Biocel XL 20, a biocide formulation containing 20% 1,2-Benzisothiazolin-3-one (BIT) used as a preservative in aqueous agrochemical formulations. Recently, we’ve commenced production of the active material, BIT-85%, establishing a secure, reliable, and resilient backward-integrated supply chain for our formulations. The entire process for BIT technical was developed in-house, further solidifying our commitment to self-sufficiency and innovation.
ABG: From your perspective, what are the critical enablers – policy, infrastructure or innovation that India must prioritize to become a global hub for intermediates, and how can industry stakeholders align with these goals?
PG: For India to become a global hub for chemical intermediates, it’s essential to establish a system that allows for the rapid launch and scaling of these critical materials. This requires putting several key enablers in place.
First, a robust R&D and innovation ecosystem is paramount, necessitating a significant increase in overall R&D investment as a percentage of revenue. While larger companies can shoulder this expenditure, smaller firms, often focused on core manufacturing, may struggle. This gap can be bridged by creating industry-oriented research institutes and chemical centers of excellence. These centers would develop new products, processes, and technologies, then seamlessly transfer them to companies, emulating the strong industry-academia collaboration seen in China.
Furthermore, logistics infrastructure will serve as a vital backbone for the burgeoning chemical industry, ensuring the safe and efficient transportation of chemicals. This demands substantial investment in both inland and port logistics.
Beyond R&D and logistics, securing a resilient supply chain hinges on strategic investment in upstream feedstock. Policy support for building capacities in identified feedstocks is crucial, requiring focused execution. While initiatives like the Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIR) were well-intentioned, their scale-up over the past 15 years has not met expectations.
Finally, a qualified, trained, skilled, and motivated workforce is a fundamental prerequisite for the industry’s success and growth. To attract top talent amid competition from other sectors, the chemical industry should proactively raise awareness among students about the wonders and benefits of chemistry and chemical technology from an early age. Collaboration between industry and educational institutions to develop tailored courses and curricula will also be vital in nurturing the next generation of chemical professionals.
ABG: How can Indian manufacturers position themselves as preferred partners for global companies seeking to diversify sourcing beyond China? What role does quality, sustainability and supply chain transparency play in this positioning?
PG: India is a natural destination for companies looking to diversify their sourcing beyond China. To fully capitalize on this potential, Indian manufacturers must demonstrate their capabilities across multiple critical areas. This includes excellence in research and development, process innovation, unwavering quality, robust safety standards, stringent environmental compliance, cost efficiency, and effective project execution.
With a growing emphasis on ESG (Environmental, Social, and Governance), sustainability is also paramount for any company aiming to be a preferred global partner. This means integrating sustainability into a company’s core strategy, starting with measuring Scope 1 and 2 emissions, collaborating with supply chain partners to assess Scope 3 emissions, and then developing a long-term strategy for reduction.
Amidst increasing regionalization, geopolitical instability, and frequent supply chain disruptions, global customers are seeking assurance regarding the resilience of their supply chains. Consequently, Indian companies aspiring to become preferred partners must implement systems that clearly demonstrate their supply chain’s robustness. They will also need to continuously collaborate with both suppliers and customers to proactively mitigate supply chain risks and cultivate a truly reliable, resilient, and robust supply network.
ABG: Looking ahead, what advice would you offer to companies—both in India and globally—seeking to navigate the shifting landscape of intermediate manufacturing and secure long-term strategic sourcing solutions?
PG: Companies looking for long-term strategic sourcing solutions should view these partnerships as significant investments, emphasizing a truly collaborative approach. Prior to formal engagement, a thorough multi-dimensional assessment of potential partners is crucial. Once established, continuous collaboration is essential to help the supplier improve and upgrade across various aspects of their operations.
Ultimately, the success of such a partnership hinge on mutual benefit, moving beyond a narrow, transactional focus. The objective should be to minimize the total cost of acquisition over time while maximizing advantages for both parties involved.
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