Top 10 Generics Companies
19 December 2008 1. Makhteshim Agan Industries — Israel
Once again, Makhteshim Agan Industries (MAI) leads in global generic company agrochemical sales, and looks on pace to lead next year’s list as well. Even while 2007 sales increased almost 20% over 2006, the company reports a 30% growth in profit in the first half of 2008 over the same period last year.
Part of the change comes from the appointment of a new chairman and CEO, Avraham Bigger, who took over two years ago after IDB Holding Corp. Ltd. acquired MAI’s parent company, Koor Industries. Among his initiatives were the merger of Makhteshim and Agan, and replacing a large portion of the management team. His strategy has worked, with operating profit in the first half of 2008 40% higher than first half 2007. Also helping the company’s bottom line was the 2007 acquisition of Alabama, US-based Alligare LLC, a vegetation management supplier, giving MAI an arm in the non-crop weed control market.
2. Nufarm Limited — Australia
With manufacturing facilities in 14 countries and marketing operations in 20 nations throughout Australia, New Zealand, Europe, Asia, and the Americas, Nufarm sells products in more than 100 countries around the world.
The Nufarm group’s sales increased to US $1.76 billion — a gain of 5% — in 2007 over its 2006 sales of $1.68 billion. It also continued to expand into the seeds segment in Australia, having acquired Monsanto’s Roundup Ready canola germ plasm and license to the Roundup Ready canola trait in September 2006. However, adverse weather conditions in Australia held down canola plantings, negatively impacting the seed business. Still, the Australiasia sector stil remains the company’s largest region for both revenues and profit, bringing in 39% of total sales.
3. Cheminova — Denmark
An increase in glyphosate demand in 2007 helped Cheminova to gain market share last year, particularly for the company’s North American subsidiaries and in Latin America. As supply from China declined, higher market prices improved Cheminova’s glyphosate earnings. Another large contributor to the company’s higher sales — which totalled almost 20% more than 2006 — were new products. Cheminova introduced two new generics during the year, and acquired the acrinathrin business outside of Europe in December 2006. Additionally, market penetration for new products — most importantly imidacloprid, abamectin, tebuconazole, diflufenican, and metsulfuron — continued throughout 2007.
Cheminova’s plans call for the introduction of three new active ingredients each year, as well as having local subsidiaries continue to introduce new products. The four main themes of Cheminova’s 2007 Corporate Social Responsibility report are: development and innovation, human resources, occupational health and safety, and the EU’s new chemicals regulation. Cheminova’s development activities include a focus on new formulations which reduce undesired side-effects of the products.
4. United Phosphorus Limited — India
Mumbai, India-headquartered United Phosphorus Limited (UPL) has taken major steps to not only add new products to its portfolio, but to acquire popular brands, registrations, and competing companies. Not only has this strategy helped to grow UPL’s market share, but also has helped it stretch its reach. In mid-2007, for example, UPL purchased Argentinian firms Icona S.A. and Icona San Luis, thereby acquiring those companies’ 35 registrations and more than 1,000 customer-distribution network.
UPL now sells in over 100 countries, and has subsidiaries in 22 countries and manufacturing sites in nine more. The company expects to considerably increase its turnover and establish a storonger global product portfolio for key crops, partially by continued acquistions — CEO Jai Shroff mentions eyeing some companies in Latin America and China — and continued joint ventures and strategic partnerships.
5. Sipcam-Oxon Group — Italy
The Sipcam-Oxon Group, with subsidiaries in over a dozen countries, consists of more than 20 agrochemical, biopesticides, and fertilizer manufacturers, formulaters, and marketers, including Sipcam in Italy, Spain, Portugal, Australia, the UK, Greece, Brazil, and the US. With so many companies in the group, keeping track of all the partnerships and acquisitions can be complicated. However, the various deals and activities throughout the group in 2007 — such as the installation of Oxon Asia srl to develop production activities in China, and Sipcam Pacific’s acquisition of the assets of Summit Agro Australia — have contributed to its ability to reach key geographical areas and extend its production and supply sectors into all aspects of the market.
6. Gowan, Inc. — US
Gowan Company, established in 1963, has consistently remained high on the global Top 10 generic agrochemical companies in terms of sales not so much by partnerships and business acquisitions, but by continually providing the latest in formulation technology. For example, in April 2007, Gowan acquired marketing rights to the active ingredient pyridaben and announced that the company would market it under the brand name NeXter. NeXter is a miticide/insecticide providing quick knockdown and up to 40 days of residual control of European Red Mite and Two Spotted Spider mites.
7. AMVAC Chemical Corp. — US
From January’s agreement with DuPont for its IMPACT corn herbicide to December’s acquisition of the pentachloronitrobenzene fungicide product line from Chemtura, Corporation American Vanguard Corp.’s subsidiary, AMVAC, made power plays throughout 2007, increasing its sales nearly 12%. AMVAC also substantially increased its manufacturing capability by acquiring on of BASF’s plants in Hannibal, Missouri, US in anticipation of growing sales of Phorate and Counter insecticides in coming years, as well as expanding operations at its Axis, Alabama, US facility for the production of Metam Sodium and Metam Potassium products.
8. ATANOR S.C.A. — Argentina
ATANOR has been involved in synthesizing chemicals since 1938 — which has given it plenty of time to grow throughout Argentina and the rest of the world, with offices in Chile, Paraguay, and Uruguay. Its new glyphosate plant in Brazil was set up with capabilities of producing 50 million liters a year starting at the end of 2007. An extension to 100 million liters from the end of 2009 will match the output of the company’s glyphosate plant in Pilar, Argentina.
Four of the company’s products — 2.4-D acid, 2,4-DB acid, atrazine, and trifluralin — have been approved by the US Environmental Protection Agency.
9. ROTAM — Canada
Located in Hong Kong, Rotam’s Agrochemical Division has its own R&D unit and serves 52 countries through a network of strategic partnerships with national and regional distributors. Its nine regional offices offer technical support.
Last year was big for Rotam North America — the company added new management and headquarters to its US operation, expanding its sales unit. Rotam announced the US registrations of Montana 2F imidacloprid insecticide and Volta thifensulfuron herbicide.
10. RALLIS — India
In March 2007, Rallis won a Commendation Certificate in the IMC Ramkrishna Bajaj National Quality Award (RBNQ) category of manufacturing for its sales training, 6-Sigma implementation, and other practices. The RBNQ is one of India’s most prestigious awards. This honor set the stage for Rallis’ year, which ended up with sales nearly 20% higher than 2006 — including an incredible third quarter with profits up 67% over the same period the year before. The company’s domestic business covers 80% of India’s districts.
The company looks forward to a great 2008, as well; it began the year with the appointment of a new COO, Ashok Shetty, whose responsibilities include agrochemicals, seeds, and plant growth nutrients.
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