INDIA UPDATE
What To Expect in 2023
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BY RENEE TARGOS
EDITOR
India will start 2023 with many opportunities, especially in generics as products worth $4.2 billion are expected to go off patent by 2023, presenting an opportunity for manufacturing 26 active ingredients as generic molecules. Because of 2022 challenges in China, Indian companies are making investments to forward new business opportunities and expanding their offerings.
“In the last five years, Indian companies have really diversified their portfolios,” said Amit Momaya, Regional Head, International Business for Hemani Industries Limited.
“Earlier India was largely an insecticide producer primarily based on pyrethroids and few organophosphates, but now you see a lot of herbicides also being produced along with newer insecticides,” Momaya continued. “Indian companies have invested into factories for new products or for the expansion of existing factories either for capacity expansion or for backward integration. Because of various government initiatives like “Make in India” and support from organizations like the Pesticides Manufacturers and Formulators Association of India (PMFAI) and Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL), Indian suppliers are well known in most major agrochemical markets.”
For those sourcing in India, Shivraj Anand, Director & Global Head, International Business for Parijat Industries said, “The key to successful sourcing from India is to plan ahead in time. Although shipping delays are not as bad as they were a year ago, the world has still not gone back to pre-COVID-19 delivery times. There has been abundant capacity set up in India over the past four to five years, which a lot of companies can take advantage of and diversify their supply chain.”
Anand added, “It will also be key to look at the restrictions placed by the Indian government on the sale and usage of various molecules in India both at the state and national level. This will be key for companies looking to manage their inventory levels and plan for the season.”
Jitendra Mohan, Chief Operating Officer for Willowood Chemicals Limited, said that for those sourcing in 2023 from India, he offers a checklist for the new year to review before selecting a company:
- Product range of the company
- Manufacturing capabilities of both technical and formulations. Whether technical manufacturing is backwardly integrated or not?
- R&D strengths
- Quality standards
- Availability of good lab practices (GLP) regulatory data in chemistry and toxicology including 5-batch reports
- Regulatory support
- IP strengths
- Product development strengths
- Product costing
- Export orientation
- Supply chain capabilities
Research and Development (R&D)
Another big issue is the investment in research and development (R&D), many Indian companies are now providing services to launch new products.
“Indian companies have invested a lot of money in good laboratory practice (GLP) data so the customers will also be satisfied in terms of regulatory requirement,” said Momaya.
The Indian government recognizes its agrochemical industry as one of its top 12 industries to achieve global leadership growing at 8% to 10% through 2025, according to the Federation of Indian Chambers of Commerce and Industry.
“The focus of Government of India, especially of our Honorable Prime Minister, is strongly on R&D in line with Make in India, Atma Nirbhar Bharat, and Vocal for Local initiatives of the government,” said Mohan. “As India is strongly focusing on becoming global manufacturing hub, therefore, it is imperative for the industry to focus on R&D for backward integration for the manufacturing of technical grade products as well as a focus on innovation for novel crop protection solutions for the farmers in India as well as globally. R&D focus will help in reducing import dependence as well reducing the costs of the products which will help in doubling of farmers’ income.”
Biostimulant Growth
When biostimulants became recognized under the FCO (fertilizer control order) in India, it opened what could be a $1.5 billion market for Indian companies serious about production and following government regulations.
“We see biostimulants being a much needed addition to the company’s existing portfolios as a complimentary nature to traditional chemistries,” said Anand. “The future lies in an integrated pest management model with offerings
across the chain.”
Mohan agrees but believes as an inundated biostimulants market continues growing, there may be other areas in the marketplace Indian companies turn their attention to.
“Biostimulant products have a huge market in India of the value of around INR 2500 crores, which is growing every year,” said Mohan. “However, since every company wants to grow by adding more business verticals, therefore, [the market] may [show growth in] other segments related to agriculture like biological products, fertilizer, seeds, spray equipment, and drone technology.”
Agtech In India
In 2021, the Government of India launched the Digital Agriculture Mission for 2021-25 to include artificial intelligence, remote sensing, drones, robots, and other technology with grants for drone procurement.
“The Government of India is promoting use of technology in agriculture, like drones, to promote precision agriculture,” said Mohan. “Along with this, the focus is on developing and promoting novel low dose products like nano urea, biological crop protection products, and others. All these things will help in achieving the target of doubling of farmers’ income by reducing input costs and improving output costs in agriculture.”•
Photo of Amit Momaya courtesy of HEMANI INDUSTRIES LIMITED