The industry tried very hard this time for GST reduction but it was not taken up. What is your expectation? Will it be taken up going forward and if it is taken up, how much improvement do you expect in the industry because of that?
MK Dhanuka: Agrochemical is the only industry with 18% GST, while the other agri inputs, fertilisers, seeds and the agri machinery, etc have 5-12% GST. So, to make the pesticide available at reasonable prices for the farmers, the government should definitely think of reducing the GST on agrochemicals from 18% to either 5% or at least up to 12% they should immediately do that so that farmers can purchase the pesticides at a reasonable price to safeguard their crops from pests and diseases.
Anything else on the industry wish list for the Budget, whether with respect to allocations or some other requests, anything that you guys are looking forward to?
MK Dhanuka: Definitely, greater amounts should be allocated for the agriculture loan to the farmers, subsidy to the farmers for procurement of crops. Our agriculture minister has recently announced the purchase of three kinds of pulses; 100% MSP purchase will be done by the government. So, all the activities towards the welfare of the farmers will help to improve the industry status.
You also had set a target for yourself of 18% revenue growth if I have it right. Is that on track or can you do any better? What is the overall situation right now?
MK Dhanuka: June has seen very good demand from the customer and we are much above our target of 18% top line growth by the end of the first quarter. When the results will be out, we will see that the performance is very good regarding what we have envisaged for the first quarter and we hope that because the monsoon prediction is good, although it is a little delayed in some parts of the country, definitely this year is going to be a bumper year for the agrochem industry because demand is much more and the supply is less, so the prices are also on the rise.
One part the market really liked in your commentary in the previous earnings call was the new molecules additions. How many new molecules are you working for and which will be captured in the financial year 25?
MK Dhanuka: We have launched Purge and LaNevo, 293 molecules for the first time in India with the help of Nissan Chemical Japan and there is very good demand from the market. Although the consumption is yet to start because the swing is just going on. So consumption will be mainly in the month of July and August, but demand is very good. So, we hope that we will be able to do as per guidance 3% volume and value wise for the new molecules.