PI Industries – Built on an impeccable R&D track record & trust

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(A) About PI Industries Ltd

PI Industries Ltd - logo

It is a leading player in the agrochemical space having a strong presence in both domestic and export markets. It has state of art facility in Gujarat having integrated process development teams with in-house engineering capabilities.

PI has exclusive rights from several global corporations for the distribution of its products in India. It constantly evaluates prospects to further expand its product portfolio.

Moreover, the spectrum of services that PI provides to its customers are interwoven and spread across its value chain, ranging from research and development, product and application development, registration, manufacturing, marketing and distribution and customer connect initiatives.

(B) Journey since Inception

(C) Executive Management of the company

(i) Mr. Narayan K. Seshadri - Independent Chairman

Mr. Narayan K. Seshadri is the Chairman of PI Industries Ltd.

He is a qualified Chartered Accountant, started his business consultancy career with Arthur Anderson. Mr. Seshadri has more than 30 years of experience in the field of accounting, auditing, litigation support etc. and industry experience includes manufacturing, process, health care, financial services, utilities, infrastructure and technology. He is also the Chairman of AstraZeneca Pharma India Ltd.

In FY21, Mr. Narayan Received a remuneration of Rs 2 Crore which is 0.04% of sales and 0.27% of profit.

(ii) Mr. Mayank Singhal - Vice Chairman & Managing Director

Mr. Mayank Singhal is the promoter of the company, he is working as a Vice Chairman & Managing Director of the company.

He is an Engineering and Management graduate from UK, rose to become its Joint Managing Director in 2004, Managing Director and CEO with effect from December 1, 2009 and subsequently its Vice Chairman & Managing Director from 9th September 2019.

Moreover he got a rich experience of over two decades in the fields of chemicals, intermediate and agrochemical industries.

In FY21, Mr. Singhal Received a remuneration of Rs 15.29 Crore which is 0.33% of sales and 2.07% of profit.

(iii) Dr. Raman Ramachandran - Managing Director & CEO

Dr. Raman Ramachandran is working as the Managing Director & CEO of the company.

Moreover, he has done his Ph.D from the University of Adelaide and a MSc. in Agriculture from the Indian Agricultural Research Institute, New Delhi. Before joining PI Industries, he was the Chairman and Managing Director of BASF India and Head of the BASF legal entities in South Asia. 

In FY21, Mr. Ramachandran Received a remuneration of Rs 5.05 Crore which is 0.11% of sales and 0.68% of profit.

(iv) Mr. Rajnish Sarna - Joint Managing Director

Mr. Rajnish Sarna is the Joint Managing Director of the company.

Moreover, he is a qualified Chartered Accountant and has a diverse experience of over 30 years in the areas of Business Development & Strategy, Customer Relationship Management, Operations, etc. Meanwhile, his current role is focused on identifying new business opportunities, Mergers & Acquisitions, evaluate and execute such possibilities.

In FY21, Mr. Rajnish Received a remuneration of Rs 6.31 Crore which is 0.14% of sales and 0.27% of profit.

(D) Shareholding Pattern of PI Industries Ltd

PI Industries Ltd - Shareholding Pattern
PI Industries Ltd - Promoter shareholding
PI Industries Ltd - public shareholding

(E) Crop protection Market

PI Industries Ltd - Indian Crop protection market

India is 4th largest producer of agrochemicals and 13th largest exporter of pesticides globally.

Pesticides consumption in India is only at 0.6 kg/h while world average is 2.6 kg/h. Indian agrochemical market is projected to grow at a CAGR of 8.5% during (2022-2027).

(F) Business Segments of PI Industries Ltd

PI Industries Ltd - products

(i) CSM

PI’s portfolio of “custom synthesis and manufacturing solutions” covers the entire gamut of service offerings mentioned below:-

  • Process Research and Development
  • Analytical Method Development
  • Synthesis of Reference Standards
  • Structure Elucidation and Synthesis of Impurities
  • Physio-Chemical Studies and 5-Batch Analysis under GLP Conditions
  • Scale-up Studies
  • Safety Data Generation
  • Waste Categorization and Treatability Studies
  • Process/Plant Engineering
  • Large-Scale Commercial Production

Global CSM Market is between $6 Billion to $8 Billion in which PI Industries Ltd constitute 7-10% market share.

Moreover it has strong order book of $1.4 billion in FY22.

(ii) Domestic

In domestic business they follow three strategy.

a) They In-licensing the molecules

PI has managed exclusive tie-ups with patent originators, which further led by its track record of respecting innovator’s IPR. The company also focus on selected and patented innovative products through in-licensing differentiates it from the rest of the market participants, who sell largely generic products with little product differentiation.

b) Joint Venture & Co-marketing

Company also do JVs and co-marketing with its partners and supply the agrochemicals to its customers.

c) Branded Generics

PI Industries also sells branded generics products across different categories like herbicides, insecticides, fungicides and specialty chemicals.

(G) Revenue Segmentation of PI Industries Ltd

PI Industries Ltd - Revenue Segmenttation

Product wise Revenue Breakup

PI Industries Ltd - product wise breakup

(H) Manufacturing Facilities

PI Industries Ltd - manufacturing Facilities

The company owns and operates 5 formulation facilities and also 13 multi-product plant under its 4 manufacturing locations. The company also commissioned 2 new multi-product plants in FY20.

Further company has 4000+ channel partners, 28+ stock points and 70,000+ retailers.

(I) Cost Structure of PI Industries Ltd

PI Industries Ltd - Cost structure

(J) Competitors

PI Industries Ltd - Competitors

(K) Financials

(i) Financial Trend

PI Industries Ltd - financial trend

Company's operating Income increase at a CAGR of 15.57%, meanwhile its its PAT grew at a CAGR of 24.05%. Moreover company has also reduce its debt/equity from 0.06 in FY21 to 0.04 in FY22.

(ii) YoY Performance

PI Industries Ltd - YoY performance

Its Operating Income increase by 15.79% which is driven by government given incentives to farmers and make in India incentive which help company to boost its export sales.

(iii) YoY Performance of last 4 quarters

PI Industries Ltd - YoY performance of last 4 quarters

(iv) Term of Trade

PI Industries Ltd - ToT

Over the previous ten years, the company has maintained a consistent term of trade. But the ratio of debtors to creditors increased marginally from 1.54 in FY20 to 1.83 in FY21. However, lower TOT will increase the company’s operating cash flow.

(v) Du Pont Analysis

PI Industries Ltd - Du pont analysis

Company has reduced its debt due to which its Assets to Equity is improved in the past 10 years from 2.48 in FY13 to 1.38 in FY22.

(L) Management Discussion & Concalls


  • Global agriculture market is also expected to grow at a healthy rate of 6%.
  • According to OECD-FAO Agriculture outlook 2020-29, the yield improvements through enhanced agriculture inputs, production technology and cultivation practices are also expected to account for nearly 85% of production growth over the next decay.
  • Moreover, government has been forcing on modernizing and developing robust agriculture infrastructure with the aim to double farmer income by 2022.
  • Additionally Global crop protection chemical market (2021-25)- (i) Herbicides expected a growth rate of 5.5%. (ii) Fungicides and bactericides is also expected to grow at 5.2%.

Concall highlights

  • The Company acquires 8 new customers.
  • Meanwhile annual revenue was Rs 5,299 Cr a growth of 165 over FY21. Additionally it is driven by solid growth in export revenues by 20% and 4% gain in domestic revenue.
  • Operating expenses increase by 24% is mainly due to a sharp increase in fuel prices.
  • Furthermore company order book stood at $1.4 Billion for its CSM business as on March 2022.
  • The company remains confident on achieving growth guidance of 18-20% YoY for FY23 in both exports and domestic segment
  • The company is actively evaluating some option for both CSM and API side in India and Outside India.

New molecules

  • PI Industries has commercialized nine new molecules in FY22 with 40 products at different development stages. The R&D pipeline remains strong with more then 20% non-agrochemical products.
  • Moreover company aims to commercialize seven new molecules under the CSM business (3 non-agrochemical and 4 agrochemical molecules) in FY23 and five new products under the domestic business in FY23.

Some new products launched are gaining traction


  • The management has guided a capex of Rs 500 Cr in FY23 and Rs 350-400 Cr in FY24. Moreover the capex would be divided across use cases for expansion, maintenance, process efficiencies and R&D.
  • Furthermore the company has a capability to expand through current facilities over the next two to three years and does not intend to undertake any Greenfield capacity in the near to mid-term.

(M) Strengths and Weaknesses


(i) Growing presence in CSM exports

The CSM export segment is marked by a significantly de-risked business model, which provides healthy revenue visibility and stable profitability. The PI group is also one of the pioneers of CSM in the agrochemical space in India. Moreover the group, which has been engaged in this business for over a decade, has built a strong reputation, based on its sound research capabilities. Its clientele also includes some of the largest agrochemical innovator companies in the world. 

(ii) Established position in the domestic agrochemical business with healthy in-licensing and co-marketing (ILCM) product pipeline

A presence of over five decades in the domestic agricultural inputs business, a healthy product mix, leadership in several generic product segments, and also increasing number of launches through the ILCM route have helped the group establish itself as one of the top 10 players in this space.

(iii) Healthy financial risk profile, and strong liquidity

Moreover its financial risk profile is healthy, marked by strong net worth (Rs.5200 crore at March 31, 2021) and low debt, which along with healthy operating profitability ensures robust debt metrics.


(i) Moderate working capital requirement

Agrochemical industry is characterized by working capital-intensive operations, due to large inventory requirement, seasonality in demand, and extended credit to dealers and distributors.

(ii) Susceptibility to risks inherent in the agrochemicals and pharmaceutical sector

The crop-protection or agrochemical sector remains susceptible to specific and separate registration processes in different countries, and also to various environmental rules and regulations. Change in regulatory requirements, such as export and import policies and environmental and safety requirements could also impact growth prospects.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry Publications.

Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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