Agro Chemical Industry At Cross Roads

• Over capacities and steeply falling prices.
• Law could provide equal opportunities but overcrowded market is unproductive.
• Let us manage the resources better.
• Are Agro Chemicals viable any more?
• Agro Chemical companies have to become bankers to be successful
• Turnover is vanity 
• Profit is Sanity

• Agrochemicals are valuable Agro Input. 
• Old chemicals may be phased out voluntarily or by force. 
• Scot for Safer, Eco-friendly and low dosage molecules. 
• Increase use of IPM & ICM concepts. 
• Old production plants may not be cost effective nor environmentally easy to manage. 

• Develop the concept of sustainable agriculture - be part of the total environment. 
• Greater interaction among seeds, biotech, fertilizer, irrigation system and Agrochem industry. 
• Strategic alliances in Agri Industry - marketing, production and extension activities. 
• Biotech invasion on the anvil- problems and prospects. 
• Crop Protection ¶ Crop Production

• Friendly, forceful and even hostile takeovers.
• Uncertain future for people, projects and strategies.
• Rationalization, synergies, cost savings.
• Target to achieve ambitious 1St year results to satisfy stock markets
• Frequent review of performance and re-look at future options.
• "Life Science" concept is fading..

1982 :  My Marketing department - I don't need it. I have a competent Dispatch Department. i don't have to go from house to house to sell. 

1997 : Whatever product or services the company offers must meet customer needs in a most satisfactory manner. That should be the aim of the company. 

New Business Opportunities... 

• Global trend is to outsource.
• Less fixed assets, get rid of NPAs.
• Invest more in Marketing and Managing Customers.
• Get international registration packages for products.
• Have flexible plants for product variations.
• Be alert and be on the lookout.
• International companies are fully aware of indian manufacturing competence on quality and managing delivery schedules.
• Make or buy decisions by all Business organizations.
• Bright chances for manufacturing Intermediates for domestic / exports.
• Indian companies can independently operate.
• Tie up with large international companies.

• MERCK                                                        HIKAL 

100% Buyback arrangement 
 
• MERCK                                                           HIKAL 

• Manufacturer of post-harvest fungicide
• Total technology transfer
• Investment : US$ 35 Million
• 100% EOU
• High level of automation (Distributed Control System)
• Awarded British Safety Council Award in August 2000

R&D Efforts

• Need for higher investment in process development and basic research.
• Captive usage as well as sponsored R&D projects.
• International patents by Indian Agrochemical companies like in Pharma.
• India is still to deliver an original discovery.
• Continuous improvement in manufacturing process to get competitive edge.
• R&D can be a stand alone company.

Role of Business Intelligence

• Marketing has to be knowledge based.
• Develop software for interactive Market Analysis and Planning System
• Data Warehousing Project for farmer contact, market segmentation, panel surveys.
• Customer relationships through Call Center Management, Data Mining, etc.
• Customer satisfaction studies and identification of unsolved problems.

New  Product launches

• Under WTO agreement, tariffs will further come down.
• IPR will usher new research based eco-friendly products.
• Products streamlining will create slots for new products.
• Accelerate product development activities.
• Must fulfil the customer need.

Millennium challenges in Management

• Managing Strategies and commitments consistently in an environment of M & A.
• Holding on to the performing team.
• Disappearing Loyalties, long term commitment to organization.
• Running Indian Global Companies.
• Ensuring high quality, world-class products in the global market.
• Exploiting the mega opportunity of Internet, E-Commerce, etc.
• Economic value creation in greater focus.
• Dramatic expectation on stakeholder values.
• Profit-sharing on performance - large bonuses.
• Shrinkage in jobs and shortened career cycles.
• Contractual assignments in place of full time Company jobs.

Building Customer Confidence

• Knowledge customers demanding greater performance.
• Move from selling/ marketing towards value creation.
• Farmers interest ahead of Company interest.
• Marketing efforts to provide services beyond product promotion.
• Integrated Pest managements/ Integrated Crop Management.
• Clear evidence of higher yield/ hectare.
• Set Up farmer clubs for sharing experiences.
• Interactive Electronic Kiosks.
• Organize scientific seminars, visits to other markets.
• Talk on seeds, fertilizers, irrigation systems, market prices in addition to problem solution.
• Maintain relationships - seen as a true friend.
• Off-season promotion/ post marketing audits.

Customers Confidence - Help Line Centers

• Retried scientist/ Ext. officer giving free advice.
• Teaching farms/ reference plots.
• Farmers' training in all agronomic practices.
• Farmer skills in scouting, forecasting techniques.
• Repair spraying equipment/ soil testing.
• Farm visit and professional advice on the spot.

• Greater emphasis on safety aspects in production.
• Training of spray operators.
• Propagate only need based applications.
• Provide safety gadgets- gloves, goggles, aprons, etc.
• Preach only what can be practiced.
• Release Eco-friendly formulations with innovative packaging.
• participate in Product Stewardship Programs.

• Openness & transparency in dealings.
• Optimize profits - not maximize it by short term means.
• Judicious use of shareholder funds with accountability.
• Be sensitive to environment & ecology.
• Spend a reasonable sum on social development program.
• Be a good corporate citizen - brain & heart to co-exit.
• Be benchmarked for overall  good performance in the industry.
• "Live & Let Live" business philosophy.
• Positive approach to competition.