Dhanuka Agritech Limited has successfully completed a strategic acquisition worth ₹165 crore, securing the international rights to two key fungicides, iprovalicarb and triadimenol, from Bayer AG.
The acquisition marks a pivotal move for Dhanuka as it expands into global markets, gaining access to over twenty countries across Latin America (LATAM), Europe, the Middle East, Africa (EMEA), Asia, and India.
Strengthening Dhanuka’s Global Portfolio
The deal significantly bolsters Dhanuka’s portfolio, allowing the company to offer advanced agrochemical solutions to farmers and distributors worldwide.
The fungicides, developed by Bayer AG, are highly regarded for their effectiveness and reliability in tackling various plant diseases.
Iprovalicarb, a specialized fungicide, is used to control oomycetes diseases in horticultural crops. It is marketed under established brands such as Melody Duo, Melody Compact, and Melodika.
On the other hand, triadimenol, a highly effective seed treatment fungicide, is widely used in cereals, cotton, and coffee.
As part of the DMI triazole fungicide family, it belongs to the SBI class one category, highlighting its superior efficacy.
Market Share and Competitive Advantage
With this acquisition, Dhanuka gains a significant edge in the competitive agrochemical market.
Iprovalicarb currently commands a 50% market share, with minimal generic competition, while triadimenol holds a 20-25% share in Brazil, a high-barrier market that is crucial for sustained growth.
Dhanuka plans to leverage Bayer’s established customer base in these regions and intends to revitalize the sales of both products through its strong marketing and distribution network.
Manufacturing Transition to Gujarat for Increased Efficiency
In line with its strategy to enhance cost efficiency and scalability, Dhanuka plans to transfer Iprovalicarb’s manufacturing operations to its Dahej facility in Gujarat over the next two to three years.
News.agropages.com reports that the transition will improve margins and ensure a steady supply to meet global demand.
Targeting Strong Financial Growth
Harsh Dhanuka, Executive Director of Dhanuka Agritech Ltd. commented, “This deal is a turning point for Dhanuka as we venture into international markets with Bayer AG’s trusted brands. In 2023, these products generated ₹220 crore in revenue, and we are aiming for an EBITDA margin of 12-15% post-integration. By FY26, we expect revenue generation to begin in India by Q1, with global operations scaling by Q4”.
Strategic B2B Model and Alignment with ‘Make in India’ Initiative
Looking ahead, Dhanuka plans to implement a global B2B model by collaborating with local distributors in international markets. It will leverage its robust network in India. This acquisition aligns with India’s ‘Make in India’ initiative. It positions India as a key hub for agrochemical production and export.
In conclusion, Dhanuka will propel itself into international markets through its acquisition of Iprovalicarb and Triadimenol from Bayer AG. This move will drive growth, improve operational efficiency, and strengthen its global presence.
