Pesticides & AgrochemicalsSDCS Final Project Presentation

PRESENTED BY:

SUKRIT DHUP (UM15115)SURESH PADHIARI (UM15116)SWAPNIKA DAS (UM15117)SWAYAM PRAKASH ROUT (UM15118)TAPAS RANJAN TRIPATHY (UM15119)TRISHA ANAND (UM15120)

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Indian Agrochemical Market Overview1. The Indian crop protection industry was estimated to be USD 4.75 billion in FY15.2. Expected to grow at a CAGR of 12% to reach USD 7.5 billion by FY19. 3. Exports currently constitute more than 50% of Indian crop protection Domestic market and

grows at 16% CAGR4. Domestic grows at 8% CAGR. 5. Globally, India is fourth largest producer of crop protection chemicals, after United States,

Japan and China. Industry Structure & Competitive Landscape1. The Indian crop protection industry is dominated by generic products with more than 80%

of molecules being non-patented. This results in very low entry barriers for the industry.2. There are about 125 technical grade manufacturers, including about 10 multinationals, 3. There are about 800 formulators.4. Around 145,000 distributors in India. 5. More than 60 technical grade pesticides are being manufactured indigenously.

125 Technical Grade Manufacturers

 

800 Formulators

 

145000 Distributors

 

End Use Customers

 

Challenges Faced OpportunitiesNon Genuine Products Export OpportunitiesStringent Regulations Decline of the Japanese

industryLow focus on R&D Growth in

Herbicides/FungicidesLack of Awareness Low Pesticide

ConsumptionLong gestation period for

new productsLabor Shortage

Challenges & Opportunities

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Imperatives for Various StakeholdersAgrochemical Companies Product Innovation: Product innovation needs

to capture emerging market trends and match International standards. Indian companies usually spend 1-2% of their turnover on R&D as compared to global companies which spend 10-12% of their turnover on R&D.

End to end farmer solution: Companies should look for opportunities to provide a comprehensive agro offering or one stop solution ranging from procurement to distribution, to the farmer.

Leverage on IT and Telecommunications: Companies could leverage the existing IT and Telecommunication Infrastructure to promote the use of products.Integrated Pest Management: Integrated Pest Management (IPM) is a sustainable approach to pest management by combination of biological, mechanical, physical and chemical methods.

Govt. & Regulatory Bodies

Non-genuine pesticides are a critical challenge which not only impact the industry image but also hamper the crop productivity and soil fertility. Apart from Agrochemical companies, Government and Regulatory bodies have to play a critical role for not only achieving increased reach of agrochemicals amongst the farmers but making sure them only sustainable and environment friendly products reaches them.

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SUSTAINABLE CONSUMPTIONSustainable consumption is the use of products and services that have a minimal impact on the environment so future generations can meet their needs.

Why should we care?The rise of consumer societies - Sustainable Consumption• Culture of consumption• Management of shared resources• Tragedy of commons• Bio-piracy: the exploitative

appropriation of indigenous forms of knowledge by commercial actors

• Eco Patent Commons: a collective of patents on technology that facilitate the use of existing innovation that is protective of the environment (membership from 11 companies including HP, IBM, Nokia, Sony and Xerox)

Taking advantage of the opportunities

Mobilizing the whole company

Stakeholders are asking for it -

Risk profile is changing

No longer only for high risk companies

Acting as a point of differentiation

If you want to make sustainability an integral part of your business, you must identify material sustainability issues, develop a sustainability strategy and form sustainability targets

Sustainability Strategy

Impacts

Corporate Brand &

Ranking as Employer of Choice

Existing in the

long run

Reduction in

Operating & Mnfr Costs

Proactive Mgmt of Business

Risks

why sustainability makes business senseSocial

Employee development, attract quality employees, satisfy customer needs

EnvironmentPreserve resources, Recycle, Reuse, reduce wastes

Health & SafetyEmployees, customers, communities, beneficial products

FinancialImpact investment, profitable to be sustainable

GovernanceWell run business, transparent reporting

SUSTAINABLE BUSINESS

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How to identify leading companies ?

look at if the activities make sense

Look at the approach to sustainability

Look at how they engage

Look at the future

Look at who is driving the change

Look at the resources allocated to sustainability

How they report

Why do companies fail?

Business Society

CSR in generic

ways

CSR aligned to firm’s strategy

Functional perspective

Business case•What is the problem/ business situation?

Challenges•That have the potential to make the proposed solution non-implementable

•How to mitigate

Trends & new ideas•That might have the potential to address the problem

Tips & resources•What is the potential opportunity and sources of facilitation

KPI in sustainability driven companies

e.g. % of paper recycled

The International Sustainability Indicators NetworkMeasuring social impact- we

need inputs, outputs, outcomes, impacts (outcome less an estimate of what would have happened in the absence of your programme)

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Ralli Brothers started operations in Greece in 19th century

The agrochemical business in India started only after 1948

Currently, the parent company is Tata Chemicals and subsidiaries include Metahelix Life Sciences Limited & Zero Waste Agro Organics Limited

Rallis India Limited

Evolution •Bio nutrients ; both macro and micro enables good root growth

Gluco Beta

•Rooting stimulant; Yield enhancement

Ralligold

•Water soluble Boron for cotton, vegetables, oilseeds, fruits

Solubor

•Organic plant growth stimulator; reduces flower droppings

Tata Bahaar

• Immediate green effect and improves stress tolerance

Tata Uphaar

•Multi micronutrient mixture for foliar applications

Tracel

Products

Complete phase out of red triangle (extremely toxic) products

More water based formulations to reduce environmental impact

Supporting farmers in improving yield by initiatives like ‘More Pulses Programs’ (handholding exercises)

Conservation: Conservation of Energy by optimizing use of energy at workplace• CO2 Reduction: Through various solvent reduction

initiatives• Adopting various renewable sources of energy

• Reduction & Reuse: Reduce and Reuse wastes• Zero Liq. Discharge from manufacturing units;

recycled water• Wealth from Waste: Waste converted into useful By-

Products• Employed a strong ‘champion’ team at corporate level to

drive various sustainability initiatives in their respective locations.

Business overview • Incorporated on 2001• Headquartered at Monheim am Rhein, Germany• Provides solutions for crop and seeds protection 

and non-agricultural pest control. For FY2014,R&D expenses $1.29 billion Revenue $12.63 billion

Bayer CropScience in agrochemicals market in India • Headquartered in Mumbai, India• Engages in AgriCare business, which involves

the manufacture, distribution, and sale of insecticides, weedicides, and other related agrochemical products

• Manufacturing facility in Himatnagar, Gujarat, India.

Global Market Share Indian Market Share

Global Carbon Emissions

Bayer CropScience

Bayer CropScience proudly proclaims its commitment to farming by helping farmers provide safe, high quality, affordable food, produced in a sustainable way using less water and energy, whilst promoting biodiversity. It calls itself an R&D based company that invests its time, energy and money into addressing some of the many challenges faced by farmers and the industry.

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Why sustainability?• Adverse effect on the

environment and human health

• Cause of imbalance in soil biology

• Reported cases of human intoxication by pesticides in Brazil: 2178 in 2007 4537 in 2013

• Governments worldwide putting emphasis on economic, environmental, and social sustainability in the agriculture sector.

• Farmers depending on organic practices and have initiated efforts to optimize soil productivity while simultaneously preserving their ability to function as a healthy medium.

• Shift toward organic alternatives such as bio pesticides.

Bayer CropScience

Sustainability Practices

Energy Efficiency Target: Between 2012 and 2020, Bayer intends to cut its specific greenhouse gas emissions by 20% and improve its energy efficiency by 10%. 

e3 - Sustainable Cotton Initiative Verification programs documenting the farms where quality cotton is produced with environmentally responsible, economically viable and socially equitable methods.

Investment in BiopesticideAcquired AgraQuest, a US-based biotechnology company and Prophyta Biologischer Pflanzenschutz, a supplier of biological crop protection products.

Sustainable Potato Venture Collaborated with Farm Frites and started a partnership to support a bottom-up approach with potato farmers addressing value-adding sustainable potato-growing practices at individual farm level.

Bayer Labhsutra to help farmers achieve better return on investment by adopting Bayer’s integrated solutions which include Bayer's ‘Seed to Harvest’ packages.

Bayer GrowPro Programme A pilot project, which promotes mechanical transplanting of rice. Customized Bayer Healthy Seedlings are transplanted in the field for a rice farmer followed up by an on-field advisory team from Bayer Crop Protection solutions.

Grape Project Model Weather-based advisory model to manage residues in grapes through Bayer spray program jointly with the National Research Centre for Grape.

CIMMYT-Bayer collaboration to focus on agriculture-based management in rice-wheat rotation and smart farm mechanization to make farm management more efficient and productive.

Global

India

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• Monsanto India Limited (MIL) - a subsidiary of the Monsanto Company, USA

With a presence of more than six decades in India, MIL is committed to help the Indian farmer produce more while

conserving sustainably and to be successful.

Monsanto proudly projects itself as a sustainable agriculture company, committed to deliver products that help farmers grow

better crops throughout the world.

They have recently joined The World Business Council for Sustainable Development to further boost their efforts towards a

sustainable world for all.

About MONSANTOMonsanto

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• They produce modified crop-seeds like cotton, corn, fruits, oilseeds and even vegetables. They aim to

promote the yield of the land of the farm and also the efficiency thus reducing the costs.

Apart from seeds Monsanto also manufactures herbicides which help the consumers remove

unnecessary weed growing alongside the crops.

It is committed to reporting in accordance with the Global Reporting Initiative and supporting the recently

released United Nations Sustainable Development Goals.

MONSANTO and SustainabilityMonsanto

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• Project 1: SHARE Programs- Sustainable Yield Initiative- Project SHARE- Sustainable Agriculture and Market Integration through Farmer Producer Organizations

(FPOs)

Project 2: Impacting Livelihoods through improved farming and integrated land and water resource

development

Project 3: Kitchen Garden Project and School Nutrition Project

Sustainable practices in India

Monsanto

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At the core of Monsanto’s business is a commitment to sound science and innovation, which enables their research team to deliver high-quality products that provide benefits to farmers and the environment.

To meet 2030 commitments - new vision for agriculture built upon three pillars

Pillars : advanced breeding | biotechnology | improved agronomic practices

Goals of feeding, clothing and fuelling the world.

Future Commitments

Monsanto

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Since the 1950s, Dow’s agricultural business has been discovering, developing and bringing sustainable solutions to market for the growing

world.Company is committed to helping farmers

increase their crop productivity through higher yields, better varieties, and targeted weed,

insect, and disease control.

Their products and services balance the needs of boosting agricultural productivity while

preserving the environment.

About DOWDow Chemicals

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DOW and SustainabilityDow provides world-class portfolio of leading-edge, sustainable solutions for modern agriculture

Insecticides

Herbicides

Fungicides

Fumigants

Pest Managements

Nitrogen Stabilizers

Seeds, Traits, and Oils

Dow Chemicals

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• Project 1:Discovering and developing solutions that help preserve the quality of our land, water and air

Project 2:Mitigating our environmental impact in manufacturing, packaging and shipping

Project 3: Contributing to community success through meaningful collaborations

Sustainable practices in India

Dow Chemicals

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By 2025, Dow will deliver $1 billion in value through projects that are good for business and good for

ecosystems.

By 2020, all R&D, capital and real estate projects at Dow will be screened using Nature’s Future Value

assessments, a tool we developed with The Nature Conservancy to measure the value of ecosystem services.

We will support the development of an increasingly chemistry literate society through our commitment to

STEM (Science, Technology, Engineering, Math) education, utilizing the passion and expertise of our

trained employee volunteers, Dow STEM Ambassadors.

Future Commitments

Dow Chemicals

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International best practices Indian best practices

• 4 R nutrient stewardship:i. Right Source: Balanced supply of essential

nutrientsii. Right Rate: Decisions based on soil nutrient supply

and plant demandiii. Right Time: Decisions based on dynamics of crop

uptake, soil supply, nutrient loss risks, and field operation logistics

iv. Right Place: Address root-soil dynamics and nutrient movement

• Integrated Nutrient Management Division (INM) [Ministry of Agriculture] mandated to ensure:

• adequate availability of quality fertilizers to farmers• periodical demand assessment and timely supply• promoting integrated nutrient management• soil test-based judicious and balanced use of chemical

fertilizers in conjunction with organic manures and bio-fertilizers

• promotion of organic farming• Ensuring quality control of fertilizers through

implementation of Fertilizer Order• Reduce phosphorus losses to protect and restore water-related ecosystems

• Nitrous Oxide Emission Reduction Protocol (NERP): Nitrogen fertilizer is responsible for emission of nitrous oxide emissions, but it is also the main driver of yield in modern high production systems – Critical balance to be maintained

• Urea Deep Placement (UDP) - Method of fertilizer application wherein fertilizer is compressed into pellets that are then placed underground in the root zone of plants (rice cultivation)

• It increases fertilizer use efficiency by acting as a low-cost, slow-release fertilizer product.

• Improving energy efficiency in ammonia production: Overall, an ammonia plant built today uses some 30% less energy per ton of ammonia produced than one built 40 years ago. Restructuring has rewarded more efficient producers

• Integrated Pest Management or IPM - Systems approach to reducing damage caused by pests to an acceptable level without harming the environment

• IPM combines biological, cultural, physical and chemical tools to minimize economic costs and health, and environmental risks.

• Includes adoption of pest-resistant varieties of crops, biological and physical control methods, bio pesticides, and when absolutely necessary, non-toxic chemical pesticide

• Carbon Capture and Storage (CCS): CO2 is currently captured at a number of ammonia production sites for use in the manufacture of urea or in other industrial value chains. The expansion of CCS in ammonia production could be supported by appropriate policy decisions.

Best practices worldwide

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