GSP Crop Science will increase revenues through domestic and overseas expansion. Loktej Business, Regional News
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In an effort to increase its market presence and revenue, agro-chemical manufacturer, GSP Crop Science has drawn up an ambitious plan. The plan includes expansion at home and abroad, particularly in Brazil. The company had registered an income of Rs 1,600 crore in the financial year 2022-23. It has set a long-term target of achieving revenue of Rs 1,800 crore by FY 2024-25 and then reaching Rs 2,500 crore in 3-4 years.
reducing dependence on china
As part of its strategic plan, GSP Crop Science is ending its dependence on China for raw materials. The company is working on a plan to create necessary middlemen for its products. This self-reliance will be achieved through an investment of Rs 100-110 crore in a third factory in Dahej, Gujarat. This new factory will initially generate four middlemen.
Emphasis on research and development
The company has made significant progress in Research and Development and has two dedicated Research and Development (R&D) centers in Jammu and Ahmedabad, Gujarat. The company spends 7-8% of its revenues on research and development and boasts of 150 patents, of which 70 have been granted for its own products.
Increasing workforce and market share
With the upcoming Dahej factory to complement the existing two factories, the company expects to increase its workforce by 200. Managing Director, Bhavesh Shah, forecasts the company’s market share to reach 6-7% in India in the coming years. As expected, this growth will be driven particularly by product expansion in the herbicide portfolio and strong presence in the Eastern and North-Eastern regions of India. GSP Crop Science currently has a portfolio of more than 50 brands in India.
Global expansion with focus on Brazil
On the international front, the export to domestic market ratio is 15:85, while it exports to more than 60 countries. The company has recently expanded its business scope in Brazil and plans to invest US$2-3 million in the Latin American country. Its goals for the future include setting up a formulation unit in Brazil. V.N.Rajesh, Global Business Head and Strategy, stressed the importance of understanding the regulations and complexities of the market before setting up operations in Brazil.
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