Dhanuka Agritech: In the realm of modern agriculture, agro chemicals play a pivotal role in ensuring the productivity and sustainability of crops. They replenish essential nutrients in the soil, enhance plant growth and significantly boost food production to meet the demands of a growing global population.

Agro chemicals are crucial in closing the gap between potential and actual crop yields, making them indispensable to agricultural success. Dhanuka Agritech being a company deeply involved in agro-chemical industry, they not only contribute to agricultural productivity but also embrace sustainable practices that benefit the environment and society.

As a company they invest in advanced technologies and eco-friendly products to minimise the environmental impact of agrochemicals while maximising their efficiency. Through continuous innovation Dhanuka Agritech supports farmers in adopting practices that lead to long term agricultural sustainability and community well being.

With its commitment to provide high quality agrochemicals Dhanuka has seen good growth and as a result the share price rose by 97% compared to the previous year. Come let’s have a look at the firm’s performance. 

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Industry Overview Of Dhanuka Agritech

The global crop protection chemicals market reached $88 billion in 2022 and is projected to grow at a CAGR of 4.28% to $116.5 billion by 2028. Crop protection chemicals like herbicides, insecticides, and fungicides play a crucial role in managing pests, weeds, and diseases, thereby increasing crop yields and productivity.

The agricultural inputs market, including crop protection chemicals, was valued at $64.1 million in 2021 and is expected to reach $76.09 million by 2028, growing at a CAGR of 2.9%. India’s agrochemicals market has emerged as a significant player, reaching almost $6 billion in 2022, driven by strong exports and domestic demand.

The Indian market is projected to grow at a CAGR of 8.5% between 2023 and 2028, reaching nearly $9.82 billion by 2028. India is the fourth-largest manufacturer and 13th largest exporter of agrochemicals globally.

The agritech industry, however, faced a slowdown in the past 2 years due to various factors. Supply chain disruptions caused by the pandemic, sharp volatility in raw material prices, and erratic monsoon patterns led to challenges in meeting demand and maintaining growth momentum.

Additionally, the tightening of environmental regulations in China impacted the global supply chain, affecting the availability and pricing of raw materials for agrochemical production.

Going forward, the increasing adoption of biopesticides, driven by government support and awareness of eco-friendly and non-toxic alternatives, has also impacted the growth of conventional agrochemicals. However, biopesticides are still a small segment and are expected to complement rather than replace traditional agrochemicals in the near future.

Company Overview Of Dhanuka Agritech

Dhanuka Agritech is established as a business which manufactures a wide range of agro chemicals like insecticides, herbicides, fungicides and plant growth regulators in various forms like liquid, powder, dust and granules. The company was incorporated on February 13th 1985 and started its commercial productions in 1986.

The company’s three production facilities are located in Udhampur, Jammu & Kashmir, Keshwana, Rajasthan, and Sanand, Gujarat. With three manufacturing facilities, 39 warehouses, and an extensive network of over 8 branch offices throughout India, the company serves around 80,000 dealers and 6500 distributors, allowing it to be present at 10 million farmers’ touch points. 

In addition to this, it is present throughout all of India’s major states through its Branch offices and Depots. It boasts top-notch NABL-accredited laboratories and collaborates globally with top US, Japanese, and European businesses.

The company generated revenue from various segments which include 28% from Herbicides, 44% from Insecticides, 16% from Fungicides and 12% from other products. Dhanuka Agritech Limited was listed in Indian stock exchanges on 1st July 2011 at 89 rupees. 

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Financial Overview Of Dhanuka Agritech

FY 2023FY 2022FY 2021FY 2020
Revenue (in crores)1,700.221,477.781,387.471,120.07
Net profit (in crores)233.5208.89210.56141.35

In the FY 2023 Dhanuka Agritech saw an increase in revenue, surging by 15.05% to reach 1,700.22 crore rupees as opposed to 1,477.78 crore rupees in FY 2022. The net profit of the firm also increased by 11.78% to reach 233.5 crore rupees as opposed to 208.89 crore rupees in the previous year.

 Analysing a span of three years, encompassing FY 2021 to FY 2023, the company displayed a Compounded annual growth rate (CAGR) of 14.93 % in revenue. The increase in revenue and net profit happened because of the launch of new products, increased focus on specialty portfolio, post-Covid economic revival, relatively better monsoon, and higher crop prices.

In FY 2023, Dhanuka Agritech maintained a favourable financial metrics with a return on equity (ROE) of 23.10% and return on capital employed (ROCE) of 28.87%

Future Plans Of Dhanuka Agritech

Dhanuka Agritech plans to aggressively roll out new products, including powerful insecticides for horticulture crops, a new herbicide for soybean and groundnut crops in the upcoming quarters. They are confident that the new product launches, along with existing products, will drive double-digit revenue growth next year.

Dhanuka Agritech has signed a non-binding letter of intent with Spain-based Kimitec to explore opportunities in developing and commercializing biological products using sugar molecules from natural sources. They see potential in biological nutrition, biological control and biological stimulant products in India, which is currently a ~Rs 5,000 crore market growing at 15-16% CAGR.

Dhanuka aims to become EBITDA positive from the Dahej plant in the next 2-3 years as they develop more of their own products at the R&D facility. They also said that the initial revenue guidance of Rs 80-100 crore from Dahej in FY25 may be revised downwards due to headwinds in the technical market.

For FY25, The company is confident of delivering double-digit revenue growth, aided by good monsoon forecasts and powerful new product launches. They aim to maintain the gross margin improvement of 200 bps achieved in FY24.


Dhanuka Agritech has established itself as a formidable player in the agricultural sector, consistently delivering robust performance through its innovative product offerings and strong market presence. The company’s commitment to research and development has enabled it to introduce a range of advanced agrochemical solutions that cater to the diverse needs of farmers across India. 

By leveraging cutting edge technology and sustainable practices, Dhanuka Agritech has not only enhanced crop productivity but also contributed significantly to environmental stewardship. With the growth in the agriculture sector driven by government support the company is poised to have a good future. What do you think about Dhanuka Agritech’s future, do let me know in the comments below. 

Written by Pavunkumar V M

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