Sumitomo Chemi.

Exports saw a dramatic turnaround in H1 FY25, with revenue share jumping to 17% from 11% YoY. This was led by a 95% volume growth, particularly in Japan and South America, where sales increased by 122% and 167% respectively. Management noted that the global inventory overhang that plagued the previous year has normalized, allowing for robust shipments of off-patent products from the Excel Crop Care portfolio.

The domestic business faced a 15% average price decline in H1, yet managed 5% value growth due to a strong 15-16% increase in volumes. This volume growth was supported by the 'Every Day Farmer's Day' campaign, which engaged over 5.5 lakh farmers. Despite uneven rainfall disrupting some spraying schedules, the company's focus on volume growth helped maintain stable profitability.

Management confirmed receipt of Environmental Clearance (EC) for the Dahej site without specific conditions. Phase 1 of the project is estimated at ₹300 crores, with construction expected to begin in early 2026. The plant will have a flexible 'kitchen plant' design to manufacture a mix of new products from Japan and generic products, with an expected asset turnover of 2x at maturity.

New products launched in the last three years now contribute 8-9% of total revenue, up from 3-4% in the prior year. Offerings like Meshi, Ormie, and Portion saw 65% YoY growth. The company plans to continue this momentum by launching 1-2 products annually in the bio and sustainable category, leveraging the global expertise of parent company Sumitomo Chemical Japan and Valent BioSciences.

A significant headwind discussed was the 40% decline in cotton acreage in North India. This was attributed to severe pink bollworm infestations over the last two years and low commodity prices, leading farmers to shift to crops like paddy and corn. While management expects cotton to bounce back in South and West India, they remain cautious about a recovery in the Northern belt.