Indogulf Cropsciences Management On IPO Launch: B2C Growth, Overseas Expansion In Focus

Indogulf Cropsciences Ltd. is positioning itself for strong growth by focusing on specialised, bio-integrated crop solutions and expanding its diverse product portfolio, according to Managing Director Sanjay Aggarwal.

"There are certainly many opportunities. Globally, we see a shift from generics to speciality, from chemical-centric to bio-integrated solutions, and from input-focused to outcome-oriented approaches," he told NDTV Profit in a conversation on Thursday.

"Our product basket is the strength of Indogulf. Though we will be growing overseas and in B2B business, B2C business will be our major focus area," Aggarwal said.

The company, which launched its initial public offering on Thursday, aims to strengthen its business-to-consumer brands, grow overseas and reduce dependency on imports, according to the top executive.

"Of the Rs 200 crore being raised, approximately Rs 65 crore will be allocated for working capital, Rs 34 crore for loan repayment, around Rs 12 crore for IPO expenses and Rs 14 crore for capital expenditure," he said. "An additional Rs 40 crore constitutes an offer for sale and the remaining funds will go toward general corporate purposes."

Aggarwal also outlined Indogulf's customer base. The company operates in three main segments. The largest is B2C, with over 6,900 distributors across all Indian states.

"We practice backward integration, manufacturing some technicals ourselves while importing others, which supports the growth of our B2B business. We collaborate with over 190 major Indian companies in this channel.

"Lastly, our overseas business is established in 34 countries, with more product registrations underway and plans for further expansion in the near future," he explained.

Addressing concerns about Chinese dumping, Chief Financial Officer Manoj Gupta said it was not a major issue as imports are regulated and only licenced companies can import, which limits unnecessary dumping.

"Additionally, the domestic market is growing rapidly. For our company, we currently import just 35% of materials from China, while 65% comes from domestic sources," the CFO said.

Aggarwal added that Indogulf's core business is formulations, which are largely manufactured in India and rarely imported.

"We had significant dependencies earlier. However, gradually, companies like ours have developed the capabilities to produce indigenous technicals that are cost-effective and meet exceptional quality standards," Aggarwal said.

"We have been successful in this transition. While it is an ongoing process and not an overnight change, we are steadily moving toward greater self-reliance," he added.