Incorporated in 1985 and promoted by the Dhanuka Group, Dhanuka Pesticides Ltd (DPL) is engaged in the manufacture of various technical-grade pesticides, which include insecticides and weedicides and has emerged as one of the top pesticides formulators and marketing organisation in India. The Dhanuka Group is a well established manufacturer / formulator of a wide range of popular pesticides; in ECS, Granules, Wettables & Dust Formulations of Insecticides, Fungicides, Weedicides, PGR, Growth Stimulant and Wetting Agents. Whereas DPL’s product profile includes Methomyl 12.5; L, Ethofenprox 10%; Validamycin 3%; L, Kasugamycin 3%; L, Cypermethrin 10%; EC, Cypermethrin 25%; Fenvalerate 20%; Cartap hydrochloride 50%; Methomyl 40%; and Cartap hydrochloride 4% G.
DPL's production facilities are located in Gurgaon district of Haryana, It has a technical tie-up with Du Pont of USA for the formulations of pesticides using as methomyl raw material. Apart from this it has entered into a series of technical tie-up agreements with a number of Japanese multinationals like Takeda Chemicals Industries Ltd for Cartap Hydrochloride and Validamycin, Mitsui Chemicals Inc for Etofenprox, Hokko Chemicals Ind. Co. Ltd. for Kasugamycin etc. Last year, DPL launched a new insecticide under the brand name ‘DHAWA’ (Indoxacarb 14.5% SC) which got a huge response from the cotton dominant Indian market. It is an eco-friendly and safe molecule with widespread application to control the insects in cotton especially for American bollworm, a major cotton insect. The company is also launching a new, safe and eco-friendly herbicide under the brand name 'QURIN' (Chlorimuron Ethyl 25% WP), in a marketing tie-up with E.I.Du-Pont India. The Dhanuka group has a huge network of distributors, preferred dealers and retailers (over 8000) supported by its branch offices in almost every state. Moreover for the future growth DPL, it is strengthening in house R & D for process improvement and new molecules, obtain safer and eco-friendly products through tie-ups, extend and implement the cause of right and judicious use of pesticides and consequently sustained growth of the group. Besides, an export remains a huge potential market.
India primarily being an agriculture country, the government has put special thrust on agricultural development for higher GDP growth. And with the Meteorological Department predicting good monsoon this season also, it will be a bumper year for DPL. With an increasing trend in the use of pesticides and other crop protection methods by Indian farmers, DPL has a very bright future ahead. For the nine months ending 31st Dec 2004, its Net Sales jumped around 120% to Rs.49 cr. and NP tripled to Rs.3 cr. For the full year, it is expected to report an EPS of Rs.20, which may shoot up to Rs.24 in FY06. Long term investors can accumulate this scrip at sharp declines on expectation of 100% returns in 15~18 months.
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