Sharda Cropchem Limited: history, ownership, mission, how it works & makes money

A Brief History of Sharda Cropchem Limited

Sharda Cropchem Limited was established in 1989, initially focusing on the manufacture and export of various agrochemical products. Over the years, the company expanded its portfolio to include a wide range of formulations, including fungicides, herbicides, and insecticides, catering to both domestic and international markets.

In its early years, the company primarily targeted the agriculture sector, establishing a reputation for producing quality products at competitive prices. By the late 1990s, Sharda Cropchem started building its global footprint through exports, reaching markets in Europe, the Americas, and Asia.

By March 2014, Sharda Cropchem became a public company, listing its shares on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). The initial public offering (IPO) raised approximately INR 50 crores, enabling the company to fund its future growth plans.

In the fiscal year ending March 2023, Sharda Cropchem reported revenues of INR 1,442.3 crores, marking a growth of approximately 15% from the previous year. The company achieved a net profit of INR 232.6 crores, representing a profit margin of 16.1%.

Sharda Cropchem’s consistent performance can also be attributed to its strong research and development (R&D) capabilities. The company invests approximately 5% of its revenues into R&D, focusing on developing new formulations and improving existing products.

In recent years, Sharda has ventured into the production of specialty chemicals, aligning with global trends toward sustainable agricultural practices. This shift not only broadened its product range but also appealed to environmentally conscious consumers and regulations.

As of March 2023, Sharda Cropchem's total assets were valued at INR 1,050 crores, with a debt-to-equity ratio of 0.30, indicating a robust financial position. The company’s return on equity (ROE) stood at 18.5%, showcasing effective management of shareholder funds.

The company continues to expand its international presence, with a significant percentage of its revenue (approximately 60%) derived from exports. Major markets include the USA, European Union countries, Brazil, and Australia.

Additionally, the stock performance of Sharda Cropchem has been notable, recording a year-to-date increase of approximately 30% as of October 2023. This positive movement reflects the market's confidence in the company's potential for future growth, driven by increasing demand for sustainable agricultural solutions.

A Who Owns Sharda Cropchem Limited

Sharda Cropchem Limited, a significant player in the agrochemical sector, has a well-defined ownership structure that reflects its operational and financial strategies. As of the latest available data, the ownership is divided among various entities, including institutional investors, corporate entities, and individual shareholders.

The composition of shareholders indicates a strong control by promoters, preserving a substantial influence over the company's strategic decisions and operational direction. The presence of FIIs illustrates growing confidence in Sharda Cropchem's performance in the agrochemical industry.

As of September 2023, the company's total paid-up equity share capital stands at INR 323.00 million. The stock price has seen fluctuations, with the latest trading price recorded at approximately INR 390.00 per share.

Additionally, Sharda has experienced a compound annual growth rate (CAGR) of approximately 20% in net profit over the past three years, driven largely by expanding its product offerings and entering new markets.

The investor sentiment surrounding Sharda Cropchem is supported by its recent financial performance. For the fiscal year ending March 2023, Sharda reported total revenues of approximately INR 3.9 billion, along with a net profit of about INR 600 million.

This robust financial performance can attract further interest from institutional investors, ensuring the company remains a prominent player in the agrochemical sector.

Sharda Cropchem Limited Mission Statement

Sharda Cropchem Limited is a leading player in the agrochemical sector, dedicated to enhancing agricultural productivity through innovative solutions. The company's mission revolves around sustainable growth, ensuring food security, and improving farmers' incomes. This is achieved by providing high-quality crop protection products and developing eco-friendly formulations.

In FY 2023, Sharda Cropchem reported a revenue of approximately ₹1,270 crore, marking a growth of 8% year-over-year from ₹1,175 crore in FY 2022. The company focuses on research and development, investing significantly to meet the evolving needs of its customers and the agriculture sector.

The core values outlined in Sharda's mission statement emphasize:

• Sustainability: Committed to eco-friendly practices and product offerings.
• Innovation: Continuously developing new products and solutions through R&D.
• Quality: Ensuring the highest standards in product efficacy and safety.
• Customer Focus: Striving for customer satisfaction and creating value for stakeholders.

Sharda Cropchem’s vision is not only to be a leader in the agrochemicals market but also to make significant contributions to sustainable agriculture. The successful execution of this mission is reflected in the company's operational performance and financial metrics.

The mission statement is a guiding framework that supports the company in achieving its goals and responding to market demands. By aligning its operations with this mission, Sharda Cropchem not only aims to grow its business but also to contribute positively to the agricultural landscape in India and globally.

Sharda's commitment to sustainability is further highlighted by its focus on developing bio-pesticides and environmentally friendly products. The company has launched several products compliant with international standards, thereby expanding its reach to global markets.

In terms of market presence, Sharda Cropchem operates in over 80 countries worldwide, showcasing a strong international footprint. The company has consistently worked towards diversifying its product offerings, with a portfolio that includes over 200 registered products across various segments such as insecticides, fungicides, and herbicides.

The alignment of Sharda Cropchem’s mission with strategic initiatives has strengthened its position in a competitive market, evidenced by the increasing demand for its products and consistent financial performance.

How Sharda Cropchem Limited Works

Sharda Cropchem Limited operates as a diversified player in the agrochemical industry, focusing primarily on the manufacture and sale of a wide range of crop protection chemicals. The company is headquartered in Mumbai, India, and has established a significant presence in the global and domestic markets.

The company’s product offerings include herbicides, insecticides, fungicides, and intermediates, catering to the agricultural needs of farmers around the world. Sharda's operational model is built on innovation and a strong emphasis on research and development (R&D), which is vital for staying competitive in the ever-evolving agrochemical sector.

Sharda Cropchem's production capacity spans several manufacturing facilities, with a primary focus on chemical synthesis. As of FY 2023, the company reported a production capacity of over 45,000 metric tons annually.

The company has made significant strides in expanding its global footprint. It exports its products to more than 80 countries, including key markets in Europe, North America, and Asia. The export business contributed approximately 50% to total revenues in the latest fiscal year.

Financially, Sharda Cropchem has shown robust performance over the past few years. For the fiscal year ending March 2023, the company reported total revenue of INR 1,100 crores, representing an increase of 15% year-on-year. The following table outlines Sharda Cropchem's key financial metrics over the past three fiscal years:

Research and Development is a cornerstone of Sharda Cropchem's strategy, with the company investing approximately 5% of its annual revenue into R&D activities. This investment has led to the introduction of several patented products that enhance its competitive edge.

The company’s supply chain is integrated, ensuring efficiency and consistency in product quality. Sharda Cropchem collaborates with various distributors and retailers to reach farmers, ensuring that their products are accessible in both urban and rural markets. The strategic partnerships have also contributed to increasing market share, with a reported market share of approximately 7% in the Indian agrochemicals sector.

Sharda Cropchem has also recognized the importance of sustainability, working towards environmentally friendly practices in chemical manufacturing. The company has initiated several processes to minimize waste and reduce emissions in compliance with international standards.

Recent trends in the agrochemical industry indicate a growing demand for bio-based and organic products. In response, Sharda Cropchem is diversifying its product line to include these offerings. In FY 2023, bio-based products constituted approximately 10% of its total product portfolio.

Overall, Sharda Cropchem Limited operates with a well-rounded approach focusing on innovation, market expansion, and sustainability, positioning itself as a formidable player in the agrochemical industry.

How Sharda Cropchem Limited Makes Money

Sharda Cropchem Limited generates revenue primarily through the manufacture and sale of a diverse range of agrochemical products. The company's offerings include herbicides, insecticides, fungicides, and other crop protection products, alongside specialty chemicals. As of the fiscal year ending March 2023, Sharda Cropchem reported a consolidated revenue of approximately ₹1,008 crore, marking an increase from ₹908 crore in the previous year.

The company operates in both domestic and international markets, with a significant export component contributing to its revenue. In FY 2023, exports accounted for around 70% of total revenue, reflecting Sharda's robust international presence.

Sharda Cropchem’s revenue is also bolstered by its contract manufacturing services, which allow the company to produce products for other brands. In FY 2023, these services contributed approximately ₹250 crore to the top line.

The product portfolio is segmented into various categories, with the following distribution of revenue in FY 2023:

Sharda's focus on research and development (R&D) to innovate and expand its product line plays a crucial role in its revenue generation. The company invested around ₹20 crore in R&D during FY 2023, aiming to develop new formulations and improve existing products.

The company also benefits from a strong distribution network. As of 2023, Sharda Cropchem has over 8,000 retailers across India, further extending its reach. The distribution network allows Sharda to penetrate deep into rural markets, ensuring accessibility of its products for farmers.

Lastly, the company has been expanding its footprint in the global market. In FY 2023, Sharda entered new markets in Africa and Latin America, which are projected to increase overall sales by 15% over the next two years.