Sumitomo Chemical India Limited: history, ownership, mission, how it works & makes money

A Brief History of Sumitomo Chemical India Limited

Sumitomo Chemical India Limited, a subsidiary of Sumitomo Chemical Co., Ltd. of Japan, has been a key player in the Indian agrochemical and chemical sector. Established in 2000, the company has steadily expanded its operations and product offerings.

In 2005, the company commenced manufacturing operations at its facility in Dahej, Gujarat, with an initial focus on agrochemical formulations and intermediates, which catered to both domestic and international markets.

By 2010, Sumitomo Chemical India had diversified its portfolio to include a wide range of products such as insecticides, herbicides, fungicides, and specialty chemicals. The company's revenue for the fiscal year ending March 31, 2010, was reported at approximately ₹100 crores.

In 2016, Sumitomo Chemical India made significant strides by enhancing its production capabilities with investments exceeding ₹500 crores aimed at expanding its facility in Dahej. This expansion was crucial for increasing capacity to meet growing demand in the agricultural sector.

The company's revenue grew consistently over the years, reaching approximately ₹1,000 crores in FY 2020. The impressive growth was driven by an increasing focus on R&D, which led to the launch of new products aligned with sustainable agriculture practices.

In 2021, Sumitomo Chemical India Limited reported a net profit of ₹150 crores, showcasing a year-on-year growth rate of approximately 25%. The total revenue for the fiscal year was approximately ₹1,250 crores.

In line with its commitment to sustainable practices, Sumitomo Chemical India has also been investing in eco-friendly products. As of 2022, the company allocated ₹200 crores towards developing new products aimed at sustainable agriculture and integrated pest management.

As of 2023, Sumitomo Chemical India continues to forge ahead, focusing on expanding its market share within India and driving innovations in its product lines. The company is poised to respond to increasing demands for sustainable agricultural solutions, which are critical in the face of climate change and food security challenges.

A Who Owns Sumitomo Chemical India Limited

Sumitomo Chemical India Limited, a subsidiary of Sumitomo Chemical Company, is primarily involved in the manufacturing of agrochemicals, specialty chemicals, and pharmaceuticals. As a part of a larger conglomerate, the ownership structure is pivotal in understanding its operational dynamics and market positioning.

As of the latest reports, Sumitomo Chemical Company holds a significant stake in the Indian subsidiary. The ownership breakdown is as follows:

Sumitomo Chemical Company, headquartered in Osaka, Japan, is a major player in the global chemical market, contributing to various sectors including agricultural chemicals, petrochemicals, and advanced materials. The company reported a revenue of approximately ¥2.2 trillion (around $20 billion) for the fiscal year ending March 2023.

In India, Sumitomo Chemical India Limited has been gaining traction in the agrochemical market, driven by increasing agricultural productivity and demand for crop protection products. The market size of the Indian agrochemical industry stands at around ₹37,000 crore (approximately $4.5 billion) as of 2022, with expectations for growth fueled by rising domestic consumption.

The company’s research and development capabilities have been bolstered by its parent company, which allocates significant funding to innovation. In fiscal year 2023, the R&D expenditure of Sumitomo Chemical Company was approximately ¥80 billion (about $720 million), emphasizing their commitment to developing sustainable and effective chemical solutions.

As of the latest market data, Sumitomo Chemical India Limited's stock is actively traded on the National Stock Exchange of India (NSE) under the ticker symbol "SUMICHEM." The stock has seen a price fluctuation range of ₹340 to ₹470 throughout 2023. The market capitalization of Sumitomo Chemical India Limited is estimated to be around ₹3,200 crore (approximately $400 million).

Key management personnel also play a crucial role in the company’s operations and strategic direction. The board is composed of members with vast experience in the chemical industry and includes:

• Mr. Shintaro Sakamoto - Managing Director
• Mr. Syed Hameed - Chief Financial Officer
• Ms. Vani Rajaraman - Director of Marketing

Overall, the ownership structure of Sumitomo Chemical India Limited reveals a strong backing from its parent company, providing stability and growth potential in the competitive Indian chemical market. The strategic direction and resource allocation from Sumitomo Chemical Company underscore the subsidiary's capability to leverage innovation and market opportunities effectively.

Sumitomo Chemical India Limited Mission Statement

Sumitomo Chemical India Limited (SCIL) is committed to enhancing the quality of life through its innovative chemical products that serve diverse industries. The company's mission statement reflects its dedication to sustainable development, operational excellence, and social responsibility.

The primary aspects outlined in SCIL's mission statement include:

• Innovation: Continuously developing products that meet customer needs while ensuring safety and environmental sustainability.
• Quality and Reliability: Delivering superior products that conform to international standards, thereby fostering trust and loyalty among its stakeholders.
• Sustainability: Commitment to eco-friendly practices throughout the production process, reducing environmental impact.
• Community Engagement: Actively participating in regional development and contributing to society through various initiatives.

Latest Financial Performance

As of the latest fiscal year ending March 2023, SCIL reported notable financial results:

Comparative analysis with previous fiscal years shows a growth trend:

Industry Contribution

SCIL operates in various sectors, including agricultural chemicals and specialty chemicals. The company's commitment to innovation has placed it among the top players in the Indian chemical market. As of 2023, the Indian chemicals market is projected to reach a size of approximately USD 300 billion.

SCIL’s contribution to the agricultural segment is particularly significant, with a portfolio focused on crop protection and nutrient products. The company reported a market share of approximately 10% in the domestic agrochemicals industry.

Corporate Social Responsibility (CSR)

In alignment with its mission statement, Sumitomo Chemical India Limited invests in CSR initiatives, focusing on:

• Education initiatives benefiting over 10,000 students annually.
• Healthcare programs improving access for 5,000 rural households.
• Environmental sustainability projects aimed at reducing carbon footprint by 30% over the next five years.

Operationally, SCIL adheres to stringent safety protocols, ensuring employee and community welfare, and holds a current safety record with a 0.2% incident rate across its facilities.

Conclusion

Sumitomo Chemical India Limited's mission statement drives its strategic goals and operational focus. The company's ongoing commitment to innovation, quality, and sustainability positions it as a leader in the Indian chemical industry.

How Sumitomo Chemical India Limited Works

Sumitomo Chemical India Limited, a subsidiary of Sumitomo Chemical Co., Ltd, Japan, focuses on the production and marketing of a wide range of products within the chemicals industry. The firm operates primarily in three segments: Crop Protection, Specialty Chemicals, and Pharmaceuticals.

Business Segments

• Crop Protection: This segment includes agrochemicals like pesticides and herbicides. As of the latest financial year, the Crop Protection segment contributed approximately 75% to total revenues.
• Specialty Chemicals: This segment produces specialty materials, including resins and coatings, accounting for around 20% of revenue.
• Pharmaceuticals: This smaller but significant segment generates the remaining 5% of the company’s revenue, focusing on advanced medical products.

Financial Performance

According to the most recent earnings reports, Sumitomo Chemical India Limited reported net sales of approximately INR 2,800 crores for the financial year ending March 2023, which represents a growth of about 15% year-over-year. The company’s operating profit stood at INR 450 crores, resulting in an operating margin of 16.07%.

Stock Performance

The stock of Sumitomo Chemical India Limited is publicly traded on the National Stock Exchange of India (NSE). As of October 2023, the stock price is approximately INR 465 per share, with a market capitalization of around INR 12,500 crores. Year-to-date, the stock has appreciated 25%, showing strong investor confidence.

Research and Development

The company allocates approximately 5% of its annual revenue to research and development efforts, focusing on innovative solutions in agrochemicals and specialty compounds.

Global Presence

Sumitomo Chemical India Limited exports to over 30 countries, with a particular focus on regions like Southeast Asia and Africa, contributing significantly to its revenue growth.

Table of Key Financials

Sumitomo Chemical India Limited’s robust operational model and strong financials position it well in the competitive chemicals market, reflecting its commitment to growth and innovation.

How Sumitomo Chemical India Limited Makes Money

Sumitomo Chemical India Limited operates as a subsidiary of Sumitomo Chemical Co., Ltd., specializing in a diverse range of products including agrochemicals, specialty chemicals, and pharmaceuticals. The company's revenue generation primarily stems from its innovative product portfolio and strategic market positioning.

Revenue Breakdown

For the fiscal year 2022-2023, Sumitomo Chemical India reported a total revenue of ₹2,454 crore, marking a growth of approximately 14% compared to ₹2,151 crore in the previous fiscal year. The revenue streams can be categorized as follows:

• Agrochemicals: ₹1,500 crore
• Specialty Chemicals: ₹700 crore
• Pharmaceuticals: ₹254 crore

Operating Profit and Margins

The operating profit for the same financial year was ₹358 crore, reflecting an operating margin of 14.6%. This showcases the company's efficiency in managing operational costs while maximizing output. The profit before tax stood at ₹305 crore.

Key Product Segments

Sumitomo Chemical's profitability is driven by several key segments:

• Insecticides and Herbicides: Represents the largest product category, contributing approximately 60% of total agrochemical revenue.
• Fungicides: Accounts for around 25% of the agrochemical segment.
• Plant Growth Regulators: Contributes 15% to the agrochemical revenue.

Market Expansion Strategies

The company focuses on expanding its market reach through strategic partnerships and product development. In 2023, Sumitomo Chemical India launched several new products in the agrochemical space, which led to a revenue increase of ₹250 crore. The company also emphasizes sustainability, which has enhanced its brand perception and opened avenues for new market segments.

Financial Performance Overview

Research and Development Investment

Investment in research and development (R&D) remains pivotal for Sumitomo Chemical India. The R&D expenditure for the fiscal year 2022-2023 was ₹80 crore, equating to approximately 3.2% of total revenue. This investment is aimed at product innovation, regulatory compliance, and improving agricultural productivity.

Global Market Presence

Sumitomo Chemical India exports approximately 20% of its total production to various international markets, including the USA, Europe, and other Asian countries. The export revenue in 2022-2023 reached ₹490 crore, highlighting the company’s ability to penetrate global markets effectively.

Future Outlook

Looking ahead, Sumitomo Chemical India aims to achieve a revenue target of ₹3,500 crore by 2025, driven by new product introductions and increased export activities. The company's commitment to sustainability and technological advancement positions it favorably within the competitive landscape of the chemical industry.