Tropical Agrosystem offers innovative formulations
Tropical Agrosystem (India) Pvt Ltd (TAIPL) is a transformed entity today. The Chennai-headquartered company, part of the Jhaver Group, has evolved into one of the fastest-growing players in the domestic agrochemicals business. Over the last few years, the Rs1,500 crore company, which was incorporated back in 1969, has made significant strides towards its transition into an organisation that has ramped up its capabilities to meet the diverse needs of the farming community.
From manufacturing and selling agrochemical products, TAIPL today offers complete crop protection and nutrition solutions (around 300 formulations) to over 80 million farmers across various geographies (25 states) of India and is also looking to expand its reach to overseas locations in Africa and Latin America in the coming years.
In fact, the company has grown over 3x to Rs1,450 crore in FY2024 from Rs460 crore in FY2015 and is fully geared up to maintain this momentum in the domestic agrochemicals market, which is expected to grow to around $13 billion by 2029 from around $8 billion at present.
Apart from growing domestic demand, the Indian agrochemicals sector is now increasingly serving global demand. In fact, India has become the second-largest exporter of agrochemicals after China. Over the last 5 years, exports have nearly doubled from $2.6 billion to around $5.5 billion
TAIPL today enjoys co-marketing partnerships and other collaborations with large Indian agrochemicals companies, as well as MNCs like BASF, Corteva, Syngenta, and Bayer. Apart from expanding its product basket, these arrangements have also allowed the company to offer the latest global solutions to the doorsteps of Indian farmers.
The company, backed by around 1,200 employees, over 20,000 distributors and retailers, and 4,000 field assistants, serves farmers across diverse agro-climatic zones. TAIPL’s solutions cater to a wide range of crops, including paddy, wheat, maize, sugarcane, soybean, tea, groundnut, cotton, as well as potato, tomato, onion, aubergine, cauliflower, chilli, and grapes.
Foray into biologicals
Driven by the commitment to shape the future of agri-farming and to meet the global challenges of food security, safety, and soil health preservation, the company, competing with players like Dhanuka Agritech, Insecticides (India), Rallis India, Krishi Rasayan, and PI Industries, today offers the widest range of full-spectrum agricultural solutions, from seed to harvesting and post-harvest. Moreover, advocating sustainable farming practices, in 2011 the company made a conscious decision to enter the biological products space across these segments.
In fact, it was one of the foremost players to envision the need for biologicals and entered this space by launching three biological insecticide products. At present, the company possesses an evolving portfolio that includes biological pesticides, fungicides, bio-organic fertilisers, bio-stimulants, and other organic nutrients.
Today, these bio-agri products/formulations account for over 20 per cent of the company’s overall portfolio, which boasts around 300 products/solutions not only in the field of crop protection but also for nurturing optimal crop growth and enhancing soil health. In the protection space, the formulations safeguard not only crops but also seeds and harvests.
“At TAIPL, sustainability is not just a buzzword; it’s ingrained in our core values, and our goal is to become the most sustainable brand in the crop protection and plant nutrition space. In 2011, we pivoted our focus towards the challenges of food security, safety, and soil health. This led us to the inception of a new vertical dedicated to residue-free farming and the introduction of bio-organic farming solutions. Our expansion into plant nutrition and post-harvest verticals further cements our commitment to sustainable agricultural practices. Through innovation, we strive to build resilient food systems, ensuring safe and reliable food for millions of farmers while improving global food security. We strongly believe that bio-organic farming solutions are the way forward for more meaningful and sustainable farming. In fact, as an organisation, we have also gained immensely with this approach and emerged as one of the trusted brands,” says V K Jhaver, 72, founder, TAIPL.
TAIPL has ramped up its offering in a very big way. Currently, it manufactures a wide range of solutions across crop protection (pesticides, herbicides, fungicides, and biological products); crop nutrition (plant growth regulators, bio-stimulants, chemical/organic fertilisers); decomposers; and speciality products (seed coating & post-harvesting products). To produce these formulations qualitatively and quantitatively, it has expanded its manufacturing capability in a major way.
At present, there are seven state-of-the-art manufacturing facilities strategically located across key agricultural regions: Sikandrabad & Loni in UP; Ambattur & Coimbatore in Tamil Nadu, Bengaluru in Karnataka, Sanand in Gujarat, and Kishangarh in Rajasthan. The company is also in the process of setting up a new facility (expected to be ready by May 2025) in Kharagpur, West Bengal, to serve farmers in the eastern region. Additionally, it is planning to relocate its Ambattur facility near Chennai to a newer location, with an estimated investment of around Rs150 crore for these two new facilities.
Strong R&D base
The company’s products undergo stringent quality checks and are manufactured in compliance with global norms and regulations. It holds numerous certifications. Backed by a strong R&D base, TAIPL has received Organic Certification from IMO for biological products. In 2019, it was awarded DSIR registration certification for its biological lab facility in Coimbatore. In 2020, TAIPL became the only company in India to obtain post-harvest product registration for 1-methylcyclopropene (1-MCP) – a cyclopropene derivative used as a synthetic plant growth regulator.
In 2022, the company was awarded WHO GMP certification for manufacturing pesticides, bio-fertilisers, and bio-stimulant formulations for the Sikandrabad factory. That same year, its lab at the Sikandrabad unit received NABL accreditation (ISO/IEC 17025:2017 certification), an achievement held by very few companies in India.
The Sikandrabad unit has also been awarded TÜV SÜD South Asia Certification for implementing a Quality Management System. In March 2023, a patent was granted for its bio-stimulant composition, NASA (organic manure). The flagship product, NASA, has been a runaway bestseller and has won praise from customers.
“We have developed the largest range of innovative technological agri-solutions, from seed treatment to post-harvest, which are end-to-end, user-friendly, resource-efficient, and economically viable. These solutions are based on the feedback of our agronomic professionals, who work with farmers to understand their challenges and help them address crop issues arising from weeds, diseases, pests, drought, excessive rain, and soil fertility. Currently, we have the largest range of bio-organic farming solutions in India. Our array of over 300 technological offerings reflects a blend of traditional wisdom and cutting-edge agronomic principles,” says G Mohan Kumar, President, TAIPL.
Associated with the company for the past two decades, Mohan Kumar is an expert in international agriculture management with over 40 years of proven expertise. A graduate in agriculture, he holds a post-graduate degree in management from the prestigious Indian Institute of Management (IIM), Ahmedabad. He also attended Thunderbird School of Global Management, University of Arizona, USA, to enrich his understanding of global business dynamics.
Mohan Kumar has been instrumental in defining the company’s business strategy and cultivating future-ready leaders equipped to meet emerging challenges. Passionate about sustainable agriculture, he has spearheaded numerous projects aimed at resilient and cost-effective farming.
“TAIPL has demonstrated a resilient growth trajectory, marked by a strong and diverse product portfolio, product quality, and an expanded distribution network. Increased sales in biologicals and plant growth regulators, as well as continued new product launches, have led to a healthy business risk profile.
TAIPL’s manufacturing revenues have steadily increased over the years, reaching around 76 per cent of overall sales during the first half of fiscal 2024, compared to 60 per cent in fiscal 2020. All these factors have firmly established TAIPL’s presence in the domestic agrochemical formulations industry,” says CRISIL Ratings, while upgrading its rating on the long-term bank facilities (Rs450 crore) of TAIPL to ‘CRISIL A/Stable’ from ‘CRISIL A-/Positive’.
“We are pleased with CRISIL’s upgraded rating, which underscores our commitment to financial prudence and sustainable growth. Our continued success is a result of the unwavering support from our valued channel partners, efficient operations, and strategic investments in expanding our product offerings. The increased demand for pesticides and the introduction of new biological farming solutions have been instrumental in driving our growth.
Despite challenges in FY24, including adverse El Nino conditions, we have remained on track to grow our bottom line by 25 per cent. This upward momentum is expected to continue, cementing the company’s position in the agrochemicals landscape, even as numerous global players have grappled with declining growth,” states Jhaver.
The TAIPL founder believes that the company’s co-marketing collaborations with leading multinational companies to offer farmers’ choice products have also strengthened its business risk profile. “Moreover, the adoption of ‘Heartfulness’ meditation practices in the workplace and fostering an ‘employees as one TAIPL family’ culture has also played a pivotal role in spearheading the company’s growth narrative. The upgraded rating from CRISIL is a testament to TAIPL’s steadfast commitment to excellence, resilience in the face of challenges, and strategic vision for sustainable growth in the agrochemical space,” adds the founder.
‘Heartfulness’ meditation
Most TAIPL employees practise ‘Heartfulness’ meditation and strongly feel that this helps them in their work, allowing them to perform their duties without stress. “In fact, through this meditation, we have become one small, happy family. Employees have seen the benefits of this, and today, at all levels — even in the field — most employees practice this simple meditation technique. We work as a family, and our founder, along with the core management team, is quite accessible and open to our suggestions and feedback. We feel that it is our own company, and with this mindset, most employees have been with the company for a much longer stint,” says Rajan Jadhav Vadghule, Development Manager, TAIPL. Pune-based Vadghule, engaged in the company’s field trials in the western region, has been with the company for around two decades.
A nature lover since childhood, Jhaver has been an enthusiastic practitioner of ‘Heartfulness’ meditation for the last 35 years. A visionary leader committed to revolutionising the farming sector, Jhaver has been the driving force behind the company’s transformation from its humble beginnings in 1969 to becoming one of the fastest-growing companies in the country.
Jhaver is a passionate advocate of sustainable agriculture, envisioning a future where farmers embrace biological products to reduce environmental toxicity and cultivate residue-free food. This vision currently serves as the foundation of TAIPL, reflecting the values of professionalism, ethics, and an unwavering pursuit of excellence.
Jhaver’s significant contributions to agriculture have garnered industry-wide recognition, notably earning him the prestigious ‘Entrepreneur of the Year’ award from the Indian Council of Food and Agriculture in 2016. His leadership has been acknowledged through invitations by the President of India to the ‘At Home’ receptions at the Rashtrapati Bhavan during the Independence Day Celebration of 2019 and the Republic Day Celebration of 2020.
Over the years, the company has meticulously curated a portfolio of a wide range of products and solutions, empowering farmers to tackle the challenges of modern farming. Among these, products such as Tag Bionik, NASA, Tag Carb N, and Humacid have become the preferred choices for farmers. The company pioneered Rhizobium biofertiliser seed coating technology in India, marketed under the successful brand ‘NITRORICH’. It also offers a wide range of biofertilisers, including FCO-grade products like Mycorrhiza (Tag Bionik), Potash derived from Rhodophytes (Tag K-20), and phosphate-rich organic manure, all developed in-house.
The TAIPL portfolio includes a range of innovative plant growth regulators. Its collaboration with Agrofresh Inc, USA, has led to the introduction of 1-methylcyclopropene (1-MCP), a plant growth regulator that enhances the storage quality of fruits. TAIPL is the only company in India to have a registration for this product, which is used for post-harvest treatment of apples and other climacteric fruits to improve storage quality and extend shelf life. Additionally, the company offers multiple environmentally friendly solutions, including PROPEL, an organic waste decomposer, and NASA, a patented biostimulant.
TAIPL has shown strong intent over recent years. Whereas it used to launch 3-4 new products or solutions annually, it now introduces 7-10 new formulations each year to meet the growing needs of farmers. The company has adopted a strategy focusing on formulations rather than developing technical-grade molecules, which are not only capital-intensive but also involve a lengthy gestation period. Furthermore, the company is proactive in collaborations and co-marketing efforts with large Indian companies and multinational corporations.
“Our strategy of focusing on formulations has greatly expanded our market reach. This model has also allowed us to serve a larger population of farmers facing multiple challenges. Apart from providing quality products, we have developed strong relationships with our distributors, from whom we regularly receive feedback on farmers’ needs. This has been invaluable in increasing our market share. Today, we are pioneers in the biological space and are counted among India’s top 5 agrochemical companies for brand sales,” says R Shanmuga Sai, VP of sales at TAIPL.
“What clearly differentiates TAIPL from others is its relationship with distributors. The company’s sales and field staff, as well as managers, constantly engage with us to understand market requirements. They listen to our suggestions and incentivise our initiatives. Over the past decade, the company has made remarkable progress on all fronts, and has established a distinct reputation. They have significantly broadened their product range and are well-equipped to meet farmers’ various needs under one roof,” says Anshuman Sahu of Jampalia Dookan. This Bargarh, Odisha-based distributor has been associated with TAIPL for the past 15 years and also sells agrochemical products from companies like Insecticides (India) and KR Lifesciences.
Building relationships
“Apart from building strong relationships with distributors, TAIPL works closely with farmers at the field level to address their issues in real time. They are also involved in numerous promotional activities and awareness programmes. Over the years, the company has significantly diversified its product range. In recent years, they have been quite proactive in launching new products to address farmers’ multiple challenges, which has helped them expand their market share,” states Ishwar Patil of Monica Agro Services. The Pimpalgaon, Nashik-based distributor has been supplying the company’s products for the past 20 years.
Experts believe that TAIPL, with its diversified portfolio, is well-positioned to leverage opportunities in the market, which is expected to maintain its growth momentum. Government initiatives promoting crop diversification are creating demand for speciality chemicals tailored to fruits, vegetables, and pulses. These crops are susceptible to specific pests and diseases that require targeted solutions.
Indian agrochemical companies can develop and market these speciality products to meet the evolving agricultural landscape. The increasing emphasis on sustainable agriculture practices, such as Integrated Pest Management (IPM), presents an opportunity for bio-pesticides, bio-fungicides, and other eco-friendly solutions. Developing and promoting these alternatives can position Indian companies as leaders in sustainable crop protection.
“We see a compelling opportunity in India’s agrochemical sector. Our focus on the domestic market allows us to capitalise on emerging opportunities. Moreover, favourable policies to support farmers and government initiatives aimed at doubling farmer incomes have created fertile ground for our business expansion. We are now focusing on building future-ready brands that can address challenges associated with pest and disease dynamics, supported by a rich pipeline of products,” says Rajesh Kumar Aggarwal, Managing Director of Insecticides (India) Ltd.
With these developments in place, TAIPL is ready to embark on its next phase of growth. In recent years, the company has significantly expanded its product range. Working closely with farmers, TAIPL has consistently upgraded and diversified its offerings, covering solutions from seeds to crops and even post-harvest stages.
It manufactures a wide range of solutions across crop protection, crop nutrition, decomposition, and speciality products, including seed coating and post-harvest treatments. Its conscious move into biologicals has yielded substantial returns and is expected to continue favourably impacting its growth trajectory.
The increasing emphasis on sustainable agriculture practices, like Integrated Pest Management, presents a substantial opportunity for bio-pesticides, bio-fungicides, and other eco-friendly solutions. Additionally, government initiatives promoting crop diversification are creating a demand for speciality chemicals.