'Torry Super Should Cross Rs 50 Crore In FY26': Insecticides India MD | NDTV Profit
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00:00We've got Rajesh Agarwal now, Managing Director of Insecticides India, joining in.
00:05So, Agarwal, I'm very sorry to keep you waiting. We were in conversation with Uflex,
00:09and hence the delay. But let's start by what's happening in your company. Exciting times,
00:14you've launched Torysuper, which I believe is a post-emergence herbicide. You want to talk to
00:19me about the market size for Torysuper, what are you planning to do here, what sort of
00:24revenue targets are you setting out for the company with this launch?
00:27Yeah, Torysuper is the extension of our brand. We had launched one product called Tory
00:34two years back. So, Tory is a specialty herbicide for the corn segment, and as you know,
00:39there is maize sowing in the country is going up, and the acceptance of maize herbicides has
00:44gone up. So, this is a patented offering, which is a mixture of two products. Tory is already
00:50there, and we have mixed one more generic compound, Atrazine, with this, and it is a
00:54ready-made solution for the farmer, and the efficacy is amazing. So, whatever trials the
01:01team has taken in the fields, and whatever response which is coming from the farmer,
01:04it is amazing, actually. So, this is going to lead this maize market, and I'm very,
01:11very confident that this should become a big brand, because if I talk about Tory,
01:15Tory has already crossed 50 crores of turnover, and Torysuper should repeat the same
01:21in the next fiscal, but in this current year also, the beginning should be very good,
01:25actually. So, this is the product which is going to come in our focused brand's range.
01:29That is the expectation for the next fiscal. Right. So, now, break this down for me. You
01:32said Tory already is an existing product offering from insecticides, and you're already doing really
01:37well on this. With Torysuper, will you be upselling this to your existing farmers? I mean,
01:42how does the business work, or will this be a completely different client base, or customer
01:48base? It will be a mix of base, actually. So, since the material goes through the distributor
01:53network, so some distributors would like to play with the patented product. So, they might go for
01:59Torysuper, and the other sets of distributors, which will like to play in the competitive
02:03landscape, they might go with Tory. So, I believe that the farmer, as he goes advanced, and when he
02:09will see the results of Torysuper, he'll start opting for Torysuper. So, Tory, which is a
02:14developing product, and Torysuper will be the class product, actually, which will be a little
02:18premium product in the same. Right. So, Rajesh, Torysuper won't be eating into Tory's revenues,
02:24is that fair? Because I'd imagine as you upgrade, the customer base will move to more superior
02:29product, like you indicated, right? That's true, but my market share itself is very small,
02:35actually, roughly 8-10%. So, with such a small market share, I believe the two products are going
02:41to support, and they will help in increasing the market share further in the May segment. So,
02:46the vision is that we should lead the May's herbicide segment. Right, and when do you see
02:50revenues start flowing in from Torysuper? When will you be taking it to the market, and how soon
02:56will the revenue start ticking in, in terms of top line? Yeah, the revenue will be visible in this
03:01quarter itself, because in some parts of the country, particularly South India, Central India,
03:06and East India, there will be demand now. So, in the next three to four months also,
03:11we believe that we'll make a good beginning for this product. Is this a better margin product,
03:15Mr. Agarwal? Definitely, since it's a patented offering, so it comes in our Focus Maratna range.
03:22So, the revenue and the bottom line also for the company should be good. So, what is the margins
03:27that we're looking at on Torysuper specifically? It's a difficult question to answer, but generally,
03:33when they are the premium products, they are the products with better margins, of course.
03:36So, let's say two to three years out, where do you see the contribution of Torysuper to your top
03:41line? And where do you see Torysuper's contribution to your top line? And also, what is the, and I'm
03:45not asking you for the next quarter or the quarter after that, in two to three years, where do you
03:49see your top line at, and where do you see margins at? Like, we had very strategically started working
03:55on the herbicide segment, and we are trying to bring out the herbicides for almost all the crops,
04:00and yes, Torysuper is going to lead us in this May segment. So, we see a growth of Tory also
04:08coming, because Tory will be growing in volume, but value-wise, it might be deteriorating. So,
04:13that way, I can say it's already 50 crore plus, and if we talk three to four years down the line,
04:18there may be a possibility of Tory reaching somewhere around 100 crores. But I'm pretty
04:23sure in two years down the line, Torysuper should be able to reach 100 crores very easily.
04:29So, that is my assumption as of now. Right, and I mean, of course, because this is a patent
04:34product, there's enough time and money that probably has gone into bringing this product
04:38to the market. What is the debt equity currently at? And also, are investments in Torysuper now
04:45done? Or will you be spending more money to reach distributors to get this to the farmer?
04:52It's a routine exercise, actually. We are working on the products, then we are also working on the
04:58teams and the network, and of course, reaching the farmer. So, that's a continuous effort at IL,
05:02because what we are trying is from the generic product segment, we are trying to shift to the
05:07premium products. So, it is also the part of that exercise where Torysuper is one of the premium
05:12products which we wish to establish as the superstar. As you know, that the old generics
05:17are always under pressure, and slowly, you have to plan that how you can bring the new products
05:22by making them in India, by taking them to the farmer, and providing them a ready solution
05:27for which they are suffering. So, this is the effort in that segment, and definitely,
05:31it is going to contribute in a big way to us. Regarding the expenses, they are the part of
05:36our regular expenses, because we have divided our range into three segments. One is the premium
05:41products, and another is generic products. Premium products are further divided into
05:45focus maratnas and maratnas. So, focus maratnas are the products around which we advertise,
05:50around which we work in the field, around which we do more and more training of the farmers,
05:54and of course, because when you are working with the farmer, then you cannot differentiate the
05:59product. You have to give him the complete solution for the crop. So, at that time,
06:03you are working with him. So, I mean to say that there are no very special expenses around the
06:09product when you are working with the product, and since the R&D and everything is already done,
06:13all the trials are complete. So, this is the time for the final, it's going to the market,
06:18and the response, the initial response is very good. We had planned that we might make a beginning
06:24with 10-12 crores, but now the confidence is this first year itself in this small season,
06:31Rabi season itself, it should contribute more than that. That's fantastic to hear. So, the
06:36contribution, of course, outpacing your expectations as well. Let's talk about business.
06:40You know, normally what we understand is the second quarter is dedicated to Kharif season
06:47largely, and that leads to an increase in consumption of insecticides. Do you expect,
06:52and this is what are you hearing from your team, are you expecting the momentum to continue into
06:57this quarter as well? What can we expect? Is the euphoria still around? Because I do know
07:02Q3 and Q4 are softer than what we see for Q1 and Q2 in your business.
07:07Yeah, that's true actually, because our business is bagged by rainfalls and monsoons.
07:11They are generally in this third quarter. But this year, the monsoons have been pretty good.
07:18So, there was a challenge in Q2. Why? Because so much rains that the spraying time was minimum,
07:24but it has given an opportunity for Q3 because number one, the crops could not be harvested.
07:29There is a delay in harvest because of continuous rains. So, which means that some small sprays of
07:34Kharif will be available now. Kharif is the first season, Rabi is the second season now. So, now we
07:39are preparing for the Rabi season. For the Rabi season also, we are focusing on some new products,
07:44new herbicides and new insecticides which are going to enter into the market. There are series
07:48of launches which we are targeting for this Diwali season and we are very hopeful for a positive
07:53response. So, I'll not say that the tables will turn in a fashion, but yes, 60% of business happens
07:59in the first six months and 40% comes from the second six months actually in H2. So, but I can
08:07say that H2 should be better than what it was in the previous years because of these launches and
08:12these new products which are going to support us in a big way in the H2 also. So, we should be able
08:17to not only increase in our top line, but also in the bottom line. Just one quick last question,
08:23sir. In terms of guidance, you want to tell us what you're expecting for F525 in terms of revenue
08:28and margins? And I know there was a recent buyback as well, but I don't know whether you'll have time
08:31to talk about other plans. But just very quickly on both these fronts, what's the outlook? What's
08:37the internal objective? In terms of volumes, we have gone up. In terms of the premium products,
08:43our sales of premium products will grow not less than 20%. Overall, there will be increase in the
08:48volumes, but I'm not confident that by what percentage the revenue is going to go up. It
08:52might be a smaller percentage because the prices have come down in between. But since we are going
08:57to change the product mix and we are launching these new generation products, you will see the
09:00shift in the bottom line margins, which has come down after the COVID. But there was some increase
09:09in the previous year. There will be substantial increase in this year, and this will continue,
09:13actually. So, I can say that we are working on the bottom line more than the top line,
09:17and this will be visible in our results. Good luck, Mr. Garwala. I look forward to
09:23talking to you when you report your earnings in a few weeks. Until then,
09:26good luck and congratulations. We'll see you soon. Thank you. Thanks. With that, the market's
09:30still trading on tender hooks, half a percent higher on the Nifty, but sub 24,900 is what we
09:36have. Bank Nifty, though, outperforming the benchmark after many days. With that, completely
09:41out of time. So, we wrap up this edition of the Small and Mid-Cap Show. Keep watching NDTV Profit.