(i) Indofil Chemicals Limited was incorporated in 1962 as a subsidiary of Rohm and Haas Company, US. In 1985, the Company was merged with a listed company called Modipon Limited (MPL) and operated as a division of MPL till 2006. Thereafter, in 2007, Indofil was separated from MPL and transferred and vested with Indofil Organic Industries Limited (IOIL). Further, in 2010, IOIL was rechristened as Indofil Industries Limited (Indofil).

(ii) Indofil Industries Limited (Indofil) is a fully-integrated, multi-product chemical company, part of the K. K. Modi Group of Companies. Its expertise lies in the manufacturing, distribution, and marketing of agrochemicals and specialty chemicals.

(iii) Indofil provides high-quality crop care products to farmers and plays a significant role in helping them implement best practices in crop protection. Indofil has been able to augment growth with a focus on Research and Development (R&D) based product development and structured business, coupled with appropriate technologies and distribution networks.

(iv) Over the years, Indofil has provided best-in-class chemicals, both to the domestic and international markets. The products are accredited with international quality standards such as ISO 9001, OHSAS 18001, and ISO 14001. A consistent focus on innovation drives Indofil’s ambition to create an enterprise value of 2 billion dollars in the next three years.



Business Overview of FY18-19 

Key Indicators:

1.  R&D Investment of 45 Cr.

2.  No. of Products Brand 100+

3. Geographical Presence of 96+ Countries.

4. No. of Employees 1080. 5. No. of Patents held = 8

Subsidiaries Operations:

A large portion of the Company’s future growth is expected to be driven by the Company’s International business. The Company already has a sales presence in more than 95+ countries through its distributors, commissioning agents, etc. In the last 2-3 years, the Company has extensively invested in its key international markets like Europe, Brazil, and some AsiaPacific markets with an objective to:

a) Come closer to some of its key markets and customer.

b) Provide better client service to its customers.

c) Engaging in Value Added Distribution (VAD) activities by replicating its successful domestic distribution model in these countries. d) Expanding its registration portfolio which requires local presence in these markets.

Joint Venture Operations:

The Company had entered into a Joint Venture with Shanghai Baijin Group, China for the manufacture of Carbon – Di –Sulphide (CS2) as part of its backward integration strategy for key raw materials. The Joint Venture has ensured uninterrupted supply of this important raw material to Company, thus eliminating the need for import of CS2 and saving on foreign exchange outflow. Manufacturing Plans: 1. THANE,  MAHARASHTRA, 20,000(TPA) 2. DAHEJ UNIT 1, GUJARAT, 31,000 (TPA) 3. SYNTHESIS PLANT, DAHEJ UNIT 2, GUJARAT,4,000(TPA)

New Capacities: 1. EBDC PLANT, GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION (GIDC), DAHEJ, GUJARAT, 35,000(TPA). 2. INNOVATIVE SOLUTION PLANT, GIDC, DAHEJ, GUJARAT, 35,000(TPA) The Company drives 50% of the revenues from the International market.

Highlights of FY19-20

1. Commenced re-packing unit in Bangladesh, first-of-itskind outside India.

2. Expanded capacity, revamped supply chain, streamlined internal processes and developed capabilities of Indofil in line with customer aspirations.

3. Successfully shifted operations from Thane to Dahej without any hindrance from labour unions or local municipal bodies.

4. During the year under review, the Company’s Consolidated Income was down from 2,264 crores to 2,236 crores, recording a decrease of 1%. The Consolidated Profit Before Tax for the year stood at 66 crores for the year under review, as against 229 crores for the previous year.

5. The year under review was filled with challenges across all business units. On domestic front, heavy rain and hailstorm impacted yield and reduced farm income considerably.

6. On the International business front, the Company successfully sustained business volumes despite challenging global AgroChemical market conditions, aggressive pricing and competition. The Company has four operational Subsidiaries in Europe, Brazil, Philippines and Bangladesh. In Bangladesh, a new re-packing unit has been set up, the Company’s first facility outside India.

Export Market Highlights

1. For Indofil, Europe remains the largest market outside India. The European operations have been represented by Indofil Industries(Netherlands) B.V. which has been in operations since 2015. France, Italy, Spain remains the key focus areas.

2. Brazil stands as the largest Agrochemical Market in the world. Business in Brazil is also going strong with a variety of projects being carried out in two-way and three-way mixtures of Indofil products, along with the products of major agrochemical companies in Brazil and other multinationals.

3. Indofil Philippines Inc. had commenced commercial operations from May-2018. Besides, sourcing products from Indofil India, Indofil Philippines Inc. has also procured its product portfolio through in-licensed products from other agrochemical companies as well.

4. Bangladesh has been one of the first export markets for Indofil and remains one of the most strategic markets due to its similarities with the Indian market. They have established their presence in Bangladesh mainly focusing on developing our market, product acceptance, registration development and customer service.

Domestic business in FY19-20



 International Business FY19-20 

Fy24 Financial Performance of Indofil Unlisted Share

1. Revenue increased marginally from INR 3,095 Cr in FY23 to INR 3,118 Cr in FY24, reflecting a growth of just 1%. Despite an 18% volume growth, the fall in product prices limited revenue expansion. The international business experienced a robust 38% volume growth, with Brazil, Indofil’s largest market, showing an impressive 65% growth.The company also introduced three new products in the European market, which are expected to contribute to revenue growth in the coming years.

2. Gross margins improved from 37% in FY23 to 42% in FY24,driven by a softening in raw material prices, enhancing profitability.

3. Profit After Tax (PAT)rose significantly by 45%, increasing from INR 241 Cr in FY23 to INR 332 Cr in FY24, mainly due to the reduction in raw material costs.

4.In FY24, Indofil generated an operational cash flow of INR 426 Cr, a substantial turnaround from the negative INR 67 Cr in FY23. The company undertook a total capex of INR 67 Cr and made non-current asset purchases amounting to INR 25 Cr. With the surplus cash from operations, Indofil repaid INR 200 Cr of debt, paid INR 39 Cr in interest, and distributed INR 27 Cr in dividends. By the end of the fiscal year, the company had generated INR 217 Cr in cash from its business operations.

5. The Return on Equity (ROE) for FY24 stood at 8.5%, with Earnings Per Share (EPS) of INR 155.

Valuation of Indofil Unlisted Share

Currently, in the unlisted market, Indofil is available at INR 1,375 per share, with a market capitalization of INR 3,100 Cr and a P/E ratio of 10x

In comparison, Rallis India, a listed company and part of the Tata Group with a legacy spanning over 150 years, is trading at a P/E of 47x. Rallis India operates across the agrochemical value chain, offering products ranging from seeds to organic plant growth nutrients.

Bharat Rasayan Ltd, another player in the agrochemical sector, is trading at a P/E of 37x. The company specialises in the manufacturing of Technical Grade Pesticides and Intermediates used in the agrochemical industry.

Looking at the top listed 10 players in the agrochemical industry, the median P/E ratio is above 40, highlighting Indofil Is comparatively low valuation in the unlisted market

Indofil's current valuation in the unlisted market is being affected by two primary factors:

1. Ongoing Legal Disputes:The unresolved legal battle between Bina Modi (Chairperson and Managing Director) and her sons, Lalit and Samir Modi, over the division of family assets, including Indofil, Godfrey Phillips, and Modi Mills, has created instability. Investors are wary of this internal conflict, as it impacts the governance and strategic direction of the companies involved. The lack of clarity around control and ownership further dampens investor confidence.

2. No IPO Expectations: A major exit route for investors in the unlisted market is through an IPO, but with no foreseeable IPO plans for Indofil, investors are hesitant. The absence of an upcoming IPO limits liquidity and makes it difficult for investors to exit, which further suppresses demand and, consequently, the company's valuation. These two factors together contribute to why Indofil is not achieving the higher valuations seen by its peers in the agrochemical industry.