Tropical Agrosystem Eyes 22% Revenue Jump to ₹2,200cr in FY26 on Monsoon Boost, Patented Products

Chennai-based agrochemicals company Tropical Agrosystem is targeting a 22% jump in revenues to ₹2,200 crore this fiscal year, driven by a favourable monsoon and strong demand for its patented products, Chairman V K Jhaver said.

The company, which competes with MNC giants like Bayer, Syngenta and UPL, expects to turn debt-free by next fiscal and is exploring private equity funding instead of going public.

Tropical Agrosystem has launched three patented products including herbicide Tag Proxy and granular insecticide Tag Stem Lee, with three more slated for December launch. The company is confident of achieving ₹100 crore in sales from its new dual-action paddy insecticide Stem Lee alone this financial year.

"We have just introduced one patented product 'Stem Lee' for dual-action control of stem borer and leaf folder in paddy crops. I am confident that this product will have sales of ₹100 crore this year. I don't think it should be a problem to achieve ₹2,200 crore sales this year," Jhaver told PTI in an interview.

Despite uneven monsoon patterns across India, with some regions experiencing deficits, while others facing flood-like conditions, overall demand remains strong, he added.

The company's turnover stood at ₹1,800 crore during 2024-25 fiscal.

The company is expanding manufacturing capacity with new plants coming up in Kharagpur and Chennai, expected to start production next year. A third facility is planned in Gujarat where land has already been purchased, with construction to begin in 2026, he said.

The Chennai plant will manufacture the complete product range currently produced at its Secunderabad facility in Telangana, while the Kharagpur unit will focus on granular products, pesticides and weedicides.

Tropical Agrosystem will fund these expansions through internal accruals as it moves towards becoming debt-free. "I am very confident we will become debt-free because our EBITDA is getting better and better," Jhaver said.

The company is pursuing private equity investment for both Tropical Agrosystem and its subsidiary JE AgriScience rather than going public. "We are not going for an IPO. We are going for only private equity," Jhaver said, adding that discussions with potential investors have begun.

Export operations, currently in nascent stages, are expected to get a boost from next year as the company builds dedicated teams for biological and chemical products.

The company's key advantage against MNC rivals is competitive pricing, coupled with a dealer network of 22,000 partners pan-India. It also benefits from co-marketing arrangements with major players, particularly when their patents expire and generic manufacturing becomes available.

"When their products get off-patent, then everybody gets to manufacture these products. If you have the strength in the marketing team, then definitely selling will not be a problem," Jhaver noted.

On regulatory tailwinds, the chairman said the recent government ban on 30-40 year-old chemicals haven't impacted the company's operations. More importantly, regulatory approval timelines have improved dramatically -- from 5-7 years earlier, to just 1-1.5 years now.

"Now, you can get the product registered in about one to one-and-a-half years' time. So I don't think there should be a problem in getting new product registration," he said.

Addressing environmental concerns around agrochemicals, Jhaver noted India's per-hectare chemical consumption of 0.25 kilograms is far below Brazil's 14 kilograms and Australia and China's 2 kilograms each, indicating significant headroom for growth.

The company is expanding its biological product portfolio, with 8-10 products in development for launch over the next 3-4 years. It has already introduced "Digester," a product that addresses Punjab's stubble burning problem by decomposing crop residue within 10-12 days while providing natural fertilizer.

"In the next 2-3 years, every pest problem like caterpillar, sucking pest and mites, we are sure we will be able to control with our biological products," Jhaver said.

The Centre has approved 101 biostimulant products under the Fertilizer Control Order since May, with 20-30 more in the pipeline. Another 300 products await registration, expected to be cleared by December as the government fast-tracks approvals.

Tropical Agrosystem operates seven manufacturing facilities including two R&D centers, offering the full spectrum of agrochemicals, bioproducts, fertilizers and specialty products for integrated crop management.