Advance Agrolife
- Advance Agrolife is coming out with a 100% book building; initial public offering (IPO) of 1,92,85,720 shares of Rs 10 each in a price band Rs 95-100 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 30, 2025 and will close on October 3, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.00 times on the higher side.
- Book running lead manager to the issue is Choice Capital Advisors.
- Compliance Officer for the issue is Nisha Gupta.
Profile of the company
Advance Agrolife is an agrochemical company engaged in manufacturing a wide range of agrochemical products that support the entire lifecycle of crops. Its products are designed for use in the cultivation of major cereals, vegetables, and horticultural crops across both agri-seasons (Kharif and Rabi) in India. As on the date of March 31, 2025, the company has received 410 generic registrations comprising of 380 Formulation Grade registration and 30 Technical Grade registration for the agrochemicals.
The company’s major product portfolio includes insecticides, herbicides, fungicides, plant growth regulators. It also manufactures other agrochemical products such as micro-nutrient fertilizers and bio fertilizers. Further, the company manufactures Technical Grade and Formulation Grade agrochemicals products through its integrated Manufacturing Facilities. Technical Grade refer to the raw, unprocessed forms of active ingredients used in the production of agrochemical formulations such as pesticides, herbicides, fungicides, and fertilizers (Technical /Technical Grade). Formulations Grade are finished products that combine active ingredients, which target pests, weeds, or plant diseases, with additives that enhance performance, stability, and usability (Formulations/Formulation Grade). These components are carefully blended in specific proportions to achieve well-defined target characteristics, ensuring effective crop protection solutions. It manufactures formulation grade agrochemical in various forms such as water dispersible granules (WDG), suspension concentrate (SC), emulsifiable concentrate (EC), capsule suspension, Wettable Powder (WP), etc.
The company’s products are primarily sold domestically through direct sales to corporate customers on B-2-B basis, across the country, particularly in 19 states and 2 union territories. In addition to serving domestic market, its products were also exported to 7 countries including UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya and Nepal during the Fiscal 2025, Fiscal 2024 and Fiscal 2023.
Proceed is being used for:
- Funding working capital requirements of the company
- General corporate purposes
Industry Overview
Agrochemicals (Crop protection products) are designed to protect crops from insects, diseases and weeds. They do so by controlling pests that infect, consume or damage crops. Uncontrolled pests significantly reduce the quantity and quality of food production. The Food and Agriculture Organization (FAO) estimates that up to 40% of food crops are lost due to plant pests and diseases annually. Furthermore, food crops must compete with 30,000 species of weeds, 3,000 species of nematodes and 10,000 species of plant-eating insects. Agrochemicals are the last and one of the key inputs in agriculture for crop protection and better yield. Notably, India is in top 5 global producer of agrochemicals.
India, the world’s fourth-largest producer of crop-protection chemicals, stands as a foundation of the global agricultural landscape, trailing only the USA, Japan, and China. Contributing to 14% of the global market share, India’s crop-protection industry not only bolsters the nation’s economy but also drives growth in its agricultural sector. By enhancing crop yields and minimizing losses, the sector plays a pivotal role in meeting the food demands of both domestic and international markets. During 2019-2024, the market size of the global crop protection & nutrition industry grew at a CAGR of 6.2% on account of continuous growth in agricultural activities. After a steady growth till 2022, the industry observed a decline of about 2.4% in 2023 due to factors such as a slowdown in global demand, higher energy prices, and erratic monsoons. However, it is estimated to have grown by 2.2% y-o-y in 2024. The expansion will be attributed to the continuous upgrading of products and the development of technology and economic developments.
Further, Pesticides, also called agrochemicals, are used in agriculture to support the growth and safety of plants, protect crops from pests, and increase the yields of crops. They also protect crops from insects, diseases, and weeds. The mentioned benefits are the primary reasons that have supported the growth of this industry globally over the years. In addition to this, the sufficiency of global food production in the world to meet the requirements of the increasing world population has also been supporting the market of the pesticides industry globally. Moreover, the above-mentioned factors are expected to continue to provide support to the global pesticides industry. Thus, this market is expected to register a growth of around 6% during 2023-2029 and is likely to reach approximately $96,606 million by 2029.
Pros and strengths
Established, integrated manufacturing setup at strategic location: The company has three Manufacturing Facilities spread across a cumulative 49,543.35 sq.m of land at Jaipur, Rajasthan, having total annual installed capacity of 89,900 MTPA. Its Manufacturing Facilities are equipped with advanced machinery and equipment that enable the production of both Technical and Formulations while optimizing operational efficiency. The automation and technology integrated into its Manufacturing Facilities reduce manual intervention, enhance consistency, and productivity in manufacturing. This streamlined approach allows it to maintain cost efficiency, improve output quality, and scale production effectively to meet market demand.
Diversified product portfolio of agrochemical products: The company is a B2B agrochemical company engaged in the manufacturing of a diverse range of agrochemical products that support the entire crop lifecycle. Its products are used in the cultivation of major cereals, vegetables, and horticultural crops across both Kharif and Rabi seasons in India. It manufactures both Technical Grade and Formulation Grade agrochemical through its integrated Manufacturing Facilities. The company’s product portfolio includes insecticides, herbicides, fungicides, plant growth regulators and other products such as micro-nutrient fertilizers and bio fertilizers. The company’s diverse product portfolio, encompassing a wide range of agrochemical solutions, enables it to meet the evolving needs of its corporate customers while staying aligned with shifting market trends and regulatory requirements.
Track record of healthy growth: The company has demonstrated consistent growth in terms of revenues and profitability. Onwards year 2008, the company has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from Rs 26.37 million in Fiscal 2008 to Rs 5,022.60 million in Fiscal 2025 registering a CAGR of 36.18% in the last 17 years. Similarly, its profit after tax has grown from Rs 0.23 million in Fiscal 2008 to Rs 256.38 million in Fiscal 2025, registering a CAGR of 51.09% in the last 17 years. The significant growth of its business during the last three Fiscals have contributed significantly to its financial strength.
Established customer base and strong relationships: The company has established strong customer relations in the course of over 23 years of operating experience. One of the key factors differentiating it from its competitors is the quality of its products and customer centric approach of offering products meeting the customers’ specifications. This approach has helped it to not only grow its business but has also nurtured and expanded its market presence in the industry in which it operates. During Fiscal Years 2025, Fiscal 2024, and Fiscal 2023, the company served over 849, 1,194 and 1,135 corporate customers, respectively. Among these, approximately 94 customers have been with it for over 3 years, and 26 customers for over 5 years.
Risks and concerns
Maximum revenue comes from limited customers: A major portion of the company’s revenue from operations is dependent upon a limited number of customers. The company has garnered 69.47%, 54.91% and 46.44% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Geographical constrain: The company’s Manufacturing Facilities, Registered Office and Corporate Office are located in Jaipur in the state of Rajasthan, India, whereas a majority of its revenue from operations are generated from key agricultural belt states of India, including Rajasthan, Punjab, Uttar Pradesh, Haryana, Madhya Pradesh, and Gujarat which exposes its operations to potential geographical concentration risks arising from local and regional factors which may adversely affect its operations and in turn its business, results of operations and cash flows.
Dependent on few suppliers for raw material supply: The company depends on a few suppliers for the supply of raw materials. The company has procured 54.25%, 57.14% and 56.27% of its total raw material from top 10 suppliers in FY25, FY24 and FY23 respectively. Any failure to procure such raw materials from these suppliers may have an adverse impact on its manufacturing operations and results of operations.
Business is sensitive to weather patterns, seasonal factors and climate change: The company’s business performance is closely linked to weather conditions and seasonal trends that directly affect the agrochemical industry. Events such as droughts, floods, cyclones, unseasonal rainfall, pest infestations, and other natural disasters can influence the incidence of crop diseases and pest outbreaks, which in turn drive the demand for crop protection products. Adverse weather conditions, particularly drought, may result in reduced crop sowing and lower yields, leading to a decline in demand for its products. Such variability may cause significant year-on-year fluctuations in sales across different geographies.
Outlook
Advance Agrolife is engaged in the manufacturing of a wide range of agrochemical products that support the entire lifecycle of crops. The company's products are used in cultivating major cereals, vegetables, and horticultural crops across both Kharif and Rabi seasons in India. The company has diversified product portfolio of agrochemical products. The company has established customer base and strong relationships. On the concern side, a major portion of the company’s revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, the company is dependent on a few suppliers for the supply of raw materials. Any failure to procure such raw materials from these suppliers may have an adverse impact on its manufacturing operations and results of operations.
The issue has been offering 1,92,85,720 shares in a price band of Rs 95-100 per equity share. The aggregate size of the offer is around Rs 183.21 crore to Rs 192.86 crore based on lower and upper price band respectively. Minimum application is to be made for 150 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased 10.17%, from Rs 4,558.99 million in Fiscal 2024 to Rs 5,022.60 million in Fiscal 2025. Moreover, profit for the year increased 3.66%, from Rs 247.32 million in Fiscal 2024 to Rs 256.38 million in Fiscal 2025.
The company intends to focus on expanding its customer base, deepen relationships with existing customers by improving its existing products, and also increasing the number of products that it manufactures. The company aims to continue to maintain a strong track record of repeat orders from its existing customers as well as expand and strengthen its relationships as part of its organic growth efforts. Although its revenue from operations has grown between Fiscal 2023 and Fiscal 2025, it has been predominantly focused on the domestic market with small exports contribution. It aims to leverage its product portfolio, customer acceptance in domestic markets and its presence in export markets to expand into new international markets. Further, with its Manufacturing Facilities along with Proposed Facility and capabilities, it also intends to continue focus on increasing its domestic wallet share with existing customers and establish relationships with new customers.
