Why agrochemicals companies are set for tough times ahead2 min read 29 Mar 2023, 11:47 AM IST
In FY24, monsoon rains and kharif crop prices will be crucial factors for the domestic agrochemical industry. While moderating inventories will help volume growth going forward, it must be closely monitored. This is because any delay in sowing could again lead to inventory build-up.
The Indian agrochemicals industry has had a rough FY23 so far due to high raw material costs and inventory build-up in the market. These factors took a toll on revenue growth and margins, particularly in the December quarter (Q3FY23). For most companies, revenue growth was mainly price-driven, while volume growth remained muted.
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