Safex Chemicals Aims For 25% Growth In Formulation Business In India In 2024
By acquiring UK-based Briar Chemicals and strengthening its R&D efforts through innovations like Renofluthrin, India’s first domestically developed mosquito repellent molecule, Safex is setting the stage for transformative growth
SK Chaudhary, Founder-Director, Safex Chemicals
Founded in 1991, Safex Chemicals Group, over the years, has established itself as a fast-growing force in the chemical industry. Over the last five years, in particular, the company has shown impressive growth, with a revenue CAGR exceeding 25 per cent. This growth reflects Safex Chemicals' successful expansion across India and beyond, positioning itself firmly within the global value chain. Two years ago, Safex Chemicals took a significant step in its international expansion by acquiring Briar Chemicals, a leading agrochemicals Contract Development and Manufacturing Organisation (CDMO) in the UK.
This acquisition, the company's third major deal in recent times, has further solidified Safex's global presence. The company, at present, operates seven manufacturing units across India and the UK, proving its strong production capabilities. The company is backed by ChrisCap, further strengthening its financial and strategic position.
Speaking to Bizz Buzz exclusively SK Chaudhary, Founder-Director, Safex Chemicals, justifies its diversifications into different verticals of crop protection, explains the agricultural reforms needed in India and charts out company’s growth plans
Safex Chemicals has diversified into different verticals of the crop protection industry. Can you explain how each part of them helps Safex grow?
We began as formulators of agrochemical products, and over time, we diversified and expanded globally. Our business now includes agrochemical formulations, AI-driven crop protection solutions, CDMO services, and post-harvest seed protection. Each vertical contributes to our growth by enhancing our capabilities across the crop protection value chain. Agrochemical formulations remain our core business, providing high-quality products that boost agricultural productivity. Our CDMO services allow us to collaborate with industry leaders, strengthening our position in the market. Post-harvest seed protection ensures seed longevity and viability, supporting sustainable farming practices and farmer success. This is crucial given India's need to ensure food security for its 1.4 billion population and our efforts have helped us grow into a global player in the crop protection industry. Importantly, we've created an entire ecosystem within the crop protection sector. Through Shogun Organics, we have further accelerated our growth on the R&D front. From AI-driven solutions to formulations, and post-harvest protection, we offer comprehensive support at every stage of crop growth and protection. This holistic approach not only drives our growth but also positions us as a key player in advancing agricultural productivity on a global scale.
What are your current goals and what are the plans that you have at the back of your mind to reach those goals and make Safex Chemicals one of India's top crop protection companies?
Our vision is to care for all stakeholders, especially our customers, by offering top-tier products and services in the agrochemical industry. To achieve our mission of becoming one of the top five crop protection companies in India, we are committed to delivering high-quality and innovative solutions. We are aiming for a 25 per cent growth in our formulation business in India and further expanding our reach through our e-commerce app, 'Golden Farms'. Our approach aligns with the need to increase responsible use of agrochemicals in India, where current usage is low at 0.6 kg per hectare. We must keep in mind that by 2029, India's domestic agrochemicals market is anticipated to touch $13.08 billion and this indicates massive potential for growth and innovation in this sector.
How does Safex Chemicals use research and development to create new ideas and products in crop protection? Are there any new technologies or big ideas coming soon?
We place research and development (R&D) at the heart of our strategy for creating new ideas and products in crop protection and related fields. Our recent breakthrough with Renofluthrin, India's first indigenously developed and patented mosquito repellent molecule, created by our subsidiary Shogun Organics, exemplifies our commitment to innovation. This achievement, resulting from a decade of intensive research, demonstrates our willingness to invest time and resources in ground-breaking developments. Our R&D approach involves strategic partnerships, as seen in our collaboration with Godrej Consumer Products Limited for Renofluthrin. We focus on promoting self-reliance by reducing dependence on imported molecules and unregistered products.
With the global agricultural markets changing and what consumers want changing too, what steps is Safex Chemicals taking now to take advantage of opportunities and keep growing in the agrochemical industry in 2024?
We are taking proactive steps to capitalize on the evolving global agricultural markets and changing consumer preferences. We are focusing on innovation and sustainability to meet the demands of modern agriculture. Our commitment to high-quality products positions us well to adapt to market changes. We are leveraging our diverse business verticals, including precision farming solutions and post-harvest seed protection, to stay ahead of industry trends. Additionally, we are expanding our domestic formulations business and consolidating our presence in key export markets. Such initiatives position us to take advantage of opportunities and sustain our growth in the agrochemical industry in 2024.
What are your views on the agricultural reforms needed in India to support the growth of the agrochemical sector? How can these reforms potentially benefit companies like Safex Chemicals and contribute to the overall agricultural landscape?
We believe agricultural reforms in India are essential to support the growth of the agrochemical sector. We advocate for policy reforms that promote R&D for greater innovation and incentives to improve the quality of agri inputs. These reforms could help address challenges such as the high costs of air and water pollution treatment that impact the industry, increasing the overall production cost of low-value items. Addressing these challenges could enhance the availability, affordability, and accessibility of agrochemicals for many farmers.
