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Shareholding Info
  • Promoters
    32.35 %
  • Foreign institutions-FII
    38.69 %
  • Other domestic institutions
    9.78 %
  • Retail and other
    14.55 %
  • Mutual Funds
    4.62 %

United Phosphorus Limited (UPL) overview


Founded in 1969, United Phosphorus Ltd provides generic crop protection, chemicals and seeds to businesses worldwide. As an intermediate chemical company, the company provides bio solutions and manufactures agrochemicals and industrial chemicals. UPL currently operates globally and generates revenues of US$5,040 million.
Agrochemicals include agrochemical techniques and formulations, while the industrial chemicals segment consists of industrial and specialty chemicals. The company also owns a captive power plant in Zaghadia, Gujarat. The company has both patented and post-patent agricultural solutions for a range of arable and specialty crops. It provides crop protection, including biological, seed treatment and post-harvest treatments.
The company has 33 manufacturing units in 11 countries, including India.


UPL journey


The company’s key milestones since its inception are as follows:
  • 1969: The company introduces red phosphorus.
  • 1972: UPL receives the President’s gold seal for research and development (R&D).
  • 1976: The company enters the Agchem business and makes its first export.
  • 1980: It starts production of yellow phosphorus.
  • 1984: The company is listed on the Indian stock exchange markets.
  • 1994: The company makes its first international acquisition by acquiring UK-based MTM Agrochemical and commences operations in Zaghadia, Gujarat.
  • 1996: The company starts a caustic chlorine (Devrinol) plant in the US.
  • 2000: The company acquires Devrinol products in Japan.
  • 2004: The company establishes Ag Value Inc., USA, as a subsidiary of UPL.
  • 2005: UPL acquires the CEQUISA and REPOSO SAIC Argentina. The company signs an agreement with Biocentury of China and Nath Biogene (I) Ltd for the transfer of technology related to Bt cotton.
  • 2007: The company is awarded a national award for “Outstanding Research and Development on Pollution Control and Environmental Protection.”
  • 2008: The company is awarded the Rolta Corporate Award.
  • 2011: The company acquires a 51% stake in DVA Agro Do Brasil (DVA Agro Brazil).
  • 2013: The company is awarded the Ernst & Young Entrepreneur Award.

UPL - Initial Public Offering (IPO)


UPL launched its IPO in 1984. The company's stock was listed on NSE on January 23, 2004. The company's face value is ₹2. The company issued 75,06,07,641 capital shares on the stock market. The shares are traded at a P/E multiple of 36.89.

UPL products and key verticals


A major part of UPL's business is selling seeds and generic crop protection products. The company is headquartered in Mumbai, India. Some of the top products by UPL include:
  • Seeds
  • Red phosphorous
  • Devrinol
  • White phosphorous
  • Insecticides
  • Fungicides
  • Herbicides
  • Fumigants plant growth and regulators
  • Rodenticides
  • Yellow phosphorus
  • Caustic chlorine
UPL stock price return in 5 years – 4.3%.

UPL business highlights


UPL revenue overview

Income Statement

2022

2021

2020

2019

2018

Revenue (in crores)

₹16,449 

₹11,345

₹9,641

₹8,660

₹7,374

Other income (in crore)

₹631

₹113

₹506

₹560

₹435

Total income (in crore)

₹17,080

₹11,458

₹10,147

₹9,220 

₹7,809

Net profit (in crore) 

₹1,176

₹220

₹461 

₹405

₹548


UPL performance highlights


3-year CAGR (revenue)

22.8%

EBITDA (FY2021-22)

117.46%

Share price return in last 3 years

36%

ROCE (FY2021-22)

17.16%

ROE (FY2021-22)

22.76%


UPL management

  • Chairman and Managing Director: Rajnikant Shroff
  • Group CEO: Jai Shroff
  • Director: Vikram Shroff
  • Director (Finance): Arun Ashar
  • Independent Director: Pradeep Goyal
  • Independent Director: Reena Ramachandran
  • Lead Independent Director: Hardeep Singh
  • Independent Director: Vasant Gandhi
  • Independent Director: Naina Lal Kidwai
  • Independent Director: Suresh Kumar
  • Director: Carlos Pellicer
  • Whole-Time Director: Raj Tiwari

Indian agrochemical industry overview


The following are the key players in the agrochemical industry -
 

Key Players

Market Capitalization

November 2022

(in crore)

1.

UPL

₹59,363

2.

PIIND

₹51,320

3.

BAYERCROP

₹20,399

4.

SUMICHEM

₹23,470


Size of the Indian agrochemical industry


  • In 2020, India's agrochemical market was valued at almost USD 4.5 billion.
  • In India, the agrochemicals market is driven by the rapidly increasing population, which has resulted in adequate agricultural practices. This has made Indian agrochemical products more attractive to farmers.
  • As a result of the Indianization of the agrochemical industry, the sales of agrochemical products have increased. Population growth, food production demands and economic growth are also factors affecting the growth of the Indian agrochemical industry.

Industry growth prospects

  • Between 2021 and 2026, the market is forecasted to grow at a CAGR of 8.6% to reach almost USD 7.4 billion.
  • As part of the Asia Pacific (APAC) agrochemical market, the Indian agrochemicals market is one of the most significant markets.
  • As a result of the enormous consumption of pesticides and fertilizers for farming activities, the Asia Pacific region is growing at the fastest rate globally. This is due to the region's adoption of modern and advanced farming practices.

UPL growth prospects


UPL plans to concentrate on three growth prospects:
  • By FY2025-26, they plan on increasing the share of margin-accretive differentiated solutions to 50% of sales.
  • They want to enhance the product line by increasing the innovation rate from 21% to 30% over the next 3-5 years.
  • Using collaboration to access new technology, UPL expects to generate $2.5 billion in risk-adjusted revenue in the next five years.
  • As part of its expansion plans, UPL Ltd. plans to establish additional research and development centers. It plans to enhance its capabilities and improve its infrastructure.
  • The company is planning to develop non-infringing, cost-effective, eco-friendly, safe, and economically viable processes. They wish to employ green chemistry principles to develop post-patent and off-patent active ingredients.
  • The company also intends to develop formulations and combinations that are innovative, safe, cost-efficient, non-toxic and environmentally-friendly.

Risks and concerns


  • To develop newer molecules and build these capabilities, the industry will face challenges while also trying to stay afloat with the competition.
  • To ensure product distribution, retailers must ensure widespread and effective distribution channels. In recent years, companies have been directly dealing with retailers by cutting out the distributor, reducing distribution costs, educating retailers on product usage, and offering farmers competitive prices.
  • The promotion of integrated pest management, zero budget farming and use of bio-pesticides in agriculture.
  • Governments and NGOs in India are gaining momentum. Growing demand for organic food has led farmers in certain states, such as Karnataka, to reduce chemical use and adopt organic farming. As environmental awareness grows and pesticides are used more extensively, agrochemical companies must address concerns about negative effects on the environment.

Registrar


Link Intime India Pvt. Ltd.
Unit: UPL Limited
C-101, 247 Park,
LBS Marg,
Vikhroli (West),
Mumbai - 400 083
Contact No: 91-22-49186270
Fax No: 91-22-49186060
Email: rnt.helpdesk@linkintime.co.in
Website: www.linkintime.co.in

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