Basant Agro Tech (I) Ltd.

COMPANY PROFILE

Basant Agro Tech (India) Limited has been promoted by renowned 130 years old “Bhartia Group” from Akola along­ with Mr. C. L. Jhunjhnuwala an NRI business tycoon from Singapore in 1990. The company is listed on Mumbai Stock Exchange and is engaged in manufacturing and marketing of Fertilizers. The other activity of the company is research and development of Hybrid Seeds. The Company came out with Public Issue of equity shares at premium of Rs.5/- per share in 1994 which was oversubscribed by 10 times.  During August 2006 the company came out with the right issue of 47, 77,650 equity shares at a premium of Rs. 15/- per share and the said issue also was oversubscribed.

SEED DIVISION

The Seed Division of the Company is engaged in research and develop­ment of various hybrid seeds under the supervision and guidance of renowned Scientist Dr. B.G.Bathkal, Ex-Vice Chancellor of Dr. Punja­brao Deshmukh Krishi University. Dr.Bathkal is a distinguished  Scientist  and  well  known breeder who is credited with  pioneer  work  on development  of cytoplasm male sterility in cotton in the world  and is  associated  with R&D besides other breeders. The Company has got well equipped laboratory wherein the research is being carried on. The R & D Laboratory of the Company has been approved by Ministry of Science & Technology, New Delhi. The company has 300 acres fully equipped research farm, the laboratory as well as farms of the Company has been visited by delegations of Israel and other Euro­pean Countries as well as by World Bank Officials. They were impressed by the research undertaken and quality of the seeds developed by the Company particularly of colour Cotton, Sorghum, Sunflower, Maize, Groundnut, Urad, Chilly, and Sweet Corn etc. etc. The Seed Division of the Company is expected to give good results in the years to come. The Company has got the Germ Plasm for many seeds like millet, Sorghum, Cotton, Sunflower, and Maize etc. It is associated with the advanced research on many seeds under association with the ICRISAT Hyderabad. The performance of the seed division will be reflected in the financial results for the year 2004-05 and seed division will contribute substantially to the turnover well as profitability of the company from the year 2005-06. As many research products have been launch in market, and are market fancy today. The company is embarking in a seed business in a big way by giving contract farming for hybrid seeds productions and negotiating with foreign companies for tie-up for marketing of imported seeds. 

FERTILISERS DIVISION

The Company is the manufacturer of Fertilizers having Plants located at Akola in the Vidarbha Region of Maharashtra. The Kaulkhed Plant which was installed in 1994 is having capacity to produce 60,000 T.P.A. of NPK Granulated Mixed Fertilizer of various types.  The   Company installed second Plant in Kanheri Village to manufacture Single Super Phosphate  (SSP) Powder Fertilizers with 1,20,000 T.P.A. capacity and SSP Granules Fertilizers with 60,000 T.P.A. capacity. The Fertilizers of the Company under brand name "KRISHI SANJIVANI” has been well accepted by Farmers and the Company is registering record performance year after year.  The Company is well established in Maharashtra Madhya Pradesh, Chattisgarh and Andhra Pradesh. The company is now planning to market its Fertilizers in other States like Karnataka, Rajasthan and Western Maharashtra etc. The response is encouraging. The company has recorded highest ever turnover of fertilisers in quantitative terms as on 31.3.2006. The company has acquired the NPK mixture granulated fertilizer plant at Sangli having installed capacity 30,000 TPA which makes the total production capacity of the company of NPK mixture granulated fertilizer to 90,000 TPA. The company will be substantially benefited with the said acquisition because of the strategic location of the said unit. The company will be able to market its product into highly potential fertilizer market of western Maharashtra which includes the most fertile and irrigated area of Krishna basin. 

WIND POWER GENERATION UNIT

Recently the company has diversified into wind power generation. The wind turbine generator (WTG) plant of the company has started the power generation at Dhulia site. The technology for the said power generation plant was supplied by M/s Suzlon Energy Ltd. With the commencement of the activity of power generation the bottom line of the company is expected to improve. The said power generation activity is not only in commensurate with the national policy of the government of harnessing non conventional sources of energy but also helps in reducing the power deficit in the state of Maharashtra.

MARKET SCENARIO AND FUTURE PROSPECTS

There has been increased awareness in the Farmers for the use of Chemical Fertilizers to have better agricultural output and as a result of which the demand for Fertilizers is growing year after year.  Basant Agro due to its locational advantage has an edge over its competitors. It is situated at consumption centre. Wide network of its distributors and maintenance of good quality of Fertilizers has resulted in increase in the sale of Fertilizers of the Company. Its continuous efforts to minimize the cost of production are the basic key for the success in the very competitive fertilisers market. With the positive attitude of the central as well as state government towards the agricultural sector, it is expected that there will be substantial growth of agro-based industries in the years to come. The MRP of SSP has been increased by State Govt. after 5 years substantially. The subsidy on SSP fertilisers has also been raised by Central Government by Rs. 325 per MT. This will give big rise to top & Bottom line. There are 195 units producing 75 Lacs M.T. of SSP now there are only 50 to 60 units & demand is more. It is used in Basel dose in all crops like Cotton, Oil Seed, Sugarcane and Wheat etc. etc. It’s only Fertiliser that has sulphur. It is Poor man’s Fertiliser.

NPK mixture is better & cheaper than complexes. It has slow releasing nature & remains for long time in field. They are tailor made as per soil & weather condition.

CONCLUSION

Company has a strong presence in Agri Sector and is considered one of the leading players in Agro Based Industries. Agriculture has been and shall remain vital sector in Indian Economy and promises to have its dominant position in years to come. Basant Agro being part of this core sector shall be key contributor in the segment.