Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities

How Distribution is an Important Element of Agrochemical Supply Chain

An effective distribution is the key to the effective supply chain of agrochemical products. Read on to explore how distributorship opportunities in agrochemicals can be lucrative.

By Features Writer
How Distribution is an Important Element of Agrochemical Supply Chain

With the population of 1.3 billion, food security is an arena that requires grave attention of the government. The chemical industry is aiding the agricultural sector to ensure food security and crop protection, agrochemicals being a major contributor. The inception of agrochemicals in order to increase crop protection was earlier seen in a bad light as chemicals were supposed to degrade the quality and fertility of soil. However, recent developments in agrochemicals have reduced the risks of infertility and are helping the soil to regain its fertility, hence increased demand of agrochemicals by big players of the industry.

Many insiders of the industry believe that agrochemicals supply chain is amongst the most complex chains as factors like are seasonal demand, unpredictability of pest attacks and high dependency on monsoons hinder the inventory and distribution of products. However, an effective distribution is the key to the effective supply chain of these products. Distributorship opportunities in this field are immensely lucrative as there are no signs of slowing down of the agrochemical industry for a long stretch of time in the future.

Indian Agrochemical Supply Chain: An Overview

As already mentioned above, the supply chain of agrochemicals industry is one of the most complex chains. The Indian Agrochemical supply chain constitutes of technical grade manufacturers, formulators producing end products, distributors and end use customers. According to sources, it is revealed that there are about 125 technical grade manufacturers, including about 10 multinationals, more than 800 formulators and over 145,000 distributors in India.

The top 10 companies capture the share of 75-80% in the whole market. The market share of large players depends primarily on product innovation and effective distribution channels. The market witnesses a number of mergers and acquisitions with large players buying out small manufacturers. Many companies seek distributors and form strategic alliances and partnerships in order to expand their market reach.

Growth Catalysts of Agrochemical industry

Globalisation of agrochemical industry creates a huge impact on the Indian market. The export-import culture has also given a hard push to the agrochemical industry.

With the high rate of population growth, the need for food production increases. The demands can only be fulfilled through improved product performance and productivity due to factors like land scarcity, soil degradation and water scarcity. So, agrochemicals are more essentials for farmers in order to meet the high demands of consumers.

How Distributorship can help the Industry Flourish

As already mentioned, there are so many barriers in the way of effective distribution of agrochemicals. There is a need to fill critical gaps in the channel information to make it more manageable.

With high inventory and end month skews (fall in monthly distribution), distribution of these products seems to be a little tricky. But, most companies have planned their distribution and have forecasted demand, planned protection, set sales targets and are competing to push stocks to distributors based on primary sales, without having an idea of actual demand and consumption by farmers.

Larger companies have a large distributor and retailer network, and partner more often to distributors by offering distributorship opportunities to aspirants. However the lack of efficient distribution system makes it difficult for smaller companies to reach farmers, hence more and more distributorship opportunities are created in the field of agrochemical distribution. Agrochemical distributorship has a long way to go due to its ever increasing value in the market and emerges as promising business opportunity for aspirants.

 

 

 

Comment
image
image
image
image
Related opportunities
  • Casual Dine Restaurants
    About: Gola Sizzlers is a well established authentic chain of restaurants..
    Locations looking for expansion Delhi
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Others Dealers And Distributors
    About Us: JanaJal is a unique ATM, conceptualized by the Supremus..
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Quick Service Restaurants
    To own a business in food & beverages industry, Chick..
    Locations looking for expansion Tamil Nadu
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Salem Tamil Nadu
  • ABOUT US : Ryder Cycles has the pleasure of introducing itself..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2019
    Investment size Rs. 20lac - 30lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts