Cheminova Project

BENCHMARKING OF CHEMINOVA INDIA’S (IMAGE) PRODUCT

AND SERVICES WITH RESPECT TO COMPETITION

IN THE FRUIT AND VEGETABLE SEGMENT OF CROP

PROTECTION INDUSTRY IN NASHIK MARKET

By

TARLE RAVINDRA KASHINATH

1116

Summer Internship

PGDABM 2011-2012 BATCH

UNDER THE GUIDANCE

OF

Proff. CHIRAG RATHOD

Submitted to

CHEMINOVA INDIA LTD

MAY-JUNE 2012

CENTER FOR MANAGMENT EDUCATION

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE

MANAGEMENT

Sector-30, Gandhinagar

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT

Sector-30, Gandhinagar 2

PREFACE

Practical study plays a vital role in the field of education. How management principles

are implemented in business can only be known through practical study, students can be very

well aware about industrial environment like problems, opportunities, different situations etc.

this helps the student for better understanding and also gives them a chance to show their

skills and ability.

This report throws lights to one of the key sector of Development. Agro-chemical

Industry, which has in the limelight due to its rapid development and emergence as a major

contributor to the export of country, which will lead towards the economic progress of the

country.

The report seems in such a manner that can give comprehensive and relevant aspect

about the Agro-chemical Industry and especially with respect to the Retailers’ Perception,

which is racing towards capturing the large part of Agro-chemical market of the country. The

project reflects on what are the Consumers’ expectations from the company through the

medium of consumer.

I hope that the report is fulfilling all the requirements as per the rules and regulations.



ACKNOWLEDGEMENT

I express my sincere gratitude to Cheminova India Limited for providing me chance

to be a part of such a reputed organization.

I would like to meet this opportunity to express my gratitude towards Mr.Soumendu

Gosh (Head-Marketing and Business Strategy) for providing me an opportunity to work as a

trainee.

I am thankful to Mr. Sushil Desai (Sr. Product Manager) Cheminova India Ltd.

Mumbai and also express heartiest gratitude to Mr. Amit Padol (Divisional Sales Manager)

Cheminova India Ltd, for granting me the permission to carry out this project in his esteemed

organization and for offering the dedicated guidance, valuable opinions, suggestions and the

much needed encouragement throughout my project work.

I would like to thank Miss. Pallavi Patil, Mr. Chaudhari sir, for their support and

entire Cheminova staff of Nashik for supporting me directly or indirectly for completing this

project.

I take immense pleasure in thanking Dr. A k Asthana, Regional Director of URICM

Institute of Management, Gandhinagar. Miss. Neelu pandey, Programme Director (PGDM-

ABM) for having preceded me to carry out this project work.

I also express my sincere thanks to Dr. Chirag Rathod, under whose guidance I

pursued my project and without whose kind help this project would not have been possible.

I would also like to express my sincere thanks to my parents for their blessing & all

respondents for their cooperation. I am extremely obliged and highly thankful to all those

who have contributed to completion of this project in my ways.



CERTIFICATE BY THE SUBJECT GUIDE

This is to certify that Mr. Ravindra Tarle, student of PGDBM Agri-Business

Management 2011-13, has completed the research and Project on the topic

‘‘Benchmarking of Cheminova India’s (Image) Product and services with

respect to competition in the fruit and vegetable segment of crop protection

industry in Nashik Market”.

The Project is based on the work done by the candidate himself and fulfils the

requirement of the project necessary for partial fulfillment of the PGDBM -

Agri-Business.

To the best of my knowledge and belief, the work has not been submitted

anywhere else for award of any diploma.

I wish them every success in life.

Mr. Chirag Rathod.

Faculty Guide



CERTIFICATE BY THE SUBJECT GUIDE

This is to certify that Mr. Ravindra Tarle, student of PGDBM Agri-Business

Management 2011-13, has completed the research and Project on the topic

‘‘Benchmarking of Cheminova India’s (Image) Product and services with

respect to competition in the fruit and vegetable segment of crop protection

industry in Nashik Market”.

The Project is based on the work done by the candidate himself and fulfils the

requirement of the project necessary for partial fulfillment of the PGDBM -

Agri-Business.

To the best of my knowledge and belief, the work has not been submitted

anywhere else for award of any diploma.

I wish them every success in life.

Dr. A. K. Astana

Director, URICM



DECLARATION

I the undersigned student of Post Graduate Diploma in Management (Agri-Business) 2011-

2013. Udaybhansinhji Regional Institute of Cooperative Management, Gandhinagar, hereby

declare that the report of the project work “Benchmarking of Cheminova India’s (Image)

Product and services with respect to competition in the fruit and vegetable segment of crop

protection industry in Nashik Market” is based my own work carried out during the course of

my study under the supervision of Mr. Sushil Desai. (Sr. Product Manager) and Mr. Chirag

Rathod

I assert that the statements made and conclusions drawn are an outcome of the project work. I

further declare that to the best of my knowledge and belief that the project report does not

contain any part of any work which has been submitted for the award of any other

degree/diploma/certificate in this University or any other University.

Ravindra K. Tarle

Roll No.: 1116



Benchmarking Of Cheminova India’s (Image) Product And Services With Respect To

Competition In The Fruit And Vegetable Segment Of Crop Protection Industry In

Nashik Market

Name of Student Name of Faculty guide

Ravindra Tarle Mr. Chirag Rathod

(1116)

EXECUTIVE SUMMERY

Agrochemicals are used to improve crop performance, yield or control pests, etc.

Agrochemicals are substances manufactured through chemical or biochemical processes

containing the active ingredient in a definite concentration along with other materials which

improve its performance and increase safety. For application, these are diluted with water in

recommended doses and applied on seeds, soil, irrigation water and crops to prevent the

damages from pests.

The global crop protection industry has registered a growth of 6% p.a. from 2005 to reach

USD 43.2 Bn in 2009. This market is expected to grow further owing to the increasing food

and fuel needs and is expected to grow at 4% p.a. to reach USD 54 Bn in 2015. The global

crop protection market is fairly consolidated with top nine companies accounting for over

80% of the market. Syngenta, Bayer and BASF are the market leaders in the global crop

protection market.

The crop protection chemicals accounts for 2% of the total chemicals market in India. The

domestic crop protection market is estimated at USD 1.8 Bn and has grown at 5 % p.a. in the

last five years. However, owing to greater export opportunities and introduction of newer

molecules the industry is witnessing high growth rates in recent times. Currently, the exports

of crop protection chemicals are estimated at USD1.6 Bn.



Cheminova India Limited is leading pesticide industry in India. Cheminova India Ltd.

headquartered at Mumbai is a wholly owned subsidiary of Cheminova A/S based in Lemvig,

Denmark. Cheminova India Limited is dedicated in providing crop protection solutions

through manufacturing and marketing of agrochemicals and its intermediates. Cheminova

India Limited has a broad portfolio of agrochemicals including insecticides, herbicides,

fungicides & growth promoters. Cheminova has been increasingly involved in the Indian

agrochemical market, which is one of the fastest growing markets in the world. In order to

strengthen its position in India, Cheminova acquired 100% stake in Lupin Agrochemicals

(India) limited in December 1997.The present study is on “- Benchmarking of Cheminova

India’s (Image) Product and services with respect to competition in the fruit and vegetable

segment of crop protection industry in Nashik Market”

The objectives are

To know the Awareness about the company in Farmers of Nashik Region.

To know the satisfaction of farmers and dealers of Nashik Region.

To know the factors influencing the purchasing decision of farmers.

Comparison of company’s image with competitor in the view of farmers and dealers.

To know the share of different segments like insecticide, fungicides, herbicide and

PGR in agrochemicals in Nashik Region

In the whole project two types of data collected was carried out, primary and secondary.

Present study was targeted to Nasik district of Maharashtra mainly of Niphad, Nashik and

Dindori block from Nashik region. Sample size was 125 farmers and 56 dealers. Sample

population was selected randomly from farmers growing all types of crops and dealers

dealing with Cheminova India ltd. Primary data collected from farmers through

questionnaires. Secondary data were collected from Cheminova company officials, journals,

local agri. Magazines, Agrowon, books of marketing and business research, focus interview

with farmers.



FINDINGS:-

A) Farmers Survey Findings-

1. The company is well known among the farmers for insecticide products and for

fungicides in grape growers.

2. Among all agrochemicals farmers of Nashik region use Fungicides most followed by

Insecticide, PGR’s and Herbicides.

3. Fruit and vegetable production is high in Nashik region, so the usage of fungicides is

highest as it is used as preventive measure followed by insecticide and herbicides as

curative measures.

4. The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of

Nashik region followed by vegetables like tomato, capsicum, brinjal and leafy

vegetables. In agronomical crops most crops grown are Sugarcane, wheat, maize,

soya bean and groundnut.

5. Farmers of Nashik region mostly prefer Bayer, Cheminova followed by Syngenta,

Tata Rallies and Dupont for purchasing insecticides. The farmers are well aware of

Cheminova products in Insecticide Segment as it has wide range of products at most

affordable rates in the market with quality product.

6. Syngenta is most preferred by farmers followed by Bayer, BASF, Tata Rallies and

Dupont in Fungicide Segment of Crop protection products. Cheminova is lacking in

fungicide segment as they are having limited product range in the category but the

products like Quatriz and Brunt are popular among Grape Growers.

7. Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product

in the market also it was observed that most farmers used loose chemical formulation

available at low rate in the market. But Glyfos Dakar is popular among the farmers

growing agronomical crops.

8. In PGR’s segment products like GA3, 6BA, NAA are highly used by Fruit and

vegetable growers in particular Grape and Capsicum. Products like GA3 are

purchased by farmers from Grapes Grower Association of Maharashtra (MRDBS), so

the products of Cheminova are less preferred.



9. Farmers of Nashik region consider Quality of product most important while

purchasing the agrochemicals followed by past experience of them or other farmers

regarding the product, Brand name of the company, Price of the product. Service by

the company and dealers recommendation are least preferred by farmers of Nashik

region.

10. According to the farmers prices of Cheminova India ltd are low in comparison to

other agrochemical companies. The quality, packaging and services are similar to

others while the availability is slightly high than other agrochemical companies.

11. Farmers especially grapes growers are demanding good fungicide formulations for

Downey mildew and Powdery mildew on grapes.

12. Farmers are complaining about the packaging of old products like Rogar and Classic.

B) Dealers survey findings:-

1. Through the survey of insecticide companies it is seen that Bayer crop science is

having highest sales of insecticide in Nashik Region followed by Syngenta,

Cheminova, Dupont, and Tata.

2. Cheminova is at 3rd

place in the sales of insecticide segment of agrochemicals as its

having a good range of insecticide at low price.

3. Syngenta is the market leader in Fungicide Segment followed by BASF, Indofil, Tata

Rallies and Cheminova in Nashik Region. Cheminova is lacking behind due to less

product range.

4. Excel Crop Care is having the highest Sales in Herbicide Segment.

5. Cheminova is least preferred for sale of PGR’s as farmers are purchasing it from the

Grapes grower Association of Maharashtra.

6. In the sales of dealers share of Fungicide is highest (31-40 %) followed by Insecticide

(21-30 %), PGR’s (11-20 %) and Herbicides (1-10 %) in Nashik region.

7. According to 75% dealers the sales of Cheminova are good in Nashik region.

8. 60-65% of dealers are satisfied with margins given by Cheminova India ltd.

9. 75-80% of dealers are satisfied with Timely Supply, Proper Schemes, Billing and

Cr.Note Accounting by Cheminova India Ltd.

10. According to dealers Cheminova products have low price, similar quality, margins,

brand reputation, demand by farmers, packaging, service and high availability at

Nashik region as compare to other companies.



11. Dealers are expecting more margins, sales promotion activities from company and

more product range in the category of fungicides and PGR’s.

RECOMMENDATION:-

Cheminova India Ltd should increase the product range in fungicide and PGR’s

category as they are more demanded by the Farmers.

The company is good in the sales of insecticides but it is not famous as a brand like

Bayer or Syngenta so, the company should increase it field work for promotion of

company in the form of field demonstration of its products, organizing farmers meet

on various agriculture aspects, advertisement of the product so the farmer can recall

the company easily.

The company should launch its own unique product in the market to create its own

brand image.

The company should improve the packaging of its product for attractiveness and

better keeping quality of Rogar and Classic

The company should provide more sales promotion schemes to dealers to motivate

them.



TABLE OF CONTENTS

Preface………………………………………………..

Acknowledge…………………………………………

Certificate…………………………………………….

Declaration……………………………………………

Executive Summery………………………………….

Chapter No. Particulars Page No.

1 Introduction

1.1 Industry Profile 18-30

1.2 Company Profile 31-39

2 Literature Review 40-48

3 Research Methodology 49-52

4 Data Analysis and Interpretation

4.1 Farmers Data Analysis and Interpretation 53-62

4.2 Dealers Data Analysis and Interpretation 63-73

5 Finding and Recommendation 74-76

Annexure………………………………………………

Bibliography…………………………………………..



LIST OF TABLES

Sr.No Particulars Page No

4.1.1 Crops Grown by most Farmers in Nashik region

53

4.1.2 Type of Agrochemical Used most in Nashik region 54

4.1.3 Companies preferred by farmers for purchase of

Insecticide

55


Fungicide

56


Herbicide

57


PGR’s

58

4.1.7 Awareness among Farmers about Cheminova India

Ltd.

59

4.1.8 Cheminova Product usage by Farmers 60

4.1.9 Factors Considered while purchasing Agrochemicals 61

4.1.10 Comparison of Cheminova with Other Companies 62



LIST OF TABLES


4.2.1 Education of Dealers 63

4.2.2 Companies having Highest Sales of Insecticide in

Nashik Region.

64

4.2.3 Companies having Highest Sales of Fungicide 65

4.2.4 Companies having Highest Sales of Herbicide 66

4.2.5 Companies having Highest Sales of PGR’s 67

4.2.6 Share of different segments in dealer’s sale of

Agrochemicals

68

4.2.7 Dealers view regarding Sales of Cheminova India Ltd. 69

4.2.8 Level of Dealers Satisfaction with Present Margins of

Cheminova India Ltd.

70

4.2.9 Satisfaction of Dealers with respect to Timely Supply,

Proper Schemes, Billing and Cr.Note Accounting by

Cheminova India Ltd

71

4.2.10 Comparison of Cheminova with other companies by

dealer

72

4.2.11 Dealers opinion on Service of Cheminova India Ltd. 73



LIST OF GRAPHS


1.1 Loss caused by different pests 19

1.2 Global Market size 20

1.2.1 Market distribution by product category 21

1.2.2 Market distribution by crop 21

1.3 Crop protection market 22

1.3.2.1 Per capita consumption 23

1.3.2.2 Market distribution by product category 24

1.3.2.3 Crop wise pesticide consumption 25

1.3.2.4 State wise pesticide consumption 26

1.3.3 Future growth scenario 27

3.1.1 Map of Nashik district 50



LIST OF GRAPHS


4.1.1 Crops Grown by most Farmers in Nashik region

36

4.1.2 Type of Agrochemical Used most in Nashik region 37


Insecticide

38


Fungicide

39


Herbicide

40


PGR’s

41

4.1.7 Awareness among Farmers about Cheminova India

Ltd.

42

4.1.8 Cheminova Product usage by Farmers 43

4.1.9 Factors Considered while purchasing Agrochemicals 44

4.1.10 Comparison of Cheminova with Other Companies 45



LIST OF GRAPHS


4.2.1 Education of Dealers 46

4.2.2 Companies having Highest Sales of Insecticide in

Nashik Region.

47

4.2.3 Companies having Highest Sales of Fungicide 48

4.2.4 Companies having Highest Sales of Herbicide 49

4.2.5 Companies having Highest Sales of PGR’s 50

4.2.6 Share of different segments in dealer’s sale of

Agrochemicals

51

4.2.7 Dealers view regarding Sales of Cheminova India

Ltd.

52

4.2.8 Level of Dealers Satisfaction with Present Margins

of Cheminova India Ltd.

53

4.2.9 Satisfaction of Dealers with respect to Timely

Supply, Proper Schemes, Billing and Cr.Note

Accounting by Cheminova India Ltd

54

4.2.10 Comparison of Cheminova with other companies by

dealer

55

4.2.11 Dealers opinion on Service of Cheminova India Ltd. 56



INDUSTRY OVERVIEW

1.1. Introduction to Agrochemicals

With increasing population, demand for food grains is increasing at a faster pace as compared

to its production. Moreover, every year, significant amount of crop yield is lost due to non

usage of crop protection products.

Agrochemicals are used to improve crop performance, yield or control pests, etc.

Agrochemicals are substances manufactured through chemical or biochemical processes

containing the active ingredient in a definite concentration along with other materials which

improve its performance and increase safety. For application, these are diluted with water in

recommended doses and applied on seeds, soil, irrigation water and crops to prevent the

damages from pests.

There are broadly 5 categories of crop protection products:

1. Insecticides: Insecticides protect crops by killing insects or preventing their attack.

Insecticides may attack a particular type of insect or could be broad spectrum insecticides.

Insecticides are used to manage the pest population below the economic threshold level. E.g.

Chlorpyrifos is used to control insect pests in crops such as cotton, corn almonds, etc.

2. Fungicides: They are used to prevent the deterioration of crops due to fungi infestation.

Fungicides are classified as protectants or eradicants. Protectant fungicides prevent or inhibit

fungal growth and may have to be applied at regular intervals. Eradicant fungicides kill the

pests on application. E.g. Anilazine is used to control fungal attack on lawns and turfs,

cereals, coffee and various vegetables and other crops.

3. Herbicides: Herbicides or weedicides are used to prevent the growth of unwanted plants in

a crop field. Herbicides could be selective, which kill the unwanted plants without any harm

to the crop, or non-selective which kill all the plants. E.g. Glufosinate ammonium, a broad-

spectrum contact herbicide, is used to control weeds after the crop emerges or for total

vegetation control on land not used for cultivation.



4. Bio pesticides: These are derived from natural substances like plants, animals, bacteria and

certain minerals and control pests by nontoxic mechanisms. Bio-pesticides are considered

ecofriendly and easy to use. They could be classified as microbial pesticides, plant

incorporated protectants and biological pesticides. They are of low volume and high effect

formulations and require lesser dosages as compared to chemical pesticides. A growth area

for bio-pesticides is in the area of seed treatment and soil amendments. Example of bio-

pesticides includes Bacillus subtilis which is used as soil inoculant in horticulture and

agriculture.

5. Others (Nematocides, Rodenticides etc): Fumigants and rodenticides are used to prevent

the attack of pests during storage of crops. Plant growth regulators control or modify the plant

growth process and are most commonly used in cotton, rice and fruits. As per Govt. of India,

crop losses due to non-usage of pesticides were 28% of the yield amounting to Rs. 90,000 Cr

per annum (2002 estimated). It is estimated that the present food grain production can jump

from 3 Trillion to 4 Trillion by using crop protection products. Therefore, right usage of crop

protection chemicals is essential in increasing agricultural production by preventing crop

losses before and after harvesting.



1.2. GLOBAL MARKET OVERVIEW

The global crop protection industry has registered a growth of 6% p.a. from 2005 to reach

USD 43.2 Bn in 2009. This market is expected to grow further owing to the increasing food

and fuel needs and is expected to grow at 4% p.a. to reach USD 54 Bn in 2015.

1.2.1 Distribution of global crop protection market - Product category

Herbicides are the most widely used agrochemical products globally, followed by insecticides

and fungicides. Fungicides is the highest growing segments as it helps increasing yield,

improving quality and in seed treatment. Individual sales of various categories however

depend on climatic conditions and crop variance.

Herbicides are used in most of the regions of the world. However, major markets for

herbicides are North America and Europe due to the favourable climatic conditions in these

regions. Insecticides are more prevalent in Asian countries. This is due to higher growth of

cotton, cereal, fruits and vegetables in these regions which have higher incidence of insect

attacks. Increased usage of genetically modified crops in North America has reduced the

usage of insecticides. Fungicides are used in almost all agriculture markets of the world due

to favourable climatic conditions for the fungal growth.



11

1.2.2 Distribution of global crop protection market - Crop-wise

Globally, fruits and vegetables and cereals account for the largest share of the crop protection

industry.



1.3. INDIAN MARKET OVERVIEW

The crop protection chemicals accounts for 2% of the total chemicals market in India. The

domestic crop protection market is estimated at USD 1.8 Bn and has grown at 5 % p.a. in the

last five years. However, owing to greater export opportunities and introduction of newer

molecules the industry is witnessing high growth rates in recent times. Currently, the exports

of crop protection chemicals are estimated at USD1.6 Bn.

1.3.1 Industry structure

The crop protection industry in India is generic in nature with 80% of the molecules being

non patented. Hence, strong distribution network and brand image act as competitive factors.

Crop protection chemicals are manufactured as technical grades and converted into

formulations for agricultural use. The crop protection industry consists of technical grade

manufacturers, formulators producing the end products, distributors and end use customers.

According to Pesticide Monitoring Unit, GOI, there were about 125 technical grade

manufacturers, including about 10 multinationals, more than 800 formulators and over

145,000 distributors in India in 2007. Over 60 technical grade pesticides are being

manufactured indigenously. Technical grade manufacturers sell high purity chemicals in bulk

(generally in drums of 200-250 kgs.) to formulators. Formulators, in turn, prepare



formulations by adding inert carriers, solvents, surface active agents, deodorants etc. These

formulations are packed for retail sale and bought by the farmers.

1.3.2 Indian market scenario

India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower

is a net exporter of pesticides to countries such as USA and some European and African

countries. Exports formed 47% of total industry turnover in Fy10. The industry suffers from

high inventory (owing to seasonal and irregular demand on account of monsoons) and long

credit periods to farmers, thus making operations 'working capital' intensive.

1.3.2.1 Domestic consumption

Consumption of crop protection products in India is among the lowest in the world. Per capita

consumption of crop protection products in India is 0.6 kg/ ha compared to 13 kg/ ha in China

and 7 kg/ ha in USA. Some of the reasons for low consumption in India are low purchasing

power of farmers, lack of awareness among farmers, limited reach and lower accessibility of

products. This presents an immense opportunity for the crop protection industry to grow in

India



1.3.2.2 Distribution of domestic crop protection market - Product category

Insecticides form the largest segment of the domestic crop protection chemicals market

accounting for 55% of the total market. It is mostly dependent on rice and cotton crops.

Herbicides are the largest growing segment and currently account for 20% of the total crop

protection chemicals market. Sales are seasonal, owing to the fact that weeds flourish in

damp, warm weather and die in cold spells. Rice and wheat crops consume the major share of

herbicides. Increasing cost of farm labour will drive sales of herbicides going forward.

Fungicides, accounting for 20% of the total crop protection market, are used for fruits and

vegetables and rice Farmers moving from cash crops to fruits and vegetables and government

support for exports are increasing the fungicides usage. Biopestiocides include all biological

materials organisms, which can be used to control pests. Currently a small segment, bio-

pesticides market is expected to grow in the future owing to government support and

increasing awareness about use of non-toxic, environment friendly pesticides. With

increasing penetration of BT cotton, usage of insecticides has witnessed a decline in the

recent past. Its share in the total crop protection chemicals has reduced from 69% in 2004 to

55% in 2009. On the other hand, share of herbicides and fungicides has increased from 17%

and 13% respectively in 2004 to 20% each in 2009. This is due to increased focus on fruits

and vegetables and higher awareness levels among end users.



1.3.2.3 Distribution of domestic crop protection market - Crop-wise

Paddy and cotton are the major consumers of crop protection chemicals accounting for 28%

and 20% respectively of the total domestic crop protection chemicals market. Fruits and

vegetables also account for a significant share of the crop protection chemicals market.

In recent years, consumption of insecticides has decreased due to the

introduction of BT cotton, which has lower risk of pest attacks. As a result, pesticides usage

on cotton as % of total has decreased from 33% in 2005 to 20% in 2009. On the contrary,

pesticides usage in paddy has been increasing mostly due to increased popularity of hybrid

varieties of rice, which require higher amount of pesticides. Share of paddy in the total crop

protection chemicals has increased from 24% in 2005 to 28% in 2009.



1.3.2.4 Distribution of crop protection Market - State-wise

The top three states Andhra Pradesh, Maharashtra and Punjab account for ~50% of the total

pesticide consumption in India. Andhra Pradesh is the largest consumer of pesticides with a

share of 24%.

1.3.3 Future Outlook

Since the Indian agricultural sector is highly dependent on monsoons, the market for

agrochemicals is expected to grow at a conservative growth rate of 8% p.a. to reach USD 3.5

Bn by FY20. Exports are expected to grow at a higher rate of 15% p.a. to reach USD 7.3 Bn.

by FY20.



1.3.4 KEY GROWTH DRIVERS INCLUDE:

1. Increasing demand for food grains: India has 16% of the world's population and less

than 2% of the total landmass. Increasing population and high emphasis on achieving food

grain self-sufficiency as highlighted in the FY10 budget, is expected to drive growth.

2. Limited farmland availability: India has ~190 Mn hectares of gross cultivated area and

the scope for bringing new areas under cultivation is severely limited. Available arable land

per capita has been reducing globally and is expected to reduce further. The pressure is

therefore to increase yield per hectare which can be achieved through increased usage of

agrochemicals.

3. Low Productivity: India has low crop productivity as compared to other countries.

Average productivity in India stands at 2 MT/ha as compared to 6 MT/ha in USA and world

average of 3 MT/ha. At the same time, India's pesticide consumption is also low at 0.60 kg/ha

as compared to the world average of 3 kg/ha. Hence, increased usage of pesticides could help

the farmers to improve crop productivity.



4. Growth of horticulture and floriculture: Buoyed by 50% growth experienced by Indian

floriculture industry in last 3 years, Government of India has launched a national horticulture

mission to double production by 2012. Growing horticulture and floriculture industries will

result in increasing demand for agrochemicals, especially fungicides.

5. Increasing exports: Indian companies have successfully expanded into other geographies

for exports and this trend has been increasing in recent times.

6. Availability of credit facilities: Govt. initiatives to provide credit facilities to farmers in

the rural areas will provide boost to the agriculture industry. Access to finance would

encourage them to use more pesticides in order to improve the crop yield. Govt. of India has

set a target of Rs. 375,000 Cr for 2010-11. Loans are provided at lower interest rate of 6%

with 2% rebate on timely payment.

7. Rural Infrastructure and IT: Linking the production areas with the market would help in

easy distribution of pesticides. IT services would help create awareness among farmers and

educate them for optimum use of crop protection chemicals.

8. Increasing awareness: As per Government of India estimates, total value of crops lost due

to non-use of pesticides is around Rs. 90,000 Cr every year (2002 estimates). Companies are

increasingly training farmers regarding the right use of agrochemicals in terms of quantity to

be used, the right application methodology and appropriate chemicals to be used for

identified pest problems. With increasing awareness, the use of agrochemicals is expected to

increase.

9. Product portfolio expansion: Threats like genetically modified seeds, Integrated Pest

Management, organic farming etc. can be turned into opportunities if the industry re-orients

itself to better address the needs of its consumers and broadens its product offering to include

a range of agri-inputs instead of only agrochemicals.



1.3.5 KEY CHALLENGES

1. Low focus on R&D by domestic manufacturers due to high costs: R&D to develop a

new agrochemical molecule takes an average of 9 years and USD 180 Mn. Indian companies

typically have not focused on developing newer molecules and will face challenges in

building these capabilities, while continuing to remain cost competitive.

2. Lack of education and awareness among farmers: The main point of contact between

the farmers and the manufacturers are the retailers who are generally not technically sound

and are not able to provide a proper understanding of the product to the farmers. Also, very

often farmers are not able to communicate their needs effectively to the manufacturers.

3. Need for efficient distribution systems: Since, the number of end users is large and

widespread, effective distribution via retailers is essential to ensure product availability.

Lately, companies have been directly dealing with retailers by cutting the distributor from the

value chain thereby reducing distribution costs, educating retailers on product usage and

offering competitive prices to farmers.

4. High post harvest losses: Post harvest losses of crops are estimated at Rs. 140,000 Cr

every year. Supply chain inefficiency and inadequate infrastructure are the major causes for

such losses.

5. Spurious products: There is a significant share of spurious pesticides and spiked bio-

pesticides. According to pesticides industry body, Agrochemicals Policy Group (APG),

spurious and substandard pesticides worth Rs. 1200 Cr were sold in India in 2009. These

products not only fail to kill pests but also inflict damages on crops. APG pegs the crop losses

due to these spurious products at Rs. 7,000 Cr in 2009.

6. Support for Integrated Pest Management (IPM) and rising demand for organic

farming:

Promotion of IPM, zero budget farming and usage of bio-pesticides by Indian Government

and NGOs is gaining momentum. With increasing demand for organic food, farmers in

certain states like Karnataka have reduced chemical usage and have adopted organic farming.



Agrochemical companies will have to tackle the rising environmental awareness and address

concerns on negative impact of pesticide usage.

7. Threat from Genetically Modified (GM) seeds: Genetically modified seeds possess self

immunity towards natural adversaries which have the potential to negatively impact the

business of agrochemicals.

8. Longer period for registration of innovative products: In India, registration of new

products takes 3-5 years which discourages domestic manufacturers.



CHEMINOVA INDIA LTD

Corporate office:

“Keshava” 7th Floor, Bandra - Kurla Complex,

Bandra (E), Mumbai - 400 051

Tel: (+91)-22- 67045504

Fax: (+91)-22- 67045478, 67045488

Mail: [email protected]

Cheminova India Ltd. headquartered at Mumbai in India is a wholly owned subsidiary of

Cheminova based in Lemvig, Denmark. Cheminova India Ltd. was formed when Lupin

agrochemicals (India) limited was acquired by Cheminova A/S in December 1997.

Cheminova India Limited is dedicated in providing crop protection solutions through

manufacturing and marketing of agrochemicals and its intermediates. The company has three

state-of-the-art independent sites at Panoli (Gujarat), with an impressive portfolio of

manufacturing Technicals, Intermediates and Formulations.

The company is one of the leading crop protection chemical companies in India and employs

around 480 people in manufacturing, marketing and other allied services in the country.

The company is committed to safety and health of the Indian farmers, employees and other

stakeholders and abide by all guidelines of environment protection by making high capital

investments. The company lays special focus on safe use & handling of its products,

intermediates at all levels during marketing & distribution.

Cheminova India Limited has a broad portfolio of agrochemicals including insecticides,

herbicides, fungicides & growth promoters.

History

Since the 90's, Cheminova has been increasingly involved in the Indian agrochemical market,

which is one of the fastest growing markets in the world. In order to strengthen its position in

India, Cheminova acquired 100% stake in Lupin Agrochemicals (India) limited in December

1997. Subsequently Lupin Agrochemicals (India) Limited was renamed as Cheminova India

Limited.



Since the acquisition, Cheminova has invested in upgrading and expanding the existing

capacities in the production of Technicals of Monocrotophos, Dichlorvos, Quinalphos,

Acephate and Intermediates like TMP, DEPCT and PCl3, P2S5 as well as environment and

safety issues. Cheminova India Limited has also large capacities to manufacture

Chlorpyriphos, Imidacloprid and Triazophos. Recently, the company has expanded its

production capacities to manufacture Thiacloprid, a neonicotinoid insecticide to control

sucking pests on crops.

Today, Cheminova India Limited is an important manufacturer and marketeer of

Monocrotophos, Dichlorvos, Acephate, Quinalphos, Triazophos, Imidacloprid and

Thiacloprid - and is continuously expanding its portfolio with new products.

MISSION

We help improve quality of life for the world’s population by supplying products that help

farmers increase yields and quality of crops to satisfy the global demand for food, feed, fiber

and energy.

VISION

We create results for our customers by being a sustainable and innovative world-class

supplier of a broad range of quality crop protection products. Value creation shall match the

best among peer companies to the benefit of all stakeholders.

VALUES

• We achieve ambitious goals

• We are innovative

• We decide and act

• We recognize results

• We are good corporate citizens

• We appreciate and encourage team spirit



Market Development

Marketing activities comply with the FAO’s “Code of Conduct” and the principles of

“Responsible Care”. In cooperation with local authorities and through the international

organisation GCPF, the company strives to ensure the correct application of plant protection

products and its safe use. Cheminova only markets pesticides in India that have been

approved or are being approved for introduction by their principle in Denmark.

Cheminova is committed to sustainable agriculture through innovative, state-of-the-art

formulations and high-tech manufacturing. With the investment of significant financial and

scientific resources, Cheminova not only conducts the tests necessary to maintain product

registrations, but also invests heavily in product improvement and safer formulation

development.

Our team of qualified and experienced scientists constantly experiment through field testing

of our products under different agro climatic conditions throughout the country to ensure and

maintain the high standards of our products performance.

CIL also enjoys the privilege of exclusive distributorship and has co-marketing arrangements

with other Indian & other MNCs of new chemistry products. CIL ensures scientific product

promotion & market development through sales force of qualified agricultural graduates.

Brand Building & Demand generation activities are based on the principle of partnering with

the farmers. Farmers are reached through various communication media & emphasis is on

Farmer’s Education & Training for balanced utilization of Agri inputs and sustainable

development of agriculture.As a result of this commitment, pest control operators, public

health officials and farmers within the country and abroad continues to rely on Cheminova

and its products.

Research & Development

Development of new products is a high priority in Cheminova, and in todays competitive

environment speed of development has become more important. This has lead to the

introduction of new project management principles, which have resulted in a more efficient

product development process.



The development activities in Denmark are supplemented by development work at

Cheminova India. Since the addition of the Indian subsidiary to the Cheminova group, new

modern laboratories as well as pilot plant facilities have been established and is now working

closely together with the development function in Denmark on new products for

Cheminova’s global organisation. Focus is on developing and maintaining economically

competitive production processes for new and existing products. In this respect

environmental friendliness including reduction and efficient treatment of waste streams is an

important parameter.

Distribution

Cheminova India Limited manufactures all its technical, formulations and intermediates at

Panoli, Gujarat. Technical and formulations are transported from Panoli to various

warehouses / depots. Intermediates are transported in ISO tankers or in tankers leased by the

customers. These vehicles are checked by authorized people at Panoli, both for transport

worthiness and technical fitness. The transporters are detailed on the safety aspects while

transportation and are provided with safety kits.

Agriculture is a time bound operation. It is therefore imperative that the right product reaches

the consumers at the right time. To achieve this, Cheminova India Limited has established an

intensive network of - depots/ C&F in close proximity to the farmers. These depots / C&F

cater to the 2700 distributors who in turn supply to over 30,000 retail outlets all over the

country. Cheminova India Limited’s distribution department functions as a central co-

ordinating point between various regions, bulk customer & the manufacturing unit to service

customer demand and ensure accounting of all sales, inventories and receivables.

Cheminova India Limited has achieved the present rate of sales due to strong distribution

systems to support the marketing activities. It is a total integrated approach towards servicing

the consumer.



PRODUCTS

INSECTICIDES

Chlorpyriphos 20% EC (CLASSIC-20)

Chlorpyriphos is a non systemic broad spectrum organ phosphorus insecticide with contact

stomach and respiratory action. It controls coleoptera, diptera, homoptera and Lepidoptera in

soil and on foliage in over large number of crops including rice, cotton, oilseeds, pulses,

vegetables and plantation. Chlorpyriphos falls under toxicity Class II by WHO (ai) and EPA

(formulation). Chlorpyriphos is registered in many countries.

Other than field crops, Chlorpyriphos is also used to control household pests and mosquitoes.

It is non phototoxic to most plant species when used at recommended dosages. It is

compatible for tank mix with other insecticides and fungicides. In soil, Chlorpyriphos is

degraded at a moderate rate. Chlorpyriphos is recommended in all IPM and IRM

programmes.

Quinalphos 25% EC (VAZRA-25)

QUINALPHOS effectively controls caterpillars on fruit trees, cotton, vegetables and peanuts;

scale insect on fruit trees and pest complex on rice. Quinalphos also controls aphids,

bollworms, borers, leafhoppers, mites, thrips, etc. on vines, ornamentals, potatoes, soya

beans, tea, coffee, cocoa, and other crops.

Acephate 75% SP (LUCID-75)

Acephate primarily controls sucking pests like aphids, jassids, white fly and bollworms in

cotton and many other crops. Acephate treated crops are also protected from viral diseases,

usually transmitted by sucking pests. There has been no report of resistance since inception.

In many countries, Acephate is being used alternatively with synthetic pyrethroid for

resistance management programs.

Imidacloprid 17.8 % SL (Chemida) & 70 % WG (Pactus)

Imidacloprid primarily controls sucking pests in cotton, rice, oil seeds and vegetables, chilli,

mango, sugarcane and plantation, like tea, coffee and cardamom. Imidacloprid is used as a

seed dressing, as soil treatment and as foliar treatment in different crops.



Triazophos 40% EC (TRIFOS - 40)

Triazophos primarily controls sucking and chewing insects in cotton, rice, oil seeds and

vegetables, fruits and plantation, like tea, coffee and cardamom. In spite of being non-

systemic, Triazophos can penetrate deeply in the plant tissues due to its translaminar

properties and can effectively control leaf miner. There has been no report of resistance since

inception and has been recommended for use in resistance management program.

Thiacloprid 21.7% SC (SPLENDOUR)

Thiacloprid, a new chloronicotinyl insecticide, is targeted to control sucking and biting

insects in cotton, rice, vegetables, fruit, sugar beet, potatoes and ornamentals. Pests controlled

include aphids, whitefly, beetles and lepidoptera such as leaf miners. It acts as acute contact

and stomach poison, with systemic action. It disrupts the nervous system by acting as an

inhibitor at nicotinic acetylcholine receptors. Thiacloprid is safe to the mammals and it falls

in the Toxicity class.

Other Products

Alphamethrin 10% EC (NUMETHRIN)

Chlorpyriphos 50% + Cypermethrin 5 EC (NUROCOMBI)

Cypermethrin 10% EC (SHAKTI - 10)

Cypermethrin 25% EC (SHAKTI - 25)

Endosulfan 35% EC (LUSULFAN)

Imidacloprid 70% WG (CHEMIDA WG)

Profenofos 50% (AURIFOS)



FUNGICIDE

Carbendazim 50% WP (CARZIM-50)

CARZIM-50 is a systemic fungicide with protective and curative action. It is absorbed

through the roots and green tissues. It acts by inhibiting beta-tubulin synthesis, inhibiting

development of germ tubes and the growth of mycelia. It is compatible with most of the

insecticides. It is used for the control of blast, sheath blight, brown spot, powdery mildew,

scab, anthracnose & leaf spot diseases in various crops. It inhibits the development of the

germ tubes, the formation of appressoria and the growth of mycelia.

Tricyclozole 75% WP (BLAST-OFF)

BLAST-OFF® is a systemic fungicide absorbed rapidly by the roots and foliage and

translocated within the plant. It controls rice blast, in transplanted and direct seeded rice. Can

be applied as a drench, root soak, foliar application and a seed treatment. Non phototoxic if

used as directed. Compatible with many other pesticides.

Hexaconazole 5% EC (Danzole) & 5% SC (Danzole Plus)

DANZOLE® is a systemic triazole fungicide, with protective and curative action. It

effectively controls blast & sheath blight of rice, leaf spot on all types of crops and powdery

mildew of grapes and chilli by inhibiting ergosterol biosynthesis.



HERBICIDES

Glyphosate 41% SL (Glyfos) & 71% SG (Dakar)

GLYFOS is a non selective systemic herbicide absorbed by actively growing foliage which is

rapidly translocated throughout the plant and thereby killing the plants from roots. It controls

a wide range of annual and perennial grasses and broad leaved weeds by application as pre-

emergence, post emergence and pre-harvest in cereals, tea & oilseeds. Also used as industrial

weed control and aquatic herbicide.

Glyphosate 71% SG (GLYFOS DAKAR)

Glyfos Dakar 71 SG is a non selective post emergence herbicide used for the control of

annual perennial, broad leaf and grassy weeds. The formulation when applied to foliages

destroys the weed from the root system.

Clodinafop Propargyl 15% WP (RAKSHAK PLUS)

Clodinafop Propargyl is a post emergence systemic grass herbicide used for the control of

annual grasses, canary grass, wild oats, and annual rye grass in wheat. Mainly used in

combination with the safener cloquintocet-mexyl.

Imazathapyr 10% SL (DINAMAZ)

Imazethapyr is a systemic herbicide, absorbed by the roots and foliage, with translocation in

the xylem and phloem, and accumulations in the merristamatic region. It controls major,

annual and perennial grass and broad leaved weeds in soybeans, groundnuts and other

leguminous crops. It is applied as pre-plant incorporation, pre-emergence and or post-

emergence.

Other Products

Metsulfuron Methyl 20% WP (METCIL M)

Pendimethalin 30% EC (PENDIHERB)

Pretilachlor 50% EC (PRETTY HERB)

Pyrithiobac Sodium 10% EC (RIFE)

Sulfosulfuron 75% WP (SUMET)



GROWTH PRAMOTERS

Gibberellic Acid (CIL-GIBB)

CIL-GIBB is a plant growth regulator containing a mixture of Gibberellins.

It is translocated in the plant body & affects the physiology and morphology of plant parts

above soil surface e.g. Fruit setting, loosening and elongation of clusters and increase of

berry size in grapes: uniform seedling growth in paddy break the dormancy and stimulate

sprouting of seed potatoes and advance flowering of ornamentals.

N-Tricontanol 0.1% EW (MIRACLE)

MIRACLEl is a universal plant growth promoter used for enhancing the vegetative growth in

a wide range of crops. Application on a periodic intervals helps in increasing the nutrient

uptake by the crops resulting in increase in yield and quality of the produce.



LITERATURE REVIEW

1) What is Brand Awareness?

The ultimate goal of most businesses is to increase sales and income. Ideally, you want to

attract new customers to your products and encourage repeat purchases. Brand awareness

refers to how aware customers and potential customers are of your business and its products.

Within a week after its introduction, surveys found that more than 90% of US consumers had

heard about the iPhone as a result of advertising and news reports. This is exceptionally high

brand awareness. Ultimately, achieving successful brand awareness means that your brand is

well known and is easily recognizable. Brand awareness is crucial to differentiating your

product from other similar products and competitors.

Brand Awareness Plan

The major components of a plan to develop brand awareness are:

• Identifying and understanding your target customers

• Creating a company name, logo, and slogans

• Adding value through packaging, location, service, special events, etc.

• Advertising

• After-sale follow-up and customer relations management

Targeting the right audience is crucial to your success. Of similar importance is

understanding that you need a plan along with specific actions that increase awareness of

your brand amongst your consumers. Throughout the entire process of creating a brand, it is

of utmost importance to consider how what you do will increase brand awareness.

Why is Brand Awareness Important?

You may be asking yourself, is brand awareness really all that important? You may be saying

to yourself, I have plenty of customers and sales are decent, why bother? The answer is:

There are few things more worthwhile than investing time in your brand’s awareness. It can

play a major role in purchasing decisions. The reality is, the more aware consumers are of

your product and your brand, and the more likely they are to buy from you.

Among the challenges faced in selling pure maple products are:

• Do potential customers know you exist?



• Why pay more for Pure Maple vs. artificial syrup?

• Isn’t Vermont maple syrup better?

• Why pay more for your products rather than from a less expensive alternative?

In the future, and for the sake of your business, it is in your best interests to take action to

increase awareness of your brand.

How to Begin Creating Brand Awareness

How do you, over time, establish positive brand awareness that promotes the possibility of

purchase of your product in the future? There is always the initial impression of your brand

that is of utmost importance. Beyond this, however, are all of the future impressions that may

be formed regarding your brand. In deciding how you will go about creating brand

awareness, you need to consider and to be aware of how your product value becomes know to

the consumer and the importance of consistency:

1) The message of what a brand is offering to the consumer should be consistent. Wegmans,

for example, offers fresh, high-quality foods for purchase and advertises the advantages, such

as home-cooked meals, that their goods can provide for you. The layout of their perishable

goods, the organization of complementary condiments and staple products, and the stands

offering sample recipes to be cooked at home are all evidence of the company attempting to

present a consistent message of what they are all about to the consumer. The presentation of

Wegmans as a prominent player in providing quality foods for quality home-cooked meals is

evident in each of the aforementioned examples. The company does not, for example, attempt

to convey quality in its store layout and offerings and then convey cheap alternative in the

mailings sent out. The impressions you hope to make on consumers and potential consumers

should be consistent across various mediums, situations, and promotional attempts.

2) Images you present should also be consistent in order to increase brand awareness. It is

important that you are consistent in your use of images so that you maximize recognition and

positive impressions. Wegmans logo, for example, can be found on its storefront, on the

products it produces itself, on the receipt consumers receive after purchase, on the bags

customers carry out of the store, and in many of its distributed informational material.

3) Slogans and taglines should also be consistent throughout mediums and material. Once

again, consistency is important in conveying a message that promotes awareness of your

brand in a organized, recognizable manner. Wegmans’ tagline, “Helping you makes great



meals easy”, is consistent throughout its promotional materials, website, and logo, to name a

few. Consistency cannot be emphasized enough. It presents the consumer with an image that

in the future the consumer can continue to associate with your products. For example, if the

materials you distribute, the set-up of your sale table, the packaging of your product, and the

logo and tagline are not all relatively similar, regularly consistent, and repeatedly

recognizable over time, it is likely you will get nowhere with your brand. Creating brand

awareness, through a collaborative, well-developed overall image, is essential to developing a

success brand that achieves maximum benefits.

Maintaining Brand Awareness

It is important to keep working at the issues and activities identified above. Pay attention to

how customers are responding to products, packaging, displays, and messages. Look for ways

to improve the image you are trying to get across. Ask your customers for suggestions. Work

to maintain a consistent presence in the market place. This can mean a location and regular

times where customers can reliably expect to find you. The NY Maple Producers booth at the

State Fair has been in a prime location for many years. They need to move to gain more sales

space and will have to have a plan to help customers find their new location. If your

businesses wholesaling maple products to retail locations, you need to stay in regular and

reliable contact with your customers. They should not have to come looking for you when

they need to re-stock or they will turn to suppliers that make it easier for them to operate their

businesses.

2) Customer Satisfaction:-

The definition of customer satisfaction has been widely debated as organizations increasingly

attempt to measure it. Customer satisfaction can be experienced in a variety of situations and

connected to both goods and services. It is a highly personal assessment that is greatly

affected by customer expectations. Satisfaction also is based on the customer’s experience of

both contact with the organization (the “moment of truth “as it is called in business literature)

and personal outcomes. Some researchers define a satisfied customer within the private sector

as “one who receives significant added value” to his/her bottom line—a definition that may

apply just as well to public services. Customer satisfaction differs depending on the situation

and the product or service. A customer may be satisfied with a product or service, an



experience, a purchase decision, a salesperson, store, service provider, or an attribute or any

of these. Some researchers completely avoid “satisfaction” as a measurement objective

because it is “too fuzzy an idea to serve as a meaningful benchmark.” Instead, they focus on

the customer’s entire experience with an organization or service contact and the detailed

assessment of that experience. For example, reporting methods developed for health care

patient surveys often ask customers to rate their providers and experiences in response to

detailed questions such as, “How well did your physicians keep you informed?” These

surveys provide “actionable” data that reveal obvious steps for improvement.

Customer satisfaction is a highly personal assessment that is greatly influenced by individual

expectations. Some definitions are based on the observation that customer satisfaction or

dissatisfaction results from either the confirmation or disconfirmation of individual

expectations regarding a service or product. To avoid difficulties stemming from the

kaleidoscope of customer expectations and differences, some experts urge companies to

“concentrate on a goal that’s more closely linked to customer equity.” Instead of asking

whether customers are satisfied, they encourage companies to determine how customers hold

them accountable In the public sector, the definition of customer satisfaction is often linked

to both the personal interaction with the service provider and the outcomes experienced by

service users. For example, the Urban Institute and Mathematical conducted customer

satisfaction surveys for the federal child support enforcement system. The definition they

developed addresses three aspects of customer satisfaction:

satisfaction with client-worker interaction, whether in-person, by phone, or by mail;

satisfaction with the support payment (e.g., its accuracy and timeliness); and

Satisfaction with the effect of child support enforcement on the child.

Another example that has particular implications for vulnerable individuals and

neighbourhoods is the “Shaping Our Lives” National Users Network in the United Kingdom.

This includes both national and local research and development projects to examine what

service users see as good outcomes for services and support. Four customer networks were

developed as part of the initiative:

Black User Group in London,

Service User Action Group in Wakefield,

Ethnic Disabled Group in Manchester, and

An alliance of User Groups in Waltham Forest.



It was the consensus of the groups that lack of information often leads to low expectations.

They further agreed that the process of obtaining a service and the way it is delivered can

have a major impact on the users’ experience. The qualities of relationships and staff were

central to positive outcomes. Because customer satisfaction is a highly variable assessment

that every individual makes based on his/her own information, expectations, direct contact

and interaction, and impact, it makes sense to involve and consult consumers when designing

customer satisfaction approaches.

3) Farmers buying behaviour:

Venkateshwaralu et al. (1984) attempted to examine the reason for being brand loyal. It has

been found that 50 per cent of the consumer respondents preferred a particular brand because

they were convinced that its quality was better than that of other brands. Another 38 per cent

of the sample consumers felt, it was the taste which made them to go in for a particular brand.

While, very few consumers in the sample stated low price and easy availability as the main

reasons for selecting and brand.

Ramaswarny and Chandrashekaran (1990) examined factors influencing cotton seed buying

behaviour of farmers in Kamraj district of Tamil Nadu, India, sixty cotton growers were

selected from four villages for agriculture year 1987-88, factors influencing farmers purchase

of cotton seeds were source of purchase, varietal preference, seed quality, source of

information about the supply of cotton by different agencies and brand preference. Dealers

with credit facility, availability of seeds at lower prices and premises located close to the

farmers locality attracted.

Ali (1992) studied the factors influencing purchase decision for processed products. It

revealed that factors such as tase, family, preference, price, good keeping quality, well known

brand, colour and consistency were important in the buying decision of the consumer in that

order.

Sivakumar et al. (1994) analysed buying behaviour of farmers with respect to pesticides,

considering the factors influencing loyalty of farmers towards dealers and brand friend,

neighbours and relatives were major source of information on dealers. In case of brands it



was extension personnel of department of agriculture, the price quality and advertisements

about the brand contributed significantly to brand loyalty credit availability, advertisements

and price of products available with dealer contributed significantly to dealers loyalty.

Sidhu (1996) studied the seed use practices of farmers in Punjab. The results of the study

indicated that the farmers judged the purity and quality of seeds purchased from public seed

agencies, research organizations, government departments, private seed companies/dealers

etc. by their past experience and reputation of agencies. The results also indicated that among

the institutions/agencies, Punjab Agricultural University had the highest reputation among the

selected farmers in Punjab.

Singh (1998) in his study in Bihar concluded that seeds were purchased from private traders

and fellow farmers mostly on cash basis. The reasons for preferring these sources were seed

quality, availability and accessibility. This implied that the marketing bodies and seed

business units did not carry out their functions in a manner as to create time place and form

utility. Further, farmers purchased seeds only at the time of requirement i.e., a few days

before use which was very rational given that seed I a perishable and costly input.

Padmanaban (1999) conducted study on brand loyalty, which revealed that the price of the

preferred brand and efficiency of preferred brand as well as influence advertisement

significantly influenced the brand loyalty. Only when the price of a particular brand is

competitively lower to price of other brand in the market the farmers would naturally prefer

to low priced brand, otherwise farmer would naturally continue to purchase the same brand.

4) Perception

Our perception is an approximation of reality. Our brain attempts to make sense out of the

stimuli to which we are exposed. This works well, for example, when we “see” a friend three

hundred feet away at his or her correct height; however, our perception is sometimes “off”—

for example, certain shapes of ice cream containers look like they contain more than

rectangular ones with the same volume.



Factors in perception:

Several sequential factors influence our perception. Exposure involves the extent to which

we encounter a stimulus. For example, we are exposed to numerous commercial messages

while driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and

signs and banners placed at shopping malls that we pass. Most of this exposure is random—

we don’t plan to seek it out. However, if we are shopping for a car, we may deliberately seek

out advertisements and “tune in” when dealer advertisements come on the radio.

Exposure is not enough to significantly impact the individual—at least not based on a single

trial (certain advertisements, or commercial exposures such as the “Swoosh” logo, are based

on extensive repetition rather than much conscious attention). In order for stimuli to be

consciously processed, attention is needed. Attention is actually a matter of degree—our

attention may be quite high when we read directions for getting an income tax refund, but

low when commercials come on during a television program. Note, however, that even when

attention is low, it may be instantly escalated—for example, if an advertisement for a product

in which we are interested comes on.

Interpretation involves making sense out of the stimulus. For example, when we see a red

can, we may categorize it as a Coke.

Weber’s Law suggests that consumers’ ability to detect changes in stimulus intensity appear

to be strongly related to the intensity of that stimulus to begin with. That is, if you hold an

object weighing one pound in your hand, you are likely to notice it when that weight is

doubled to two pounds. However, if you are holding twenty pounds, you are unlikely to

detect the addition of one pound—a change that you easily detected when the initial weight

was one pound. You may be able to eliminate one ounce from a ten ounce container, but you

cannot as easily get away with reducing a three ounce container to two (instead, you must

accomplish that gradually—e.g., 3.0 --> 2.7 --> 2.5 --> 2.3 --> 2.15 –> 2.00).

Several factors influence the extent to which stimuli will be noticed. One obvious issue

is relevance. Consumers, when they have a choice, are also more likely to attend

to pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are also

likely to get attention—thus, many very irritating advertisements are remarkably effective).



One of the most important factors, however, is repetition. Consumers often do not give much

attention to a stimuli—particularly a low priority one such as an advertisement—at any one

time, but if it is seen over and over again, the cumulative impact will be greater.

Surprising stimuli are likely to get more attention—survival instinct requires us to give more

attention to something unknown that may require action. A greater contrast (difference

between the stimulus and its surroundings) as well as greater prominence (e.g., greater size,

centre placement) also tend to increase likelihood of processing.

Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers

in a theatre had been exposed to isolated frames with the words “Drink Coca Cola” and “Eat

Popcorn” imbedded into the movie. These frames went by so fast that people did not

consciously notice them, but it was reported that on nights with frames present, Coke and

popcorn sales were significantly higher than on days they were left off. This led Congress to

ban the use of subliminal advertising. First of all, there is a question as to whether this

experiment ever took place or whether this information was simply made up. Secondly, no

one has been able to replicate these findings. There is research to show that people will start

to giggle with embarrassment when they are briefly exposed to “dirty” words in an

experimental machine. Here, again, the exposure is so brief that the subjects are not aware of

the actual words they saw, but it is evident that something has been recognized by the

embarrassment displayed.

5) Customers and their expectations

Customers are people who buy products and services from other people (usually companies

of one sort or another). What customers think and feel about a company and/or its products is

a key aspect of business success. Attitudes are shaped by experience of the product, the

opinions of friends, direct dealings with the company, and the advertising and other

representations of the company. Irrespective of whether a business' customers are consumers

or organisations, it is the job of marketers to understand the needs of their customers. In

doing so they can develop goods or services which meet their needs more precisely than their

competitors. The problem is that the process of buying a product is more complex than it

might at first appear. Customers do not usually make purchases without thinking carefully



about their requirements. Wherever there is choice, decisions are involved, and these may be

influenced by constantly changing motives. The organisation that can understand why

customers make decisions such as who buys, what they buy and how they buy will, by

catering more closely for customers needs, become potentially more successful.

Customer requirements

The supermarket industry provides a good example of the way in which different groups of

customers will have different expectations. Some customers just want to buy standard

products at the lowest possible prices. They will therefore shop from supermarkets that offer

the lowest prices and provide a reasonable range of goods. In contrast, some supermarket

shoppers are seeking such aspects as variety and quality. They will therefore choose to buy

from an up-market supermarket. Additionally some customers will have special tastes such as

wanting to buy FAIRTRADE products or organic fruit and vegetables. It is clear therefore

that to be successful a business has to have a clear understanding of their target customer’s

and the expectations of this group. Most markets are made up of groups of customers with

different sets of expectations about the products and services that they want to buy.

Marketing oriented businesses will therefore need to carry out research into customer

requirements to make sure that they provide those products and services which best meet

customer expectations in the relevant market segment.



RESEARCH METHODOLOGY

In the process of achieving the objectives of the study, it is very essential to follow a

systematic and scientific approach so as to present and interpret the results of the study or

investigation conducted. This chapter on methodology consists of the details of the

description of the study area, the sampling procedure, nature and sources of data, the

analytical tools and techniques employed and other information to support the existing results

like secondary sources of information required to keep the reader inferred for reference and

documentation. The methodology chapter is discussed under the following heads.

3.1 Description of the study area

3.1.1 Location

Maharashtra is a state located in India. It is the second most popular after Uttar Pradesh and

third largest state by area in India. Maharashtra is the richest state in India, contributing 15%

of the country's industrial output and 13.3% of its GDP (2006–2007 figures). Maharashtra

encompasses an area of 308,000 km² and is the third largest state in India.

Nashik District is located between 18.33 degree and 20.53 degree North latitude and between

73.16 degree and 75.16 degree East Longitude at Northwest part of the Maharashtra state, at

565 meters above mean sea level. The District has great mythological background. Lord

Rama lived in Panchvati during his vanvas. Agasti Rushi also stayed in Nashik for Tapasya.

Nashik is famous for grapes, onions, and tomatoes. Because of variety of vegetables and its

supply to Mumbai, the District is known as Backyard of Mumbai. The agricultural

development of district is high in state due to annual cropping pattern with large spread of

irrigation.



Map of Nashik District

3.2 Nature and sources of data

In order to evaluate the objectives of the study, data was collected from both primary and

secondary sources.

3.2.1 Primary data

The primary data forms an important component of any research investigation. As the study

focuses on the preferences of farmers over purchase of agrochemicals, behaviour of farmers

towards the agrochemicals and adoption of brands, a subjective phenomenon focuses on the

behaviour of farmers. Hence, greater thrust was given to collect information at farmer’s level.

However, the number of farmers, their problems etc. were also important and the primary

data was very essential to be elicited. The primary data was collected using a pre-structured

questionnaire encompassing a number of variables/parameters which could explain their

behaviour towards purchase of agrochemicals.



3.2.2 Secondary data

As the research study focuses on the aspects such as estimating of demand forecasting and

also some of the information relating to the number of farmers in each Talukas, quantities

handled, the role of departments, the statistical data etc. were very much required to take

some of the investigation process. Hence, the secondary data required were collected from

company officials, Books, Magazines and Internet.

3.3 Sampling design

In order to proceed with investigation as per the objectives stated, it was necessary to adopt

an appropriate sampling design. It was proposed at the outset to study the area under grapes

and vegetable crop in primary stage, for this purpose the secondary source data of company

field officials were used. Sample population was selected randomly from major grapes and

vegetable growing regions of Nasik district such as Niphad and Dindori talukas. A multistage

random sampling was adopted as appropriate sampling procedure for the study.

3.3.1 Selection of districts

The area under fruits and vegetables in Maharashtra when observed indicated that the

northern district of Maharashtra namely Nasik reported to have the highest area under fruit

and vegetables which contributed about 30-40 per cent of the total area under. Hence, it was

allotted by Cheminova for the study so as to investigate into the research problem.

3.3.2 Selection of Talukas

In the second stage, it was proposed to select the talukas in district which acted as hinterland

markets for agriculture input agency supplying agro-chemicals. It was decided to select those

talukas in Nasik district based on highest area of grapes; hence, Niphad and Dindori talukas

were select for research work. Hence, total of 30 villages of both talukas were selected for the

study.

3.3.4 Selection of Farmers

In order to initiate first hand information using primary source techniques on various

variables in the purchase of agro-chemicals, prices, awareness, brand, Sources of new

information, source preferences etc., it was proposed to select farmers growing fruit and



vegetables. The farmers were selected randomly from the two talukas. The total no of farmers

visited are 125.

3.3.5 Selection of Market

The importance of study is to focus of Demand of agrochemicals bearing the importance of

fruit and vegetable production. Grapes and sugarcane is the important commercial crop in this

region. The secondary markets formed an important centre of business activity. Hence, it is

true and fact that the districts headquarter viz., Nashik, Niphad and Dindori talukas are

important markets in Nashik. Hence, it was proposed to select the dealers from these

headquarters places as central market for agriculture input marketing especially for

agrochemicals.

Methodology of Research:

Convenience sampling has been adopted for the study.

The district was selected as high potential area of agro-chemicals.

Instrument of Data collection: Questionnaires.

Sample size:

Farmers- 125

Dealers- 56

Method of contact: Personal Interview



ANALYSIS OF FARMERS DATA AND INFERENCES

1) Crops Grown by most Farmers in Nashik region.

Table No. 4.1.1. Crops Grown by most Farmers in Nashik region

1 st

Preferred

2 nd

Preferred

3 rd

Preferred

4 th

Preferred

Total

Agronomical 18.4 8.8 68.8 4 100

Vegetable 4.8 77.6 17.6 0 100

Fruit 76.8 9.6 8.8 4.8 100

Flowers 0 4 4.8 91.2 100

Graph No. 4.1.1. Crops Grown by most Farmers in Nashik region

Inference: Through the data is seen that that farmers of Nashik region gives 1st preference to

grow fruit crops, 2nd

to vegetables, 3rd

to agronomical crops and 4th

to flowers.

The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of Nashik

region followed by vegetables like tomato, capsicum, brinjal and leafy vegetables. In

agronomical crops most crops grown are Sugarcane, wheat, maize, soya bean and groundnut.

0

10

20

30

40

50

60

70

80

90

100

1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred

Agronomical Vegitable Fruit Flowers



2) Type of Agrochemical Used most

Table No. 4.1.2. Type of Agrochemical used most

Highest Moderate Less Least

Insecticide 34.4 63.2 2.4 0

Fungicides 63.2 32.8 1.6 2.4

Herbicides 2.4 1.6 42.4 53.6

PGR 0 2.4 53.6 44

Graph No. 4.1.2. Type of Agrochemical used most

Inference: It is observed from the survey that farmers of Nashik region use Fungicides most

followed by Insecticide, PGR’s and Herbicides.

As the area under fruit and vegetable production is high in Nashik region the usage of

fungicides is highest as it is used as preventive measure followed by insecticide and

herbicides as curative measures.

0

10

20

30

40

50

60

70


Insecticide Fungicides Herbicides PGR



3) Companies preferred by farmers for purchase of Insecticide

Table No. 4.1.3. Companies preferred by farmers for purchase of Insecticide

1 st

Preferred

2 nd

Preferred

3 rd

Preferred

4 th

Preferred

Syngenta 16.8 33.6 25.6 11.2

Bayer 33.6 23.2 11.2 24.8

BASF 2.4 2.4 8.8 12.8

Cheminova 34.4 7.2 31.2 16

Tata Rallies 4.8 32 8.8 29.6

Dupont 8 4 14.4 5.6

Graph No. 4.1.3. Companies preferred by farmers for purchase of Insecticide

Inference: The statistical data shows that farmers of Nashik region mostly prefer Bayer,

Cheminova followed by Syngenta, Tata Rallies and Dupont for purchasing insecticides.

The farmers are well known of Cheminova products in Insecticide Segment and they are

using it most as it having affordable rates in the market with quality product.

0

5

10

15

20

25

30

35

1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred

Syngenta Bayer BASF Cheminova Tata Rallies Dupont



4) Companies preferred by farmers for purchase of Fungicide

Table No. 4.1.4. Companies preferred by farmers for purchase of Fungicide

Graph No. 4.1.4. Companies preferred by farmers for purchase of Fungicide

Inference: According to the market survey it is found that Syngenta is most preferred by

farmers followed by Bayer, BASF, Tata Rallies and Dupont in Fungicide Segment of Crop

protection products.

Cheminova is lacking in fungicide segment as they are having limited product range in the

category but the products like Quatriz and Brunt are popular among Grape Growers.

0

5

10

15

20

25

30

35

40

45

50

1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred 5 th Preferred

Syngenta Bayer BASF Cheminova Tata Rallies Dupont

1 st

Preferred

2 nd

Preferred

3 rd

Preferred

4 th

Preferred

5 th

Preferred

Syngenta 42.4 21.6 24.8 6.4 0

Bayer 36 45.6 9.6 2.4 6.4

BASF 14.4 18.4 43.2 9.6 9.6

Cheminova 0 2.4 4.8 30.4 28.8

Tata Rallies 0 12 7.2 23.2 41.6

Dupont 7.2 0 10.4 28 13.6



5) Companies preferred by farmers for purchase of Herbicide

Table No. 4.1.5. Companies preferred by farmers for purchase of Herbicide

1 st

Preferred

2 nd

Preferred

3 rd

Preferred

4 th

Preferred

5 th

Preferred

Monsanto 19.2 25.6 8.8 17.6 20

Excel 37.6 26.4 20 12 2.4

Gharda 1.6 16.8 42.4 17.6 13.6

Cheminova 0 2.4 10.4 23.2 22.4

UPL 12 18.4 7.2 15.2 35.2

Local

Formulators

29.6 8 11.2 16.8 6.4

Graph No. 4.15. Companies preferred by farmers for purchase of Herbicide.

Inference: The result of the survey shows that farmers of Nashik region mostly prefer Excel

Crop Care followed by Monsanto, Gharda, Cheminova and UPL in Herbicide category of

agrochemicals.

Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product in the

market also it was observed that most farmers used loose chemical formulation available at

low rate in the market. But Glyfos Dakar is popular among the farmers growing agronomical

crops.

0

5

10

15

20

25

30

35

40

45

1 st Preferred

2 nd Preferred

3 rd Preferred

4 th Preferred

5 th Preferred

Monsanto Excel Gharda Cheminova UPL



6) Companies preferred by farmers for purchase of PGR’s

Table No. 4.1.6. Companies preferred by farmers for purchase of PGR’s

1 st

Preferred

2 nd

Preferred

3 rd

Preferred

4 th

Preferred

5 th

Preferred

6 th

Preferred

Godrej 39.2 23.2 17.6 1.6 18.4 0

Cheminova 2.4 0 0 9.6 8 80

Biostadt 17.6 38.4 24 12.8 7.2 0

Omega 8 7.2 36.8 18.4 22.4 7.2

Local

Formulators

12.8 20 15.2 41.6 10.4 0

Unethical

Sources

20 11.2 6.4 16 33.6 12.8

Graph No. 4.1.6. Companies preferred by farmers for purchase of PGR’s

Inference: According to the survey it is observed that in PGR’s segment most farmers prefer

Godrej products followed by Biostadt, Omega Fine Chemicals, Local Formulators and

unethical sources.

0

10

20

30

40

50

60

70

80

1 st Preferred

2 nd Preferred

3 rd Preferred

4 th Preferred

5 th Preferred

6 th Preferred

Godrej Cheminova Biostadt

Omega Local Formulaters Unethical Sources



In PGR’s segment products like GA3, 6BA, NAA are highly used by Fruit and vegetable

growers in particular Grape and Capsicum. Products like GA3 are purchased by farmers from

Grapes Grower Association of Maharashtra (MRDBS) , so the product of Cheminova is not

so preferred.

7) Awareness among Farmers about Cheminova India Ltd.

Table No. 4.1.7. Awareness among Farmers about Cheminova India Ltd

Frequency Percent

Well aware 103 82.4

Slightly aware 20 16.0

Not aware 2 1.6

Total 125 100.0

Graph No. 4.1.7. Awareness among Farmers about Cheminova India Ltd

Inference: The Above statistics shows that farmers of Nashik region are well aware about

Cheminova India Ltd.

The company is well known among the farmers for insecticide products and for fungicides in

grape growers.

Well aware

Slightly aware

Not aware



8) Cheminova Product usage by Farmers

Table No. 4.1.8. Cheminova Product usage by Farmers


Insecticide 82.4 8.8 2.4 0

Herbicides 9.6 44.8 36.8 2.4

Fungicide 1.6 31.2 32.8 28

PGR 0 8.8 21.6 63.2

Graph No. 4.1.8. Cheminova Product usage by Farmers

Inference: From the above data is it is found that farmers of Nashik region are using

Insecticides of Cheminova India ltd followed by Herbicides, Fungicides and PGR’s.

Cheminova is having a wide range of insecticide at affordable price so it is highly used.

Herbicides are used by most people for same result, fungicides are less preferred as the range

is less and for PGR’s they have alternate source of Grapes Grower Association.

0

10

20

30

40

50

60

70

80

90

Insecticide Herbicides Fungicide PGR




9) Factors Considered while purchasing Agrochemicals

Table No. 4.1.9. Factors Considered while purchasing Agrochemicals

Highly

preferred

Preferred Neutral Somewhat

Preferred

Least

preferred

Price 40.8 48.8 3.2 3.2 4

Quality 72.8 25.6 1.6 0 0

Brand Name 48 28.8 23.2 0 0

Past Experience 58.4 32.8 6.4 2.4 0

Dealers

Recommendatio

n

20.8 19.2 26.4 18.4 15.2

Service 28 20 25.6 18.4 8

Graph No. 4.1.9. Factors Considered while purchasing Agrochemicals

Inference: According to the above data farmers of Nashik region consider Quality of

produce most important while purchasing the agrochemicals followed by past experience of

them or other farmers regarding the product, Brand name of the company, Price of the

product. Service by the company and dealers recommendation are least preferred by farmers

of Nashik region.

0

10

20

30

40

50

60

70

80

Price Quality Brand Name

Past Experience

Dealers Recomm

Service



10) Comparison of Cheminova with Other Companies

Table No. 4.1.10. Comparison of Cheminova with Other Companies

Price Quality Availability Packaging Services

High 17.6 17.6 41.6 20.8 12.8

Similar 26.4 71.2 42.4 40.8 64.8

low 49.6 4.8 9.6 32 16

Graph No. 4.1.10. Comparison of Cheminova with Other Companies

Inference: According to the farmers prices of Cheminova India ltd are low in comparison to

other agrochemical companies.

The quality, packaging and services are similar to others while the availability is slightly high

then other agrochemical companies.

0

10

20

30

40

50

60

70

80

Price Quality Availability Packaging Services

High Similer low



DEALERS DATA ANALYSIS AND INFERENCES

1) Education of Dealers in Nashik Region.

Table No. 4.2.1. Education of Dealers

Graph No. 4.2.1. Education of Dealers

Inference: From the above statistics it is seen that most of the dealers in Nashik region has

education up to Graduation followed by Higher Secondary, Secondary and Post Graduation.

.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

SSC HSC Graduation Post Graduation

Frequency Percent

SSC 10 17.9

HSC 15 26.8

Graduation 24 42.9

Post Graduation 7 12.5

Total 56 100.0



2) Companies having Highest Sales of Insecticide in Nashik Region.

Table No. 4.2.2. Companies having Highest Sales of Insecticide

Highest High Moderate Less Least

Syngenta 35.7 53.6 3.6 3.6 3.6

Bayer 57.1 30.4 8.9 3.6 0

Cheminova 0 5.4 76.8 17.9 0

Dupont 3.6 0 7.1 44.6 44.6

Tata 3.6 10.7 3.6 30.4 51.8

Graph No. 4.2.2. Companies having Highest Sales of Insecticide

Inference: Through the survey of insecticide companies it is seen that Bayer crop science is

having highest sales of insecticide in Nashik Region followed by Syngenta, Cheminova,

Dupont, and Tata.

Cheminova is at 3rd

place in the sales of insecticide segment of agrochemicals as its having a

good range of insecticide at affordable price.

0

10

20

30

40

50

60

70

80


Syngenta Bayer Cheminova Dupont Tata



3) Companies having Highest Sales of Fungicide

Table No. 4.2.3. Companies having Highest Sales of Fungicide


Indofil 12.5 16.1 39.3 32.1 0

BASF 33.9 32.1 25 5.4 3.6

Syngenta 50 28.6 21.4 0 0

Cheminova 3.6 19.6 5.4 25 46.4

Tata

Rallies

0 3.6 8.9 37.5 50

Graph No. 4.2.3. Companies having Highest Sales of Fungicide

Inference: As per the above Graphical Representation it gets clear that Syngenta is the

market leader in Fungicide Segment of Agrochemicals followed by BASF, Indofil, Tata

Rallies and Cheminova in Nashik Region.

Cheminova is lacking behind due to less product range in fungicide.

0

5

10

15

20

25

30

35

40

45

50


Indofil BASF Syngenta Cheminova Tata Rallies



4) Companies having Highest Sales of Herbicide.

Table No. 4.2.4. Companies having Highest Sales of Herbicide


Monsanto 8.9 57.1 3.6 3.6 26.8

Excel 73.2 0 23.2 3.6 0

BASF 0 33.9 37.5 12.5 16.1

Dhanuka 17.9 5.4 28.6 33.9 14.3

Cheminova 0 3.6 7.1 46.4 42.9

Graph No. 4.2.4. Companies having Highest Sales of Herbicide

Inference: According to the Market Survey it if found that Excel Crop Care is having the

highest Sales in Herbicide Segment of Agrochemicals fallowed by Monsanto, BASF,

Cheminova and Dhanuka Agritech ltd.

0

10

20

30

40

50

60

70

80


Monsento Excel BASF Dhanuka Cheminova



5) Companies having Highest Sales of PGR’s.

Table No. 4.2.5. Companies having Highest Sales of PGR’s


Cheminova 0 3.6 0 3.6 92.9

Biostadt 19.6 23.2 23.2 30.4 3.6

Godrej 42.9 30.4 17.9 8.9 0

Omega 30.4 26.8 33.9 8.9 0

Bayer 10.7 16.1 25 44.6 3.6

Graph No. 4.2.5. Companies having Highest Sales of PGR’s

Inference: The data from the survey shows that Goderj is the leading company in the sales of

PGR’s segment of Agrochemicals followed by Omega Fine Chemicals, Bayer Crop Science,

Biostadt and Cheminova India ltd.

0

10

20

30

40

50

60

70

80

90

100


Cheminova Biostadt Godrej Omega Bayer



6) Share of different segments in dealer’s sale of Agrochemicals.

Table No. 4.2.6. Share of different segments in dealer’s sale of Agrochemicals

31-40 % 21-30 % 11-20 % 1-10 %

Insecticide 21.4 58.9 14.3 5.4

Fungicide 69.6 23.2 7.1 0

Herbicide 0 14.3 25 60.7

PGR's 5.4 0 60.7 33.9

Graph No. 4.2.6. Share of different segments in dealer’s sale of Agrochemicals

Inference: From the above statistical data it is observed that in dealer’s sale of agrochemicals

of Fungicide is highest (31-40 %) followed by Insecticide (21-30 %), PGR’s (11-20 %) and

Herbicides (1-10 %)

0

10

20

30

40

50

60

70

31-40 % 21-30 % 11-20 % 1-10 %

Insecticide Fungicide Herbicide PGR's



7) Dealers view regarding Sales of Cheminova India Ltd.

Table No. 4.2.7. Dealers view regarding Sales of Cheminova India Ltd.

Frequency Percent

v. Good 7 12.5

Good 42 75.0

Average 7 12.5

Total 56 100.0

Graph No. 4.2.7. Dealers view regarding Sales of Cheminova India Ltd.

Inference: The Market Survey shows that out of 56 Dealers 75 % says, the sale of

Cheminova India Ltd is good. 12 % says very good and 13 % says average.

v. Good 12%

Good 75%

Average 13%



8) Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd.

Table No. 4.2.8. Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd

Frequency Percent

Highly Satisfied 9 16.1

Satisfied 29 51.8

Neutral 15 26.8

Highly Dissatisfied 3 5.4

Graph No. 4.2.8. Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd

Inference: It is observed from the data that 52 % Dealers are satisfied, 27 % are Neutral, 16

% are highly satisfied and 5 % are dissatisfied with present Margins of Cheminova India Ltd.

Highly Satisfied 16%

Satisfierd 52%

Nutral 27%

HIghly Disatisfied 5%



9) Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and

Cr.Note Accounting by Cheminova India Ltd

Table No. 4.2.9. Satisfaction of Dealers with respect to Timely Supply, Proper Schemes,

Billing and Cr.Note Accounting by Cheminova India Ltd

Frequency Percent

Highly Satisfied 31 55.4

Satisfied 14 25.0

Neutral 9 16

Dissatisfied 2 3.6

Total 56 100.0

Graph No. 4.2.9. Satisfaction of Dealers with respect to Timely Supply, Proper Schemes,

Billing and Cr.Note Accounting by Cheminova India Ltd

Inference: The data from the survey shows that 55.4 % dealers are highly satisfied, 25 % are

satisfied, 16 % are neutral and 3.6 % dissatisfied with Timely Supply, Proper Schemes,

Billing and Cr.Note Accounting by Cheminova India Ltd.

Highly Satisfied Satisfierd

Nutral Disatisfied

55.4

25.0

16.1

3.6



10) Comparison of Cheminova with other companies by dealer

Table No. 4.2.10. Comparison of Cheminova with other companies by dealer

Price Quality Margins Brand

Reputation

Demand

by

Farmers

Availability Packaging Services

High 0 16.1 21.4 8.9 17.9 64.3 21.4 17.9

Similar 50 83.9 48.2 55.4 58.9 32.1 51.8 69.6

Low 50 0 30.4 35.7 23.2 3.6 26.8 12.5

Graph No. 4.2.10. Comparison of Cheminova with other companies by dealers

Inference: The data shows that the Cheminova products have low price, similar quality,

margins, brand reputation, demand by farmers, packaging, service and high availability at

Nashik region.

0

10

20

30

40

50

60

70

80

90

High

Similer

Low



11) Dealers opinion on Service of Cheminova India Ltd.

Table No. 4.2.11. Dealer’s opinion on Service of Cheminova India Ltd

Frequency Percent

v. Good 2 3.6

Good 37 66.1

Average 17 30.4

Total 56 100.0

Graph No. 4.2.11. Dealer’s opinion on Service of Cheminova India Ltd

Inference: The market survey shows that 66.1 % dealers say the service of Cheminova is

good, 30.4 % says average and 3.6 % says very good.

.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

v. Good Good Average



FINDINGS:-

A) Farmers Survey Findings-

1. The company is well known among the farmers for insecticide products and for

fungicides in grape growers.

2. Among all agrochemicals farmers of Nashik region use Fungicides most followed by

Insecticide, PGR’s and Herbicides.

3. Fruit and vegetable production is high in Nashik region, so the usage of fungicides is

highest as it is used as preventive measure followed by insecticide and herbicides as

curative measures.

4. The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of

Nashik region followed by vegetables like tomato, capsicum, brinjal and leafy

vegetables. In agronomical crops most crops grown are Sugarcane, wheat, maize,

soya bean and groundnut.

5. Farmers of Nashik region mostly prefer Bayer, Cheminova followed by Syngenta,

Tata Rallies and Dupont for purchasing insecticides. The farmers are well known to

Cheminova products in Insecticide Segment as it has wide range of products at most

affordable rates in the market with quality product.

6. Syngenta is most preferred by farmers followed by Bayer, BASF, Tata Rallies and

Dupont in Fungicide Segment of Crop protection products. Cheminova is lacking in

fungicide segment as they are having limited product range in the category but the

products like Quatriz and Brunt are popular among Grape Growers.

7. Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product

in the market also it was observed that most farmers used loose chemical formulation

available at low rate in the market. But Glyfos Dakar is popular among the farmers

growing agronomical crops.

8. In PGR’s segment products like GA3, 6BA, NAA are highly used by Fruit and

vegetable growers in particular Grape and Capsicum. Products like GA3 are

purchased by farmers from Grapes Grower Association of Maharashtra (MRDBS), so

the product of Cheminova is not so preferred.

9. Farmers of Nashik region consider Quality of product most important while

purchasing the agrochemicals followed by past experience of them or other farmers

regarding the product, Brand name of the company, Price of the product. Service by



the company and dealers recommendation are least preferred by farmers of Nashik

region.

10. According to the farmers prices of Cheminova India ltd are low in comparison to

other agrochemical companies. The quality, packaging and services are similar to

others while the availability is slightly high than other agrochemical companies.

11. Farmers especially grapes growers are demanding good fungicide formulations for

Downey mildew and Powdery mildew on grapes.

12. Farmers are complaining about the packaging of old products like Rogar and Classic.

B) Dealers survey findings:-

1. Through the survey of insecticide companies it is seen that Bayer crop science is

having highest sales of insecticide in Nashik Region followed by Syngenta,

Cheminova, Dupont, and Tata.

2. Cheminova is at 3rd

place in the sales of insecticide segment of agrochemicals as its

having a good range of insecticide at low price.

3. Syngenta is the market leader in Fungicide Segment followed by BASF, Indofil, Tata

Rallies and Cheminova in Nashik Region. Cheminova is lacking behind due to less

product range.

4. Excel Crop Care is having the highest Sales in Herbicide Segment.

5. Cheminova is least preferred for sale of PGR’s as farmers are purchasing it from the

Grapes grower Association of Maharashtra.

6. In the sales of dealers share of Fungicide is highest (31-40 %) followed by Insecticide

(21-30 %), PGR’s (11-20 %) and Herbicides (1-10 %) in Nashik region.

7. According to 75% dealers the sales of Cheminova are good in Nashik region.

8. 60-65% of dealers are satisfied with margins given by Cheminova India ltd.

9. 75-80% of dealers are satisfied with Timely Supply, Proper Schemes, Billing and

Cr.Note Accounting by Cheminova India Ltd.

10. According to dealers Cheminova products have low price, similar quality, margins,

brand reputation, demand by farmers, packaging, service and high availability at

Nashik region as compare to other companies.

11. Dealers are expecting more margins, sales promotion activities from company and

more product range in the category of fungicides and PGR’s.



RECOMMENDATION:-

Cheminova India Ltd should increase the product range in fungicide and PGR’s

category as they are more demanded by the Farmers.

The company is good in the sales of insecticides but it is not famous as a brand like

Bayer or Syngenta so, the company should increase it field work for promotion of

company in the form of field demonstration of its products, organizing farmers meet

on various agriculture aspects, advertisement of the product so the farmer can recall

the company easily.

The company should launch its own unique product in the market to create its own

brand image.

The company should improve the packaging of its product for attractiveness and

better keeping quality of Rogar and Classic

The company should provide more sales promotion schemes to dealers to motivate

them.



FARMERS QUESTIONNAIRE

1. NAME OF FARMER:-

2. ADDRESS:-

AT/POST: - TAL: - DIST:-

3. AGE:-

4. EDUCATION:-

ILLETRATE PRIMARY SECONDARY

HIGHER SECONDARY GRADUATE POST GRADUATE

5. CULTIVABLE LAND

IRRIGATED:-

DRY:-

6. WHICH TYPE OF CROPS DO YOU GROW (GIVE RANK)

AGRONOMICAL

VEGETABLE

FRUITS

FLOWERS

7. CROPPING PATTERN

Sr. No. KHARIF AREA RABI AREA SUMMER AREA



8. WHICH TYPE OF AGROCHEMICALS DO YOU USE MOST (GIVE RANK)

INSECTICIDE

FUNGICIDE

HERBICIDE

PGR’S

9. WHICH COMPANY YOU PREFER MOST FOR INSECTICIDE (GIVE RANK)

SYNGENTA

BAYER

BASF

CHEMINOVA

TATA RALLIES

DUPONT

10. WHICH COMPANY YOU PREFER MOST FOR FUNGICIDE (GIVE RANK)

SYNGENTA

BAYER

BASF

CHEMINOVA

TATA RALLIES

DUPONT



11. WHICH COMPANY YOU PREFER MOST FOR HERBICIDES (GIVE RANK)

MONSANTO

EXCEL

GHARDA

CHEMINOVA

UPL

OTHERS (SPECIFY)

12. WHICH COMPANY YOU PREFER MOST FOR PGR’S (GIVE RANK)

GODREJ

CHEMINOVA

BIOSTADT

OMEGA

LOCAL COMPANY

UNETHICAL SOURCES

13. ARE YOU AWARE OF CHEMINOVA INDIA LTD

WELL AWARE SLIGHT AWARE NOT AWARE

14. DO YOU USE CHEMINOVA’S PRODUCTS

YES NO

IF NO, WHY

UNAWARE ABOUT BRAND UNAVALIBILITY OF PRODUCT

HIGH COST OTHER FACTORS (SPECIFY)



15. WHICH CHEMINOVA PRODUCT YOU USE

INSECTICIDE

HERBICIDE

FUNGICIDES

PGR’S

16. WHICH FACTORS DO YOU CONSIDER WHILE PURCHASING CHEMINOVAS

PRODUCT?

PARTICULAR HIGHLY

PREFERED

PREFERED NUTRAL SOMEWHAT

PREFERED

LEAST

PREFERED

PRICE

QUALITY

BRAND NAME

PAST EXPERIANCE

RECOMMENDATION

BY DEALERS

SERVICE/SUPPORT

17. COMPAIRE CHEMINOVAS PRODUCT WITH OTHER COMPANY ON

FOLLOWING PARAMETERS

PARTICULAR HIGH SIMILER LOW

PRICE

QUALITY

AVAILABILITY

PACKAGING

SERVICES

18. WHAT ARE YOUR EXPECTATIONS FROM COMPANY?



DEALERS QUESTIONNAIRE

1. NAME OF FIRM:-

2. ADDRESS:-

AT/POST: - TAL: - DIST:-

3. NAME OF PROPERITOR:-

4. EDUCATION OF PROPERITOR.

PRIMARY SSC HSC

GRADUATE POST GRADUATE

5. FROM HOW LONG YOU ARE IN THIS BUSINESS:-

6. MARKET COVERAGE:-

7. WHAT IS YOUR TURNOVER OF AGROCHEMICALS:-

8. WHICH COMPANIES DEALERSHIP YOU HAVE.

9. WHICH COMPANYS HAVE HIGHEST SALES OF INSECTICIDE (GIVE RANK)

TOP FIVE COMPANIES IN SALES

RANK

1. SYNGENTA

2. BAYER

3. CHEMINOVA

4. DUPONT

5. TATA RALLIES



10. WHICH COMPANYS HAVE HIGHEST SALES OF FUNGICIDE (GIVE RANK)


RANK

1. INDOFIL

2. BASF

3. SYNGENTA

4. DUPONT

5. CHEMINOVA

11. WHICH COMPANYS HAVE HIGHEST SALES OF HERBICIDES (GIVE RANK


RANK

1. MONSANTO

2. EXCEL

3. BASF

4. DHANUKA

5. CHEMINOVA

12. WHICH COMPANYS HAVE HIGHEST SALES OF PGR’S (GIVE RANK)


RANK

1. CHEMINOVA

2. BIOSTADTH

3. GODREJ

4. OMEGA

5. BAYER



13. WHAT IS THE PER CENT SHARE OF AGROCHEMICALS IN YOUR SALES?

31-40 % 21-30 % 11-20 % 1-10 %

Insecticide

Fungicide

Herbicide

PGR’s

14. WHAT DO YOU THINK OF SALES OF CHEMINOVA INDIA LTD.?

V.GOOD GOOD AVERAGE BAD V.BAD

15. ARE YOU SATISFIED WITH PRESENT MARGINES BY CHEMINOVA?

H. SATISFIED SATISFIED NUTEAL DISATISFIED H.DISATISFIED

16. ARE YOU SATISFIED WITH THE TIMELY SUPPLY, PROPER SCHEMES, AND

CR.NOTE/ACCOUNTING FROM DISTRIBUTORS?


17. WHAT ARE YOUR EXPECTAIONS FROM COMPANY?



18. COMPAIRE CHEMINOVAS PRODUCT WITH OTHER COMPANY ON

FOLLOWING PARAMETERS

PARTICULAR HIGH SIMILER LOW

PRICE

QUALITY

MARGINS

BRAND

REPUTATION

DEMAND BY

FARMERS

AVAILABILITY

PACKAGING

SERVICES

19. WHAT DO YOU THINK ABOUT SERVICES PROVIDED BY CHEMINOVA

V.GOOD GOOD AVERAGE BAD V.BAD

20. ARE YOU SATISFIED WITH COMPANIES POLICEIS?


21. ARE YOU FACING ANY PROBLEMS WITH COMPANY?

ALWAYS SOMETIMES NEVER



BIBLIOGRAPHAY

1. David A Aaker,V Kumar, George S Day “Market Research” 9th

Edition, Wiley India

Edition

2. Richard I Levin, David S. Rubin, “Statistics for Management” Seventh Edition,

Pearson.

3. Donald R Cooper, “Business Research Methodology” Ninth Edition, McGraw Hill.

4. Agrochemicals 2011 conference at Mumbai Feb. 2011

5. http://www.ficci.com/ accessed on ( 20 June 12 )

6. http://www.mahaagri.gov.in. accessed on ( 25June12)

7. http://www.cheminovaindia.in accessed on (5th

May 12)

8. http://nashik.nic.in/ accessed on (28 June 12)

http://www.ficci.com/events-page.asp?evid=20563

http://www.mahaagri.gov.in/

http://www.cheminovaindia.in/

http://nashik.nic.in/

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