Sumitomo Chemical India Limited (SUMICHEM.NS) Bundle
From its founding in Mumbai on 15 February 2000 as the Indian arm of Japan's Sumitomo Chemical to its strategic expansion via a 2010 manufacturing acquisition and the pivotal 2018 merger with Excel Crop Care, Sumitomo Chemical India Limited has methodically built a vertically integrated agrochemical business that leverages parent-company R&D, a broad product portfolio and an extensive channel network; today the group remains majority-owned by Sumitomo Chemical Company Limited with a 75% stake, a paid-up capital near ₹499.15 crore and a market capitalization of ₹22,724 crore (as of 18 Nov 2025), while reporting Q4 Mar 2025 revenue of ₹700.91 crore, net profit of ₹109.89 crore and EPS of ₹2.20 - figures that underscore how its crop protection, animal nutrition and bio-stimulant lines, plus exports to regions including Africa, combine with digital initiatives and farmer-focused campaigns like "Every Day Farmers' Day" to drive sales, margin expansion and market share in India's rapidly growing agrichemical landscape.
Sumitomo Chemical India Limited (SUMICHEM.NS): Intro
Sumitomo Chemical India Limited (SUMICHEM.NS) is the Indian arm of Sumitomo Chemical Company Limited (Japan), focused primarily on crop protection chemicals, intermediates and specialty chemicals. Established on February 15, 2000 in Mumbai, Maharashtra, the company expanded through targeted acquisitions and a major merger to become a leading player in India's agrochemical sector.
- Founded: 15 February 2000 (Mumbai, Maharashtra, India).
- Parent: Sumitomo Chemical Company Limited (Japan).
- Key inorganic growth: acquisition of a local manufacturing company in 2010.
- Strategic acquisition: majority stake in Excel Crop Care Limited (ECC) in 2016.
- Merger: SCIL merged with ECC in August 2018 to form a unified, larger entity focused on crop protection.
| Year / Date | Event | Impact / Rationale |
|---|---|---|
| 2000-02-15 | Incorporation of SCIL | Establishes Indian subsidiary for market entry and local operations |
| 2010 | Acquisition of local manufacturing company | Expanded production capacity and local regulatory footprint |
| 2016 | Majority stake acquired in Excel Crop Care (ECC) | Broadened product portfolio and strengthened sales channels |
| 2018-08 | Merger of SCIL and ECC | Unified organization, optimized sales network, combined R&D and manufacturing |
| 2016 (Market) | India agrichemical market ranking | 7th largest global agrichemical market; projected CAGR 4.6% (2016-2021) |
Ownership & Shareholding
- Major promoter: Sumitomo Chemical Company Limited (Japan) - strategic parent and technical collaborator.
- Merged entity ownership structure (post-2018): combination of promoter holdings and public shareholders following ECC merger and share-swap arrangements.
- Public float: Listed on Indian stock exchanges under the ticker SUMICHEM.NS (NSE/BSE) with institutional and retail participation.
Mission, Vision & Core Values
For details on the company's stated mission and vision, governance and ESG focus, see: Mission Statement, Vision, & Core Values (2026) of Sumitomo Chemical India Limited.
How It Works - Operations & Value Chain
- Research & Development: formulation development, local adaptation of global actives, regulatory dossier preparation.
- Manufacturing: captive and contract manufacturing sites in India for formulations and intermediates; post-2010 capacity expansion increased throughput.
- Regulatory & quality: compliance with Central Insecticides Board & Fertiliser regulations, registration for active ingredients and formulations.
- Sales & distribution: multi-tier distribution network leveraging ECC's extensive channel (post-acquisition) to reach dealers, retailers and end farmers.
- Export & licensing: selective exports and technology licensing within regional markets leveraging Sumitomo Chemical global pipeline.
How It Makes Money - Revenue Drivers
- Crop protection formulations (herbicides, insecticides, fungicides): primary revenue source.
- Specialty chemicals and intermediates: margin-accretive products, often tied to global parent technology.
- Contract manufacturing and tolling: capacity monetization for third-party customers.
- Distribution & channel services: post-merger synergies improved cross-selling and SKU reach.
| Revenue Driver | Key Characteristics | Contribution (typical) |
|---|---|---|
| Formulations (crop protection) | High volume, seasonality tied to cropping cycles | ~60-75% of product sales (post-merger market mix) |
| Specialty chemicals / Intermediates | Higher margin, technical grade products | ~10-25% of sales |
| Contract manufacturing / Exports | Utilizes excess capacity; price competitive | ~5-15% of sales |
Key Financial & Market Context (chapter-relevant figures)
- India agrichemical market (2016): ranked 7th globally; projected CAGR 4.6% over 2016-2021.
- Merger timing: August 2018 - consolidation intended to capture scale benefits and reduce overlapping costs.
- Operational scale-up: 2010 acquisition increased local manufacturing capacity and shortened lead times for domestic distribution.
Distribution, Sales Reach & Farmer Access
- Pan-India distribution leveraging ECC legacy networks after 2016 stake and 2018 merger integration.
- Multi-channel go-to-market: dealers, retailers, institutional agribusiness buyers and export customers.
- Field support: agronomic advisory and product trials to drive adoption of new formulations and packages.
Sumitomo Chemical India Limited (SUMICHEM.NS): History
Sumitomo Chemical India Limited (SCIL) began as a local arm of Sumitomo Chemical Company Limited to serve India's agrochemical and specialty chemical markets, combining Japanese technology with local manufacturing and distribution networks. Over decades it expanded product lines, R&D and farmer outreach to become a leading agrochemical player in India.- Founded as a subsidiary to commercialize Sumitomo Chemical's products and know-how in India.
- Growth driven by technology transfer, localized formulations, and widening distribution to retail and institutional customers.
- Consistent promoter support from Sumitomo Chemical Company Limited enabling capacity expansion and R&D investments.
| Item | Detail |
|---|---|
| Majority shareholder | Sumitomo Chemical Company Limited - 75% (as of September 2025) |
| Public float | 25% publicly held; significant trading on NSE as SUMICHEM |
| Authorized capital | ₹500.00 crore |
| Paid-up capital | ₹499.15 crore |
| Market capitalization | ₹22,724 crore (as of November 18, 2025) |
| Promoter shareholding trend | 75% as of September 2025 - unchanged from December 2024 |
- R&D and product adaptation: Local formulation development and crop-specific solutions informed by Sumitomo Chemical's global pipeline.
- Manufacturing: Production of technicals and formulations at Indian plants, optimizing cost and supply reliability.
- Distribution and sales: Multi-channel distribution to agro-dealers, retailers, and institutional agricultural projects across India.
- Services and extension: Farmer training, field demonstrations, and agronomic advisory to drive uptake and repeat purchases.
| Revenue Stream | Mechanism |
|---|---|
| Product sales (agrochemicals) | Sales of insecticides, herbicides, fungicides and seed treatment products to distributors, retailers, and large growers |
| Specialty chemicals and intermediates | Manufacturing and sale of specialty chemical products to industrial customers |
| Value-added services | Farmer programs, crop advisory services, and demonstration trials that increase product adoption |
| Licensing/technology | Technology transfer and collaboration with Sumitomo Chemical global R&D where applicable |
- Stable 75% promoter holding provides strategic continuity and access to parent-company capital and technology.
- Substantial public float (25%) and a market cap of ₹22,724 crore (Nov 18, 2025) reflect investor confidence and liquidity for future fundraising if needed.
- Near-full paid-up capital (₹499.15 crore of ₹500 crore authorized) indicates limited immediate equity dilution capacity without fresh authorization.
Sumitomo Chemical India Limited (SUMICHEM.NS): Ownership Structure
Sumitomo Chemical India Limited (SUMICHEM.NS) grounds its strategy in a clear mission: deliver sustainable value through innovation in agriculture, animal nutrition, household & public health, and pest control while upholding Japanese standards of quality, ethics and transparency. The company emphasizes recognizing genuine needs to create practical solutions and follows a 'Value Exchange' principle that balances profitability with trust and social responsibility. Its 'Every Day Farmers' Day' campaign engaged over 1,000,000 farmers, reinforcing farmer-centric product development and channel partnerships.- Core mission: sustainable agriculture, social upliftment, and economic stability through innovation and quality
- Values: intention, sincere effort, skillful execution, ethics, transparency, and customer-centricity
- Key focus areas: crop protection, seeds & farm solutions, animal nutrition, public health, and household pest control
| Aspect | Details / Key Metrics |
|---|---|
| Promoter Shareholding | Sumitomo Chemical Co., Ltd. - ~63.3% |
| Public & Institutional Shareholding | ~36.7% |
| Farmer Outreach | Over 1,000,000 farmers engaged via 'Every Day Farmers' Day' |
| Primary Revenue Streams | Crop protection formulations & technicals, animal nutrition additives, public health insecticides, household insecticides, seeds & farm advisory services |
| Business Model | R&D-led product development + B2B & B2C distribution through dealers, retailers, agri-input chains and direct farmer engagement |
- How it makes money: sale of branded formulations and technicals, licensing and contract manufacturing, value-added farmer services and channel incentives
- Competitive edge: Japanese R&D and quality systems combined with deep local distribution and farmer engagement
- Sustainability commitments: product stewardship, reduced-risk chemistries, and initiatives to improve farmer livelihoods and yield sustainability
Sumitomo Chemical India Limited (SUMICHEM.NS): Mission and Values
Sumitomo Chemical India Limited (SCIL) is the Indian arm of the Sumitomo Chemical Group focused on agrochemicals, crop protection formulations, seeds and newer bio-stimulant offerings. The company positions itself around sustainable agriculture, farmer-centric solutions, and technology-led product innovation to enhance crop productivity while reducing environmental footprint. How It Works SCIL operates through a vertically integrated model that spans R&D, manufacturing, formulation, marketing and distribution. The integration allows tighter control of quality, faster commercialization of new molecules and better margin capture across the value chain.- R&D leverage: SCIL harnesses parent Sumitomo Chemical's global research base for active ingredient discovery, formulation technology and regulatory support, enabling faster local launches and product adaptations.
- Manufacturing footprint: The company runs multiple formulation and packaging facilities in India strategically located to serve domestic demand and export markets, particularly Africa and neighboring geographies.
- Distribution & sales: A multi-tier distribution network combines company sales teams, regional distributors, dealers and field agronomists to ensure last-mile product availability and farmer uptake.
- Digital initiatives: Investments in digital agronomy tools, supply-chain automation and CRM platforms improve operational efficiency and farmer engagement.
- Product expansion: Focus on building a portfolio of patented products, bio-stimulants and differentiated formulations to capture higher-value segments and extend product lifecycle.
- Global R&D linkage: Access to Sumitomo Chemical's patented chemistries and regulatory dossiers accelerates product approvals and introduction in India and select export markets.
- Export strategy: Significant export presence-particularly Africa-helps diversify revenue and smooth seasonality tied to the Indian monsoon cropping cycle.
- Channel partnerships: Long-term tie-ups with local agribusiness distributors and retailer networks enable deep rural reach and rapid scaling for new launches.
| Metric | Value (approx.) |
|---|---|
| Annual Revenue (FY recent) | INR 2,200-3,000 crore |
| Net Profit (FY recent) | INR 120-220 crore |
| Export share of revenue | ~25%-35% |
| Employee count | ~1,200-1,800 |
| Key product segments | Insecticides, Fungicides, Herbicides, Bio-stimulants, Seeds |
- Formulation sales: Primary revenue from sale of branded crop-protection formulations across cereals, pulses, oilseeds, fruits and vegetables.
- Patented products & technicals: Margins from licensed/patented chemistries sourced from parent or jointly developed actives.
- Exports: Direct sales to distributors in Africa and other emerging markets, often under private label or Sumitomo-branded products.
- Value-added services: Agronomy advisory, bundled product packages and farm-level demonstrations that drive adoption and recurring sales.
- Introduction of patented and differentiated formulations and an expanding bio-stimulant portfolio to move up the value chain.
- Digital tools for farm-level advisory, dealer CRM enhancements and supply-chain tracking to reduce stock-outs and pilferage.
- Campaigns such as "Every Day Farmers' Day" to deepen in-person engagement, strengthen brand trust and convert demonstrations into repeat purchases.
| Aspect | Details |
|---|---|
| Manufacturing locations | Multiple formulation plants across India (regional clustering to serve West, North and South markets) with export-compliant packing lines. |
| Regulatory & quality | Compliant with global residue and registration standards; works closely with parent for dossiers and approvals. |
| Distribution network | National distributor network, regional hubs, direct sales force and field agronomists for farmer outreach. |
- Margin focus: Product mix shift toward patented products and bio-stimulants to improve gross margins over commodity formulations.
- Geographic expansion: Strengthening Africa and select South-East Asian markets to diversify demand.
- Sustainability: Adoption of safer chemistries and reduced-environmental-impact formulations in product pipeline.
- Digital scaling: Continued investment in farm-technology, traceability and distributor-portal systems.
Sumitomo Chemical India Limited (SUMICHEM.NS): How It Works
Sumitomo Chemical India Limited (SCIL) generates income primarily by manufacturing, marketing and distributing agrochemical and allied products tailored to the Indian and select international agricultural markets. The company's business model combines product development, contract manufacturing, a wide distribution network, and targeted farmer engagement to convert technical formulations into market sales.
- Core revenue comes from sales of crop protection formulations - insecticides, herbicides, fungicides and miticides - sold to distributors, retailers and institutional buyers.
- Complementary revenue streams include animal nutrition products, plant nutrition and growth regulators, fumigants, rodenticides and biologicals (bio-pesticides and bio-stimulants).
- Exports and international sales to Africa and other regions provide geographic diversification and incremental revenue.
| Revenue Source | Typical Contribution (approx.) | Notes |
|---|---|---|
| Crop protection (insecticides, herbicides, fungicides, miticides) | ~60-75% | Mainstay of topline; includes both technical grade and formulation sales. |
| Plant nutrition & growth regulators | ~8-15% | Higher-margin specialty and niche products, increasing with portfolio additions. |
| Animal nutrition and silage additives | ~3-7% | Adjunct business with steady institutional demand. |
| Biologicals, fumigants, rodenticides, weedicides | ~5-12% | Growing segment as SCIL expands bio-stimulant & bio-pesticide offerings. |
| Exports / International sales | ~10-20% | Significant for off-season demand balancing and scale-up of select molecules. |
How these pieces fit operationally:
- R&D and regulatory: In-house formulation development and regulatory support to register molecules across Indian states and export markets, enabling faster product launches.
- Manufacturing: Combination of captive manufacturing and contract manufacturing ensures scale while controlling capital intensity for new formulations.
- Distribution and channel partnerships: A nationwide network of thousands of dealers and field-force partners enables penetration into smallholder farmer segments and ensures last-mile availability.
- Sales & marketing: Field sales teams, channel incentives, and farmer engagement campaigns (e.g., 'Every Day Farmers' Day') drive adoption and repeat usage.
Revenue drivers and recent strategic levers:
- New product introductions in agrochemicals and bio-stimulants - widening the product portfolio to address crop- and region-specific needs increases average selling price and market share.
- Geographic expansion and exports to Africa and neighboring markets - diversifies demand seasonality and adds higher-volume opportunities for certain molecules.
- Strengthening of distribution and channel financing - improves working capital cycles for dealers and increases availability during peak seasons.
- Customer engagement and digital outreach - campaigns like 'Every Day Farmers' Day' increase brand visibility, trial rates and loyalty among farmers, supporting higher sales conversion.
| Operational Metric | Representative Figure | Implication |
|---|---|---|
| Dealer & channel network | Several thousand+ retail touchpoints | Wide reach into smallholder farmer markets; enables rapid scale-up for new launches. |
| Geographic reach | Domestic (pan-India) + exports to 30-40 countries (notably Africa) | Seasonality diversification and overseas revenue contribution. |
| Product portfolio breadth | Dozens of formulation SKUs across 8-10 major crop categories | Reduces dependency on single-crop cycles; cross-sell opportunities. |
Financial mechanics - how sales translate to profit:
- Gross margins are supported by formulation economics and selective premium pricing on specialty and bio products.
- Ongoing R&D and registration costs are invested to maintain pipeline and regulatory approvals; these are offset by lifecycle sales of registered molecules.
- Working capital cycles hinge on seasonal demand; efficient inventory management and distributor credit terms minimize financing costs.
- Export volumes and higher-margin specialty product mix help improve EBITDA margins over time as portfolio shifts from commodity formulations to specialized solutions.
Strategic initiatives that directly boost revenue and market share:
- Portfolio expansion into bio-stimulants and biological crop protection to capture the growing sustainable-agriculture market.
- Focused farmer programs and digital outreach to build brand loyalty and accelerate adoption of new products.
- Strengthening export channels and registrations in African markets to scale volumes outside India.
For investor-oriented detail and ownership/registry context, see: Exploring Sumitomo Chemical India Limited Investor Profile: Who's Buying and Why?
Sumitomo Chemical India Limited (SUMICHEM.NS): How It Makes Money
History & Ownership- Founded as part of the Sumitomo Chemical Group's global footprint, Sumitomo Chemical India Limited (SCIL) has evolved into a leading agrochemical manufacturer and distributor in India.
- Major ownership: Promoted and backed by Sumitomo Chemical Co., Ltd., with public float on the NSE under the ticker SUMICHEM.NS.
- Mission emphasizes sustainable crop protection, innovation in agro-inputs, and expansion of bio-stimulant and specialty chemical portfolios to support modern agriculture.
- See the company's stated direction here: Mission Statement, Vision, & Core Values (2026) of Sumitomo Chemical India Limited.
- Manufacturing: Production of technical-grade active ingredients and formulations for crop protection (insecticides, fungicides, herbicides).
- Marketing & Distribution: Sales to distributors, dealers, and institutional buyers across India and export markets.
- R&D & Licensing: Development of new molecules, registration services, and licensing of formulations for domestic and international markets.
- Value-added products: Expansion into bio-stimulants, specialty nutrition, and integrated pest management solutions.
| Metric | Value | Change (QoQ) | Change (YoY) |
|---|---|---|---|
| Revenue | ₹700.91 crore | +4.1% | +4.9% |
| Net Profit | ₹109.89 crore | +25.7% | +52.4% |
| Earnings Per Share (EPS) | ₹2.20 | - | - |
| Stock Price (18 Nov 2025) | ₹455.25 | - | - |
| Market Capitalization (18 Nov 2025) | ₹22,724 crore | - | - |
- Strong position in the Indian agrochemical market supported by brand legacy, Sumitomo parentage, and wide distribution reach.
- Profitability improving: Q4FY25 net margin expansion driven by operational efficiencies and higher-margin product mix.
- Strategic initiatives: introduction of new products, portfolio expansion in agrochemicals and bio-stimulants, increased focus on sustainable and integrated solutions.
- Outlook: Positioned to capitalize on rising demand for crop protection in India and exports, with R&D and sustainable-product pipelines expected to drive medium-term growth.
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