India has emerged as one of the world’s leading exporters of agrochemicals as global supply chains diversify beyond China and multinational customers look for reliable manufacturing partners. In FY2023, agrochemical exports from India touched $5.4 billion or 43,200 crores, up from $4.9 billion or 36,000 crores in the financial year 2021-2022. Exports grew at a CAGR of 14% from FY2019 to FY2023. Here’s a look at what is driving the shift, and how four listed smallcap companies are playing a part.
What’s driving growth
There are a few important factors contributing to this growth.
The China+1 opportunity: China Plus One (or C+1) is a strategy where businesses diversify their manufacturing operations by adding a second country to their supply chain rather than relying only on China. Today, in the agrochemicals space, global buyers are reducing dependence on China after supply-chain disruptions. Plus, India’s agrochemicals at present face a lower tariff at 18%, versus their Chinese counterparts at 35%, bringing in an added edge. Environmental regulations and rising costs in China have also encouraged supplier diversification, so Indian manufacturers with established compliance standards and export track records are benefiting.
Value addition: Instead of focusing on prices, Indian companies are now investing in better formulations, robust R&D, technical-grade manufacturing (bulk formulations), contract manufacturing or CRAMS (outsourced research and production), and product registrations. This enables longer customer relationships, better margins and gives Indian companies a stronger competitive advantage.
Capacity expansion to support growth: Many agrochemical smallcaps are investing in manufacturing infrastructure along with backward integration and process automation to meet the anticipated export demand. Global customers need suppliers that can deliver large volumes consistently over many years and these investments position manufacturers to scale production as export demand increases.
Smallcaps to watch
The agrochemical sector in India is vast and powered largely by mid- and smallcap companies. There are however a few smallcaps with a distinct focus on exports, or a growing export bucket.
Sharda Cropchem, the export experts
Sharda’s biggest competitive advantage is its asset-light business model. Rather than manufacturing most of its products, the company focuses on building an extensive portfolio of product registrations and outsourcing production to approved manufacturing partners. The company works on identifying generic molecules, preparing dossiers, filing product registrations, and engaging in marketing and distributing formulations, resulting in cost-competitiveness across the board. Sharda has a presence in over 80 countries across across Europe, NAFTA, Latin America, and the rest of the world, with 60% of its revenue coming from Europe.
Bharat Rasayan, the technical manufacturing specialists
Bharat Rasayan specialises in the manufacture of technical-grade pesticides and intermediates, supplying both domestic and international customers. Bharat Rasayan has a Three Star Export House recognition from the Indian government and serves 24+ countries including Japan, Singapore, Israel, Switzerland, USA, etc. The company also offers custom synthesis and contract manufacturing services. Rather than focusing on volumes, the firm strategically focuses on complex technical manufacturing and process expertise, producing high-purity, high-quality agrochemical technicals and intermediates.
India Pesticides, technical and formulation specialists
Established in 1984, IPL (India Pesticides Limited) is a globally-operating agrochemical manufacturer. The company is the sole Indian manufacturer, and, among the top five global manufacturers for several technicals in fungicides and herbicides, like Floret (fungicide used widely in vineyards) and Thiocarbamate Herbicide (weed control herbicide). IPL has expanded its presence in technical-grade agrochemicals while strengthening its backward integration capabilities, particularly with raw-material sourcing. A focus on manufacturing intermediates in-house has helped improve supply-chain reliability, reducing dependence on external suppliers. The company has also invested in expanding production capacity and adding new products, positioning itself to serve growing export demand. IPL now exports to over 35 countries globally, in Asia, Australia, Africa, and Europe. IPL, as of Q3FY26, received 6 overseas registrations in Europe, Australia, and New Zealand, taking their total to 54 registrations globally.
Astec Lifesciences, CRAMS specialists
Astec LifeSciences, part of the Godrej group, focuses on specialty agrochemicals and contract research and manufacturing (CRAMS) and operates solely in the B2B segment. Astec manufactures active ingredients and intermediates to suit the requirements of multiple industries, along with a legacy enterprise products business that spans a wide range of fungicides, herbicides and intermediates. With backing from their parent company Godrej Agrovet, Astec has been investing in manufacturing infrastructure and expanding its CRAMS capabilities to strengthen its position in global outsourcing opportunities.
Cultivating growth
It’s clear that the Indian agrochemical industry is evolving beyond a mere “low-cost manufacturing hub.” It’s important to note that cyclical risks like pricing pressures, tariffs, raw material costs, currency fluctuations, and regulatory changes need to be taken into account. However, even with these risks factored in, businesses that continue to invest in technology, manufacturing capabilities and global market access may be better positioned to benefit from the next phase of India’s agrochemical export story.
Sources
CropLife India Knowledge Report
https://reader.magzter.com/reader/c6kz651lbyhvtvds253d6214372320549522/2143723
SH-2026-Q1-ICRA-Thematic-Agrochemicals.pdf
China Plus One Strategy: Why India Is the Best Bet (2026) – Zetwerk
https://niti.gov.in/sites/default/files/2025-07/NITI-Aayog-Chemical-industry-report.pdf
Sharda Cropchem Ltd share price | Key Insights – Screener
https://www.screener.in/company/BHARATRAS/
Leading Agrochemical Intermediates Manufacturer – Bharat Rasayan
India Pesticides Ltd share price | Key Insights – Screener
IPL at a Glance – India Pesticides Limited
Astec Lifesciences Ltd share price | About Astec Lifescienc – Screener
Offerings – Astec-LifeSciences-Godrej