Heranba Industries Limited IPO: Heranba Industries is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. It manufactures Intermediates, Technicals and Formulations. It is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin etc. The Company Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.
The business verticals include
Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies;
Technicals Exports: Exports of Technicals in bulk to customers outside India;
Branded Formulations: Manufacturing and selling of Formulations under our own brands through our own distribution network in India;
Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India; and
Public Health: Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies.
Heranba Industries started manufacturing activity in the year 1996 with the production of an Intermediate product CMAC. By the FY 2001-2002, its forward integrated the Company into the manufacturing of various Technicals like metametron, cypermethrin, alpha, permethrin and deltamethrin. By the end of the FY 2004-2005, further expanded the product range to Formulations, which are final products sold to farmers as Pesticides, Herbicides, Fungicides for crop protection and into public health products in the FY 2010-11.
he Company is present in the entire product value chain of the agrochemicals industry i.e. Intermediates, Technicals and Formulations and holds registrations for eighteen (18) Technicals for manufacture and sale in India, one hundred and three (103) Technicals & Formulations for manufacture and sale in the export markets and one hundred and sixty-nine (169) Formulations registered for manufacturing and sale in India. Applications for registration of fourteen (14) Technicals & Formulations for manufacture & sale in India and seven (7) Technicals and Formulations to manufacture for the export markets have been filed with the CIB&RC and are in the process of evaluation. It has diversified the business from manufacturing and selling of Intermediates to manufacturing, marketing and selling of Technicals and Formulations. Majority of current Intermediates production is utilized for captive consumption for the manufacturing of Technicals Products. Formulations are produced and packaged in powder and liquid forms and sold to distributors for further sales to farmers.
Heranba Industries manufacturing process mainly includes chemical reactions of ammonolysis, esterification, hydrolysis, condensation, favorski reaction, isomerisation, cyanation, Friedel crafts, methoxylation, cyclisation and halogenation. The company has an in-house R&D team for product development and improvisation which is well supported by product registration team. The R&D facilities at Unit I and II are recognized by the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India (DSIR). And new R&D facility at Unit III, Sarigam has become operational from October 2020.
Heranba Industries exported its products to more than sixty (60) countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in Fiscal 2020. As of November 15, 2020, the International Distribution Partners have successfully obtained three hundred and – seventy-one (371) registrations of Technicals and Formulations in forty-one (41) countries across the Middle East, CIS, Asia, South East Asia and Africa. The International Distribution Partners have presently filed one hundred and seventy-two (172) registration applications for Technicals and Formulations products which are pending before the regulatory authorities in forty-one (41) countries. The companies International Distribution Partner in Europe has already received registration for Deltamethrin Technical. And another International Distribution Partner has incorporated a company, Heranba Europe S.L. wherein registration of Alpha Cypermethrin Technical has been recently received. Applications for registration of Lambda Cyhalothrin Technical and Metribuzin Technical filed by the company’s International Distribution Partners are in process before the relevant authority in EU. Its International Distribution Partner in the USA has also applied for registration of Lambda Cyhalothrin Technical manufactured by the Company as another source of supply to their existing registration for this product. The company is in process of developing two (2) products of Fungicides, two (2) products of Herbicides and one (1) product of Insecticides, for which research and development tests have been initiated, for exclusive sale to the European markets after registration with the regulatory authority in EU. India has emerged as the largest pyrethroid manufacturer over the years. More than half of the global demand for Pyrethroids comes from China, after importing intermediates from India, which is used to produce pyrethroid. Yet China’s adoption of the’ Blue Sky’ program to realize green GDP has led to the shutdown of several chemical plants. This, in turn, is expected to result in higher volumes of Pyrethroids being exported out of India.