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Study of Trade policies of competitor companies as

per the bench mark and compare with them to

analyze the expectations of trade in Kurnool, Nandyal

and Nellore regions of A.P.

SUBMITTED BYVIJAY DEMOCRATE

PGDABM 2010-12

NATIONAL INSTITUTE OF

AGRICULTURAL MARKETING,

JAIPUR (RAJ.)

SUBMITTED TOMr.M.N.RAO

BUSINESS MANAGER

DHANUKA AGRITECH

LIMITED

HYDERABAD (A.P.)

S

U

M

M

E

R

P

R

O

J

E

C

T

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P

OR

T

2012


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NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 2

ACKNOWLEDGEMENT

I would like to extend my deep sense of gratitude to Dhanuka Agritech ltd. especially Mr. Kamal

Kumar Sr. general manager for giving me the opportunity to work in this company as summer

trainee, which has been a pleasant experience for me.

I am also thankful to Mr. M. N. Rao Business Manager whose guidance and

encouragement during the course of this project has been valuable. My thanks are to

Mr.Hussainavalli A.R.M., Mr.V. Sheshavali AM, Mr. Lokeshwar Reddy AM, Dr. M. Parashuramaiah,

Development Manager, Dhanuka Agritech ltd. Whose valuable suggestions were of immense help

to me.

I am also grateful to my director Dr. Kamal Kumar without whose support this project

would have not been complete. I wish to express my thanks to all my friends especially Prashant

Dharapure, Sandip Dongare, Chandan Kumar, Pankaj Vijay Jadhao, Amol Jadhav, Chirag Jain who

have been offering advice and suggestions which were of great help to me.

I am also thankful to all Niamies and faculty especially Prasad sir who were constantly

encouraging me. I wish to thank all the respondents who were kind enough to spend their valuable

time for my project.

Lastly but most importantly I am greatly indebted to my parents who have been the sole

cause for my progress in life. Thank you my dear parents.


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DECLARATION

This is to declare that, I, Vijay Democrate, student of Post Graduate Programme in Agri -

Business Management (2010-2012), NIAM, JAIPUR, have given original data and information to

the best of my knowledge in the project report titled Study of Trade policies of competitor

companies as per the bench mark and compare with them ours to analysis with expectations of

trade in A.P and that, no part of this information has been used for any other assignment but for

the partial fulfillment of the requirements towards the completion of the said course.

Vijay Democrate


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CERTIFICATE

This is to certify that Mr. Vijay Democrate, bonafide student of Post Graduate

Program in Agri- Business Management (2010-2012); NIAM; JAIPUR participated as

summer trainee in our company for the period April - June. He has successfully completed

his summer project titledStudy of Trade policies of competitor companies as per the

bench mark and compare them with ours to analysis the expectations of trade in A.P,

towards the partial fulfillment of their requirements for the course.

I wish him all success in future.

Dr. Kamal Mathur Mr. M. N. Rao

Director, PGPABM Business Manager

(Marketing) Dhanuka Agritech Ltd.

NIAM, JAIPUR Hyderabad.


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EXCECUTIVE SUMMARY

The study titled Study of Trade policies of competitor companies as per the bench mark

and compare them with ours to analysis with expectations of trade in A.Pwas conducted

for Dhanuka Agritech Ltd. in project areas viz. Kurnool including Nandyal, and Nellore districts

of Andhra Pradesh to carry out the comparative study of trade policies of the bench mark

competitor companies and to evaluate performance of existing policy of the company in terms of

expectations of the respondents in the market.

Market leaders in the A.P. pesticide market are Syngenta, Bayer Crop science, DuPont, Rallis

and Dhanuka Agritech ltd. The major response in the market about the existing policy is good as

compare to other market leaders. But in terms ofBrand Image, Promotional activities and Field

activities company has to look after. The respondents are majorly demanding new molecules or

formulations from the house of Dhanuka.

The company should build good relations with the channel partners/PDs by providing themforeign tours or surprise tour with increasing turnover criterion. A slight increase in the margin

can be a good move toward building a good relation with the distributors and PDs. The average

credit period given by company to dealers is 90 days and respondents are satisfied with that.

Most of the dealers are not happy with the companies imitating strategy of the popular

products by the market leaders like Bayer and Rallis so they want new molecules to be released,

they also not happy with incentives offered by company and fieldwork of company.

In term ofsalesreturns company here again got goodresponse from the market and it stands 2nd

in the market after MakhteshamAgan ltd. But in terms of margin given to the distributors and

dealers company is behind Rallis and some local companies like HCL and NACL.

As far as product price is concerned company stands after other Indian and local companies like

HCL, NACL and MAL.

However, Dhanuka Agritech ltd. can compete with the existing market leaders while adopting the

cost leadership, differentiation and focus strategies. Cost leadership By offering formulations /

molecules at lower prices to potential buyers, differentiation by Positioning the product in the


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minds of consumers as superior to other companies products in terms of quality and other

features like higher efficiency, no sedimentation problems during cases of long storage by

obtaining superior quality material from suppliers.

And lastly, Focus strategy by Concentrating on loyal customers and few potential areas rather

than wasting resources in multiple areas.

So in short there is an immense scope for the company to expand its business with following

smart steps as research findings have suggested.


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TABLE OF CONTENTS

S.

NoParticulars Page

No.

1. Executive Summary 5

2. Table of contents 7

3. Introduction 8

4. Andhra Pradesh State Profile 10

5. Research methodology 13

6. Research design 15

7. Pesticides Industry overview 18

8. Company Profile 21

9. DATA ANALYSIS 27

9.1 KURNOOL

9.2 NANDYAL

9.3 NELLORE

27

36

43

10. RESEARCH FINDINGS 50

10.1 KURNOOL

10.2 NANDYAL

10.3 NELLORE

12. SWOT ANALYSIS 55

13. RECOMMENDATIONS 56

14. Appendix 1: Questionnaire for dealers/Distributors survey 5858


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15. REFERENCES 62

INTRODUCTION

Although agriculture contributes only 14.3% GDP, its importance in the countrys economic, social,

and political fabric goes well beyond this indicator. The rural areas are still home to some 72

percent of the Indias 1.1 billion people, a large number of whom are poor. Most of the rural poor

depend on rain-fed agriculture and fragile forests for their livelihoods. The sharp rise in foodgrain

production during Indias Green Revolution of the 1970s enabled the country to achieve self-

sufficiency in food grains and stave off the threat of famine. Indias rice yields are one -third of

Chinas and about half of those in Vietnam and Indonesia.

According to the Centre for Monitoring Indian Economy (CMIE), crop production is expected to

rise by 1.7 per cent during FY 10 and food grain production is expected to increase by 1.1 per cent

and wheat production is projected to remain at the same level of 80 million tonnes as estimated for

FY 09 while rice production is projected to increase by 1.1 per cent to 98.8 million tonnes.Production of coarse cereals and pulses is also expected to rise in FY 10.

So we can judge by ourselves that India is taking bigger and bigger steps towards success and this is

the time when farmers are keen to adopt new techniques and innovations in agriculture.

There is an immensescope for seed as well as pesticide industry to come together contribute in

the success of Indian Agriculture which is not a business in India but a religion for every one as it

not only satisfies hunger but an only source of more than half of the countrys population.

Though Green Revolution has contributed immensely in achieving self-sufficiency in food grain

production, India still needs to feed its burgeoning population. But there considerable losses in

yields due to micronutrient deficiencies and pest attack damage which we can ill afford to neglect

because the only way we can feed our increasing population is to increase productivity with

controlling pest damage and giving micronutrients. The main causal factor for situation is

intensification of agriculture over the years without adequate replenishment. This loss of

micronutrients largely affects the efficiency of other nutrients, crop production, crop quality and

returns to farmers.


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Sustainable agricultural production has always assumed importance in the wake of growing

population of the country. Pesticides are one of the invaluable inputs in sustaining the agricultural

production as substantial food production is lost due to insect pests, plant pathogens, weeds etc.

Crop losses in India due to pests such as insect pests, rodents, diseases and weeds range between

10 to 30% annually depending on severity of attack and climatic and environmental conditions.

However, the consumption of pesticides is quite low in India.

Project is titled as Study the trade policies of competitor companies as per the bench mark

and compare them with ours for analyzing the expectation of trade in A.P.

Trade or marketing policy and channel relations are highly matter for the companys performance

in the market. The expectations of every channel level bodies from the company are fulfilled as

their marketing policy design.

Companys expectation regarding this project is to evaluate and analyze its existing trade policy

while studying that of different competitors. Following objectives are there for this project,

which are fulfilled in the report:

To analyze to what extent the marketing policies are helpful in improving the bond

between the channel and companies and also study whether it is improving any discipline

at channel level.

How far they are creating relationship between the Distributors, PDs and Companies

and Its impact on buying behaviour of channel and company.

Analyze how much importance channel is giving for the marketing policies of variouscompanies.


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ANDHRA PRADESH

State profile of A.P.

Andhra Pradesh is the fourth largest state in India with an area of 27.4 million ha. About 40%

of the area (10.9 million ha.) is the net cultivated area and around 70% of the population

depends on agriculture. So far pesticide consumption for the last year was 1015 Million tones.


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The state has 23 districts classified under three regions viz. Telangana (10 including

Hyderabad), Coastal Andhra (9 districts) and Rayalaseema (4 districts).

The state has tropical to subtropical climate. Humid to semi-humid conditions prevail in the

coastal area, while in the interiors of the state the climate is arid to semiarid. . The major crops

grown here include paddy, sugarcane, oilseeds, beans, and pulses (edible seeds from crops such

as peas, lentils, and beans. Agriculture plays a vital role in the economy of the state.

Project areas are Nellore and Kurnool.

Nellore district

Pesticide consumption: 125 Million Tones

Nellore district is the southernmost coastal district of Andhra Pradesh, India. The most important

river in the District is Pennar River. Swarnamukhi and Kandaleru are the other two rivers in the

District, which flow in the West to East direction and merge into the Bay of Bengal. The total

geographical area of the District is 13.16 lakh Hectares. Of this 41.3% alone is cultivable area while

18.7% is forest area. Agriculture is the main occupation of the people of the district. The princ iple

crops which are grown in Nellore are Paddy, Jowar, Bajra along with Tobacco, Chillies, Groundnut,

Sugar Cane.A variety of agro based Industries such as rice bran oil plants, sugar factories, rice and


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paraboiled rice mills have come up. As Nellore has a long coast line, farmers have a good time in

the aquaculture. Fish is also available in plenty.

Kurnool

Pesticides consumption: 225 million tones

Agriculture - Major Food crops Paddy, Jowar, Bajra

MajorCommercial crops- Groundnut, Cotton, Chillies and Sugarcane

Major oilseeds- Groundnut, Sunflower

Major Horticultural crops -Mango, Citrus, Banana, Onions, Tomatoes,

Chillies and Flowers like Crossandra, Jasmine

Background:

Kurnool district is one of the important districts in the state of Andhra Pradesh and the most

prominent district of the Rayalaseema Region. Kurnool district is gifted with rich natural

resources. The district is bounded on the North by major rivers of Krishna and Tungabhadra.

One of the largest Hydro-Electric Power Project is constructed across river Krishna at Srisailam


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Research Methodology

Sampling and Data collection

Andhra Pradesh is divided in to three major zones, viz. Telangana, Rayalaseema and

Coastal Andhra. Rayalaseema region having Kurnool and Nandyal as project market area

the potential market areas for the company. Coastal Andhra region having Nellore as

project market area is also a big market for the same.

Among these three major areas, Kurnool district including Nandyal, alone having turnover

above 9 Crores.

Disguised and non disguised questionnaires were prepared for PDs/dealers/distributors.

Personal interview method was adopted for data collection for both PDs/dealers/distributor

and marketing staffs.

Almost all the dealers/PDs/Distributors and marketing officers were asked within all these 3

territories.

Source of information

Primary source of information

Personal interviews of PDs/distributors/dealers and Marketing officers.

Discussion with some retailers.

Discussion with marketing officials of competitor companies(Non Disguised)

Discussion with experienced Dhanuka loyal preferential dealers (PDs).

Discussion with ASM and Area manager of project areas.

secondary source of information


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Sample Size

Market Area

covered

Villages / Markets

covered

No. of PDs /Dealers &

Distributors

covered

No of Marketing

staffs covered

Kurnool Market

Area

Kurnool town,Shanthi Nagar,

Venkatpuram stage,Ieja Mandal,

Macherla - Gattumandal,

A.Boodidapadu,

Vill.-B.Satyanarayana

shetthy,

Nandikotkur

20 1 M.O.+1 DD

Nandyal

Market Area

Nandyal town,Atmakur, valgodu,

Rudravaram,

chhagalamarri,

Arjunapuram

Derripodu,

Alagadda,Bengampalli,

45 2 M.O. + 2 DD

Nellore

Market Area

Nellore town,

Atmakur,Nagireddy palem

Vinjamur, Udaigiri,Kaligiri, Kavali,

Allore, Raju palem

45 4 M.O. + 2 DD

Total 110 18

There is no secondary source for the information related to trade/marketing policies of the

competitor companies.(Confidential information for the companies)


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Research design

SCOPE:

To analyze the different approaches by MNCs and few leading major Indian companies, its

perception and impact on motivation of Distributors / PDs.

OBJECTIVES:

1. To analyze to what extent the marketing policies are helpful in improving the bond between

the channel and companies and also study whether it is improving any discipline at channel

level.

2. How far they are creating relationship between the Distributors, PDs and Companies and Its

impact on buying behavior of channel and company.

3. Analyze how much importance channel is giving for the marketing policies of various

companies.

IN-DEPTH STUDY OF TRADE POLICIES OF COMPETITOR COMPANIES AS PER

THE BENCHMARK AND COMPARE WITH OURS TO ANALYZE THE

EXPECTATIONS OF THE TRADE.

Clarify different discounts offered by the companies to the Distributors/PD.

Any circulars issued by the competitors for explaining the objectives of the above trade

policies. Please specify, any discounts, which is products related or to Generate turnovers

etc.

Study the margins provided by various companies for facilitating to grab more marketing

share.

MATERIAL & METHODS

1.

Questionnaire (Disguised and Non-Disguised)


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2.

Respondents

a. Distributors

b. PDs

c. Marketing Staff [of Dhanuka & Competitors

3. Analysis of Data using graphs/charts.

4.

The number of PDs / Distributors to be contacted to gather the information must be morethan 10 of each company in at least two different districts.

5. Companies to studyNAGARJUNA

BAYER CROP SCIENCE

MAKHTESHAM

HYDERABAD CHEMICALS

INDOFIL

CHEMINOVA

IIL

PI Industry

CONCLUSIONS TO GIVE:

1. What improvements you suggest for going close to channel?

2. Study very clearly discounts offered by companies to go closer to the dealers without

deviating from their marketing policies.

3. What is the perception of channel Vs Dhanuka over benchmark companies?

4. Your project should give us more information on how we score better over our benchmark

companies on our marketing policy.

5. Is it one of the tools for inculcating a sense of responsibility in the channel.


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The data and information required for the study were collected from primary data source. Primary

information were collected with the help of disguised and non disguised questionnaires formulated

for the PDs/dealers/distributors and discussions with marketing staffs.

Selection of Area

Project areas viz. Kurnool, Nandyal and Nellore were allotted by the company itself. Three of these

are potential areas for the company.

Duration of study

Study was conducted from 18th April to 15th June, 2011 which includes field work starting from

20th April to 20th

may, 2011.

Questionnaire and direct interviews

Disguised and non disguised questionnaires prepared for the PDs/Dealers/Distributors and direct

interviews for the marketing staffs for taking the primary information.

Sampling technique

PDs/dealers/distributors were selected on the basis of feedback of marketing officers and Dhanuka

Doctors, so to some extent here Judgmental sampling is used.

This type of sampling technique is also known as purposive sampling and authoritative

sampling. Purposive sampling is used in cases where the specialty of an authority can select a more

representative sample from the population based on the authoritys or the researchers knowledge

and judgment that can bring more accurate results than by using other probability sampling

techniques.

Statistical Analysis

The data hence analyzed by using SPSS analysis software and MS Excel software. Analysis is

presented in the form of tables, charts, graphs, and pie charts etc.


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Limitations of the study

Time was major limiting factor for this project because of PDs/distributors/dealers of all

bench mark companies with huge potential markets has to cover.

Direct interview method adopted for PDs/distributors/dealers, so bias may appear due to

reasons like language barriers, human exaggerating nature, social prestige, prejudices,

suspicions etc.

Secondary information about total turnover, margins including cash discount, product

discount and T.O.D. from Internet, journals, Magazines couldnt get collected because

these are confidential information as marketing policies for particular company.

Some sort of bias may exist through researchers.

With the consideration of all constraints and limitations, adequate efforts have taken to minimize

biasness and make these efforts more meaningful.

Pesticides Industry Size and Structure

According to the Working Group on Indian chemical industry for the formulation of the Eleventh

5-Year Plan, with an estimated market size of Rs 45 bn, India is the second largest producer of

pesticides in Asia.

Performance of the Pesticide Industry

The domestic pesticide industry is fragmented and characterized by over capacity, low capacity

utilization, low investment in R&D and high inventory. The pesticides industry has grown at a

CAGR of around 1.60% during FY03- FY09. In India, cotton accounts for the maximum share of

pesticide consumption i.e. around 37% followed by paddy (20%). Together they account for

around 57% of the total pesticide consumption. As a result pesticide consumption is largely driven

by the production trend in these two crops.


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Characteristics of Pesticide Industry

Fragmented Structure

As there was no product patent in this industry till 2005, many formulators entered the market and

rendered a fragmented structure to the pesticide industry. The major players in the Indian market

are United Phosphorous Ltd, Bayer Crop science Ltd, Rallis India Ltd, Syngenta India,

Gharda Chemicals and the top ten players have an 85% market share . Bayer Crop science

Ltd and Syngenta India Ltd are the market leaders in domestic sales while United

Phosphorous Ltd is the largest exporter of pesticides.

R&D Requirement

During the process patent regime that existed before 2005, the Indian companies concentrated on

marketing generic and off-patent products; evidently the R&D investment in the pesticide industry

was quite low in India during this time as compared to the global market. Consequently, about

70% of all pesticides used in India are generics. Even though the lack of patents deprived the


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Indian agriculture sector from the benefits of newer and more effective pesticides, India developed

competencies in the generics market and is now a net exporter of pesticides.

Low Brand Awareness and Price-Sensitive Products

The market for pesticides is highly price-sensitive and less brand conscious as it largely caters to

farmers. However, farmers need to be educated and made aware of the usage and quality of

pesticides. Moreover, due to the prevalence of spurious pesticides in the market, brand awareness

becomes critical for the Indian manufacturers.

Consumption Trend of Pesticides

Consumption Trend

The pesticide industry in India is self-sufficient as it resorts to imports for meeting only 4% of

domestic consumption. However, pesticide consumption in India is very low which could be

mainly attributed to the factors such as fragmented land holdings, dependence on monsoons, low

awareness among farmers, low level of irrigation etc.

Lack of proper knowledge among farmers and usage of spurious pesticides have hindered demand

for technical grade pesticides in India. Inadequate development of new products has also affected

the demand; however, the need for new products is unavoidable as pests develop a resistance to

chemicals that are used repeatedly. Moreover, usage of genetically-modified crops like Bt cotton,

which has a resistance towards pests, also hampers the demand for pesticides; in fact, low pesticide

consumption can be partly attributed to the advent of genetically modified (GM) seeds. GM crops

can combine both herbicide resistance and insect resistance in one seed. For example Bt cotton

(introduced in 2002) which is widely used in India is a GM seed which provides high degree of

resistance to the American Bollworm, a major pest in India, thereby reducing pesticide usage.

Segment-Wise Domestic Consumption of Pesticides In India, insecticides constitute the largest

share in domestic consumption followed by fungicides and herbicides mainly because Indias

tropical climate is conducive for the growth of insects. The higher cultivation of cotton in India has


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also increased insecticide consumption because cotton has a high incidence of insect attack. India

has one of the largest areas of land under cultivation for cotton in the world.

COMPANY PROFILE

BACKGROUND OF DHANUKA AGRITECH LTD.

Dhanuka is a well-established group of companies manufacturing and formulating wide range of

popular pesticides in various forms. Northern Minerals Ltd. has been the flagship company of the

group in pesticides department, was acquired by the group as a sick unit in 1980 and now it has a

huge turnover. Dhanuka pesticides ltd., a Public Limited Company, is engaged in manufacturing

technical grade pesticide. It became a PLC in the year1985 under The Companys act 1956.


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Dhanuka Group also extended its operation by venturing into seed production under the

brand name Dhanuka Seeds. It is engaged in production and distribution of high quality seeds of

cereals, pulses, fibers, oilseeds and vegetables.

The Group diversified its operations by entering into Pharmaceutical sector and got engaged

in manufacture of various drugs under the company name Dhanuka Laboratories Ltd (DLL) since

the year 1997.

INTRODUCTIONThe Dhanuka Group has been one of the leading groups of companies engaged in

manufacture of pesticides for last 26 years. This success is the result of their adherence to

international standards and efficient practices in every aspect of their operations. The company is

known for its quality consciousness and its safe and eco-friendly products. After 26 years of

experience, the Group has emerged as a prominent player in pesticides market.

The group is having its flagship brand Northern Minerals Ltd., which was acquired as a sick

unit in 1980 and at present, it has turned into a high turnover company. Dhanuka Pesticides Ltd., its

own company is also a highly respected company for its technical grade pesticides.

In 1984, the Group established its R & D unit named Dhanuka Agriculture Research Centre,

to boost its research, and it is recognised by Ministry of Science and Technology, Government of

India.

In the year 1992 it acquired another sick unit called Rajasthan Insecticides and Fertilizers

Co. Pvt. Ltd. which is mainly in the business of dust formulations.

Dhanuka pesticides Ltd entered into a series of technical tie-ups with Japanese MNCs for its

objective of achieving continuous improvement and making available wide range of products to the

farming community. It has tie-ups with companies like Takeda Chemical Industries Ltd. Japan,

Mitsui Chemical Inc. Japan, Hokko chemical Ind. Co. Ltd, Japan. Northern Minerals Ltd also got

technically tied-up with Uniroyal Chemical Company, U.S.

The group has a vision of prosperity of farmers through excellence and has corporate

mission of life enrichment through science.

The Group has established a fair network of distributors, dealers and retailers around the

country, supported by the branch offices in major states. The company is also having their own


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marketing and development staff, techno-commercially qualified, trained, and serving around the

country.

DIVISIONS

At present Dhanuka has presence in three divisions namely pesticide, pharmaceuticals, and

seed.

PESTICIDES DIVISION

Dhanuka is dealing with wide range of agrochemicals such as insecticides, weedicides,fungicides and Plant Growth Regulators. The companies under pesticides division are Northern

Minerals Ltd. and Dhanuka Pesticides Ltd.

PHARMACEUTICAL DIVISION

The group diversified its business into Pharmaceutical sector in the year 1997 and engaged

in manufacture of drugs like Cephalexin, Cephadroxil, 7-ADCA and Simvastatin.

SEEDS DIVISION

The Group made a modest beginning with production and distribution of high quality seeds

for crops such as sunflower, soybean, wheat, cotton and vegetable seeds of peas tomato, chilies and

onion are introduced later on.

COLLABORATIONS

Dhanuka Group has made various collaborations with MNCs and other companies to

achieve continuous improvements and technical excellence in the agrochemicals market.

Companies and the products manufactured/formulated in collaboration with corresponding

companies are given in the following table.

Name of The Company Products

Sumitomo Chemicals Takeda Agro Co. Ltd., Cartap hydrochloride, with brand Caldan


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Japan 4G,Caldan 50SP

Mitsui chemicals Inc.,Japan Etofenprox with brand Nukil 10 EC

Nissan Chemical Ind., Japan Quizalofop Ethyl with brands Targa super ,

Phenthoate and Dhanusan

FMC corporation, USA AAATANK with brand MARKER

,DANFURON

Hokko Chemical Ind. Co. Ltd., Japan Kasugamycin , with brand Kasu-B

Uniroyal Chemical Company Inc.,US Carboxin, brand Vitavax,

Oxycaboxin,Plantvax and Difflubenzuron

E.I.DuPont Nemours &co. inc.,U.S Methomyl, brand Dunet 12.5 L

Yara International, Norway Samadhan

Source: www.dhanuka.com

FUTURE PLANS

To give more thrust on R&D operations and make available more range of

molecules to he farming community.

Sharing technical expertise through international tie-ups.

Providing Indian farmers with safer and eco-friendly products.

Venturing into the micronutrients business and provide farmers more options.

AGROCHEMICAL PRODUCTS

Dhanuka offers wide range of products consisting insecticides, fungicides,

weedicides. These are as follows.

MOLECULES BRAND NAME

Thiophanate Methyl 70% WP Cover

Endosulfan-35% EC Endodhan-35% EC

ANA 4.5% Solution W/W Dhanumon 4.5%

Endosulfan 4% DP W/W Endodhan 4% DP

Monocrotophos 36% SL Monodhan 36% SL


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2,4-D Ethyl Easter 38% W/W Weedmar

Dichlorvos 76% EC W/W Domar

Dimethoate 30% EC W/W Diadhan 30% EC

Methyl Parathion 2% DP Dhanudol 2% DP

Methyl Parathion 50% EC Dhanumar 50% EC

Butachlor 50% EC Dhanuchlor 50% EC

Ethion 50% EC Dhanumit 50% EC

Copper Oxychloride 50% WP Dhanucop 50% WP

Carbendazim 50% WP Dhanustin 50% WP

Zineb 75% WP Dhanuthane Z ? 75

Mancozeb 75% WP Dhanuka M ? 45

Isoproturon 50% WP Dhanulon 50% WP

Phorate 10% CG Dhan 10 G

Phosphamidon 85% SL Dhanucron 85% SL

Oxydemeton Methyl 25% EC Dhanusystox 25% EC

Sulphur 80% WP Dhanusul 80% WP

Paraquat Dichloride 24% SL Dhanuxone 24% SL

Fenitrothion 50% EC Dhanuka Fenitrothion 50% EC

Captafol 80% WP Dhanutaf 80% WP

Acephate 75% SP Dhanraj

Atrazine 50% WP Dhanuzine 50% WP

Dhanuzine 50% WP Weedmar 80

Phenthoate 2% DP Dhanusan 2% DP

Isoproturon 75% WP Dhanulon 75% WP

Carbaryl 50% WP Dhanuvin 50% WP

Captan 50% WP Dhanutan 50% WP

Fenvalerate 0.4% DP Triumphcard 0.4% DP

Pendimethalin 30% EC Dhanustomp 30% EC

Propanil 35% EC Dhanustam 35% EC


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Glyphosate 41% SL Noweed

Fluchloralin 45% EC Dhanulin 45% EC

Butachlor 5% Gr. Dhanuchlor 5% Gr.

Metoxuron 80% WP WIP ? 999

Anilofos 30% EC Anilodhan

Malathion 0.05% + Pyrethrum 0.02% Kilfast

Ziram 27% SC Dhanuka Z ? 27

Alphamethrin 10% EC Alphadhan ? 10

Azadirachtin 0.03% W/W Neemraj

Metalaxyl 8% + Mancozeb 64% WP Dhanuxyl

Table: 2 Source: www.dhanuka.com

DOMESTIC MARKET

Dhanuka has been a forerunner when it comes to its domestic market. India is a vast market

of agrochemicals and still at instauration. While the other domestic companies are trying to survivein the highly globalised market, Dhanuka is one of the domestic companies who have made its mark

by constantly offering its quality products to the farming community. As it is a Delhi based

company it has more prominent market in Northern part as compared to the southern region.

Quality of products is the biggest strength of the company followed by its product range. On this

platform, the company is not only going to survive in the market but also going to flourish.

Data Analysis

Project Area: Kurnool


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Markets/villages covered: Kurnool town, Shanthi Nagar, Venkatpuram stage, Ieja Mandal,

Macherla - Gattu mandal, A.Boodidapadu, Vill.- B. Satyanarayana shetthy, Nandikotkur

Total annual turnover: 9 crores (including Nandyal)

Market occupying companies in Kurnool market

*turnover units in crores

As per the primary data source, Kurnool district (Kurnool and Nandyal) is second largest potential

market for the company in turnover basis which contributes 9 crores alone. As we look at the

market occupying companies, Rallis occupying highest share i.e, 6 crores, followed by Syngenta, 3crores and Bayer cropscience, 2 crores. Dhanuka agritech ltd ranks 5

thafter Dupont 4

th in this

series followed by NACL, IIL and Indofil 1 crore each.

%age Share of bench mark companies

*Units in %age

As we look at the bench mark

companies market share in the

Kurnool area, Rallis is the

market leader followed by Bayer

crop science, 2nd rank. Dhanuka

agritech ltd ranks 3rd

in the

series. As figure shown Indofil,

Makhtesham Agon ltd, NACL,

IIL, Cheminova are ranked 4th

, 5th

, 6th,

, 7th

and 8th

respectively.

Other local companies also make a sound share in the market jointly.

rallis share, 6

bayer share, 2

syngenta, 3

NACL share, 1

DAL share, 1.4

MAL share, 1.1

IILshare, 1

Indofil share, 1 dupont, 1.8rallis share

bayer share

syngenta

NACL share

DAL share

MAL share

IILshare

rallis

share, 19.80

bayer

share,10.75

HCLshare , 4

NACL

share, 5.5DAL

share, 15.75

MAL

share, 6.45

IILshare, 4.15CHEMINOVAs

hare, 4.15

Indofil

share, 6.6

P I share, 3.5

other lacal

comp.share,

19.35


28/62


Company margin to distributors*units in %age dealer margin from company

In the series of margins given by the

company to the distributors, Rallis is again

ahead of all with 10% average margin

followed by Bayer crop science with 8-9 %

and Dhanuka agritech ltd with 8 % margin.

NACL, HCL and other local companies

also giving a sound margin. IIL, MAL,

Cheminova, PI, Indofil etc. are giving 5 %

margins on their stocks.

Company margin to dealers/PD

*units in %age dealer margin from company through distributors

The margin given by the distributors to

the dealers vary from dealer to dealer,

distributors giving margins as per their

choice. If we go with average Margin

Bayer and Dhanuka both are ahead of

all with 7% margin followed by Rallis

and Indofil with 6% and rest all the

companies giving 5% each.

Credit period given by various companies

*units in no. of interest free credit days

Rallis

CM

Bayer

CM

HCL

CM

NACL

CM

DAL

CM

MAL

CM

Ch

amino

va

CM

IIL

CM

PI

CM

IN

DO

LFI

CM

Series1 10 9 5. 6 8 5 5 5 5 5

0

2

4

6

8

10

12

%margin

ralli

s

CM

Bay

er

CM

HCL

CM

NA

CL

CM

DA

L

CM

MA

L

CM

Cha

min

ova

CM

IIL

CM

PI

CM

IND

OFI

L

CM

Series1 6 7 5 5 7 5 5 5 5 6

02468

AxisTitle

Company margin to

dealers/PD


29/62


Most of the dealers and

distributors take credit from

the companies for their stocks,

so credit period offered by the

company is playing a key role

to perform in the market.

Makhtesham Agon ltd with

150 days interest freedays/Credit period is ahead of

all the companies followed by

Dhanuka Agritech with 90-

120 days, PI and Indofil also

giving 90 days credit period. Rallis and Bayer are lowest in the terms of credit period with 7 and 30

days respectively.

Cash discount offered by the companies

*units in %age

As shown in the figure ( )

In the course of Cash discount at the

time of billing, Rallis and MAL are

leading companies with 8% and 6%

respectively followed by the rest

companies with 5% each. HCL is

having least Cash discount i.e, 3%.

Turnover Discounts given by the bench mark companies

*units in %age

RAL

LIS

CD

BAY

ER

CD

HCL

CD

NA

CL

CD

DAL

CD

MA

L

CD

CH

EMI

CD

IIL

CD

PI

CD

IND

OFI

L

CD

Series1 8 5 5 3 5 6 5 5 5 5

02

468

10

%age

Chart Title

7 30

60 60

90

150

60 60

90 90

0

20

40

60

80

100

120

140

160


30/62


MAL is the leading company to give

highest Turnover discount of 3%

followed by rest all the companies with

2%. Rallis having least average T.O.D.

of 1%.

Incentive scheme performance of all the bench mark companies

Fig.4.6

As far as Incentive schemes are concerned respondents choice companies are as follows:

Rallis having highest choice as Rank 1 with frequency 7 followed by Bayer, 5 and

Dhanuka, 5

Thus rank 2 is given highest to Bayer followed by Rallis and Dhanuka.

0 5 10 15 20 25

rallis Scheme

Bayer SchemeHCL Scheme

NFCL Scheme

dhanuka Scheme

MAL Scheme

cheminova Scheme

IIL Scheme

Indofil Scheme

PI Schemerank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8

1

2 2 2 23

2 22

2

0

1

1

2

2

3

3


31/62


Rallis > Bayer > Dhanuka > MAL

Reasonability of the Price of the products

Fig. 4.7

Price is the key factor which affects purchasing behavior of the farmers who are unknown of

Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and DAL etc

which are having lower price than the MNCs and hence preferred by the farmers.

So MAL is the leading company with highest frequency as Rank 1 as far as price is concerned,

followed by Dhanuka, NACL and HCL. Dhanuka also got highest frequency as Rank 2. So it

ranks 2nd in this criterion.

Timelysupply of the stocks

0 5 10 15 20 25

rallis price

buyer price

HCL price

NFCL priceDAL price

MAL price

cheminova price

IIL price

PI price

indofil pricerank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8


32/62


Fig. 4.8

All the companies are trying their best to market their products so supply of the stocks of all the

companies is well timed in this area. But as per the respondents convenience Rallis has become top

company for stock supply and convenience.

As far as timely supply is concerned Loyalty of brand also matters, it means those respondents who

are having distributorship ofRallis and Bayer they said these companies are ahead of all in terms

of timely supply. Some local companies and India based companies like HCL, NACL, MAL and

DAL are also having well timed supply.

Fig. state that Rallis is having highest frequency ofrank 1 followed by DAL and Bayer.

But Bayer accounts highest frequency of being Rank 2nd

followed by MAL and NACL.

3rd

ranks highest frequency goes HCL followed by DAL and CHEMINOVA

Finally the preference order for the companies is as follows:

Rallis>Bayer>DAL>MAL>HCL>NACL

Marketing and Sales Returns policy performance of the company

0 5 10 15 20 25

rallis supply

buyer supply

HCL supply

NFCL supply

DAL supply

MAL supply

cheminova supply

IIL supply

PI supply

indofil supplyrank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8


33/62


Marketing policy performance: fig.() According to the questionnaires all the respondents had to

give marks to the companies as per their marketing policy performance. Higher the average points

betterthe companies trade policy. So in this series, respondents of Kurnool say DALmarketing

policy is ahead of all the companies followed by Bayer and PI. Local companies like HCL,

NACL, and MAL have scored poor in this criterion.

Sales Return and credit note policy: fig.() same as above point assessment sales return and credit

note policy also have been calculated. In this series according to the respondents view MAL is

leading to all the companies and almost all the respondents say MAL having best sales return policy

which is liked by them followed by DAL, Rallis and Bayer.

Marketing policy satisfaction level

0.000

1.000

2.000

3.000

4.000

5.000

6.000

0112233445


34/62


In Kurnool region, according to the pie chart,

5% of the respondents say they are highly

satisfied with the marketing policy ofDAL,

75% say they are only satisfied with it and

rest 20% say they are somewhat satisfied

with the same.

As we sum up all the variables like timely

supply, reasonable price, incentive scheme,margin etc, marketing policies summarizes all

them and gave result as pie chart states above.

So there is 20 % scope to improve the policy is there. So company has to look after these factors.

Respondents view about Gap in the policy

When the respondents are asked about the gaps in the policy of Dhanuka at channel level, 85%

of them are saying that there is no any gap at the channel level and 15% of them are saying that

yes there is gap in the channel level.

It reflects that there is a good image in the market about the

marketing policy of Dhanuka Agritech Ltd. and also 15 % scope of improvement in this criterion.

Suggestions

yes, 15

no, 85

highly

satisfied

5%

satisfied

75%

somewha

t satisfied

20%

marketing policy satisfaction

level


35/62


According to the respondents suggestions, following suggestions order has got:

New Molecule should be introduced: highest 20 frequency is there for this suggestion. It means in

Nandyal region all the respondents are prioritize this suggestion as their 1st

choice from the

company.

Raise Cash Discount: second highest frequency,18 is of raising cash discount, it means the

respondents of the Nandyal are thinking that raising Cash discount is their 3rd

important suggestion

which can be benefit for them.

Raise turnover Discount: third highest frequency, 14 is of raising TOD. The respondents are

expecting from company to give higher TOD and treating this suggesting as 3rd

most important.

Improve field activities: this suggestion ranks 4th

with 16 frequency. In which respondents expect

to improve field activities like raise the no. Of Dhanuka doctors in the crop seasons and other field

demos also.

Promotional activities: there is a large no. of respondents with frequency 19 who think that

company should give more focus to the promotional activities like village campaigning, jeep

campaigning, rallies, field demonstrations etc.

Other suggestions like Decrease Interest, Raise credit period, and others: these suggestions are

having very low frequency than above suggestions. It means company is already strong in this part

and no much mass is expecting these things from the company.

new

molecules

introductio

n

raise cash

discount

raise TurnOver

Discount

DECREASE

INTEREST

RAISEcredit

period

improvefield

activities

promotiona

l activitiesothers

Series1 20 18 14 0 0 16 19 0

0

5

10

15

20

25


36/62


Project Area: Nandyal

Markets/villages covered: Nandyal town, Atmakur, valgodu, Rudravaram, chhagalamarri,

Arjunapuram, Derripodu, Alagadda, Bengampalli

Total annual turnover: 5.62 crores

Market occupying companies with

market share in Nandyal

Nandyal is the one of the potentialmarket for the company in entire A.P. as

we talk about the market share of the top

companies, Bayer crop Science is the

market leader in this region with 19.8%

followed by Rallis with 15.75% and

Dhanuka Agritech ltd. with 10.75%

which ranks 3rd

. MAL, HCL, NACL also

make a sound share of 6.4%, 5.5%, 4%

respectively. Other local and small

companies also contribute a handsome share of 19.35% together.

Company margin to distributors

*units in %age dealer margin from company


company to the distributors, Rallis is againahead of all in Nandyal with 10% average

margin followed by Bayer crop science

with 8-9 % and Dhanuka agritech ltd with

8 % margin. NACL, HCL and other local

companies are also giving a sound margin.

IIL, MAL, Cheminova, PI, Indofil etc. are

giving 5 % margins on their stocks.

rallis

share, 15.75

bayer

share, 19.8

HCLshare

, 4NACL

share, 5.5

DALshare, 10.7

5

MAL

share, 6.45

IILshare, 4.

15

CHEMINOV

Ashare, 4.1

5

Indofil

share, 6.6

P I

share, 3.5

other lacal

comp.shar

e, 19.35

Ral

lis

CM

Ba

yer

CM

HC

L

CM

NA

CL

CM

DA

L

CM

MA

L

CM

Ch

am

ino

va

CM

IIL

CM

PI

CM

IN

DO

LFI

CM

Series1 10 9 5. 6 8 5 5 5 5 5

02468

1012

%margin


37/62


Company margin to dealers/PD*units in %age dealer margin from company through distributors

The margin given by the distributors to the

dealers vary from dealer to dealer,

distributors giving margins as per their

choice here again. If we go with average

Margin, Rallis ahead of all with 10%

margin followed by Bayer with 9% and

Dhanuka with 7-8% and rest all the

companies giving 5% each.

Local companies like HCL and NACL are

also giving handsome margin of 6% each.

Credit period/ interest free days given by different companies

*units in days

Nandyal Market is mostly credit-

oriented i.e, dealers and distributors

take credit from the companies for their

stocks, so credit period offered by the

company is playing a key role to

perform in the market. Makhtesham

Agon ltd with 150 days interest free

days/Credit period is ahead of all the

companies followed by Dhanuka

Agritech with 90-120 days, PI and Indofil also giving 60 days credit period. Rallis and Bayer are

lowest in the terms of credit period with 7 and 30 days respectively.

Ral

lis

CM

Ba

yer

CM

HC

L

CM

NA

CL

CM

DA

L

CM

MA

L

CM

Ch

am

ino

va

CM

IIL

CM

PI

CM

IN

DO

LFI

CM

Series1 10 9 5. 6 8 5 5 5 5 5

0

2

4

6

8

10

12

%margin

RAL

LIS

CPD

BAY

ER

CPD

HCL

CPD

NA

CL

CPD

DAL

CPD

MA

L

CPD

CHE

MI

CPD

IIL

CPD

PI

CPD

IND

OFI

L

CPD

Series1 7 30 30 30 90 150 60 60 60 60

0

20

40

60

80

100

120

140

160


38/62


Cash discount offered by the companies

*units in %age

As shown in the figure In the course of Cash discount

at the time of billing, Rallis and MAL are leading

companies with 11% and 6% respectively followed by

the rest companies with 5% each.

As far as TOD is concerned MAL and DAL are ahead

of all the companies with 3 % each.



Rallis having highest choice as Rank 1 with frequency 13 followed by Bayer, 12 and

Dhanuka, 10

Thus rank 2 is given highest to Bayer followed by Dhanuka and Rallis.

Hence the choice order is as follows:

Rallis > Bayer > Dhanuka > MAL>NACL

0 5 10 15 20 25 30 35 40 45 50

rallis Scheme

Bayer Scheme

HCL Scheme

NFCL Scheme

dhanuka Scheme

MAL Scheme

cheminova SchemeIIL Scheme

Indofil Scheme

rallis price

RANK 1

RANK 2

RANK 3

RANK 4

RANK 5

RANK 6

RANK 7

RANK 8

RA

LLI

S

CD

BA

YE

R

CD

HC

L

CD

NA

CL

CD

DA

L

CD

M

AL

CD

CH

EM

I

CD

IIL

CD

PI

CD

IN

DO

FIL

CD

Series1 11 5 5 5 5 6 5 5 5 5

0

2

4

6

8

10

12


39/62



Pricing is the key factor which affects purchasing behavior of the farmers who are unknown

of Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and

DAL etc which are having lower price than the MNCs and hence preferred by the farmers.

So MAL is the leading company with highest frequency as Rank 1 as far as price is

concerned, followed by Dhanuka, NACL and HCL.

Dhanuka also has got highest frequency as Rank 2. So it ranks 2nd in this criterion.

NACL and HCL are 3rd and 4th in the series. Hence choice order is as follows:

MAL>DAL>NACL>HCL> Cheminova


0 20 40 60 80 100

rallis Scheme

Bayer Scheme

HCL Scheme

NFCL Scheme

dhanuka Scheme

MAL Scheme

cheminova Scheme

IIL Scheme

Indofil Scheme

rallis priceRANK 1

RANK 2

RANK 3

RANK 4

RANK 5

RANK 6

RANK 7

RANK 8

RANK 9

RANK 10

RANK 1

0 10 20 30 40 50

rallis supply

buyer supply

HCL supply

NFCL supply

DAL supply

MAL supply

cheminova supply

IIL supply

PI supply

indofil supplyRANK 1

RANK 2

RANK 3

RANK 4

RANK 5

RANK 6

RANK 7

RANK 8

RANK 9


40/62


Those respondents who are having distributorship ofRallis and Bayer they said these companies

are ahead of all in terms of timely supply. Some local companies and India based companies like

HCL, NACL, MAL and DAL are also having well timed supply.

Fig. state that Rallis is having highest frequency ofrank 1 followed by MAL and NACL.

But Bayer accounts highest frequency of being Rank 2nd

followed by DAL and NACL.

3rd

ranks highest frequency goes HCL followed by DAL and CHEMINOVA

Finally the preference order for the companies is, Rallis>Bayer>DAL>MAL>NACL


Marketing policy performance: fig.() According to the questionnaires all the respondents had to

give marks to the companies as per their marketing policy performance. Higher the average points

betterthe companies trade policy. So in this series, respondents ofNandyal say DALmarketing

policy is ahead of all the companies followed by Bayer, Indofil, P I. Local companies like HCL,

NACL, and MAL have scored poor in this criterion.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00


41/62



note policy also have been calculated. In this series according to the respondents view MAL is

leading to all the companies and almost all the respondents say MAL having best sales return policy

which is liked by them followed by DAL, Rallis and Bayer.


In Nandyal region, according to the pie chart, 9% of the

respondents say they are highly satisfied with the

marketing policy ofDAL, 40% say they are only

satisfied with it and rest 51% that is more than half say

they are somewhat satisfied with the same.

As we sum up all the variables like timely supply,

reasonable price, incentive scheme, margin etc,

marketing policies summarizes all them and gave result

as pie chart states above. So there is much scope to

improve the policy is there. So company has not

performed well in the terms of marketing policies here and has to look after these factors.

Respondents view about Gap at the channel level

When the respondents are asked about the gaps in the

policy of Dhanuka at channel level, 85% of them are

saying that there is no any gap at the channel leveland 15% of them are saying that yes there is gap in

the channel level.

It reflects that

there is a good image in the market about the

marketing policy of Dhanuka Agritech Ltd. and also 15 % scope of improvement in this criterion.

Respondents Suggestions

highly

satisfied

With

DAL

9%

satisfied

40%

somewh

at

51%

2%

98%

Yes there are

gaps in

present

policies

No there are

no gaps in

present

policies


42/62



New Molecule should be introduced: highest 38 frequency is there for this suggestion. It means

in Nandyal region all the respondents are prioritize this suggestion as their 1st choice from the

company.

Raise Cash Discount: second highest frequency,36 is of raising cash discount, it means the

respondents of the Nandyal are thinking that raising Cash discount is their 2nd

important

suggestion which can be benefit for them.

Raise turnover Discount: third highest frequency, 35 is of raising TOD. The respondents are

expecting from company to give higher TOD and treating this suggesting as 3rd

most important.

Improve field activities: this suggestion ranks 4th

with 34 frequency. In which respondents expect

to improve field activities like raise the no. Of Dhanuka doctors in the crop seasons and other

field demos also.

Promotional activities: there is a large no. of respondents with frequency 32 who think that

company should give more focus to the promotional activities like village campaigning, jeep

campaigning, rallies, field demonstrations etc.

Other suggestions like Decrease Interest, Raise credit period, and others: these suggestions are

having very low frequency than above suggestions. It means company is already strong in this

part and no much mass is expecting these things from the company.

Project Area: Nellore

new

molecules

introducti

on

raise cash

discount

raise Turn

Over

Discount

DECREASE

INTEREST

RAISE

credit

period

improve

field

activities

promotion

al

activities

others

Series1 38.00 36.00 35.00 1.00 0.00 34.00 32.00 0.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

AxisTitle

Chart Title


43/62


Markets/villages covered: Nellore town,Atmakur,

Nagireddy palem

Vinjamur, Udaigiri,

Kaligiri, Kavali,

Allore, Raju palem

Total annual turnover: crores

Market occupying companies with market share

in Nellore

As we look at the bench mark companies market

share in the Kurnool area, Bayer is the market

leader with 20% share followed by Rallis with

13%, 2nd rank and HCL with 9.5% share ranks 3rd

.

Dhanuka agritech ltd ranks 4th in the series. As

figure shown NACL, Makhtesham Agon ltd, PI,

Cheminova, Indofil, IIL, are also making handsome

shares ranked 5th, 6

th,, 7

th, 8

th,,9

thand so on

respectively.

Other local companies also making a sound share in the market altogether .

Company margin to the distributor


company to the distributors, Rallis, IIL and

NACL are again ahead of all with 8%

average margin each followed by HCL with

7%, PI and Indofil with 5% each. Bayer

crop science and Dhanuka Agritech ltd. are

lowest in the series with 5% margin.

NACL, HCL and other local companies are

giving a sound margin on their stocks.

rallis

share, 13

bayer

share, 20

HCLshare

, 9.5NACL

share, 6.5

DAL

share, 8.5

MAL

share, 5.5

IILshare, 4

.5

CHEMINO

VAshare,

4.7

Indofil

share, 4.5

P I

share, 4.8

otherlacal

comp.shar

e, 18.5

Rall

is

CM

Bay

er

CM

HCL

CM

NA

CL

CM

DAL

CM

MA

L

CM

Cha

min

ova

CM

IIL

CM

PI

CM

IND

OLF

I

CM

Series1 8 5 7 8 5 5 6 8 6 6

0123456789


44/62


Company margin to dealers/PD

*units in %age dealer margin from company through distributors

The margin given by the distributors to the dealers vary from dealer to dealer, distributors giving

margins as per their choice. If we go with average Margin HCL is ahead of all the competitors

followed by Bayer with 12% and Rallis with 10%. Dhanuka ranks 4th with 8-9% margin followed

by NACL and MAL with 8%. Cheminova, IIL, PI, and Indofil are lowest in the series with 7%

each.

Credit period given by different companies

Most of the dealers and distributors

take credit from the companies fortheir stocks, so credit period offered

by the company is playing a keyrole to perform in the market.

Makhtesham Agon ltd with 150

days interest free days/Credit period

is ahead of all the companies

followed by Dhanuka Agritech with

90-120 days, IIL is also giving 90

days credit period. HCL,

Cheminova, PI, Indofil are giving

60 days each. Rallis and Bayer are

lowest in the terms of credit period

with 7 and 30 days respectively.

Rallis

CM

Bayer

CM

HCL

CM

NACL

CM

DAL

CM

MAL

CM

Cham

inova

CM

IIL

CMPI CM

INDO

LFI

CM

Series1 10 12 14 8 9 8 7 7 7 7

0

2468

10121416

RALL

IS

CPD

BAY

ER

CPD

HCL

CPD

NAC

L

CPD

DAL

CPD

MAL

CPD

CHE

MI

CPD

IIL

CPD

PI

CPD

IND

OFIL

CPD

Series1 7 30 60 30 90 150 60 90 60 60

0

20

40

60

80

100

120

140

160


45/62


Cash discounts given by the bench mark companies

As shown in the figure ( )

In the course of Cash discount at the

time of billing, Rallis and Bayer are

leading companies with 11% and 9%

followed by DAL with 8% and HCL,

NACL with 7% each. Rest companies

like Cheminova, IIL, PI, Indofil are next

in the series with 6 % each.

Turnover Discounts given by the bench

mark companies

MAL and DAL are the leading companies to

give highest Turnover discount of 3%

followed by rest all the companies with 2%.Rallis and Bayer are not giving any TOD to

the dealers.

RALL

ISCD

BAY

ERCD

HCL

CD

NAC

L CD

DAL

CD

MAL

CD

CHE

MICD

IIL

CD

PI

CD

IND

OFILCD

Series1 11 9 7 7 8 7 6 6 6 6

0

2

4

6

8

10

12

RAL

LIS

TOD

BAY

ER

TOD

HCL

TO

D

NA

CL

TOD

DAL

TO

D

MA

L

TOD

che

min

ova

TOD

IIL

TO

D

PI

TO

D

ind

ofil

TOD

Series1 0 0 2 2 3 3 2 2 2 2

00.5

11.5

22.5

33.5


46/62




Bayer having highest choice frequency of 15 as Rank 1 followed by Dhanuka, 8 and

Rallis, 7.

Thus rank 2 is given highest to Rallis followed by Bayer and HCL, NACL and DAL.

Rank 3rd

is also given highest to DAL followed by HCL and Rallis.

Hence the preferred order of the choice is as follows:

Bayer >Rallis> Dhanuka>HCL > MAL>NACL


0 5 10 15 20 25 30 35

rallis Scheme

Bayer Scheme

HCL Scheme

NFCL Scheme

dhanuka Scheme

MAL Scheme

cheminova Scheme

IIL Scheme

Indofil Scheme

PI Schemerank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8

0 5 10 15 20 25 30 35

rallis price

buyer price

HCL price

NFCL price

DAL price

MAL pricecheminova price

IIL price

PI price

indofil price rank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8


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Price is the key factor which affects purchasing behavior of the farmers who are unknown of

Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and DAL etc

which are having lower price than the MNCs and hence preferred by the farmers.

So MAL is the leading company with highest frequency as Rank 1 as far as price is concerned,

followed by Dhanuka, NACL and HCL. Dhanuka also got highest frequency as Rank 2. So it

ranks 2nd

in this criterion.


All the companies are trying their best to market their products so supply of the stocks of all the

companies is well timed in this area. But as per the respondents convenience Dhanuka has become

top company for stock supply and convenience.

As far as timely supply is concerned Loyalty of brand also does matters, it means those respondents

who are having distributorship ofRallis and Bayer they said these companies are ahead of all in

terms of timely supply. Some local companies and India based companies like HCL, NACL, MAL

and DAL are also having well timed supply.

Fig. state that Dhanuka is having highest frequency ofrank 1 followed by Rallis, Bayer,

and HCL.

But NACL accounts highest frequency of being Rank 2nd

followed by Bayer and Rallis.

3rd

ranks highest frequency goes HCL followed by DAL, Bayer and Rallis.

Finally the preference order for the timely supply is as follows:

0 5 10 15 20 25 30 35 40

rallis supply

buyer supply

HCL supply

NFCL supply

DAL supply

MAL supply

cheminova supply

IIL supply

PI supply

indofil supplyrank 1

rank 2

rank 3

rank 4

rank 5

rank 6

rank 7

rank 8


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DAL> Rallis>Bayer >HCL>NACL>MAL



note policy also have been calculated. In this series according to the respondents of Nellore view

MAL is leading to all the companies and almost all the respondents say MAL having best sales

return policy which is liked by them followed by DAL, Cheminova, IIL ,Rallis and Bayer.

Marketing policy performance: fig.() According to the questionnaires all the respondents in

Nellore had to give marks to the companies as per their marketing policy performance. Higher the

average points better the companies trade policy. So in this series, respondents say DAL

marketing policy is ahead of all the companies followed by Bayer, MAL and Rallis. Local

companies like HCL and NACL have scored poor in this criterion.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

AxisTitle

0.00

0.50

1.00

1.50

2.00

2.503.00

3.50

4.00

4.50

5.00

AxisTitle


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In Nellore region, according to the pie

chart, only approx. 23% of respondents say

they are highly satisfied with the marketing

policy ofDAL, 77% say they are only

satisfied with it.

As we sum up all the variables like timely

supply, reasonable price, incentive scheme,

margin etc, marketing policies summarizes

all them and gave result as pie chart states

above. So there is so much to improve the policy is here. So company has to look after these

factors.

Respondents view about Gap at the channel level

When the respondents are asked about the

gaps in the policy of Dhanuka at channel

level, 94% of them are saying that there is no

any gap at the channel level and only 6% of

them are saying that yes there is gap in thechannel level. It reflects that there is a good

image in the market about the marketing

policy of Dhanuka Agritech Ltd. and also 6%

scope of improvement in this criterion.

highly

satisfied

With DAL

, 9

satisfied,

30.00

6%

94%

Yes there are gaps in present policies

No there are no gaps in present policies


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Respondents suggestions


Promotional activities: there is a highest no. of respondents with frequency 33 who think that

company should first give more focus to the promotional activities like village campaigning, jeep

campaigning, rallies, field demonstrations etc. New Molecule should be introduced: highest 30 frequencies are there for this suggestion. It

means in Nandyal region all the respondents are prioritize this suggestion as their 2nd

choice from

the company.

Raise Cash Discount: second highest frequency, 29 is of raising cash discount, it means the

respondents of the Nandyal are thinking that raising Cash discount is their 3rd

important

suggestion which can be benefit for them.

RESEARCH FINDINGS AND RESPONDENTS SUGGESTIONS

Kurnool

As per the data analysis the exploratory study reveals the following major findings about the

market position, these are:

Brand Image: Rallis, Biostadt, PI and Indofil are the close competitors in the

market. Bayer is far better than all these bench mark companies in Brand image.

newmolecules

introductio

n

raise cash

discount

raise Turn

Over

Discount

DECREASE

INTEREST

RAISE

credit

period

improve

field

activities

promotiona

l activitiesothers

Series1 30.00 29.00 28.00 0.00 0 27 33 0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00


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Market share: Dhanuka ranks 3rd

with 15.75% market share and hence Bayer,

Rallis and MAL are the close competitors for the company.

Overall Margin: Rallis and Bayer are again close competitors for the company in

terms of overall company margin.

Credit Period: Dhanuka is having 90 days of credit period and 2nd

in the series of all

the bench mark companies, MAL is ahead of them.

Incentive scheme and timely supply performance: Rallis and Bayer are again

close performers in both incentive scheme and timely supply. Pricing performance: Local companies like MAL, NACL and HCL are the close

competitors of the company with low pricing but ahead ofRallis and Bayer.

Marketing policy performance: Dhanuka is ahead of all and mostly liked by the

respondents.Rallis, PI and Bayer are the competitor and are also prevailing in the

market.

Suggestions from the respondents

New Molecule should be introduced: respondents are demanding new molecule

from the company instead of copied formulations of the brand products.

Increase Margin: respondents ultimate demand is getting good margin from the

company and here in Kurnool also not different case, they are demanding more

margin%.

Improve field activities: field activities attract and make aware more and more

farmers towards the products of the company. So in this area more focus should be

given to the field activities.

Promotional activities: promotional activities like campaigning should be raised in

this area.

Other suggestions like Decrease Interest, Raise credit period, and others are

having lowest response so these issues need not to be looked after.


52/62


NANDYAL

As per the data analysis the exploratory study reveals the following major findings about the

market position, these are:

Brand Image: Bayer, Rallis, MAL and NACL are the close competitors in the

market. Bayer and Rallis are far better than all these bench mark companies in Brand

image.

Market share: Dhanuka ranks 3

rd

with 10.75% market share and hence Bayer,Rallis, NACL and MAL are the close competitors for the company.

Overall Margin: Rallis and Bayer are again close competitors for the company in

terms of overall company margin. NACL is also close in the terms of margin.

Credit Period: Dhanuka is having 90 days of credit period and 2nd

in the series of all


Incentive scheme and timely supply performance: Rallis, Bayer, MAL and

NACL are close performers in both incentive scheme and timely supply.

Pricing performance: Local companies like MAL, NACL and HCL are the close



respondents.Rallis, PI and Bayer are the competitors and are also prevailing in the

market.








this area.


53/62




margin%.

Other suggestions like Decrease Interest, Raise credit period, and others: low

response.

NELLORE

In this region research findings are as follows: Brand Image: Bayer, Rallis, MAL and NACL are the close competitors in the

market. Bayer and Rallis are far better than all these bench mark companies in Brand

image.

Market share: Dhanuka ranks 4th

with 8.5% market share and hence Bayer, Rallis,

HCL are the close competitors for the company.

Overall Margin: Rallis, NACL, HCL and Bayer are ahead of all and close

competitors for the company in terms of overall company margin.

Credit Period: Dhanuka is having 90 days of credit period and 2nd in the series of all


Incentive scheme and timely supply performance: Rallis, Bayer, HCL and

NACL are close performers and ahead of ours in both incentive scheme and timely

supply.

Pricing performance: Local companies like MAL, NACL and HCL are the close



respondents.Rallis, PI and Bayer are the competitors and are also prevailing in the

market.





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margin%.





this area. Other suggestions like Decrease Interest, Raise credit period, and others: low

response.


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SWOT ANALYSIS

Strengths

good brand image

Product line/range

Marketing policy

strong marketing, sales & distribution set upPDs distribution channel

Weakness

Lack of extension services hinders the sale ofquality products

switching of field staff between differentcompanies very frequently

they are not get ting proper training and lacksknowledge of agriculture.

Communication gap within distributionchannel.

Opportunities

introduction of new molecules

ensuring loyal PDs and distributors throughvarious schemes and tours

company can expand its business as itspolicies shows positive response in the market

Threats

good incentive schemes andmotivational strategies by thecompetitor companies

regular entry of local companies

field work and promotional activitiesof competitor companies


56/62


RECOMMONDATIONS

Although different players in pesticide industry are trying to capture the a better position in the

market place but after observation of these two districts these are some recommendation from

surveyors side-

Company should look after its Brand image. Its close competitors like Bayer and Rallis are

harvesting maximum advantages through Brand image. Hence the company should build

Brand image through different promotional activities and awareness programmes.

Prosperity of the Farmers and sales of company has direct relationship. Hence company

should invest in developing platform for success of farmers by counselling centres, training

programs, and soil testing lab.

Sudden increase in margin and change in marketing policy is not possible for any company

but as per research findings close competitors like local brands are giving high margin, so a

slight increase in the margin can be a good move toward building a good relation withthe distributors and PDs.

Company should go closer to the channels with continuing PD or Dhanuka channel

partner (DCP) concept and increase these numbers of PDs as compared to distributors and

satisfying them with giving handsome schemes like Gold schemes etc. And Turnover

discount. Because in every region major distributors are underselling the stocks and getting

benefitted and PDs are feeling demoralized.

There is a positive response ofcompanies marketing policy performance in the market.

The perception of the channel bodies about the company is good as compare to that of

competitors, they are satisfied with ours and hence there is a scope here to expand our

business with utilizing this opportunity.

Company should give more points scheme and credit note on popular products like

Caldan, Targa Super, Dhanuvit etc. It should also be given for other products of Dhanuka to

increase sales.


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Suggested Strategies for Dhanuka Agritech Ltd.

As DAL is at good position with sound marketing policy as compared to other bench mark

companies after Bayer and Rallis, it has to adopt a better strategy vis--vis Bayer and Rallis to

challenge them in the market. For any firm to become market leader either it should adopt cost

leadership or differentiation or focus strategy.

Cost leadership strategies

Offering formulations/molecules at lower prices to potential buyers.

Getting material from suppliers at low cost.

Efficient distribution and management at channel level.

Optimal outsourcing from outside suppliers.

Differentiation strategies

Positioning the product in the minds of consumers as superior to other companiesproducts in terms ofquality and other features like higher efficiency, no sedimentation

problems during cases of long storage by obtaining superior quality material from

suppliers.

Pricing the product at slightly higher prices than competitor companies to put it as

premier product before consumers i.e. farmers.

Creating a brand image for the product as during the dealer survey major finding is that

farmers prefer only brand image to all other attributes of the product.

Focus strategies

Developing loyal customers as already Dhanuka is having good response among the

dealers.

Concentrating on few potential areas rather than wasting resources in multiple areas.


58/62


Questionnaire for dealer surveyProject title: Trade policies of competitor companies as per the bench mark and compare

them with ours to analyze the expectation of the trade.

DEALERS QUESTIONNAIRE

1. Name of the respondent:

2. Trade Name of the Customer: .

3. Address of Place ofbusiness: ..

..

4. Contact Phone No ..

5. Annual turnover of the firm (in Rs.):

o < 25 Lakh

o

25-50 lakho 50 lakh- 1 crore

o 1-3 crore

o > 3 crore

6. Number of villages the firm reaches: ...............

7. Which companys product do you sell in your shop?

Company Sale (yes/no) % share in total turn over

Rallis

Bayer crop science

HCL

Nagarjuna chemical

Dhanuka Agritech Ltd.

Insecticide India ltd

Indofil

Cheminova


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P.I. Industry

8. Give ranking to the following companies as per the parameters (1 to 5)(1 = highest, 5 = lowest)

s.

no. Company

Parameters

Rallis Bayer HCL NACL DAL Makhtesha

m

cheminova IIL PI

1 Retailers

incentive

schemes2. Reasonable

Price of the

product

3. Timely

availability

9. As a percentage of total turnover, percentage sales in cash and credit:

Sales Percentage of total turnover

Cash sales

Credit sales

10. What are the margins given by different companies to dealers/distributor on their products?

s.no. Company Margins (%) Credit period (interest free days)

1 Rallis

2 Bayer crop science

3 HCL

4 Nagarjuna chemical

5 Dhanuka Agritech Ltd.6 Insecticide India ltd

7 Indofil

8 P.I. Industry

9 Cheminova

11. Average days of Credit & margins offered by distributor to the dealer/retailer on the products of various

companies:

S. No Company Margins (%) Cr

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