Salil Singhal, CMD, PI Industries Ltd. on the challenges of the pesticides sector
B&E: There is a lot of hue and cry about the excessive use of chemicals. What are your views?
SS: Pesticides usage has come up very recently while the fertilizers have been used for a long time. Today, we understand that there is a problem and we have identified it and it needs to be resolved.
B&E: Does pesticide industry face challenge from the genetically modified (GM) crops?
SS: Yes. The problem is that the science of pesticides is changing phenomenally. The whole science and technology of agri-chemicals has changed. Like pharma, the pesticides industry keeps changing quickly but that is not there in GM crops. The cost of new discovery is very high ($600-800 million and atleast 8-10 years to commercialise it). Then there are the regulations. Until 2005 companies were allowed ‘me-too’ registrations. This is where India has been the biggest looser The ‘me-too’ registration has nearly destroyed the Indian pesticide industry. We also have the most in-efficient and corrupt regulatory mechanism.
B&E: How do you see the growth by the Chinese market and its effects on India?
SS: There is a lot of illegal import by the fly-by-night operators from China. There are certain groups within the industry who are trying to bring in the Chinese agenda of reverse engineering.
B&E: How well suited are Indian pesticides companies for M&As. What about PI Industries.
SS: I have not seen many foreign companies taking up Indian companies. It would be too early to comment on this. We are definitely looking forward to M&As and are fully prepared to fit into any good deal that comes forward.
B&E: There is a lot of hue and cry about the excessive use of chemicals. What are your views?
SS: Pesticides usage has come up very recently while the fertilizers have been used for a long time. Today, we understand that there is a problem and we have identified it and it needs to be resolved.
B&E: Does pesticide industry face challenge from the genetically modified (GM) crops?
SS: Yes. The problem is that the science of pesticides is changing phenomenally. The whole science and technology of agri-chemicals has changed. Like pharma, the pesticides industry keeps changing quickly but that is not there in GM crops. The cost of new discovery is very high ($600-800 million and atleast 8-10 years to commercialise it). Then there are the regulations. Until 2005 companies were allowed ‘me-too’ registrations. This is where India has been the biggest looser The ‘me-too’ registration has nearly destroyed the Indian pesticide industry. We also have the most in-efficient and corrupt regulatory mechanism.
B&E: How do you see the growth by the Chinese market and its effects on India?
SS: There is a lot of illegal import by the fly-by-night operators from China. There are certain groups within the industry who are trying to bring in the Chinese agenda of reverse engineering.
B&E: How well suited are Indian pesticides companies for M&As. What about PI Industries.
SS: I have not seen many foreign companies taking up Indian companies. It would be too early to comment on this. We are definitely looking forward to M&As and are fully prepared to fit into any good deal that comes forward.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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