KPR Agrochem Limited IPO: Analysis and Recommendation

KPR Agrochem Limited – an agri-input Company focused on manufacturing, distribution and retailing of a wide range of crop is planning to raise INR 280.80 Cr via IPO [Fresh Issue (INR 210 Cr) and Offer for Sale (INR 70.80 Cr to INR 73.20 Cr)]

KPR Agrochem Limited: Company Profile

Incorporated in the year 2007, Andhra Pradesh based KPR Agrochem Limited (a part of the KPR group companies) is engaged in manufacturing, retailing and distribution activities of agriculture output enhancing and crop yield protection products.
Also Read: Indiamart Intermesh Limited IPO Recommendation

KPR Agrochem: Product Portfolio

The Company offers a wide range  of  product  across  the  agri-value  chain  viz.,  from  seeds  to  crop  nutrients  products  to  crop  protection  products  and also veterinary feed supplements.
kpr agrochem product list:
  • Crop Protection Products (installed capacity of 21,560 MTPA) – registrations of 156 formulations from CIB;
  • Crop Nutrient  Products (installed capacity of 555,000 MTPA) – single  super  phosphate,  11  grades  of  NPK  mixture  fertilizers,  micro  nutrients  and bio products;
  • Seeds (installed capacity of 15,000 MTPA) – 83 variety of seeds spanning various field and vegetable crops for which we have received centralised seed license certification for marketing and/or research and trial marketing;
  • Veterinary Feed  Supplements (installed capacity of 32,400 MTPA) – di-calcium  phosphate  for  animal  feed  and  also  for  use  in  pharmaceutical industry; and
  • Sulphuric Acid – production of sulphuric acidand sulphuric acid based chemicals like LABSA and oleum for variety of industrial applications including agrochemicals, pharmaceuticals, etc.

Branded Products Offered By The Company

FAST,
MOTOX – 10G, S
AMRAT ATRAZINE 50% WP,
MEGA IMIDA,
ABHAYA CAL MIX,
APURVA SEEDS,
AJAY (14-35-14) and
AJAY (20-20-0)

 

KPR Agrochem Limited

 

Manufacturing Facilities & Depos

  • KPR Agrochem Limited has three manufacturing units located at Balabhadrapuram (Godavari district), Biccavolu (Godavari district), and Koppal district (Karnataka).
  • The Company’s seed processing unit is located in Warangal district, Telangana which is operated under our wholly-owned subsidiary Sri Sai Swarupa Seeds Private Limited.
  • The company has 9 depots at different locations for easy connectivity with nearly 8000 dealers across India.
  • KPR Agrochem also has a chain of Kisan Seva Kendras to directly connect to end customers.

Company Strength

  • Wide agri-input  product  portfolio  with  presence  across  the  agri-value  chain  enabling  diversification of revenue risk
  • Strong and growing distribution network
  • Material sourcing capabilities
  • Certified manufacturing facilities
  • Experienced management team

Company Promoters

  • Papa Reddy Kovvuri (81years) is the Chairman and Whole-time Director and a Promoter of our Company. He has  experience  of  over  four  decades  in  the  agricultural
  • Venkata Mukunda Reddy Karri (56years) is the Managing Director and a Promoter of our Company. He has experience of over two decades in the business of agrochemical industry and related business.
  • Rajasekhar ReddyKovvuri (40years) is the Whole time Director and Executive Directorand a Promoter of our Company. He has experience of over a decade in the business of chemical, agrochemical and other related industry.
  • Venkateswara Rao Gannamani (42 years) is the Non-Executive, Independent Director of our Company.
  • Cresco Technology LLP

 

IPO Details – Price, Minimum Bid and Other

 

KPR Agrochem – Financials

 

CONCLUSION –
Considering the company’s valuation and financial parameters, FinBlab recommends AVOID ratings on KPR Agrochem Limited IPO

 

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