Tropical Agrosystem: Expansion & Possible IPO - Business News

New Delhi, Jul 21 (PTI) Agrochemical company Tropical Agrosystem is exploring the possibility of listing on the domestic stock market as it plans expansion and launch of new products, according to a top company official.

Tropical Agrosystem (India) founder and Chairman VK Jhaver told PTI that bankers have approached the company, advising either a public listing or private equity investment.

"Maybe in another few months, we will take a call," Jhaver said.

"Once I give the green signal, then probably we will have to start the work."

Asked why the company had not listed earlier, Jhaver said, "That is again a mindset. We have never gone for any listing of our other group companies also. Maybe, yes, slowly we have to change our mindset".

The Chennai-based company, which focuses on agrochemical formulations, plans to invest Rs 150 crore to build two new agrochemical plants in Chennai and Kolkata in the next two years.

"The investment will be made from our working capital," Jhaver said.

He added that the Tamil Nadu government has allocated land for the proposed Chennai plant, and work will begin soon.

Tropical Agrosystem aims to become debt-free this year and plans to merge with another arm of the company if it decides to list, Jhaver added.

He said the company plans to launch its first patented product next year and has begun exporting to African countries and Bangladesh in the past two years.

The company's turnover has grown from Rs 50 lakh in 1979 to Rs 1,400 crore now, he added.

The firm operates seven manufacturing units across five states - Karnataka, Gujarat, Rajasthan, Tamil Nadu and Uttar Pradesh. It also has three R&D hubs focused on innovation in crop protection and nutrition.