Shivchem Agro

About the Company

Shivchem Agro manufactures and distributes a wide range of agrochemicals and fertilizers designed for crop protection and yield enhancement. The company’s portfolio includes insecticides, fungicides, herbicides, plant growth regulators, rodenticides, and various fertilizers. Operating from a manufacturing facility located in Jhajjar, Haryana, the business formulates chemical solutions to address diverse farming requirements. Shivchem Agro generates its revenue primarily through the sale and distribution of these agrochemical formulations across domestic markets, including Andhra Pradesh, Assam, Haryana, Telangana, Odisha, and Bihar. The company sells its offerings through an extensive distribution network, supported by strategically leased godowns across multiple Indian states to facilitate product supply and timely delivery. Raw materials are sourced from third-party suppliers on a purchase order basis to maintain continuous production. Shivchem Agro focuses on expanding its product portfolio, optimizing manufacturing capacity, and strengthening its regional market presence to effectively serve agricultural needs.

Strengths

• Portfolio of 176 agrochemicals and 82 fertilizers.
• In-house manufacturing facility in Jhajjar, Haryana.
• Network of 685 distributors across key domestic markets.
• Strategically located 5 godowns ensuring efficient regional product supply. 
• Allocation of IPO funds for working capital expansion.

Risks

• Vulnerability to seasonal weather and monsoon variations.
• Mandatory statutory approvals and regulatory compliances.
• High working capital needs and history of negative cash flows.
• Raw material price fluctuations without long-term contracts.
• Operations conducted on leased plant and warehouse properties.