Could you tell us about FMC’s recent acquisition of DuPont’s agro business and the structure of the company in India?

On November 1, 2017, FMC acquired a significant portion of DuPont’s crop protection business. We are currently in the process of integrating these world-class assets. This acquisition has put us in the top five R&D based crop protection companies globally. Within the market in India, FMC India is one of the top three market leaders with an industry-leading portfolio of insecticides.

Has your strategy for expansion in India been focused on inorganic growth?

If you look at our historical growth, it has mainly been organic, with some inorganic growth. Our recent inorganic acquisition of DuPont’s crop protection assets has put our combined estimated full-year 2018 earnings between US$4.1 billion to US$4.3 billion globally. Within India, this acquisition has helped us expand our market reach as well as strengthen our product portfolio. Moving forward, we plan to launch more than ten new innovative products in the market over the next five years. These products are focused on the high value-added segments for the growers. So, a lot of our future growth is centered on organic growth.

How has FMC invested into R&D in India?

FMC has conducted critical R&D in Bangalore, India for a long time. Through the recent DuPont portfolio acquision, we now have acquired a state-of-the-art research facility at Hyderabad , now known as the FMC India Innovation Center. At this facility, we carry out the basic discovery activities of new molecules and their potential for crop protection. R&D activities at this center support our global R&D heaquarters based near Wilmington, DE, USA to bring out newer molecules of interest with unique modes of action to commercialization. In a nutshell, from India we are conducting discovery activities that could very well help other regions of the world.

As FMC India serves both the domestic and export markets, what drives the company’s product innovation at its R&D facilities in India?  

Innovative chemistries are in high demand globally. A few factors drive the demand for innovation. Firstly and most importantly is the transition to a safer, greener chemistry – that is aimed at reducing the environmental load of the chemistry while getting the same sort of efficacy on the biotic problem one is trying to address-  an insect pest, a weed or a fungal disease. The second factor is around the health effects of the products on the food that is being grown. There is a lot of consumer expectation for the industry to move toward safer pesticides and biologicals.

The other factor that drives innovation is around the complexity of nature. What worked a few decades ago, may no longer work due to resistance, etc. Nature innovates faster than some of us can, so today’s solution may not be effective tomorrow. It is a constant battle and one always has to be innovating for the products that address tomorrow’s needs.

India’s agricultural sector is defined by its complex network. How are you able to understand your customers’ varying needs?

We are very intimately connected with our customers at the grassroots level. Our teams are constantly understanding the present and future challenges that the farmers may face. We do this through organised outreach campaigns in the field such as field days, harvest days, village outreach meetings and flash campaigns depending on the crop, geography and season. During these interactions, we do deep exploration of their critical  visible and latent needs along with their expectations from our products. We have a very robust portfolio and we offer a compelling value proposition out of this portfolio through these activities. So their needs direct our innovation processes. Farmers and growers are expressive about telling us what they want. It is a matter of capturing that intelligence in a disciplined manner and feeding that into our new product development process. It is really about being close to the farmers and being with them in the market.

Is the drive towards greener chemistry coming from consumer demands or India’s stringent agricultural regulatory framework?

The drive is primarily emanating out of our commitment toward sustainable agriculture and safe food. Having said that, we acknowledge that the Indian regulatory system is amongst the most robust and comprehensive globally. Along with the more advanced regulatory bodies such as USFDA, the Indian system is also gradually proding the industry towards safer and greener alternatives. Of course, another constant driver is the changing consumer demand for safer food and lower environmental footprints.

What are the advantages and challenges of operating in India with respect to FMC?

The fundamental drivers of growth in India are very strong as the usage of crop-protection products in India is still very low compared to other countries like South Korea, China, Japan and the United States. The grower is now able to understand new innovative chemistries and the value they bring, and are willing to invest in them. They are not necessarily looking for the cheapest fix.

There are some areas of challenge with respect to development. What we look for is a consistent, predictable, science-based and stable policy environment which encourages investment. Today, we face a constant wave of change in the government, political or regulatory environments. These frequent changes coupled with regional variances make it difficult for companies like us to strategize to invest here. A state in the south may decide to cancel a particular product, while a state in the north may want to review 20 pesticides, for example. So there is a lot of noise with every state trying to do its own thing. Picking a path and staying on it becomes a challenge for us. A more harmonized and stable policy regime coupled with positive moves such as protecting our IPs, regulatory data, prioritizing approval of newer chemistries, a strong action against the counterfeits and spurious manufacturers would go a long way in attracting investment here.  

What is your growth strategy for FMC in India?

The growth vision for India business is based on three drivers. Currently, we are the leaders in insecticides. We plan to expand the herbicide and fungicide portfolio. For that we are looking at a number of new products to be launched in the next 3-4 years, which will be a significant driver of growth.

The second element is how to create more value for the grower, not just in terms of products, but in terms of solutions.  We are looking at developing holistic solutions across the pest, weed and disease spectra to offer an effective but affordable way to solve grower problems.

The third area is in terms of services. We are looking to partner with other companies to offer a full suite of services. For example, if waste is generated by a sugarcane farmer, do we just let them burn or figure out opportunities for them to make the best out of waste?

Apart from products and services, we are investing in people. We see a lot of opportunity where we can upgrade our talent base.

Tying into both the ‘Make in India’ initiative and also the stringent environmental regulations in China, do you see new export opportunities for FMC India?

The situation in China is an opportunity for India to advertise itself as the next big destination for chemicals manufacturing. We are not immune to it as alot of our production supply comes out of China. Companies do not like the uncertainty that comes with political, regulatory, economic changes and that is what is happening in China, so for those looking at alternatives, India ranks high in such conversations right now. We are actively contemplating investing in some manufacturing capabilities within India and believe that India will be a future hub of manufacturing not only for our existing products but for some of the new R&D molecules that are in the pipeline. In order for us to invest in India, we need the support of the government.

What is your vision for FMC in India moving forward?

I envision FMC to be a socially responsible company that is delivering new innovative and safer solutions for growers in India, to not only serve the growers’ needs but also address food production, food security and food safety. I would underscore the point of being environmentally and socially responsible, which is the key.