KAIHUA: A bridge of China - India pesticide intermediate markets

As the two most important pesticide markets in the world, China and India depend on each other in pesticide intermediates industry.

India imports nearly US$1 billion of pesticide technical, intermediates and formulations from the world every year, of which China accounts for about 50%.

For intermediate products, India usually imports about 35 kinds of products, the main products namely:  

l  CCMT, MNIO for Thiamethoxam

l  CCMP, NII for Imidacloprid

l  Pentanone, Oxirane for Tebuconazole

l  LC Acid and Bifenthrin Alcohol, for Bifenthrin and Lambda 

l  Pinacolone for Metribuzin

l  1H-1,2,4 Triazole for triadimefon, paclobutrazol, uniconazole diniconazole, triadimefon, fluconazole

l  NaTCP for CPP and Triclopyr

l  Pyrazole for Fipronil

China also has great need of some intermediate products from India, namely: pyrethrin intermediates such as CMAC, Bromobenzene, Pyridines, MPBD, Trichlorobenzene. The annual domestic demand in China is about 6,000 tons, of which nearly half needs to be purchased from India.

The two markets are cooperating closely to provide high-quality products for the global pesticide producers. KAIHUA, a new company from China, is one of the companies contributing efforts inside this market.

Recently, Mr. Sanjay Upadhyaya, General Manager of the company, told us about the new company and their business in our interview.

Q1: Could you please introduce your company and main business? For what reason you established the company?

A: We established the company, KaiHua International Trade Co., Ltd in the year 2021, with a view to promote international trade for crop protection & pharma intermediates. Our prime focus is on intermediates for those products that have been getting off-patent and create value for business with our partners, establishing long term supply chain arrangements for intermediates, technical source registration supports and long-term source registration agreements. 

Q2：what are your main products supplied to China and India respectively?

A:

Q3: What are your comments of the two big markets? 

A: Both the markets are very important markets, China is major manufacturer of various pesticides and intermediates. The output of pesticide intermediates in China is increasing year by year, you can see expanding news, new projects news in this industry in China every day. I expect the number of output to exceed 5 million tons this year, with a big percentage exported to India. 

India is a fast-growing market; hence it is very important market for China to supply upstream products.

Q4: Do you think they are more of competition or cooperation?

A:  Both the markets have on one hand competition and on the other hand cooperation, both the markets cooperate for upstream products supply chain by using respective strengths to benefit the global markets, the other hand also compete to provide high quality and competitive products.  

Q5: Do you have some plans for the year 2023? Especially under the new easy policy of covid in China market?

After easing of Covid policy, manufacturing activities have more opened up and hence we have plans to meet more and more manufacturers to create stronger relationships for further business development. 

Meanwhile, we keep consistently to pay close attentions to newly off-patent products this year. You know during 2018-2023, a total of 30 pesticide compound patents will expire.

International pesticides will enter the expansion stage of non-patented pesticides, and the demand for upstream pesticide intermediates will further increase.