SML Ltd, formerly known as Sulphur India Limited, is exploring the possibility of listing on the stock market within the next two to three years. The goal of this move is to raise funds for the development of New Chemical Entities (NCEs), as well as to expand business areas in nutrition and crop protection.
Managing Director Bimal Shah told PTI that the company has not made a final decision yet but is evaluating the option. He added that the debt-free company expects more clarity regarding timelines within the next one to two years.
SML Ltd, based in Mumbai, is among the few Indian companies involved in developing NCEs—patented new molecules, rather than standard formulations. One new molecule is expected to enter the market soon, while others are under development.
Bimal Shah noted that the team has been working on NCEs for the last three years, and a new molecule will appear soon. He emphasized that NCE development is a priority for the company because it requires significant investment. Bringing one NCE to market can cost between $70 and $80 million, and the company has been self-funding the research so far.
These factors may eventually lead the company to a listing, but the decision has not been made as the evaluation continues. Shah expects to have a clearer idea of the development direction in the current or next year, as further steps depend on the completion of preparatory work.
Accumulated Funds and Acquisition Goals
SML Ltd has approximately 450-470 crore rupees in cash with an almost debt-free balance. According to Shah, these funds can be used for acquisitions, acquiring regulatory assets, or strategic partnerships, alongside the NCE program.
The company cited its recent increase in stake in Rotam India, an active ingredient manufacturing enterprise, as an example of a reverse integration deal it could repeat. He stated that the company has maintained a stable balance for many years, and the accumulated fund is intended for a suitable opportunity—potentially an acquisition, strategic collaboration, or reverse integration.
The discussion about listing comes as SML deepens into three areas beyond traditional phosphate fertilizers: crop nutrition, crop protection, and biological preparations. Shah believes that crop nutrition, where the company promotes balanced, nutrient-efficient formulations instead of single-nutrient products, is likely to be the fastest-growing of the three areas over the next three years both in India and globally.
Adjusted Revenue Forecast
SML has lowered its revenue target for the current fiscal year to approximately 1,600 crore rupees, down from the initial target of 1,800 crore rupees. The reasons for this reduction were weaker monsoon rains, US tariffs, and shipping disruptions related to the ongoing geopolitical conflict. Nevertheless, this figure still exceeds the level of 1,200-1,300 crore rupees from the previous year, boosted by a 15-20 percent increase in product prices.
International business, covering over 80 countries, generated about 600-700 crore rupees in the last fiscal year. In the current year, SML is targeting 700-800 crore rupees, and 1,000 crore rupees within two years, although it warned of persistent uncertainty related to tariffs and shipping.
According to the head, about 70 percent of SML's export revenue comes from plant protection products, including insecticides and fungicides that use microencapsulation and water-soluble granule technologies.
Focus on Branding
SML Ltd separately presented cricketer Sachin Tendulkar as its brand ambassador this year. The company expects his national fame to help accelerate the adoption of its phosphate fertilizers by farmers. The company estimates that only a small fraction of India's agricultural land currently receives adequate phosphate nutrition, despite state soil surveys showing widespread deficiency.
Shah noted that the company aims to merge nutrition, sports, and agriculture. He added that Tendulkar himself became interested in this partnership after noticing that he had never worked with an agriculture-focused company before.
Recently, the company launched seven new products in the crop protection and nutrition segments. Shah explained that crop protection products turn into sales faster because they operate on an AI-to-AI active ingredient basis. 'We expect at least an additional 100 crore rupees this year from these new products/technologies, and crop nutrition potentially could bring even more depending on market reach and consumption growth.'
Supply Shortage
The Indian agricultural sector is increasingly pointing to phosphate shortages as a hidden yield constraint, and state soil health surveys demonstrate widespread deficiencies across the country. SML Ltd reported that the company holds a 30-40 percent market share in India's specialized phosphate fertilizer segment, which accounts for approximately 150,000-200,000 tons. The company plans to increase this share to 50-60 percent by 2030 through expanding field demonstrations and working with dealers.
The company, which competes with larger rivals such as Coromandel International and Deepak Fertilizers, stated that its patented micronized phosphates and zinc phosphate formulations have a higher unit cost compared to traditional sources like gypsum and ammonium sulfate, but require significantly lower application rates.
Shah reported that the capacity utilization rate at SML's production facilities is around 50-55 percent, with full capacity expected by 2028-29. The company plans to shift part of its research capabilities to new agrochemicals beyond phosphates, including biological plant protection agents.
Founded in 1971, SML Ltd has transformed over five decades from a strong company specializing in phosphate fertilizers into a global enterprise focused on innovation and research in agro-solutions.
