"Even after doubling its exports over the past three years, Astec remains a marginal player in overseas markets with exports of Rs 26 crore in 2008-09.

Exports offer scope for strong growth and higher margins for ingredient suppliers, given that India is a low-cost manufacturing base for agrochemical and pharma ingredients. However, establishing a significant overseas presence in agrochemicals is a long-drawn process, dependent on an extensive distribution network, a wide range of products and the need to register each new product in individual markets.

With a small export turnover and just three product registrations in its own name (43 held by clients), Astec is well behind leading agrochem marketers such as United Phosphorus or even Meghmani Organics in global market presence.

The company also faces unresolved litigation, which could pose risks to its operations. Nath Biogene, a former customer, has alleged supply of spurious products by the company; which Astec has disputed.

An appeal on this matter is now pending before the Supreme Court. The offer document also mentions a complaint filed by the Government of Maharashtra alleging “illegal manufacture and distribution of pesticides without an appropriate licence” at one of its units. "