MS Agrotech
Deep Dive
Invoice Discounting on Ultra
Legal Name - MS Agrotech
MS Agrotech provides high-grade agricultural inputs for maximizing crop yield
Dec 2025
Deal Summary
Vision, Mission & Purpose
Vision - To be a leading innovator in the fertilizer industry, recognized for our commitment to sustainable agriculture and
fostering a thriving agricultural community.
Mission - To empower sustainable agriculture by delivering effective and efficient plant nutrition tools, promoting responsible
farming practices.
Purpose - We are dedicated to fostering a world where responsible agriculture nourishes communities and promotes
environmental well-being.
Key Highlights
1. Rising Demand for Agricultural Machinery: Global agricultural machinery and fertilizer sales are projected to reach $300
billion by 2028, with a CAGR of 6.8%. India is a key market where government programs like PM Kisan Samman Nidhi and
SMAM are providing subsidies, boosting demand for mechanized tools from companies like MS Agro.
2. Seasoned Partnership: MS Agrotech benefits from a combined 100+ years of experience among its partners, offering
expertise that strengthens its operations and customer trust in its products.
3. Dealer Network and Expansion: MS Agrotech has established a strong network of 700 dealers in Karnataka and is
expanding its reach to Andhra Pradesh and Rajasthan, broadening its market footprint and customer base.
4. Climate Volatility and Agricultural Uncertainty: Unpredictable weather patterns, including droughts and excessive
rainfall in key agricultural regions, are affecting crop yields and subsequently reducing demand for machinery & fertilizers
in some markets.
5. Synthetic chemical-dependent concern: The production of fertilizers is solely dependent on synthetics and polythene
based chemicals; these chemicals are considered to be under the government's watchlist for prospective fields that
require regulation on usage.
Founders
Siddaiah S Shivraj Tagare Madhu Kumar Varma Dodda Basappa
Partner & Head of Sales Partner & Head of Partner & Head of Partner & Head of
Marketing Finance Operations
Financial Summary
MS Agrotech is a registered partnership firm based in Bangalore, and by January 2024, they have soared to ₹10.96 Cr in
revenue, all while maintaining a healthy 20% EBITDA. They have been profitable since inception, all while maintaining healthy
net profits. They have been growing strongly in revenues with a CAGR of 125% from FY 20 FY 24.
Market Opportunity & Size
The Indian fertilizer market size is estimated at USD 43.32 billion in 2024 and is expected to reach USD 62.83 billion by
2030, growing at a CAGR of 6.39% during the forecast period between 2024 and 2030. The market is fragmented, with the
top five companies occupying 34.30% of the market share.1 The Indian pesticides market size reached INR 229.4 billion in
2022, and it is expected to grow at a CAGR of 6.6% during 2023 to 2028, reaching INR 342.3 billion by 2028. The
significance of pesticides has been rising over the last few decades, catalyzed by the requirement to enhance the overall
agricultural production and the need to safeguard adequate food availability for the continuously growing population in the
country. In India, pests and diseases, on average, eat away around 20% to 25% of the total food produced.
Following are the key drivers for the Indian pesticide market.
● Decreasing Arable Land and Rising Food Demand: India's per capita arable land is shrinking due to urbanization,
while population growth necessitates increased food production. Pesticides could play a key role in increasing the
average crop yield per hectare.
● Government Support for Farmers: Government initiatives offering credit facilities in rural areas empower farmers to
invest in agricultural inputs like pesticides.
● Enhanced Farmer Education: Both government and private initiatives are increasing the awareness of pesticides
among farmers. Initiatives to educate farmers on the right usage of pesticides in terms of quantity, the right
application methodology, and appropriate chemicals to be used for identified pest problems, etc. are currently being
conducted in various parts of the country.
● Low Market Penetration Compared to Global Peers: The penetration levels of pesticides in India are significantly
lower than other major countries such as the US and China. This suggests that the market for pesticides is still largely
unpenetrated, with a huge room for future growth.2
The Indian water-soluble fertilizer market size was USD 425.36 million in 2023 and is expected to grow at a CAGR of
7.45% between 2025 to 2029. The key drivers of the growth can be attributed to similar factors as those of pesticides, like
shrinking arable land, increasing food demand due to population growth, growing awareness, etc. 3 The India Plant Growth
Regulator Market was valued at USD 102.34 million in 2023 and is expected to grow with a CAGR of 7.22% through 2029.
Increased adoption of precision farming and protected agriculture, rising demand for organic food products, etc. are the
key drivers for this growth.4
Source
1 Mordor Intelligence: Fertilizer Industry in India Size & Share Analysis - Growth Trends & Forecasts 20242030
2 Research and Markets: Indian Pesticides Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast
3 TechSci Research: India water soluble fertilizers market
4 TechSci Research: India plant growth regulators market
About MS Agrotech
● MS Agrotech was founded in 2020 by 4 seasoned partners with a total experience of 100 years in the agri-chemical
industry.
● They operate under their own brand name of ‘Growrichʼ.
● MS Agrotech has a strong presence in Karnataka with a network of 700 dealers.
● They are in the process of setting up their own factory to manufacture these products.
● MS Agrotech is expanding into other states like Andhra Pradesh and Rajasthan to build a strong presence nationwide.
10.39% 700+ 19.33% 411
Revenue CAGR from Dealers YoY Revenue growth Active clients
FY 22 FY 25 from FY 24 FY 25
Products & Solutions
The company has 4 different product lines:
● Water Soluble Fertilizers WSF These are fertilizers that readily dissolve in water, making them easily absorbed by
plants. They are ideal for precise nutrient delivery through fertigation (applying fertilizer with irrigation water) or foliar
feeding (spraying fertilizer on leaves). WSFs are fast-acting and efficient, but may require more frequent application
compared to traditional granular fertilizers.
● Plant Growth Promoters PGPs These are not fertilizers themselves but rather substances that can influence various
plant growth processes. PGPs can improve root development, stress tolerance, nutrient uptake, and overall plant health.
Examples include humic acids, seaweed extracts, and beneficial bacteria.
● Pesticides: These are chemicals used to control pests like insects, weeds, and fungi that can damage crops. There are
various types of pesticides, some targeting specific pests and others having broader applications. It's important to use
pesticides responsibly to minimize environmental impact and avoid resistance development in pests.
● Fertilizers: In general, fertilizers are any substance added to soil or plants to provide essential nutrients for growth. WSFs
are a specific type of fertilizer, but there are many other types available, including granular fertilizers that release nutrients
slowly over time and organic fertilizers derived from natural materials.
Financial Performance
● MS Agrotech clocked a revenue of ₹15 Cr in FY 25. MS Agrotechʼs major revenue generation happens in Q1 of the
financial year because of the monsoon harvest season.
● MS Agrotechʼs revenue is growing at a CAGR of 125% from FY 20 FY 25.
● MS Agrotech has an increasing PAT margin from 7.74% to 13.47%
Historical Performance
● Revenue & Profitability : Revenue increased
from ₹ 12.57 Cr in FY24 to ₹ 15.05 Cr in FY25
Provisional), showing healthy growth of 19.73%
compared to 12.77% in the previous year. Gross
profit margin remained near 100%, reflecting
strong cost efficiency. PAT rose from ₹ 1.26 Cr to
₹ 2.03 Cr, with PAT margin improving from
10.02% to 13.14%.
● Capital & Leverage Position: Equity improved
steadily from ₹1.41 Cr in FY23 to ₹3.84 Cr in
FY25, supported by better profitability and
internal accruals. Long-term borrowings rose to
₹4.55 Cr in FY25 from nil in FY24, while
short-term borrowings moderated to ₹5.11 Cr
from ₹6.63 Cr. As a result, overall leverage
remained broadly stable, with the debt-to-equity
ratio easing marginally from 2.63× in FY24 to
2.52× in FY25, reflecting gradual strengthening
of the capital structure.
● Liquidity & Working Capital : The current ratio
improved significantly from 0.78× to 1.83,
indicating better liquidity and short-term
solvency. Inventories, receivables, and payables
increased in line with business growth, reflecting
healthy working-capital management and
smooth cash-flow operations.
Statement of Profit and Loss
Statement of Balance Sheet
Founders
Siddaiah S Co-Founder
GKVK
Ex- Senior Marketing Manager – IFFCO, Ex- State Head – Paradeep Phosphates Limited
Shivraj Tagare - Co-Founder
Agri University, Dharwad
Ex- Coromandel International, Ex- BASF, Ex- Marketing Manager - Paradeep Phosphates Limited
Madhu Kumar Varma - Co-Founder
Bangalore University
Ex-Manager- Thungabhadra Fertilizer; Ex-GM, Basant Agro, Ex- Marketing Officer - Paradeep
Phosphates Limited
Dodda Basappa - Co-Founder
Agri University, Dharwad
Ex- Coromandel International, Ex- Marketing Manager - Paradeep Phosphates Limited
About Ultra
Ultra provides a technology-driven platform empowering fixed investments.
With a focus on transparency and risk management, Ultra acts as a marketplace for investors to find the best deals that suit
their investment needs, including varying returns, tenures, minimum investments, and risk profiles.
Key Highlights in the offering
● Diversification of Investment Portfolio
● Stable & Predictable Returns
● Enhanced Liquidity & Flexibility
● Risk Mitigation through Asset-backed Investments
Key Risks
Invoice Discounting Investment: Risk Disclosure
Invoice discounting allows investors to earn returns by financing outstanding invoices for businesses. However, like any
investment, it carries inherent risks. Here's a breakdown of the potential risks involved:
External Risks:
Debtor Default: The company that owes the invoice (the debtor) might fail to make the payment on time or default entirely.
This could lead to significant losses for the investor, potentially the entire invested amount.
Creditworthiness of Debtors: Investors rely on the creditworthiness of the businesses issuing the invoices. If a business
has a poor financial history or faces financial difficulties, the risk of default increases.
Fraudulent Invoices: There's a possibility of fraudulent invoices being used to raise capital. Investors need to be cautious
about the authenticity and legitimacy of the invoices being discounted.
Market Fluctuations: Economic downturns or industry-specific issues could impact the ability of businesses to pay their
invoices on time, affecting returns for investors.
Internal Risks:
Liquidity Risk: Invoice discounting investments might not be easily liquidated. Investors might have to wait for the full
invoice term to receive their money, limiting their ability to access the funds quickly if needed.
Early Payment by Debtors: If a debtor settles the invoice earlier than expected, the investor might receive a lower return
than initially anticipated.
Limited Transparency: Investors might not have access to all the necessary information about the businesses issuing the
invoices or the underlying assets. This lack of transparency can increase the risk of fraud or unexpected issues.
Key Risks
Additional Considerations:
Investment Horizon: Invoice discounting is generally considered a short-term investment with returns typically spread over a
few weeks or months. Investors should be aware of this time frame and ensure it aligns with their investment goals.
Regulation: Invoice discounting is an unregulated product. This means there might be fewer investor protections compared to
other regulated financial products.
Returns: While invoice discounting can offer attractive returns, these are not guaranteed. Investors should carefully consider
the risks involved before investing.
Risk Mitigants
Due Diligence: Thorough due diligence is crucial. This includes evaluating the creditworthiness of debtors, verifying the
authenticity of invoices, and carefully assessing the platform facilitating the transactions.
Diversification: Spreading investments across multiple invoices from different businesses can help mitigate the risk of a single
default.
Understanding these risks is essential before investing in invoice discounting products. It's highly recommended to consult with
a financial advisor to assess your risk tolerance and determine if invoice discounting is suitable for your investment goals.
Investment is not risk-free. Repayment is subject to MS Agrotech making payments on a timely basis as per the agreed terms.
Deal sheet has been drafted solely on the basis of information shared by MS Agrotech and public sources.
Invest wisely! Understand the risks before you invest.