Indo US Bio-Tech Ltd to Invest Rs 71.51 Crore in Agricultural Innovation and Research & Development by 2030-31

Ahmedabad-based Indo US Bio-Tech Limited (BSE: 541304, NSE: INDOUS) has unveiled a comprehensive investment roadmap extending to 2030-31, pledging a total of Rs 71.51 crore toward agricultural innovation and research and development. This strategic blueprint is designed to bolster the company's position as a leader in high-quality seed development. Central to this vision is the establishment of a massive 100-acre R&D facility and a state-of-the-art seed processing plant in 2026-27. This infrastructure will include a high-tech greenhouse and dedicated net houses, providing the controlled environments necessary for cutting-edge botanical experimentation and climate-resilient crop development.

A major pillar of this roadmap is a calculated expansion into international markets, specifically targeting the United States and Africa. The company plans to invest Rs 11.30 crore to navigate export licensing and establish direct marketing channels in Kenya, Nigeria, and Ghana. This global push is expected to yield significant returns, with a revenue target of Rs 18 crore from these regions by 2027-28 and a combined projected revenue of Rs 49.17 crore by 2035-36. By securing partnerships and pilot marketing initiatives within the next two years, Indo US Bio-Tech aims to achieve a break-even point in its export division by 2027-28 with an impressive initial profit margin of 25 per cent.

The company is also prioritising crop-specific R&D projects to address regional agricultural challenges and improve farmer yields. A flagship five-year tomato project, budgeted at over Rs 5 crore, seeks to develop disease-resistant varieties that could reduce yield loss by up to 40 per cent. Similarly, multi-year initiatives for bottle gourd, chilli, and brinjal are scheduled between 2028 and 2030. For instance, the brinjal project focuses on resistance to bacterial wilt and Phomopsis blight, aiming for a 50-60 per cent yield improvement for farmers and a targeted revenue of over Rs 31.25 crore by the sixth year of the project’s cycle.

In addition to vegetable research, the company is diversifying its portfolio through a joint venture to establish a new groundnut seed plant in 2026-27. This Rs 15 crore venture, featuring 50 per cent participation, will focus on specialised processing and packaging. To keep pace with these innovations, the company will also undertake a significant modernisation of its processing plant capacity in 2029-30. By integrating state-of-the-art sorting machinery and expanding facility space, Indo US Bio-Tech intends to maximise operational efficiency and ensure that its production capabilities match its ambitious R&D output.

The final stages of the roadmap involve a specialised two-year initiative for tomato seeds in 2030-31, focusing on nutrient extraction and sustainable agricultural solutions. While the company acknowledges that these timelines may shift based on seasonal weather patterns, the management remains optimistic about the long-term financial outlook. With a total planned investment exceeding Rs 71 crore, the company anticipates a steady increase in profitability, with potential margins reaching as high as 70 per cent. This roadmap signals a transition toward a more technologically advanced, export-oriented future for the Ahmedabad-based biotech firm.

Disclaimer: The article is for informational purposes only and not investment advice.