Sumitomo acquire stake in Indian agrochemicals firm

Sumitomo to acquire stake in Indian agrochemicals firm

5:54 AM, 6th June 2016
Sumitomo to acquire stake in Indian agrochemicals firm

TOKYO, JAPAN/ MUMBAI, INDIA: Sumitomo Chemical Co Ltd has agreed to acquire 44.98 percent stake in Excel Crop Care Ltd, an Indian agrochemicals company. This transaction represents part of Sumitomo Chemical's efforts to enhance their agrochemicals business in the country.

This share acquisition triggers certain requirements into operation, under which Sumitomo Chemical is expected to make an offer on the market for additional public shares that will result in the group acquiring a maximum of 75 percent of the shares of Excel Crop Care.

Over the years, the agrochemical market in India has grown steadily and substantially, averaging 6.4 percent per annum over the past 5 years, and is currently ranked the 9th in size in the world market. The India's market is expected to keep expanding at a high rate to meet a brisk demand for increased food production as the country's population will continue to rise.

Given such a consistent market expansion and future growth potentials, Sumitomo Chemical set up its manufacturing and marketing base in India back in 2000 and has thereafter constantly worked to fortify the foundation of its agrochemicals business in the country, including the recent acquisition of a local manufacturing company in 2010.

The share acquisition of Excel Crop Care, which is the 5th largest in revenue among agrochemicals companies in India, is another strong step forward in further promoting expanding and enhancing Sumitomo Chemical’s agrochemicals business in India.

In addition, Sumitomo Chemical's enhanced access to Excel Crop Care’s robust product portfolio and distribution channels will be conducive to Sumitomo Chemical reinforcing its agrochemical business operation in areas outside India. Sumitomo Chemical positions the field of life science, including agrochemicals business, as one of its key business domains that are likely to show high growth in the future.

Through the undertakings and other initiatives, Sumitomo Chemical will promote expanding activities further in the agrochemicals field, contributing to ensuring the stable supply of safer and secure food which is in growing demand globally.

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