09/23/2020 | Press release | Distributed by Public on 09/22/2020 22:03
Mitsui & Co., Ltd., ('Mitsui', Head Office: Tokyo; President and CEO: Tatsuo Yasunaga) and Nippon Soda Co., Ltd., ('Nisso', Head Office: Tokyo; President and CEO: Akira Ishii), have acquired majority shares in Bharat Insecticide Limited ('BIL', Head Office: Delhi), an Indian agrochemical company, through the special purpose company co-founded by Nisso and Mitsui.
India is the 5th largest market in the world for agrochemical products. Population growth, especially in developing countries, has proven to be a key driver of growth in the agricultural inputs market (which includes agrochemicals, fertilizers, seeds, etc.,), and it is forecast that the Indian market will continue benefitting from this trend in the future. BIL started its operations in 1977, and has steadily developed its presence in the Indian market along with Bharat Rasayan Limited ('BRL', Head Office: Delhi, Listed on BSE and NSE), which is a Bharat group company and the producer of active ingredients for agrochemicals, through the development of new products based on the prompt gathering of information about market needs, the supply of competitive and high-quality agrochemicals, and by providing careful technologies and services to farmers.
By investing in this project, Mitsui and Nisso intend to contribute to the expansion of BIL's business in India by inducing synergy with Mitsui's global assets and by introducing Nisso's competitive products into BIL's portfolio.
Mitsui has identified the chemicals sector (including the agricultural inputs business) as one area that is strengthening the profitability of core business in its Medium-term Management Plan. Mitsui has built trust-based relationships with its customers and partners around the world in the business of supplying agrochemicals, fertilizers, seeds, and other agricultural supplies that contribute to improving the productivity and quality of agricultural produce. Mitsui has significantly contributed to a stable global food supply through its distribution platform in Europe (Mitsui AgriScience International (MASI) Europe, a wholly owned subsidiary) and its biologicals company in the USA (Certis USA, also a wholly owned subsidiary). Recently, Mitsui has been strengthening its global distribution platform with its investment in Ouro Fino Quimica Ltda (Head Office: Sao Paulo, Brazil).
Through this partnership, Mitsui will boost the synergy between BIL, Nisso, and Mitsui, accelerate the integration of operations, and contribute to the development of local agriculture in India.
Profile of BIL
|Company Name||Bharat Insecticides Limited|
|Head Office||National Capital Territory of Delhi, India|
|Managing Director||Dharmesh Gupta|
|Shareholding ratios (after the investment)||
SPC (Mitsui, Nisso): 56%
Existing shareholders: 44%
|Business Activities||Development, manufacturing, and distribution of agricultural crop protection inputs in India|