Sumitomo Chemical India Ltd (SCIL) has executed definitive agreements for acquiring 85% equity shares and controlling stake (on fully diluted basis) in Barrix Agro Sciences Pvt Ltd.
Barrix Agro Sciences Pvt Ltd. is into R&D innovation, manufacturing and marketing of IPM (Integrated Pest management) & IPNM (Integrated Plant Nutrition Management) products with special focus on pheromones with dispersion technologies, that are used to monitor and trap agricultural pests. The Company achieved a turnover of Rs 380 million for FY 2022-23 as per the management certified financial statements.
The acquisition will substantially enlarge SCIL’s product range including green chemistries in a larger measure. The acquisition is in alignment of SCIL’s strategy to build a more sustainable portfolio of green chemistries and offer Integrated Pest Management (IPM) and Integrated Plant Nutrition Management (IPNM) products and solutions to farmers. Through its established marketing and sales network of traditional channel and digital channels and available investment resources, SCIL will be able to provide guidance to the target company’s business to grow at a faster pace.
SCIL will pay cash consideration not exceeding Rs 850 million for acquiring 85% equity and controlling stake (on fully diluted basis) by way of mix of primary investment in the target company (subscribing to new equity shares to issued by the target company) and secondary stake purchase (transfer of shares from existing shareholders).
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