Coromandel International to acquire bio-pesticides business of E.I.D. Parry

Coromandel International Ltd has signed an agreement to acquire the bio-pesticides business of E.I.D. Parry (India) Ltd together with its wholly-owned subsidiary Parry America, Inc, US, through a slump sale.

The transaction is valued at ₹338 crore and includes purchase of bio-pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly-owned subsidiary Parry America, Inc.

A Vellayan, Executive Chairman, Murugappa Group, in a statement said: “The transaction is part of the strategic plan to expand its crop protection business. With organic movement gathering momentum in recent times, need for natural/microbial pest control solutions have been gaining traction.”

He said: “The acquisition enables the company to gain entry to this segment, provides access to the developed markets of the US and Europe, enhance its presence globally addressing multiple crop and consumer segments and provide integrated pest management solutions”.

Sameer Goel, Managing Director, Coromandel International, said: “Complementary market presence in both Indian and global markets provides opportunity for both chemical and bio-pesticides to grow.

“Post-acquisition, Coromandel will further strengthen its position in the crop protection segment.”

This transaction is subject to receipt of approval of the shareholders and other relevant authorities.

The bio-pesticides business is engaged in the manufacture and marketing of neem-based Azadirachtin technical and formulations, plant extract-based bio-stimulants, micronutrients, microbials, and so on, and has brands that are well established in India and globally.

The business has a manufacturing facility in Tamil Nadu and manufactures Azadirachtin using technology sourced from Trifolio, Germany, which the business has improved over a period of time.

It has an R&D unit which has carried out extensive study and have made significant progress on bio-stimulants, microbials and household pesticide segment for domestic and global markets.

For the financial year 2016-17, the bio-pesticides business reported a turnover of ₹123 crore and operating profit of ₹24 crore.

Parry America, Inc, a 100 per cent subsidiary of E.I.D. Parry headquartered in US sources Azadirachtin technical from bio-pesticides business in India, formulates and markets the products in North and South America, Canada and adjacent markets of US.