Sumitomo Chemical India acquires majority stake in Barrix Agro Sciences Private Limited

Sumitomo Chemical India Limited (SCIL), a subsidiary of one of the leading global diversified chemical companies Sumitomo Chemical Co., Ltd., Japan (SCC Japan) and a leading player in Indian agrochemical, household insecticides and animal nutrition sectors, announced signing of definitive agreements to acquire majority stake of Barrix Agro Sciences Pvt Ltd. (Barrix).

Since more than 2 decades, SCIL is supporting millions of Indian farmers in their growth journey by providing a wide range of innovative chemistries in traditional crop solution segments. SCIL’s product segments also include plant growth regulators and biorationals, with market leadership position in some of the crops, products and applications.

Bangalore based Barrix Agro Sciences Pvt Ltd. is into R&D innovation, manufacturing & marketing of IPM (Integrated Pest management) & IPNM (Integrated Plant Nutrition Management) products including especial focus on pheromones with latest dispersion technologies, that are used to monitor and trap agricultural pests. With a humble start in year 2011, Barrix has been undertaking cutting edge R&D innovation and launched several eco-friendly crop protection and nutrition enhancement products and working on a long pipeline of future products. In addition to founder Lokesh Makam and his management team, existing shareholders include leading agri-tech venture capital fund Omnivore VC and incubator CITE. As one the leading agri-tech start-ups in India, Barrix was awarded with several start-up innovator awards over the years, according to the statement.

Tadashi Katayama, Associate Officer and General Manager – Agro-Solution Division International and Planning & Coordination Office, Health & Crop Science Sector, Sumitomo Chemical Co., Ltd Japan and non-executive director of SCIL said ″The acquisition is in alignment of SCC Japan’s global strategy to build a more sustainable portfolio of green chemistries. It is also synergistic to SCIL’s strategy to offer Integrated Pest Management (IPM) solutions to farmers. We continue to support SCIL’s expansion across segments such as manufacturing Make in India projects, distribution of SCC’s global product portfolio and pipeline and expansion in additional related segments such as Barrix’s proposed acquisition. We are impressed by Barrix’s R&D innovation capabilities and scientific approach towards solving problems faced by farmers and this is in line with SCC and SCIL’s approach. We hope SCIL and Barrix will continue extra-ordinary growth journey and will make us proud.″

Chetan Shah, Managing Director of SCIL said ″The acquisition makes a lot of business sense as it is diversification into complementary business segments, thus keeping our growth momentum sustainable. Our strong Go to market strategy, distribution network and long-standing reputation with farmers combined with Barrix’s proven innovative products and strong brand-connect with farmers can bring ample amount of additional future leverage. The acquisition shall create greater synergies, deliver maximum value for our shareholders and a wider product portfolio for our customers.″ Mr Jinesh Shah, Managing Partner at Omnivore said ″Before Barrix, Indian farmers had limited access to effective, affordable, and eco-friendly crop protection products. Over the years, the startup has proven the efficacy of their innovations in minimizing crop damage and Nbour costs. We are very proud to have been an early believer in Barrix. Sumitomo’s stake in the company ensures that farmers across the globe will have access to these sustainable solutions.″

Lokesh Makam, Managing Director, Barrix shared ″We are very pleased and excited to get associated with one of the most respected companies in the chemical industry globally and in India. SCC and SCIL’s Japanese culture, philosophy, long term strategic planning and integrated operations will help Barrix gain business expertise in achieving significantly more than what we could have done individually. Barrix R&D team is working on a long pipeline of some cutting-edge products. SCIL’s guidance and investment will help us expand our existing manufacturing and sales, distribution and marketing efforts multifold within a short period and also fast-track our R&D efforts for future pipeline products. Needless to say, such an endeavor to drive business expansion will always be accompanied by concurrent and consistent efforts to strengthen management foundation such as legal and ethical compliance, corporate governance and safety, among others. We would like to take this opportunity to convey our appreciation to our shareholders Omnivore and CITE for supporting Barrix in our growth journey since early stages.″