Indian UPL projects to be among the 7 biggest agchem companies in Brazil‏

The target is ambitious and the results are surprising: the Indian manufacturer of generic agrochemicals UPL aims to jump from the current 12th position to the select group of the seven biggest of the sector in Brazil. In order to do that, it goes against the pessimistic projections on the country's economy and promises to maintain its investments, which are calculated at R$ 500 million in the last 10 years.

"There is complex situation in Brazilian politics, but we think that now we have to invest more in the country to get where we want. Brazil is already the third market for UPL, behind India and the United States, and our base is not so high. But it is an expressive advance at a point that the market is falling," affirms the president of UPL in Brazil, Carlos Pelicer, to newspaper Valor.

With the strategy to reuse molecules with expired patents, UPL announced recently a growth not smaller than 40% on sales in the first half of the year. The company, which arrived in Brazil in a little bit more than a decade, does not reveal officially its annual revenue, but the market calculates it around US$ 400 million.

The Indian company estimates to keep investing nearly R$ 45 million annually. The volume is divided between research and development (it has experimental stations and formulation laboratories), the requisition of registration and the increase of the sales force and infrastructure - with an expansion of the factory until the second half of 2016.

"There are companies who invent molecules, and others that work with post-patents. But our challenge is to create a new segment, which is to reinvent the existing molecules," explains Pellicer. UPL uses parts of agrochemicals that are popular in the market and reuses with new purposes and mixtures.

Investing in the local production is another important vector of the strategy. Currently, UPL imports nearly 70% of what it sells in Brazil, but the intention is to revert this proportion in three years. Therefore, the company analyzes the possibility to lift a unity of molecules synthesis that would absorb between R$ 150 million and R$ 200 million with capacity to export to other countries in Latin America, Canada and United States.

Although it is focused on organic growth, UPL has yet a huge interest on acquisitions. The most recent purchase was the 40% of the capital of the Brazilian trading SinAgro in March without unveiling the value. "Our goal is to be closer to farmers and Sinagro knows the heads of farmers," observed Pellicer. SinAgro has a revenue estimated at R$ 1.7 billion in 2015, which is even bigger than UPL in Brazil.

About the company merges - concluded and cogitated - that have shaken the market last year, UPL has tranquility. Although there was failed attempt to gather Monsanto and Syngenta, Arysta and Chemtura, FMC and Cheminova, have merged. "We see everything as a great opportunity. These companies will have to sell part of the operations when merging and we are serious candidates for purchases," Pellicer guarantees.