Chryscapital’s $50mn deal for Safex Chemicals is the second biggest since 2020, a VC Circle analysis highlights

A latest VC Circle analysis has identified that focused growth private equity firm ChrysCapital’s recent investment worth~$50 million on the Safex Chemicals India Limited, India’s leading agrochemical company has been the second biggest deal in the past one and a half years. The transaction involved a combination of secondary sale by an existing PE investor, BanyanTree Growth Capital, along with a primary raise by the Company for growth initiatives.

Founded in 1991 by late Mr. SK Jindal and Mr. SK Chaudhary, Safex manufactures and sells branded agrochemicals that help enhance the protection and productivity of Indian crops. The company is amongst the fastest growing agrochemical companies in India with a ~26% revenue CAGR over the past 4 years. It has consistently outperformed the industry in 9 out of the last 10 years.

Commenting on the growth opportunities in the industry, SK Chaudhary, Founder Director of Safex, “The Indian agrochemical market is worth INR 38,000 crore. Inspite of the COVID 19-induced lockdowns spanning FY 20-21, the industry has been steady. In fact, between April and December 2020, the production spiked by almost 12%, compared to the same period in the previous years. Foreseeing attractive capital gains and opportunities of strong liquidity, the VCs are showing an increasing inclination towards this industry. Having ChrysCapital’s support will enable Safex to become a marquee player in the agrochemical industry.”

Safex today has a pan-India presence with a network spanning 10,000+ distributors across 17 states. The company has redefined the branded formulations segment in the Indian agrochemical market, through its unique multi-brand model and direct distribution strategy. Along with the recent investment made by ChrysCapital, their deep capabilities a proven track record of building sizeable and industry leading players will enable Safex to bring innovative products and solutions to the Indian agrochemical industry through M&A and in-licensing opportunities. The company also entered the B2B agrochemical and home-care technicals segment after acquiring Mumbai-based Shogun Organics Limited, a market leader in the Indian home care technical segment with approvals for manufacturing technicals for agrochemicals.