UPL enhances tie-up with ISK to launch insecticides in India

(from left) Mr. Kenzo Oda San , Chairman and Executive Director, ISK, Japan ,Mr. Jai Shroff, CEO of United Phosphorous Limited and Mr.
Tetsuya Okabayashi, Executive Vice-President, ISK

Indian crop protection firm United Phosphorus Ltd (UPL) is expanding its tie-up with Ishihara Sangyo Kaisha (ISK) of Japan to launch two new insecticides from the latter's global products portfolio in India this year.

UPL will also be ramping up its manufacturing capacities to produce ISK products for the Japanese firm's global market.

UPL is in the process of completing its nation-wide roll out of ISK's first product, Ulala (active ingredient: flonicamid), a systematic insecticide for controlling sucking pests, in India. It launched the product in Hyderabad on Wednesday. “We will be launching new products currently in ISK R&D pipeline for the Indian market. This year, we will roll out two new insecticides from ISK stable,” Mr Jai Shroff, CEO said.

The company is investing Rs 300 crore for regulatory approvals globally and ramping up its production capacities in India. Part of these capacities will be utilised to produce ISK's products for its global markets.

UPL's global sales account for about 75 per cent of its total revenue, with Latin America and Brazil being its biggest markets. “India's share of our revenues will continue to remain at 20-25 per cent,” he said. After the recent acquisition in Brazil, UPL is aiming at increasing Brazil's contribution to its revenue from the current 12 per cent to about 18 per cent in the next 2-3 years.

The company, which completed 35 global acquisitions in the last 15 years, is not immediately looking at fresh buys. “Unless we get a compelling deal, we will focus on consolidating our existing businesses,” Mr Shroff said.

UPL, through its group company Advanta India, is betting big on sales of hybrid rice seeds, with Assam, West Bengal and Bihar planning to increase area under hybrid rice to 22-25 per cent. “This is expected to push up sales of hybrid rice seeds three times in these States in the next two years,” Mr Shroff said.