Mahindra Agri Solution enters 60:40 JV with Sumitomo Corporation for crop care business
The partnership will lead to a formation of new company named Mahindra Summit Agriscience Limited.
The partnership will lead to a formation of new company named Mahindra Summit Agriscience Limited, subject to the parties receiving all applicable approvals, the company said in a statement.
The combined strength of both the shareholders will help MASL’s crop care business to get into the next phase of growth.
The partnership will offer a pipeline of specialty, new generation products with unique and latest molecules to effectively manage pest and insect related challenges faced by farmers.
Ashok Sharma, MD & CEO, Mahindra Agri Solutions Ltd., said the latest technology from Sumitomo would help in significantly reducing the crop damage.
"This association will be a win-win for both the companies as it will bring Mahindra’s presence across the Agri value-chain and Sumitomo’s global expertise, on the same platform. I am hopeful that by providing world class crop care solutions, we will further the cause of augmenting farmer prosperity, thereby enabling them to Rise.”
The joint venture will benefit from the expertise of both the companies - Mahindra’s strong rural presence and Sumitomo’s unique know-how and Japanese technology.
Mahindra will contribute through its strong farmer connect, wide spread domestic distribution and agriculture expertise, while Sumitomo Corporation has strong ties with large Japanese crop protection innovator companies which will result in the JV having access to latest global technology for minimising crop damage and increasing the yield.
Tomoaki Tetsu, GM, AgriScience Department, Sumitomo Corporation says he expects the new company, Mahindra Summit Agriscience Limited to leverage Mahindra’s deep penetration in the Indian market and also enable Sumitomo to collaborate with other Mahindra Group companies.
"Seeing the growth momentum of the Indian market, we are confident that this JV will enable Indian farmers to accelerate access to innovative solutions in terms of technology & products which would result in the increase of farmers’ income,” Tetsu added.
MASL would be the first Indian company to have a JV partner that has deep relationships with large Japanese R&D houses, claims the company. This will definitely open up access to latest Japanese technologies and products for the Indian farmers.
Initiated in 2005, MASL’s Crop Care product portfolio comprises insecticides, fungicides, herbicide, biological products and water-soluble fertilizers.
Sumitomo was started in early 17th century with initial business of copper mining. Since 1992, Sumitomo Corporation had started investing in the crop care distribution channel and currently has presence in 33 countries.
Today, India loses nearly 40% of its total production in terms of value to pest attacks and diseases. Since per capita land availability in India will only go down, farmers will have to raise their agriculture production by improving productivity. Hence crop protection products are an important input for facilitating pre & post-harvest management.
The current estimated consumption of crop protection products in terms of value is around 2.5 billion USD and is expected to grow at 7% annually for the next few years. With such a huge market potential and few organized players in this space, this JV has significant potential to revolutionise the crop protection business in India.
Sumitomo Corporation is a leading Fortune 500 global trading and business investment company with 108 locations in 65 countries and 22 locations in Japan.
With a vision to Deliver FarmTech Prosperity, Mahindra Agri Solutions Ltd. closely interacts with farmers to improve their produce, quality and productivity by providing the latest advances in farm technologies and agricultural know how. It also helps farmers by linking them to the market to provide better returns for their quality produce, thereby improving their lives. With its wide portfolio of inputs viz. Seeds, Crop Care, Micro Irrigation Services backed by high quality advisory through Samriddhi outlets, Mahindra Agri Business has successfully helped Indian farmers increase their productivity over the years. At the same time, it has a strong outputs business consisting of Fruits and Vegetables, Edible Oils and Dairy where again close links with the farmers allow it to provide products that stand for quality and purity.
Having grown 12 fold in the last 6 years, Mahindra Agribusiness has become one of India’s largest grape exporters, launched its premium fresh fruit and dairy brand Saboro and has also established a ‘Farm to Fork’ presence across the Agri value chain. It also hosts the pioneering Mahindra Samriddhi India Agri Awards which recently celebrated its eighth edition and has attracted over 3,00,000 agricultural innovations and success stories till date.