Mahindra group firm Mahindra Agri Solutions Friday announced a joint venture with Japan's Sumitomo Corporation Group to expand its crop protection business and aims to reach annual sales revenue of USD 100 million in the next five years.
Mahindra and Sumitomo Corporation will have 60 per cent and 40 per cent stake, respectively, in the new company named Mahindra Summit Agriscience Limited.
Sumitomo Corporation Group is a global player in multiple industries including crop care, having access to the latest crop protection technologies, while Mahindra Agri Solutions Ltd (MASL) is a subsidiary of Mahindra & Mahindra, part of the USD 20.7 billion Mahindra Group.
The combined strength of both the companies will leapfrog MASL's crop care business into the next orbit of growth. The partnership will offer a pipeline of speciality, new generation products with unique and latest molecules to effectively manage pest and insect-related challenges faced by farmers.
When contacted, MASL's MD and CEO Ashok Sharma said the company is already into crop protection business with a revenue of Rs 200 crore annually.
"We are aiming to achieve an annual sales of USD 100 million (over Rs 700 crore) in the next five-six years in this joint venture (JV) firm," he told PTI.
Initiated in 2005, MASL's crop Care product portfolio comprises insecticides, fungicides, herbicide, biological products and water-soluble fertilisers.
The JV would sell the existing products of MASL as well as introduce the new solutions on regular basis, he said, adding that the company has a tie-up with 2,000 dealers across the country.
Sharma said the partnership is aimed at helping farmers to significantly reduce crop damage.
Tomoaki Tetsu, GM, AgriScience Department, Sumitomo Corporation said, "We expect the new company, Mahindra Summit Agriscience Limited to leverage Mahindra's deep penetration in the Indian market and also enable us to collaborate with other Mahindra Group companies."
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, widespread 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.
Sumitomo was started in the early 17th century with the initial business of copper mining. Since 1992, Sumitomo Corporation had started investing in the crop care distribution channel and currently has a presence in 33 countries.
(With inputs from agencies.)