India: Agrochemicals Excel Crop Care Merges with Sumitomo Chemical India
The merger will encourage further expansion in the crop protection field and also leverage the rich product portfolio as well as the established sales network of both the firms to move forward in a highly competitive market.
Mumbai/India – The leading Japanese chemical company Sumitomo Chemical Company (Sumitomo Chemical) has recently announced that Agrochemicals maker Excel Crop Care (ECC) and Sumitomo Chemical India (Sumitomo Chemical India), both being Group companies of Sumitomo Chemical, resolved on a merger between the two companies. The merger will be subject to receipt of all regulatory and other approvals as per applicable laws. Upon merger, Sumitomo Chemical India will be the surviving company.
In light of a vigorous expansion of food demand spurred by a population growth in India, Sumitomo Chemical established Sumitomo Chemical India back in 2000 as its manufacturing and marketing base for crop protection products in the country.
Thereafter, Sumitomo Chemical constantly endeavoured to fortify the foundation of its crop protection business in the country through various initiatives, including the acquisition of a local manufacturing company in 2010. In 2016, Sumitomo Chemical acquired majority stake in ECC, an agrochemical company with strong brands and broad sales channels, which helped solidify Sumitomo Chemical Group's presence in India, the seventh-largest agrichemical market in the world, as of 2016, with its growth prospect being as high as 4.6 % over the five years through 2021.
Upon completion of the intended merger, the new Sumitomo Chemical India will fully leverage the rich product portfolio and established sales network of ECC and Sumitomo Chemical in a mutually complementary manner. It will also lead to more focused and efficient use of their management resources so that the company will become a leading player in India’s crop protection market which holds the promise of continued high growth. Outside India, the new Sumitomo Chemical India will make the most of the two companies’ overseas sales networks to achieve a further expansion in sales.