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Best Agrolife acquires 100 pc stake in Sudarshan Farm Chemicals for Rs 139 crore

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New Delhi, Mar 29 (PTI) Agrochemicals maker Best Agrolife Ltd (BAL) on Friday announced the acquisition of a 100 per cent stake in Sudarshan Farm Chemicals India Pvt Ltd (SFCL) for Rs 139 crores.

The acquisition will enable BAL to leverage SFCL’s proficiency in developing cost-effective and distinctive manufacturing routes for off-patent molecules, it said.

“This acquisition involves obtaining a 100 per cent stake through cash consideration, with an estimated enterprise value of Rs 139 crores based on the valuation,” the Delhi-based BAL said in a statement.

The cash outflow for BAL will be to the tune of Rs 9.5 crore after considering the net working capital and liabilities, it said.

BAL expects to gain significant synergies with this acquisition in the area of R&D and brand.

“With this strategic move, BAL aims to capitalise on SFCL’s robust R&D capabilities, Intellectual Property (IP) portfolio, and backward-integrated technical manufacturing expertise,” the company added.

SFCL with a legacy of 40 years has been known for its innovative process chemistries, having an IP portfolio of 10 patents (applied). With this acquisition, Best Agrolife will gain access to SFCL’s IP portfolio and its R&D, it added.

With this move, BAL gains access to SFCL’s popular brands of “Sutathion,” “Suphos,” “Suchlor,” and “Sumidon.” The addition of these brands will bolster BAL’s presence in the central and southern regions.

Sudarshan’s extensive network of over 2,500 dealers will be a catalyst for inorganic growth, in alignment with BAL’s proposed capacity expansion plans, the company added.

Presently, BAL has three manufacturing plants situated in Gajraula and Greater Noida in Uttar Pradesh, and Jammu and Kashmir. PTI LUX DR

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