Mahindra Agri Solutions Ltd. (MASL), a subsidiary of Mahindra & Mahindra, has entered into a joint venture (JV) with Japan’s Sumitomo Corporation Group to make pesticides in India to boost farm produce in the country.
Crop care
Sumitomo is into crop care and has access to the latest crop protection technologies. While Mahindra will hold 60% stake in the new company named Mahindra Summit Agriscience Limited, the balance will be with Sumitomo Corporation. The combined strength of both the shareholders is expected to strengthen MASL’s crop care business. MASL is projecting a crop protection business revenue of $100 million in 5-7 years, a top executive said.
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, he added.
Ashok Sharma, MD & CEO, MASL, said, “Sumitomo’s latest world class technology would help to significantly reduce 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.” Tomoaki Tetsu, GM, agriScience department, Sumitomo Corporation said, “We expect the new company, to leverage Mahindra’s deep penetration in the Indian market and also enable us 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,” Mr Tetsu said.
The joint venture will benefit from the expertise of Mahindra’s strong rural presence and Sumitomo’s unique know-how and Japanese technology.
Mahindra will contribute through its 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.