Crop Protection

Best Agrolife Acquires 99% Stake in Kashmir Chemicals; Becomes Major Partner

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01 December 2023, New Delhi: Best Agrolife Ltd. (BAL) has executed a strategic investment in Kashmir Chemicals and acquired a 99% stake in the company. This move is aimed at expanding its manufacturing capacity in response to the growing market demand for branded agrochemical products and formulations. On October 20, 2023, a Reconstitution Deed of Partnership was formalized, retroactively effective from September 16, 2023, and duly registered with the Competent Authority in Samba.

Kashmir Chemicals is situated in Phase-1 of the Industrial Growth Centre in Samba and registered with the District Industries Centre. The facility is equipped with state-of-the-art machinery on land allocated by J&K State Industrial Development Corporation Ltd. The company specializes in the production of pesticide formulations, including emulsified concentrates, wetable powders, and granules. The former partnership company was equally shared between Shyamanand Sharma and Pardeep Kumar Jain, with an annual turnover of approximately 100 crores and a healthy profit margin, as indicated by the company’s financial statements.

During their board meeting on September 2, 2023, the board of directors reached a resolution acknowledging the escalating market demand for branded formulations. To address this demand, the company recognized the necessity to augment its manufacturing capacity. In evaluating potential solutions, such as in-house expansion and a greenfield project, the board noted the time constraints, estimating a minimum of 15-18 months and the risk of missing business opportunities.

Given the current commitments of the company’s existing partners to other business ventures, Kashmir Chemicals extended an invitation to BAL to enter into a partnership to facilitate the seamless operation of the manufacturing unit. Subsequently, the board decided to invest in Kashmir Chemicals by acquiring a 99% stake in the partnership, alongside the participation of the existing partners. This strategic move is expected to significantly contribute to BAL’s expansion of formulation manufacturing capacity, resulting in an approximate addition of Rs. 350 crores to its overall returns.

Also Read: UPL Limited announces incorporation of Advanta Seeds Ltd in South Africa

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