Safex Chemicals acquires gujarat based Shogun Lifesciences
05 February 2022, New Delhi: Safex Chemicals, a Delhi based leading agro chemical company, has taken another leap in its growth journey by acquiring, Gujarat based Shogun Lifesciences, to complete its agri to home care portfolio.
Shogun Lifesciences is in the business of manufacturing Aluminium Phosphide and Zinc Phosphide, with manufacturing facilities near Ahmedabad. Aluminium phosphide is a very vital and sole molecule used for safe storage of food grains and fumigation of storage spaces. Zinc phosphide is used for control of rats which cause extensive crop damage, destroy stored food grains and spread bubonic Plague. You might remember spread of Plague in Surat (Gujarat) a few years back.
Shogun Lifesciences has been acquired by Safex through its wholly owned subsidiary Shogun Organics Ltd, a Pune based manufacturer of Home Care Active Ingredients, now expanded to produce agro chemical active ingredients. Shogun Organics itself was acquired by Safex, a year back.
This acquisition comes as a significant move for Safex’s future growth plans. It will not only augment its product line up, but will drive its focus towards safe storage of agricultural produce, so that it can be made available to the teaming billions. The 8 acre plot acquired along with Shogun Lifesciences will be utilised to strengthen the supply chain of existing and future businesses. It will eventually add more facilities to set up multi product formulation sections and enhance present Aluminium Phosphide production capabilities.
Commenting on the acquisition, Mr S K Chaudhary, Founder Director said, “A lot of food grains are wasted the world over due to short supply of fumigants. Safe storage of food grains is very vital to prevent malnutrition the world over. Inspite of being the second largest producer of food grains, India ranks 94th out of 107 countries on the malnutrition scale. Currently there are a handful of companies manufacturing fumigants required for safe grain storage. This acquisition makes Safex, the sole company in India to provide comprehensive solution for crop nutrition, growth regulation, prevention, protection, safe grain storage and home care chemicals under one roof. The acquisition of Shogun Lifesciences will propel Safex to achieve sales of Rs 10 billion in FY 2202-23.”
Safex has thus become the most versatile player in the agro chemical industry, being present in all verticals, providing wholesome care, viz.,
- Agro Chemical formulations
- Plant Micro Nutrients and Growth Regulators.
- Agro Chemical Technicals
- Home care Technicals
- Grain storage and Fumigation Chemicals.
Mr Rajesh Jindal, Promotor Director of Safex and head of Supply-Chain, while commenting on the acquisition said, “ India being major exporter of Aluminium Phosphide the world over, acquisition of Shogun Lifesciences will provide export opportunities to the group, making it a well diversified conglomerate.”
Commenting on the production capacity of Shogun Lifesciences, Mr Neeraj Jindal, Promoter Director of Safex, and Head of Shogun Lifesciences, said, “Shogun will become a very significant player in the fumigant segment very shortly. Production capacities are being enhanced accordingly. Capacities are being expanded to add many more molecules in addition to Aluminium and Zinc phosphide.”
Mr Piyush Jindal another Promotor Director & CFO of Safex, who headed the negotiations for this acquisition, commented that Shogun Lifesciences is going to be another feather in the Safex’s cap, coming close on the heals of Shogun Organics Ltd, acquisition. We will be able to recoup the value of acquisition within two years.”
PNAM & Co. and Stratage Law Partners advised Safex on the deal.