Japanese companies Mitsui and Nippon Soda have acquired 56 per cent stake in agro-chemical firm Bharat Insecticides Ltd (BIL).
As a result of this deal, BIL has become a group company of Mitsui & Co Ltd and Nippon Soda Co Ltd (Nisso), the Delhi-based company said on Wednesday, without disclosing the deal value.
"Mitsui and Nisso have acquired 56 per cent stake in BIL through a special purpose company co-founded by Nisso and Mitsui. The BIL's promoters will continue to hold balance shares in BIL," the company said in a statement.
The new relationship with Mitsui and Nisso will further strengthen BIL's ability to deliver innovative crop protection products and support sustainable growth of India's agriculture sector, it added.
BIL's founder promoter Sat Narain Gupta said, "This is a momentous occasion for us. BIL was started 43 years back with just 2 products and since then, BIL has come a long way. We hope that being part of Mitsui group will take BIL to the next level." Other promoters, MP Gupta and RP Gupta, also expressed confidence that the tie-up will help BIL grow at a faster pace.
BIL Managing Director Dharmesh Gupta said, "With this alliance, BIL will be in a unique position to leverage the synergies in area of product development with access to Mitsui's global assets and Nisso's world class R&D capabilities." The alliance will help BIL to grow not only in domestic market but also global markets.
As part of this association, there are few additions to BIL's leadership team, the statement said.
Kimihide Kondo, GM-Mitsui, has joined BIL as joint MD, and Masanori Katsura has joined as the CFO. Both will be based out of New Delhi.
Kondo said, "Although Mitsui has been active in the rapidly growing Indian agrochemical industry, this investment into BIL provides us the exciting opportunity to contribute in mainstream manufacturing and distribution of plant protection products in India." BIL started its operations in 1977 and has steadily developed its presence in the Indian market along with Bharat Rasayan Ltd, a Bharat Group company and producer of active ingredients for agrochemicals.
Mitsui & Co Ltd is a global trading and investment company with an annual revenue of USD 63 billion. It has a diversified business portfolio that spans approximately 65 countries, and has over 45,600 employees.
Nippon Soda provides value-added chemical products in diverse fields like agriculture, pharmaceuticals and specialty chemicals.