Coromandel International Limited, India’s second largest phosphatic fertiliser player with interests in fertilisers, crop protection, speciality nutrients, organic fertilisers, has signed a term sheet to acquire the bio-pesticides business from E.I.D. Parry together with its wholly owned subsidiary Parry America, Inc, USA.

The transaction is valued at Rs 338 crore, which includes purchase of bio-pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly owned subsidiary Parry America Inc.

The bio-pesticides business is engaged in the manufacture and marketing of neem based Azadirachtin technicals and formulations, plant extract based bio-stimulants, etc. It has a manufacturing facility in Tamil Nadu and a research and development centre.

Coromandel International feels that the complementary market presence in both Indian and global markets by both the companies provides an opportunity for both chemical and bio-pesticides to grow.

“The transaction is part of the strategic plan of the company to expand its Crop Protection business. With Organic movement gathering momentum in recent times, need for natural/microbial pest control solutions have been gaining traction,” said Vellayan, executive chairman, Murugappa Group which owns Coromandel International.

“The acquisition enables the company (Coromandel) to gain entry to this segment, provides access to the developed markets of US and Europe, enhance its presence globally addressing multiple crops and consumer segments and provide integrated pest management solutions,” Vellayan added.

“Post-acquisition, Coromandel will further strengthen its position in the crop protection segment. Combined R&D capabilities of both the businesses with diverse specialization on agrochemicals and biologicals can help in delivering new products which can offer unique positioning in the market,” said Sameer Goel, managing director, Coromandel International.