EID Parry’s bio-pesticides biz set for Rs 338 crore hive

The consideration for the above transaction is Rs 338 crore (subject to changes in working capital as on the closing date) which includes transfer of Bio-Pesticides business of EID - Parry together with its stake in the wholly-owned subsidiary, Parry America, Inc. This transaction is subject to receipt of necessary approvals including approval of the shareholders.

The Bio-Pesticides business is engaged in the manufacture and marketing of Neem based Azadirachtin Technical and Formulations, Plant extract-based Bio-stimulants, Micronutrients, Microbial biopesticides etc. and has brands that are well established in India and Globally. The business has a manufacturing and R&D facility in TN and manufactures Azadirachtin using technology sourced from M/s Trifolio, Germany which the business has improved over a period of time. For the Financial year 2016-17, the Bio-Pesticides business reported a consolidated revenue of Rs 123 cr (2015-16: Rs 107 crore) and operating profit of Rs 24 cr (2015-16: Rs 32 cr).

Parry America, Inc, a 100% subsidiary of EID Parry based in the US sources Azadirachtin technical from Bio-Pesticides business in India, formulates and markets the products in North and South America, Australia and Japan.

A Vellayan, Chairman, said “The transaction is part of the strategic plan of the company to consolidate and focus on its core businesses in food and nutraceuticals space. Also, it would help the company to keep its gearing at a lower level to handle the sugar cyclical movements. The Bio Pesticides business would gather growth momentum in the hands of Coromandel through their strong position in Crop Protection business in India.” He said, “The Bio Products business would derive the synergy benefits by making inroads into South America, Africa and Asia where Coromandel has significant presence. It would get benefited through the faster scale up of Bio Business under Coromandel fold by virtue of its majority stake in Coromandel.”