Japanese firm Nihon Nohyaku to acquire 74% stake in Hyderabad Chemical
- Livemint" target="_blank">Livemint
- November 28, 2014
Mumbai: Japan-based Nihon Nohyaku Co. Ltd is acquiring 74% stake in Hyderabad Chemical Ltd for an undisclosed amount, the company said in a notification to the Tokyo stock exchange.
Hyderabad Chemical is a agrochemical manufacturer with its own distribution network and research and development function. The transaction is expected to close at the end of January 2015. After completion of related procedures, the Japanese company will start joint operation with current shareholders. EY mergers and acquisitions team was the sole adviser to Hyderabad Chemical for the deal.
According to Nihon Nohyaku, the total agrochemical market in India will reach about 200 billion yen (Rs10,400 crore) and the market size is expected to grow further. India is an important market for its main products including pesticides Applaud (Buprofezin) and Phoenix (Flubendiamide), and the company has been seeking options to establish direct sales and production in India.
For the year ending March 2014, Hyderabad Chemical had a turnover of around $65 million.
"India being a large market for manufacturing of agro-chemical products, we are expecting some consolidation in this sector," said Rajeev Dalal, partner - transaction advisory services at EY.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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