Best Agrolife Ltd (BAL), a leading manufacturer of agrochemicals in India, officially announced its acquisition of Sudarshan Farm Chemicals India Pvt Ltd. (SFCL). The acquisition involves obtaining a 100% stake through cash consideration, with an estimated enterprise value of ₹139 crore based on the valuation.
The cash outflow for Best Agrolife Limited will be to the tune of ₹9.5 crore after considering the net working capital and other liabilities. BAL expects to gain significant synergies with this acquisition in the area of R&D and Brand. With this strategic move, BAL aims to capitalize on SFCL’s robust R&D capabilities, IP portfolio, and backward-integrated technical manufacturing expertise. The acquisition will enable BAL to leverage SFCL’s proficiency in developing cost-effective and distinctive manufacturing routes for off-patent molecules.
SFCL holds a prominent position in the agrochemicals sector. SFCL, tracing its roots back to the Sudarshan Chemical Industry, brings a legacy of 40 years and a reputation for earning farmers’ trust. Additionally, SFCL is known for its innovative process chemistries, having an IP portfolio of ten patents (applied). As per the press release, with this acquisition, Best Agrolife will gain access to SFCL’s IP portfolio and its R&D.
BAL gains access to SFCL’s popular brands of sutathion, suphos, suchlor, and sumidon. Addition of these brands will bolster BAL’s presence in the central and southern regions. Sudarshan’s extensive network of over 2,500 dealers will be a catalyst for inorganic growth, in alignment with BAL’s proposed capacity expansion plans.
