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Best Agrolife Acquires 99% Stake in Kashmir Chemicals; Becomes Major Partner

Best Agrolife Ltd. (BAL), a prominent player and one of the largest agro-input manufacturers in India, has executed a strategic investment in Kashmir Chemicals and acquired 99% stake in the company. This move is aimed at expanding its manufacturing capacity in response to the growing market demand for branded agrochemical products and formulations. On October 20, 2023, a Reconstitution Deed of Partnership was formalized, retroactively effective from September 16, 2023, and duly registered with the Competent Authority in Samba.

Kashmir Chemicals is situated in Phase-1 of the Industrial Growth Centre in Samba and registered with the District Industries Centre. The facility is equipped with state-of-the-art machinery spread across 16 kanals of leasehold land allocated by J&K State Industrial Development Corporation Ltd. The company specializes in the production of pesticide formulations, including Emulsified Concentrates, Wettable Powders, and Granules. The former partnership company was equally shared between Shri Shyamanand Sharma and Shri Pardeep Kumar Jain, with an annual turnover of approximately 100 crores and a healthy profit margin, as indicated by the company’s financial statements.

During their board meeting on September 2, 2023, the board of directors reached a resolution acknowledging the escalating market demand for branded formulations. To address this demand, the company recognized the necessity to augment its manufacturing capacity. In evaluating potential solutions, such as in-house expansion and a greenfield project, the board noted the time constraints, estimating a minimum of 15-18 months and the risk of missing business opportunities.

Given the current commitments of the companys existing partners to other business ventures, Kashmir Chemicals extended an invitation to BAL to enter into a partnership to facilitate the seamless operation of the manufacturing unit. Subsequently, the board decided to invest in Kashmir Chemicals by acquiring a 99% stake in the partnership, alongside the participation of the existing partners. This strategic move is expected to significantly contribute to BALs expansion of formulation manufacturing capacity, resulting in an approximate addition of Rs. 350 crores to its overall returns.

It is important to note that BAL has also been granted a 20-year patent for their innovative creation, the “SYNERGISTIC GRANULAR HERBICIDAL COMPOSITION FOR PADDY“. The company intends to introduce this one-shot herbicide in the upcoming Kharif season under the brand name “Orisulam“.

About Best Agrolife Ltd. (BAL)

Best Agrolife Ltd. (BAL) is a leading player and one of Indias largest manufacturers of agro-inputs, committed to delivering innovative agricultural solutions and high-quality products to enhance crop productivity and farmer prosperity. With a strong focus on research and development, BAL is dedicated to sustainable agriculture practices and environmental stewardship. Currently, BAL has 7,000 MTPA and 30,000 MTPA technicals and formulation manufacturing capacity, respectively, through three of its manufacturing plants in Gajraula, Greater Noida, and Jammu & Kashmir. BAL currently has more than 5200 distributors in India. It retains an impressive portfolio of 450+ formulations and more than 115+ technical manufacturing licenses.

Paras

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