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Japan’s Mitsubishi Corporation (MC) has entered into an agreement with Indian Farmers Fertiliser Cooperative Limited (IFFCO) to establish a joint venture for the sale and distribution of agrochemicals in India.
IFFCO will hold 51 percent stake in the new company, IFFCO-MC Crop Science Private Limited, while the remaining stake will be owned by Mitsubishi. IFFCO has built up a highly respected national brand as India’s largest producer and distributor of fertilisers, delivering high quality fertilisers needed by farmers through their nationwide cooperative society network.
IFFCO-MC will seek to leverage the strength of the IFFCO brand and its extensive sales network to supply a number of agrochemicals, mainly herbicides, insecticides and fungicides, to the Indian market, starting in October of this year. “The establishment of IFFCO-MC as a partnership between IFFCO and MC is the product of years doing business together and developing a positive working relationship,” said Mitsubishi Corporation in a press release.
The size of India’s agrochemicals market is valued at about Rs 13635 crore in 2014 and accounts for about 5 percent of the global total. With increasing population and daily food consumption, this volume is expected to continue showing robust growth, and is projected to reach a value of approximately Rs 19090 crore in fiscal year 2017. “Through this newly established venture, which will supply high quality agrochemical products needed by farmers, IFFCO and Mitsubishi Corporation will seek to continue contributing to the development of agriculture in India,” added the press release.
