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Mahyco's international arm to raise $20 million from IFC for expansion

This will be part of the $26 million the company plans to use to expand its cotton business in Sub-Saharan Africa (SSA) and its rice and eggplant business in Asia

T E Narasimhan  |  Chennai 

Hybrid Seeds
Representative image

The international arm of Maharashtra Hybrid Seed Company Ltd (Mahyco India) is planing to raise $20 million from the International Finance Corporation (IFC).

This will be part of the $26 million that Mahyco International has earmarked to expand its cotton business in Sub-Saharan Africa (SSA) and its rice and eggplant business in Asia.

IFC proposes to support the project with $20 million in funding, comprising a $10 million equity investment from IFC’s own account and a $10 million equity investment in its capacity as Implementing Entity of the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP). The balance is proposed to be funded through internal accruals.

IFC will support the company by providing flexible, long-term funding. The project comprises funding technology costs, working capital needs, pre-commercialisation costs and capex in several countries in SSA including Nigeria, Malawi, Kenya, Zambia, Tanzania and Burkina Faso and in Asia (including Bangladesh, Vietnam, Indonesia, the Philippines, Laos and Cambodia).

According to an IFC document, the project is expected to improve farmers' incomes in SSA through job creation for seed-producing contract farmers, most of whom are small holders. It is also expected to limit health risks for cotton farmers as the use of insect tolerant seeds reduces the need for pesticides.

Founded in 1964, Mahyco India is one of India’s largest seed It focuses on research, development and commercialisation of a variety of seeds in India with a focus on producing quality seeds. Mahyco India’s subsidiary, Mahyco International Pte Ltd (Mahyco International) incorporated in Singapore, is the holding company for the Mahyco’s international operations and owns operating entities that sell cotton seeds in Sub-Saharan Africa (SSA) and rice seeds in Vietnam and Bangladesh.

First Published: Fri, October 04 2019. 09:37 IST