You are here: Home » Companies » News
Business Standard

Punjab Chem acquires 30% in US-based firm

Rajesh S Kurup  |  Mumbai 

Agrochemicals company Punjab Chemicals and Crop Protection (PCCPL) has acquired a 30 per cent stake in the US-based Source Dynamic for an undisclosed amount.
Punjab Chemicals has the option to acquire the remaining 70 per cent stake. It is planning to invest $25 million (about Rs 100 crore) to expand operations in the US.
Source Dynamic is a privately held company and the acquisition was made through PCCPL's wholly owned European subsidiary, SD Agchem.
When contacted, PCCPL Managing Director Shalil S Shroff confirmed the acquisition. He, however, did not give any financial details.
"The acquisition will enable us to increase our footprint in the US. We will also invest an additional $25 million in the US markets to strengthen our sales and marketing in that country," Shroff said.
The acquisition will also lead to an increase in the product portfolio as the two would jointly acquire new registrations (products and licences) in the US.
Punjab Chemicals already has a joint venture agreement with Source Dynamic and will sell its products (herbicides, industrial chemicals and pharmaceuticals) through the acquired company. The US market is estimated at $15 billion (about Rs 60,000 crore).
Punjab Chemicals manufactures basic industrial chemicals as well as active ingredients for crop protection such as insecticides, herbicides and fungicides.
The acquisition, which was completed earlier this week, has been funded through internal accruals. Punjab Chemicals posted a global turnover of Rs 500 crore in FY06.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 11 2007. 00:00 IST