The international arm of Maharashtra Hybrid Seed Company (Mahyco India) is planning 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 and rice and eggplant business in Asia.
IFC proposes to support the project with $20 million 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 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, pre-commercialisation costs and capex in several countries in Africa. They include Nigeria, Malawi, Kenya, Zambia, Tanzania and Burkina Faso as well as 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 sub-Saharan Africa through job creation for seed-producing contract farmers, most of whom are small land holders. It is also expected to limit health risks for cotton farmers.
Founded in 1964, Mahyco India is one of India’s largest seed companies. It focuses on research, development and commercialisation of a variety of seeds in the country.
Mahyco India’s subsidiary, Mahyco International Pte (Mahyco International), incorporated in Singapore, is the holding company for Mahyco’s international operations. It owns entities that sell cotton seeds in sub-Saharan Africa and rice seeds in Vietnam and Bangladesh.