Cheminova Gets Nod To Buy Out Lupin Agro

Danish chemicals company Cheminova Agro, part of the Danish Kroner 1.8 billion Cheminova group, has received government approval to buy out 100 per cent equity in Lupin Agrochem-icals India Ltd.

The Danish firm is forking out Rs 12.15 crore as up-front equity payout to buy out the entire block of 1,12,15,000 shares of the company at Rs 10 each from the Indian promoters. In its application, which received government approval recently, Cheminova has also proposed to pump in an additional Rs 20 crore to expand the equity base of the company.

The company proposes to bring in new products, set up manufacturing facilities for exports, and invest in research and development facilities to be integrated into its global network. The proposal was recommended by the administrative ministry ministry of chemicals - which had no objections as the application had the supporting board resolution from the Indian company.

 

Cheminova is a leading world player in organo-phosphate agrochemicals, and food preservatives, and flotation agents for the mining industry, exports a major part of its production in the US markets.

Its major products include glyphospate, dimethoate ethion, ethyl parathion, methyl parathion, and chlorpyrifos. It is also a big manufacturer of both dimethyl and diethyl thiophosphoryl chloride intermediates from which molecules acephate and chlorpyrifos are made.