UPL Expands Seed Business with Advanta Thailand Acquisition

UPL Limited announced that its step-down subsidiary, Advanta Seeds Holdings UK Limited, had completed the acquisition of Advanta Holdings (Thailand) Limited (Advanta Thailand).

This acquisition marks a significant expansion in UPL’s seed and related business operations. Advanta Thailand will become a step-down subsidiary within the Advanta Seed structure, which is managed under Advanta Enterprises Limited, India, where UPL holds an 86.67% shareholding. It is important to note that this acquisition is not categorised as a related party transaction.

Advanta Thailand specialises in the seeds industry and will further bolster UPL’s presence in the seed market. The acquisition was finalised on September 3, 2024, with Advanta Seeds Holdings UK Ltd investing USD 22,000 in cash to secure 99.99% of Advanta Thailand’s shares. This strategic acquisition aligns with UPL’s ongoing efforts to enhance its global seed portfolio and reinforce its position in the industry.

Earlier in August 2024, UPL Limited also announced another key acquisition. UPL Global Limited (UGL), a step-down subsidiary of UPL Corporation Limited (UCL), acquired an 80% stake in PT Excel Meg Indo, Indonesia (PT Excel) in October 2021. Following this, on August 27, 2024, UGL completed the acquisition of the remaining 20% stake in PT Excel. This move aims to strengthen UPL’s foothold in Indonesia’s agrochemical sector. PT Excel is well-regarded for its extensive range of agrochemical products, and the additional stake acquisition is in line with the strategic agreements made between UPL and PT Excel.

In Q1 FY 2025, UPL Ltd reported a flat revenue growth of 1%, despite a 16% increase in volumes. The company’s revenue performance was impacted by a 14% decline in prices and a negative 1% foreign exchange impact. Additionally, UPL’s net debt rose by $639 million during Q1 FY 2025 compared to the end of March 2024, marking a reduction from the $1,136 million increase reported in the same period last year.

On September 4, 2024, the share price of UPL Ltd opened at ₹599.95, touching the day’s high at ₹601.50, as of 9:30 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.