UPL Ltd establishes UPL Agri Mauritius Limited for agrochemical trading

On June 26, 2024, UPL Limited announced through a stock exchange filing that it had received a certificate of incorporation for its new wholly-owned subsidiary, UPL Agri Mauritius Limited.

The acquisition of UPL Agri Mauritius Limited falls within related party transactions, as it is a wholly-owned subsidiary of UPL Limited and thus becomes a related party upon incorporation. The promoter, promoter group, and group companies have no direct or indirect interest in the entity. No additional governmental or regulatory approvals are required for this investment.

Objective of Acquisition

The primary objective of this incorporation is to handle the trading of chemicals, including agrochemicals, agri-commodities, and other related products. Given UPL’s diverse business verticals, a separate trading company manages this business sector.

Acquisition Details

The consideration for the acquisition will be cash, with UPL Limited planning to invest up to USD 10 million, according to the business plan. This investment will be made in equity or other securities in various tranches. UPL Limited will hold 100% of the shares of UPL Agri Mauritius Limited.

Recently, on May 23, 2024, UPL Limited and Aarti Industries Ltd announced a 50-50 joint venture to manufacture and market speciality chemicals for various industries. Combining their strengths, the JV will supply derivatives of amines for agrochemicals and paints.

About UPL Agri Mauritius Limited

UPL Agri Mauritius Limited was established on June 21st, 2024, as a newly incorporated company with no turnover history. It operates within the chemicals industry and focuses on agrochemicals, agri-commodities, and related products. The acquired entity, UPL Agri Mauritius Limited, is based in Mauritius.

About UPL Ltd

UPL primarily operates in the agrochemicals, industrial chemicals, chemical intermediates, and speciality chemicals sectors. It also produces and sells field crops and vegetable seeds. As a leading provider of agricultural solutions and services, UPL boasts over 14,000 product registrations, a presence in around 140 countries, and access to 90% of the global food market. The product lineup includes crop protection chemicals such as insecticides, fungicides, herbicides, seeds, and solutions.

On June 27, 2024, UPL Ltd’s share price opened at ₹570.20, touching the day’s high of ₹574.60 as of 01:18 PM on the NSE.

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