United Phosphorus to produce agrochemicals

New Delhi, Sep 27: United Phosphorus Ltd today said it has signed an agreement with Japan-based Ishihara Sangyo Kaisha Ltd (ISK) for production of certain agrochemicals and exploring possible business alliance of distribution in India and certain other countries.

The company also announced plans to form a join venture with ISK and Mitsui&Co, Ltd (Mitsui) for the development, registration and distribution of ISK products in India.

The companies are also exploring possible co-operation in ountries other than India.

ISK is intending to continue to focus on the Research and Development, especially creating the new novel molecules and more than ninety per cent of the total turnover for agrochemical sales (turnover of 41.0 billion Japanese Yen and net earning of 8 billion in March, 2006 as consolidated basis) is coming from their proprietary products.

With this venture, United Phosphorus has been entrusted with manufacturing rights of certain products developed by ISK. ISK will be able to access the manufacturing base of the company as well as its domestic marketing network. The company presently has 8 manufacturing facilities in India, one each in UK and Argentina and enjoys 8 per cent market share in India.

The partnership will continue to allow the company to grow organically, inorganically and through business alliances, ''The company believes that this alliance is of strategic importance and this business model will differentiate it from other generic companies as being the most cost competitive manufacturer with an access to new patented chemistries which can be leveraged by its global distribution network. This will also compliment some of the recent brand acquisitions,'' a company statement said.

ISK intends to implement their new manufacturing business model for their agrochemicals products as their one of the business strategies in addition to the R and D aiming at increasing its global competitiveness and profitability.

It is strengthening the stability and global competitiveness of their production through establishing the multi-production sites of technical materials. Most of its agrochemical products already have been produced not only in Japan also in Europe, North America, Korea, China and Brazil.

It is currently estimated that 70 percentage of total products used globally are off-patent products while the cost of the development and commercialisation with new molecule have been increased significantly.

The company has been recognised as one of the most competitive producer of agrochemicals in India and the fastest growing generic company in Agrochemical industry with direct presence in 35 countries and a sales in more than 80 countries.

UNI