Best Agrolife Ltd (BAL), a leading manufacturer of agrochemicals in India, officially announced its acquisition of Sudarshan Farm Chemicals India Pvt Ltd. (SFCL).

This acquisition involves obtaining a 100% stake through cash consideration, with an estimated Enterprise Value of Rs. 139 crores based on the valuation.

The cash outflow for Best Agrolife Limited will be to the tune of Rs. 9.5 crore after considering the Net Working Capital and other Liabilities.

BAL expects to gain significant synergies with this acquisition in the area of R&D and Brand. With this strategic move, BAL aims to capitalize on SFCL's robust R&D capabilities, IP portfolio, and backward-integrated technical manufacturing expertise. The acquisition will enable BAL to leverage SFCL's proficiency in developing cost-effective and distinctive manufacturing routes for off-patent molecules.

SFCL holds a prominent position in the agrochemicals sector. SFCL, tracing its roots back to the Sudarshan Chemical Industry, brings a legacy of 40 years and a reputation for earning farmers' trust. Additionally, SFCL has been known for its innovative process chemistries, having an IP portfolio of 10 patents (applied). With this acquisition, Best Agrolife will gain access to SFCL's IP portfolio and its R&D.

With this move, BAL gains access to SFCL's popular brands of Sutathion, Suphos, Suchlor," and Sumidon." Addition of these brands will bolster BAL's presence in the central and southern regions. Sudarshan's extensive network of over 2500 dealers will be a catalyst for inorganic growth, in alignment with BAL's proposed capacity expansion plans.