Mahindra Agri Solutions Ltd, a subsidiary of automotive giant Mahindra & Mahindra, has reportedly announced to have formed a joint venture with Japan-based Sumitomo Corporation to expand its crop protection business.
As per trusted sources, Mahindra Agri Solutions which is eyeing a turnover worth INR 3,000 crore by 2020, has 60% equity in the new company named Mahindra Summit Agri-Science Ltd with the remaining to be held by Sumitomo. The partnership will provide a pipeline of specialty, new-generation products with original and latest molecules to effectively deal with challenges faced by farmers, pertaining to pests and insects.
As per an industry estimate of 2016, India’s crop care consumption was below 0.6 kilograms per hectare, one of the lowest among the major countries and even below neighboring country Pakistan. The numbers suggested that in comparison, Taiwan has 17 kg, China 13 kg, Japan 12 kg, the U.S. 7 kg, the UK 5 kg and Pakistan 1 kg. Experts believe that India lost nearly 40% of its total crop production owing to pest attacks and diseases.
According to sources familiar with the development, per capita land availability is estimated to further reduce in India. As a result, farmers will be required to increase their agriculture production by enhancing productivity. The present estimated use of crop protection products with respect to value is around $2.5 billion in India, but it is predicted to grow 7% annually over the next few years.
Through the joint venture, the company will be selling Mahindra Agri Solution’s existing products and introduce new solutions on a regular basis as it has tie-ups with 2,000 dealers throughout the country. The partnership will also be aiming to help farmers to substantially reduce crop damage.
The joint venture is set to benefit from Mahindra’s strong presence in the rural regions and Sumitomo’s ties with large crop protection innovators in Japan, cite sources.