Punjab Chemical acquires IAIC Chem

Mumbai-based Punjab Chemicals and Crop Protection has acquired IAIC Chem for an undisclosed sum.

Punjab Chemicals is an agrochemical company promoted by the Shroff family with a consolidated group turnover of around Rs 300 crore. IAIC Chem is promoted by the Shetty family, who runs Khambala Hospital in Mumbai.

The deal, which was finalised on Monday, enables Punjab Chemicals to expand its base in the herbicides and fungicides formulation business and get entry into water dispersible granules.

City-based Singhi & Associates was the sole advisor for the transaction.

IAIC is a 40-year-old company, a player in the crop protection segment with the largest sulphur processing capacity in the country. The product range includes industrial sulphur powder, agriculture dusting powder and sulphur suspension concentrate. It has plant at Lote Parshuram, near Chiplun, about 250 km from Mumbai.

The company has recently entered into WDG segment giving boost to its export and formulation capabilities where it faces competition from MNCs such as BASF, Rhone Poulenc Agro, Syngenta and Hoechst.

Mahesh Singhi, managing director of Singhi & Associates, said IAIC was an obvious choice for Punjab Chemicals due to its enviable position in the pesticide industry, age-old brand 'Five Star' and an extensive customer and distribution base with an eye to expand its activities in formulation and exports.