United Phosphorus in pact with DuPont

Firm acquires marketing rights of Bensulfuron-methyl business, including Londax herbicide

United Phosphorus (UPL), the largest agrochemical company in India, has acquired the marketing rights of Bensulfuron-methyl business including Londax herbicide and all its mixtures business of E.I. du Pont de Nemours of the US.

The purchase agreement signed between the companies will give UPL sales right of these products throughout the world, except the Asia Pacific region. Bensulfuron-methyl is a high-margin product which has been sold for nearly 20 years and is the industry standard for providing annual and perennial broadleaf and sedge weed control.

This active ingredient has a wide application window to crop and weeds and can be applied direct to water. The product is mainly used in rice and aquatic herbicide.

Under the agreement, UPL and its subsidiaries throughout the world can start selling Bensulfuron-methyl immediately, except the Asia Pacific region. This purchase will add to the product portfolio of UPL to expand its market presence in the segment of rice herbicide. The deal size, however, is not known.

Recently, UPL also acquired two leading crop protection brands ""Asulox and Asilan, of Bayer CropScience AG for Rs 259.34 crore (Euro 43.5 million). With acquisition of these products, UPL will enhance its product portfolio across the globe with an intention to offer a broad portfolio of solutions to its customers.

UPL is currently the largest Indian agrochemical player and among the top five generic players globally in this industry. It is engaged in research, manufacturing and distribution of agrochemicals and specialty chemicals across the globe. The group's revenue for the year ending March 2006 was in excess of Rs 2208 crore.

In the meanwhile, the company has also tied up with Ishihara Sangyo Kaisha (ISK) for the production of certain agrochemicals and also to explore the possible business alliance of distribution in India and certain other countries. UPL has been entrusted by ISK with manufacture of certain products developed by ISK.

It is also learnt that ISK, UPL and another company ""Mitsui & Co are also planning to establish a joint venture company for the development, registration and distribution of ISK products in India. In addition, the companies continue the discussion about the possible co-operation in the countries other than India as well.