UPL and other shareholders in Sinagro Produtos Agropecuarios SA., Brazil, have announced an agreement in which Bunge will acquire a 33% stake in Sinagro, UPL's associate firm, to strengthen its grain orientation strategy in Brazil.
Sinagro is a major reseller of grains and agricultural products with a significant presence in Brazil's 'Cerrado' savanna region. Bunge is a major player in sourcing, processing and supplying oilseed and grain products and ingredients. The deal announced is subject to approval by Brazil's antitrust body, Conselho Administrativo de Defesa Econica (CADE).
Sinagro has a network of more than 30 stores and warehouses, and a footprint across seven Brazilian states (Mato Grosso, Mato Grosso do Sul, Goi, Bahia, Tocantins, Parand Minas Gerais), Sinagro is strategically positioned to support suppliers and final customers alike.
Sinagro was one of the first signatory companies to join Bunge's "Sustainable Partnership" launched in 2021, whereby Bunge helps grain resellers set up socio- environmental assessment systems for suppliers - including satellite monitoring - at the farm level. The program participants can adopt independent geospatial imaging services or use Bunge's structure at no cost.
On a consolidated basis, UPL's net profit jumped 36.9% to Rs 634 crore on a 18.2% surge in net sales to Rs 10,567 crore in Q2 September 2021 over Q2 September 2020.
Shares of UPL lost 0.20% to Rs 811.25 on BSE. UPL is a global provider of sustainable agriculture products & solutions. Through OpenAg, UPL is focused on facilitating progress for the entire agricultural value chain.
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