Meghmani eyes LatAm shores
Ahemedabad-based pigments and pesticides maker Meghmani Organics is close to acquiring an agro-chemical company in Latin America.
By Tapash Talukdar, TNN |
AHMEDABAD: Ahemedabad-based pigments and pesticides maker Meghmani Organics is close to acquiring an agro-chemical company in Latin America. The company, which recently got listed on BSE, confirmed that talks with a few companies are on, but declined to give details. The company has made a provision of Rs 55 crore for the acquisition, but is willing to invest 10 times more if it finds an attractive deal.
“An acquisition is indeed in the offing in Latin America, but it has to be commensurate with our growth strategies. The acquisition would leverage our strength in the Mercusor (Argentina, Brazil, Paraguay and Uruguay) countries for our products,” says managing director Natu M Patel.
The Rs 600-crore company is keen on increasing its product registration to 60 countries over the next two years from the current 40. After securing registrations in Brazil, the world’s biggest pesticides market after US, and Pakistan, for its agro-chemical product, the company’s immediate destination would be the African countries. The pesticides market in Brazil and Pakistan are worth $3.3 billion and $250 million, respectively.
Meghmani has intentions to close the deal within a year. “We are looking at similar product manufacturing company and want to improve our bottomline and topline in near future,” says Mr Patel.
Meghmani has the advantage of producing cheaper pesticides and pigments that find market in North America, Europe, Central and Latin America and Asia-Pacific.
The demand for agro-chemical products in the US has been growing at 20-25% a year. In order to expand its reach in the US market, the company has already initiated expansion at its facility near Ankleshwar and has established marketing offices and warehouses in the US. For capacity expansion, it has acquired 160 acres near Dahej to facilitate exporting requirements. The company’s sales grew 15-20% last year.
“An acquisition is indeed in the offing in Latin America, but it has to be commensurate with our growth strategies. The acquisition would leverage our strength in the Mercusor (Argentina, Brazil, Paraguay and Uruguay) countries for our products,” says managing director Natu M Patel.
The Rs 600-crore company is keen on increasing its product registration to 60 countries over the next two years from the current 40. After securing registrations in Brazil, the world’s biggest pesticides market after US, and Pakistan, for its agro-chemical product, the company’s immediate destination would be the African countries. The pesticides market in Brazil and Pakistan are worth $3.3 billion and $250 million, respectively.
Meghmani has intentions to close the deal within a year. “We are looking at similar product manufacturing company and want to improve our bottomline and topline in near future,” says Mr Patel.
Meghmani has the advantage of producing cheaper pesticides and pigments that find market in North America, Europe, Central and Latin America and Asia-Pacific.
The demand for agro-chemical products in the US has been growing at 20-25% a year. In order to expand its reach in the US market, the company has already initiated expansion at its facility near Ankleshwar and has established marketing offices and warehouses in the US. For capacity expansion, it has acquired 160 acres near Dahej to facilitate exporting requirements. The company’s sales grew 15-20% last year.
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