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Our Bureau

Hyderabad, June 25 In a significant move, DuPont has entered the cotton business in India, by announcing the acquisition of the seed business of two companies.

The global science company has through Pioneer Hi-Bred purchased the cotton seed business of Nandi Seeds, based in Mehboob Nagar, and acquired cotton germplasm from Nagarjuna Seeds, based in Secunderabad.

Pioneer Hi-Bred, headquartered in Des Moines, Iowa, US and owned by DuPont is a leading source of customised solutions for farmers, livestock producers and grain and oilseed processors. It provides access to advanced plant genetics in nearly 70 countries, an announcement from DuPont said here today.

“These acquisitions will help us enter the cotton seed market here and meet the needs of Indian farmers who grow more than 9 million hectares of cotton each year – more than anywhere else in the world,” said Mr K.V. Subbarao, country manager - Pioneer India.

“Cotton is a natural fit for Pioneer in India. It completes our high-value product and service offering to farmers and enables us to further strengthen our growing seed business here,” he told Business Line.

At present, Pioneer offers corn, rice, pearl millet, sunflower and mustard in the Indian market and has grown revenue 40 percent annually for the last five years to reach about $70 million in 2008.

“Agriculture, food and nutrition is a key growth segment for DuPont in India, and these acquisitions are part of the company’s strategy to expand its presence here,” said Mr Balvinder S. Kalsi, President - DuPont India.

Nandi Seeds has a turnover of around Rs 35-40 crores and has a license of Monsanto’s genetically modified cotton variety. On the other hand Nagarjuna’s strenght is in germplasm.

The acquired companies will operate as independent, wholly owned subsidiaries of Pioneer.

Mr Kalsi said for DuPont, it is a first acquisition in over a decade, but acquisition will be a key part of the company’s strategy to grow business in India.

This is also the latest in a series of investments by DuPont in India. Pioneer recently announced the opening of a new corn research centre in Bangalore to speed delivery of new, improved products to market and meet the growing demand for food and feed.

More Stories on : Mergers & Acquisitions | Cotton

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