Indian agrochemical company UPL Ltd has decided to sell its entire stake of 50 per cent in the Brazilian agrochemical company Sipcam Brasil S.A. to Italian company Sipcam S.p.A for Rs 351 crore.
This will be the first major divestment by UPL and the entire process is expected to be completed by June 2014 subject to necessary approvals.
Sipcam is currently a 50 per cent joint venture partner with UPL in Sipcam UPL Brasil S.A.
Currently, UPL has its major presence in Brazil through two companies namely UPL do Brasil Industria e Comerciode Insumos Agropecuarios S.A., wherein it has recently raised its stake to 73 per cent, and Sipcam Brasil S.A., wherein the company has a 50 per cent stake.
The company plans to utilise the funds released from the sale towards meeting the growing business requirements and help it have a focused approach for Brazilian agrochemical market, which is one of the largest agrochemicals market in the world.
According to the company’s filing with the exchange, its revenue for the year ended March 31, 2013 was about Rs 9,180 crore.
The company scrip was trading at Rs 189, up 5 points or 2.61 per cent in the afternoon trade on the BSE.