United Phosphorus to launch 12 hybrid vegetable seeds

The Hindu Business Line - December 8, 2010

United Phosphorus Ltd, the country's largest agro-chemical company, is betting big on the domestic hybrid seeds market, having firmed up plans to launch a clutch of new branded hybrid vegetable seeds, ranging from tomatoes to green peas, next year.

Although hybrid seeds today account for an insignificant portion of the estimated $1.1 billion Indian seeds and seedlings market, this segment is beginning to gain currency in the farming community.

“We will be launching hybrid seeds for 12 different vegetables next year, starting with a tomato variety in April 2011 which we have decided to brand as Gazanan — the USP of this variety, apart from higher yield, is that it can be sown in 10 months in a year, unlike the traditional tomato crop,” Mr Bhupen Dubey, Head-Integrated Business, UPL, told Business Line.

Un-seasonal rains

The company had initially planned to release the hybrid for sowing in 40,000 acres, but the un-seasonal rains that destroyed the pollen had impacted seed production. “We may limit our initial release (of the seed variety) for about 20,000 acres,” he said.

This will be followed by release of hybrid seeds of chillies (two varieties), green peas, French beans, okhra and a few other vegetables. “China uses 60 per cent of its total seed requirement under hybrid varieties. We see this segment growing at a faster rate in India. We are targeting to increase our turnover from seeds business from the present $160 million to $500 million in the next three to four years,” Mr Dubey said.

He was in Hyderabad in connection with a farmers meet for interaction on its Aneeta Hybrid seeds, a high yielding Ridge Gourd, produced by its group company Advanta India.

Acquisitions

UPL, which undertook a string of acquisitions in the last few years ending with buying DuPont's Mancozeb fungicide business earlier this year, is looking out for fresh acquisitions in the agro-chemical segment globally. “The global chemical industry is witnessing a consolidation and we are looking out for opportunities,” Mr Dubey said.

The company, which is having about Rs 2,100 crore cash reserves, could use almost half this amount as its war chest for the acquisitions, which are likely to be in the niche segments with registrations in developed markets, rather than big-ticket buyouts.