India-based Mahindra Agri Solutions has entered into a joint venture agreement with Japan’s Sumitomo Corporation Group to help Indian farmers increase their farm productivity.
Mahindra says the partnership will offer new generation products to effectively manage pest and insect-related challenges faced by farmers.
“We are delighted to join hands with Sumitomo Corporation, a leading global player, to offer the latest world-class technology which would help to significantly reduce crop damage,” said Ashok Sharma, CEO of Mahindra Agri Solutions, a subsidiary of Mahindra & Mahindra.
“This association will be a win-win for both companies as it will bring Mahindra’s presence across the Agri value-chain and Sumitomo’s global expertise, on the same platform. I am hopeful that by providing world-class crop care solutions, we will further the cause of augmenting farmer prosperity, thereby enabling them to rise.”
Meanwhile, Tomoaki Tetsu, general manager of the AgriScience Department at Sumitomo Corporation, a global player in multiple industries including crop care, said that the company is excited about the partnership and the possibilities that it presents.
“Seeing the growth momentum of the Indian market, we are confident that this JV will enable Indian farmers to accelerate access to innovative solutions in terms of technology & products which would result in the increase of farmers’ income,” said Tetsu.
The current estimated consumption of crop protection products in terms of value is around US$2.5 billion and is expected to grow at 7% annually for the next few years.
Mahindra and Sumitomo Corporation will hold 60% and 40% equity respectively in the new company named Mahindra Summit Agriscience Limited.
The joint venture will have access to latest global technology for minimizing crop damage and increasing the yield, due to Mahindra’s contribution with strong farmer connect, widespread domestic distribution and agriculture expertise and Sumitomo’s strong ties with large Japanese crop protection innovator companies.
Mahindra Agri Solutions is the first Indian company to have a joint venture partner that has deep relationships with large Japanese R&D houses.
Currently, India loses nearly 40% of its total production in terms of value to pest attacks and diseases, according to Mahindra.