Crystal Crop Protection, an agrochemical manufacturer, on Thursday announced its acquisition of Sadanand Cotton Seeds business from Kohinoor Seeds. This acquisition is seen boosting its portfolio as it has been focusing in a few segments including cotton and mustard.
Though industry sources said the acquisition cost is about ₹40 crore, Crystal Crop Protection refused to comment.
“The acquisition will boost Crystal’s goal of providing end-to-end innovative and progressive solutions to stakeholders in the cotton seed business. With a persistent commitment to innovation and quality, Crystal Crops has consistently demonstrated its dedication to enhancing agricultural productivity and crop yields for farmers across the country,” a company statement said.
This strategic acquisition will not only reinforce the market presence of Crystal in the cottonseeds segment, but will also substantially enhance our reach and accessibility within the broader seeds industry, said Satyender Singh, CEO of seeds division in Crystal Crop Protection.
In a market where approximately five crore packets constitute the cottonseed sector, displaying consistent performance over recent years, the importance of cotton as a pivotal cash crop for farmers cannot be emphasised enough, he added. “We look forward to continuing the legacy of Sadanand and delivering exceptional value to our customers,” Singh said.
Pawan Kansal, Managing Director of Kohinoor Seed, hoped that this acquisition would help build the brand further. Sadanand Cotton Seeds business accounted for nearly half of Kohinoor Seeds turnover of ₹85 crore in 2021-22.
The ₹4,000-crore cottonseeds market in India has been experiencing stiff competition after multinational companies stopped releasing new technologies following price cap in Bt cotton introduced in 2016.
Crystal has presence in multiple segments, including cotton, mustard, fodder, sorghum and pearl millet. Acquisition of Sadanand Cotton Seeds may boost its seeds business by 20 per cent, the company said without disclosing the current turnover and share of seeds division.
Previously, Crystal had acquired cotton, pearl millet, mustard and sorghum seeds portfolios from Bayer in 2021.