Aims to expand into the Agrochemical export and foray Agrochemical Technical Manufacturing segment
Safex Chemicals India Limited, a leading agrochemical company in India, has announced acquiring Mumbai-based Shogun Organics Limited. The acquisition will provide Safex with a platform to backwards integrate into the agrochemical technical segment and enter the Home Care & Agrochemical Technical Manufacturing segment. Meanwhile, the promoters of Safex, SK Chaudhary, Neeraj Jindal, Rajesh Jindal and Piyush Jindal will join the board of Shogun Organics.
Founded in 1991 by late SK Jindal and SK Chaudhary, Safex manufactures and sells branded agrochemicals that help enhance the protection and productivity of Indian crops. The company has redefined the branded formulations segment in the Indian agrochemical market, through its unique multi-brand model and direct distribution strategy. It recently raised $50 million from leading India-focused growth private equity firm, ChrysCapital. Shogun Organics, is a market leader in the Indian home care technical segment and the company has approvals for manufacturing technicals for agrochemicals. The transaction was advised by Investec India (sole financial advisor) and Rohilla & Co. (legal counsels).
Commenting on the acquisition, Neeraj Jindal, Director, Safex, said, “We are pleased to welcome Shogun Organics and its team as part of the Safex Group. We believe Shogun Organics with its dominant leadership position in the Indian home-care technicals segment, strong customer relationships and export capabilities is an ideal fit for the next phase of Safex’s growth journey. We intend to leverage Shogun’s existing infrastructure to backwards integrate into the agrochemical technicals segment and expand into the agrochemical exports market”.
“Safex is excited to partner with Shogun’s management team in its growth journey. Home care technicals is an attractive market and Shogun has consistently maintained more than 50 per cent market share in the segment. We believe there are strong synergies between the two companies and the combined entity would provide a platform which will further propel Safex into a marquee player in the agrochemical and home care technicals segment”, said Piyush Jindal, Director – Safex.
Safex is amongst the fastest growing agrochemical companies in India with a 26 per cent revenue CAGR over the past 4 years. It has consistently outperformed the industry in 9 out of the last 10 years. Today, Safex has a pan-India presence with a network spanning 10,000+ distributors across 17 states.
