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HomePosts Tagged "UPL Ltd"
Agribusiness, Agro chems – Chemicals, Agrotech, Company News, India, R&D

The Global Innovation Index (GII) 2024 is based on a range of metrics, including R&D efforts, technology adoption rates, technology production, patents filed, and country’s economic context.

UPL Ltd., a global provider of sustainable agricultural solutions, has been recognised as the top Patent Cooperation Treaty (PCT) applicant in the Indian Science and Technology (S&T) clusters for agrochemical research. This recognition comes from the Global Innovation Index (GII) 2024, which annually ranks the world’s economies based on their innovation capabilities, with a focus on identifying and evaluating key regional science and technology hubs.

Expressing happiness, Dr. Vishal Sodha, Global IP Head of UPL said, “We are honoured to be recognized as the top PCT applicant within the Indian S&T clusters for agrochemical research. At UPL, we believe that innovation is the key to solving the most pressing challenges in agriculture, and this recognition further strengthens our resolve to continue delivering impactful, sustainable solutions.”

“We extend our gratitude to the dedicated scientific community for their continued efforts in driving innovation and developing solutions that address the challenges of modern agriculture. We also acknowledge the support of our Intellectual Property (IP) team for their invaluable role in safeguarding these innovations through robust patent protection,” he further added.

The Global Innovation Index (GII) 2024 has identified four Indian S&T clusters—Bengaluru, Delhi, Chennai, and Mumbai—that are among the top 100 in the world. It evaluates 133 economies, highlighting regions with thriving inventor and scientific ecosystems. The index is based on a range of metrics, including R&D efforts, technology adoption rates, technology production, patents filed, and country’s economic context. This recognition reflects UPL’s dedication to innovation, empowering farmers and advancing sustainable agriculture.

India has shown remarkable improvement in global innovation rankings, climbing from 66th place in 2013 to 39th in 2024. The GII also notes that India, along with the Republic of Moldova and Vietnam, remains an innovation over performer, holding this distinction for the 14th consecutive year. India’s surge in PCT applications, which has grown by 44.6 per cent, underscores the country’s growing leadership in global innovation.

The Global Innovation Index (GII) 2024 is

Agro chems – Chemicals, Company News, Finance, World

Company’s revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY).

The agrochemical major UPL Ltd has reported a consolidated net loss of Rs 1,217 crore in Q3 FY24 as against a net profit of Rs 1,087 crore recorded in Q3 FY23. Company’s revenue from operations declined 27.72 per cent YoY to Rs 9,887 crore in the quarter ended 31 December 2023. Loss before exceptional items and tax was at Rs 1,649 crore as against profit before exceptional items of Rs 1,515 crore reported in the same quarter a year ago.

Revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates, company mentioned. UPL’s income from North American tumbled 64 per cent YoY, revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY) and rest of the world shed by 12 per cent YoY during the period under review.

UPL said that the revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

During the quarter, contribution profit jumped 54 per cent YoY to Rs 2,689 crore and contribution margin declined to 42.6 per cent from 42.6 per cent in Q3 FY23. Liquidation of high-cost inventory, and higher rebates to support channel partners, impacted contribution margin, as per the statement.

The company’s revenue from crop protection was at Rs 8,495 crore (down 30.68 per cent YoY) and non -agro came in at Rs 520 crore (down 9.25 per cent YoY). However, income from seeds business was at Rs 931 crore (up 2.08 per cent YoY)

Mike Frank, CEO, UPL Corporation, said, “Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly as against with the high base of previous year amid intense post patent price competition.

However, we did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW region. Our high margin differentiated and sustainable portfolio continued to outperform as revenue 2 share of this portfolio increased to 37% of crop protection revenue (ex-India) vs 28 per cent last year. Contribution margins too were down only marginally versus last year adjusted for the short-term impact of high-cost inventory liquidation and higher rebates to channel partners.

We continued to implement cost optimization initiatives to align our operations with the new reality, reducing SG&A expenses by 19 per cent YoY in Q3. We are well on track to reduce our SG&A by $100 million in FY25 (from the base of FY23). Going forward, while we are optimistic of a progressively improved performance in Q4FY24 and Q1FY25, we expect normalized business performance from Q2FY25. Our foremost priority is reducing debt. In-line with this, we have also recently announced a rights issue of upto $500 million and are exploring capital raise opportunities at platforms in addition to operational cash flows.”

Company’s revenue from Europe declined by 30

Agrotech, Company News, R&D, Sustainability, World

The state-of-the-art facility will develop innovative solutions for sustainable agriculture.

UPL Ltd., a global provider of sustainable agricultural solutions, announces the opening of its Global NPP Research Center in Ramos Arizpe, Mexico. The Global NPP Research Center, a state-of-the-art facility will advance natural solutions through scientific and applied excellence. This modern greenhouse with specialized equipment, will be a hub for experienced researchers, fostering collaborations with local and international universities and research centers, and serve as a platform for agricultural knowledge and innovative solutions.

Biosolutions refer to agricultural inputs developed with naturally-derived active ingredients, ranging from seaweed extracts to micro-organisms. UPL is a global leader in biosolutions and the extensive Natural Plant Protection (NPP) portfolio covers a range of applications, including increasing crop resilience to disease, pests, and environmental conditions, supporting crop nutrition, and improving soil health, while reducing residues and environmental impacts.

Mike Frank, CEO of UPL Corporation Ltd., said: “We are so proud to inaugurate the Global NPP Research Center today, this significant investment will continue to add value for growers and strengthen our focus on differentiated and sustainable solutions. This facility represents a significant milestone in advancing agricultural practices worldwide.”

Jai Shroff, Group UPL CEO & Chairman, said: “The NPP Research Center reflects UPL’s mission to Reimaging Sustainability and our OpenAg commitment to building an ecosystem of connectivity and collaboration. This Center of Excellence will help address key challenges such as heat and water stress, soil health and positively impact global food security.”

The state-of-the-art facility will develop innovative solutions

Agro chems – Chemicals, Company News, Finance, Inputs, Seeds, World

Net debt at $3.19 billion as of June 2023, down by $160 million vs June 2022.

UPL Ltd. has reported financial results for the first quarter of FY24 (Apr-June 2023). Company has reported revenue Rs 8,963 crores in Q1 FY 24 in comparison with Rs 10,821 crores revenue in Q1 FY23 registering 17 per cent drop in the revenue. Company has registered net profit of Rs 166 crores in Q1FY24 against the net profit of Rs 877 crores in Q1 FY23 which indicates significant decrease of 81 per cent.

Revenue and EBITDA for Q1 impacted by the industry-wide slow down.  Differentiated and Sustainable portfolio delivered resilient performance growing by 7 per cent YoY – revenue share rose significantly to 37 per cent (from 27 per cent in Q1FY23) supporting contribution margins.

 Seeds business delivered robust performance as revenue grew by 26% YoY and EBITDA increased by 54 per cent YoY. Net Debt stood lower by $160 million vs LY at $3,193 million as of 30 June 2023 despite lower factoring ($890 million on 30 June 2023 vs 1,140 million on 30 June 2022). Adjusted for the lower factoring quantum, net debt would have stood at $2,943 million (lower by $410 million YoY).

During the quarter, company’s Specialty Chemicals Business (including AI manufacturing) was proposed to be transferred to a wholly-owned subsidiary ‘UPL Speciality Chemicals Ltd.’ (USCL) for a consideration of Rs 3,572 crore. The proposed transfer has been approved at the shareholder meeting on 20th July 2023 and the transaction is expected to be completed in the next few months.

Commenting on the performance, Mike Frank, CEO – UPL Corporation Ltd., said “The global agrochemical industry has been going through a challenging phase over the last two quarters as distributors prioritized destocking and focused on tactical purchases amid high channel inventories. Additionally, the market is witnessing pricing pressure given the high base of previous year and aggressive price competition we have seen from the Chinese post patent exporters. Given this backdrop, our revenue and profitability were also impacted by these headwinds in line with the rest of the industry. Having said that our differentiated and sustainable portfolio performed resiliently (+7% YoY); with revenue share increasing significantly to 37 per cent versus 27 per cent last year. Favorable portfolio and regional mix coupled with better margins at Advanta helped improve contribution margins by 198 bps YoY in Q1.

One of our key focus areas has been to improve cash flows and strengthen our balance sheet. In-line with this, we have reduced our net debt by $160 million versus June 2022 despite much lower factoring (down by ~$250 million YoY).  Further, we are undertaking a cost reduction initiative of $100 million over the period of next 24 months; 50% of which we expect to be realized in FY24. Going forward, while we anticipate demand to remain subdued in Q2 FY24 as well, our performance should be sequentially better. We are optimistic of demand recovery in H2 FY24 as the channel inventory approaches a new normalized level. Overall, led by improved demand and cost optimization efforts, we expect our Revenue and EBITDA growth to turn positive in H2

FY24, with full year Revenue growth to now be in the range of 1-5% with EBITDA growth at 3-7%.”

Regional Performance Update

Region (INR crore) Q1 FY24 Q1 FY23 YoY % Chg.

Latin America 2,965 3,464 (14 per cent)

Europe 1,259 1,728 (27 per cent)

North America 870 1,796 (52 per cent)

India 2,054 2,067 (1 per cent)

Rest of the World 1,814 1,765 3 per cent

Total 8,963 10,821 (17 per cent).

Net debt at $3.19 billion as of

Agrotech, Company News, R&D, World

UPL will use Biome Makers’ BeCrop Test technology in a series of global trials across multiple locations and cropping systems to gain further insights into its inputs’ modes of action.

UPL Ltd, a global leader in sustainable agriculture solutions, has announced a partnership with Biome Makers, a globally recognized agtech leader, to deepen understanding of the positive impact of UPL’s natural biosolution inputs on soil health.

UPL will use Biome Makers’ BeCrop Test technology in a series of global trials across multiple locations and cropping systems to gain further insights into its inputs’ modes of action. The data received from these trials will guide future product development and allow growers to make more informed decisions about their farming practices.

Drew Wolter, Technical Development Manager for UPL, said: “We are thrilled to partner with Biome Makers to conduct these trials as part of our OpenAg commitment to collaboration. Healthy soil is vital to the future of sustainable agriculture, garnering further insights into how our natural biosolution inputs can improve soil health will ensure we continue to empower farmers to grow more food, more sustainably.”

Adrián Ferrero, Biome Makers’ CEO, said: “Our mission at Biome Makers is to improve soil health and provide companies the tools they need to equip farmers with the right solutions. Input companies around the globe are using BeCrop Technology to understand the impact of their products on the soil microbiome. Partnering with UPL aligns with our mission, and we are excited to work together to advance the understanding of soil functionality.”

UPL will use Biome Makers’ BeCrop Test

Agro chems – Chemicals, Company News, Finance, India

FY23 EBITDA grew by 10 per cent YoY to Rs 11,178 crore as against Rs 10,165 crore in FY22.

 UPL Ltd. has reported financial results for the fourth quarter of FY23 (Jan-Mar 2023).  UPL’s fourth quarter of FY23 revenue grew by 4 per cent YoY to Rs 16,569 crore. The quarter was impacted by rapid decline in product prices and delays in planting season that resulted in headwinds for product placements.  FY23 revenue grew by 16 per cent YoY to Rs 53,576 crore, led by better product realizations (+10 per cent), favorable currency impact (+5%) and flat volumes. FY23 EBITDA grew by 10 per cent YoY to Rs 11,178 crore as against Rs 10,165 crore in FY22. EBITDA margins were lower mainly due to weaker-than-expected performance in Q4 impacted by headwinds in the post-patent space, which offset the healthy performance delivered during the first nine months..

Commenting on the performance, Jai Shroff, Chairman and Group CEO – UPL Ltd., said “We delivered a resilient set of results for FY23 despite facing significant headwinds in the final quarter. Thanks to the dedication, agility, and tenacity of our teams, we were able to deliver on most of our commitments. We reduced our gross debt by over $600 Mn and net debt by $440 Mn driven by improved cash flow from operations and a leaner working capital cycle. In-line with our priority of creating shareholder value, we created distinct pure play platforms during the year to bring in enhanced focus and operational freedom to pursue independent growth strategies thereby unleashing the growth potential of each of our distinct platforms.  Going forward, as we look ahead to FY24, we are well-positioned to deal with the market headwinds and deliver better profitability growth. In the longer-term, we remain confident of achieving our growth ambitions and transforming the food value chain with emphasis on sustainability.”

Mike Frank, CEO – UPL Global Crop Protection, said “FY2023 was a tale of two distinct periods, our performance in the first nine months delivered >20% growth in Revenue and EBITDA. The fourth quarter was an unusual one with pricing pressure and delayed purchases by channel in the post-patent space due to oversupply of certain molecules. Our focus in the last quarter was to grow share in key markets, liquidating most of our high-cost inventory, closely manage working capital and smartly set-up our inventory position for the next year. As a result, given our lean inventory position, we are well-placed to deal with the challenging market conditions which are likely to persist for first half of FY24, but also to benefit once the market begins to normalize thereafter. Backed by our superior manufacturing and product innovation capabilities, we remain confident of growing significantly faster than the market in FY24 and beyond “

FY23 EBITDA grew by 10 per cent

Company News, Europe, Finance

This investment will not only expand UPL’s market access in Brazil but also strengthen its product portfolio as SEEDCORP|HO

UPL Ltd, a global provider of sustainable agricultural solutions, announced that its company, Advanta Seeds UK, and Bunge have signed an agreement to acquire a 20 per cent stake each in SEEDCORP|HO.

This intended investment is part of UPL Group’s OpenAg® purpose to drive collaboration to offer a complete package of solutions for farmers. It also underscores the company’s commitment to supporting every stage of the agricultural process, from sowing to post-harvest. Through the agreement, Bunge intends to expand its barter portfolio to reinforce its grain sourcing position in Brazil.

Bhupen Dubey, CEO of Advanta Seeds said: “As we continue to grow our global footprint, this investment will not only expand our market access in Brazil but also strengthen our product portfolio as SEEDCORP|HO is Brazil’s third largest Soyabean Germplasm company”.

Rossano de Angelis Jr, Vice President of Agribusiness at Bunge, said: “With this transaction we will further solidify the relationship with our partners during harvest planning. Combined with our technical expertise and market knowledge, we will be able to advise on the adoption of seed varieties that best meet demand, including meeting the demand for more sustainable solutions with a focus on reducing the carbon footprint of the entire growing process.”

The deal also expands the portfolio of products and services to be offered by Orígeo, a recently announced joint venture between Bunge and UPL, which will provide complete and sustainable solutions for farmers in Brazil.

Mário Sérgio Carvalho, CEO of SEEDCORP|HO, said: “SEEDCORP|HO has achieved strong results over the last few years, and the partnership with Bunge and UPL’s Advanta Seeds has the potential to further strengthen our growth strategy thanks to our robust portfolio and R&D capacity for seed production.” 

SEEDCORP|HO was established in partnership between GDM, Produtiva Sementes, and Sipar.  The agreement with Advanta Seeds and Bunge is subject to customary precedent conditions agreed by the parties, including approval from competent Antitrust Agencies.

This investment will not only expand UPL’s

Agro chems – Chemicals, Agrotech, Finance, India, Sustainable Energy

This project will enable UPL to increase its renewable energy usage to 30 per cent of its total global power consumption from the current level of 8 per cent.

Agro-chemical major UPL Ltd announced that company has acquired a 26 per cent stake in Clean Max Kratos Pvt Ltd, which is into renewable energy. Clean Max was incorporated on July 28 with paid up capital of Rs 1 lakh. The company, which is into solar/wind power generation, is yet to commence operations.

UPL Ltd mentioned in a regulatory filing that Clean Max Kratos would develop and maintain a hybrid 28.05 MW solar and 33 MW wind power project under the captive model as envisaged under the electricity laws.

The filing also mentioned that UPL will initially acquire 2,600 shares of Rs 10 each (26 per cent stake of paid-up share capital) in Clean Max Kratos for a consideration of Rs 26,000. UPL will further invest, in one or more tranches, about Rs 39.60 crore in Clean Max Kratos maintaining its shareholding to 26 per cent of the paid-up share capital.

Jai Shroff, Global CEO of UPL, said, “At UPL, we are committed to reimagining sustainability internally as well as with our farming partners. Ensuring we have access to reliable, clean energy will help realise that vision as we significantly reduce our carbon footprint.”

This project will enable UPL to increase

Agro chems – Pesticides, Agrotech, Company News

From 2023, UPL will co-distribute Oro Agri’s Orange Oil bioprotection formulation and company will use its global distribution network to access new markets.

UPL Ltd, a global provider of sustainable agricultural solutions, announced a new collaboration with Oro Agri, a Rovensa company, for the co-distribution and further development of Orange Oil, a biosolution effective against a wide range of pests and diseases.

Orange Oil was developed by Oro Agri as a residue free biosolution with fungicidal, insecticidal, and acaricidal functions, as well as excellent adjuvant properties. Already registered in over 30 countries and with more than 140 crop and pest combinations, Orange Oil now joins Natural Plant Protection – NPP’s biosolutions portfolio, further enabling farmers to embrace more sustainable agriculture.

From 2023, UPL will co-distribute Oro Agri’s 60 g/L solo Orange Oil bioprotection formulation. Oro Agri will continue to supply existing customers directly while UPL will use its global distribution network to access new markets and build a wider customer base. UPL and Oro Agri will also collaborate to develop, register and market new and existing Orange Oil formulations to offer growers around the world access to the latest, most effective, and sustainable crop protection biosolutions. The agreement is part of UPL’s OpenAg® commitment to build a collaborative global network within the industry and beyond.

Eric van Innis, CEO of ROVENSA said, “This collaboration agreement with UPL will allow the rapid development of one of our flagship products across the globe, maintaining our distribution in markets where we already have presence and strengthening our footprint in new potential markets, optimizing the combined regulatory and intellectual property of both UPL and Rovensa. Both parties share the same mission: contributing to feed the planet through sustainable agricultural inputs for a well-balanced agriculture.”

Mike Frank, President and COO at UPL, said: “We look forward to collaborating with Oro Agri to evolve Orange Oil with more applications, combining our expertise to benefit growers. Orange Oil will join our ProNutiva® programme, working in synergy with NPP’s other biosolutions and UPL’s conventional inputs to improve farmers’ efficiency and profitability while reducing environmental impacts.”

From 2023, UPL will co-distribute Oro Agri's

Agro chems – Chemicals, Agrotech, Finance

Better product realisations, favourable exchange rate, and higher volumes contributed to revenue growth in Q1 FY23.

Agrochemical major, UPL Ltd has reported financial results for the first quarter of FY23 (Apr-June 2022). Q1 FY23 revenue witnessed growth of 27 per cent YoY to reach Rs 10,821 crore, led by better product realizations (+18 per cent), favourable exchange rate (+3 per cent), and higher volumes (+6 per cent). Q1 FY23 EBITDA grew by 26 per cent YoY to Rs 2,342 crore as against Rs 1,862 crore in Q1 FY22.

Commenting on the performance, Jai Shroff, CEO – UPL Ltd., said “After a strong end to FY2022, we continued to see solid growth momentum in Q1 FY23, as the strong agri commodity prices drove significant uptick in price realizations as well as healthy demand from growers. The EBITDA margin remained largely intact despite the significant input cost inflation and a challenging macro-economic environment exacerbated by geopolitical issues. This was driven by proactive pricing actions coupled with efficient supply chain management that led to the strong top-line growth getting translated into robust operating profitability growth as well.

Powered by our OpenAg purpose, we continued to leverage collaboration as a catalyst for sustainable and lasting change. In partnership with the FIFA Foundation, we held the European launch of Gigaton Carbon Goal, a global initiative to sequester one billion metric tonnes of atmospheric carbon dioxide by 2040. And in Brazil, we announced a new agreement with Bunge to establish Orígeo, an innovative company providing end-to-end solutions to help increase farmer’s productivity, profitability and sustainability.

Moving on, as we look ahead to the rest of the year, we are well poised to continue our healthy growth momentum, as product realizations continue to remain strong, recent new launches continue to see good traction in the marketplace, and the overall demand outlook continues to be constructive.

Better product realisations, favourable exchange rate, and