Mitsubishi Corporation

Press Room

August 27, 2009
Mitsubishi Corporation

Investment in an agrochemical custom manufacturing company in India

 
On August 10, 2009, Mitsubishi Corporation (“MC”) invested in DECCAN FINE CHEMICALS (INDIA) LIMITED (“Deccan”), an independent company engaged in the business of custom manufacturing of agrochemical active ingredients & intermediates and fine chemicals. MC has taken 19.5% or Rs.83.85million of Deccan’s Rs.430million equity financing.
 
With India’s competitive manufacturing cost and Deccan’s highly knowledgeable and experienced management, MC will be able to present attractive offers to agrochemical manufacturing customers who wish to outsource their production of active ingredients and / or intermediates.
 
Along with MC, Belchim Management International Holdings, a private agrochemical company based in Belgium has joined the syndicate by investing the same amount Rs.83.85million or 19.5%. The rest of the equity is invested by Deccan’s founders and employees.
 
Deccan is constructing a multiple agrochemical plant on its 230,000 square meter land located in Tuni, a city located about 100km south of Vishakapatanam at the east coast of the State of Andhra Pradesh. The plant will initially consist of 2 manufacturing blocks having 4 production lines per block but can be expanded to 6 blocks. Deccan will concentrate on finalizing the 2 blocks in order to start the commercial production by the end of 2009 to meet the orders from its customers located in EU, USA and Japan. Deccan expects to reach Rs.3,000million in sales in the year 2011.
 
There is a world wide trend for multi national agrochemical manufacturers to outsource their active ingredient or intermediate production to custom manufacturers to reduce their total manufacturing cost. MC not only has Deccan but also invested in a custom manufacturing company “LILING FINE CHEMICALS (China)” in 2004. By utilizing both companies, MC will be able to expand its agrochemical trading business.
 
 
DECCAN FINE CHEMICALS (INDIA) LIMITED
Head Office:
Plot No.74A, Road No.9 Jubilee Hills, Hyderabad 500 003, India
Plant:
Kesavaram, Venkatanagaram Post, Payakaraopeta Mandal,
Vishakapatnam District, Andhra Pradesh 531 127, India
Established:
2007
Capital:
Rs. 430miilion (US$8.85million)
Management:
Mr. D.V.S. Narayana Raju, Managing Director
Employee:
about 150people (end of 2009)
 
 
BELCHIM MANAGEMENT INTERNATIONAL HOLDINGS
Location:
Neringstraat 15, Londerzeel, Belchim
Established:
1987
Capital:
Euro4million (US$5.7million)
Management:
Mr. Dirk Putteman, Managing Director
Employee:
about 180people
Turnover:
Euro152million (US$217million) as of end September 2008
 
Headquarter & Factory of Deccan
Headquarter & Factory of Deccan

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