Crop protection products manufacturer Coromandel International Limited is forming a tripartite joint venture (JV) with two Japanese firms Yanmar Co Ltd and Mitsui & Co Asia Pacific Pte Ltd, to manufacture rice transplanters and harvesters, according to a stock market disclosure.
While the Indian firm and Yanmar will own 40 per cent stake each in the JV, Mitsui will hold the remaining 20 per cent.
Coromandel will leverage its knowledge of farming practices, connect with the farmers and its Mana Gromor Retail network to market the equipment and also its relationship with promoter Murugappa Group’s engineering firm to set up the manufacturing base and indigenise the production of the equipment over a period of time, the company said in the statement.
The proposed project is estimated to have a capital cost of Rs 40 crore.
“The development of cost competitive agriculture manufacturing capability will allow Coromandel to further scale up its farm mechanisation services (FMS) through its retail outlets,” Coromandel’s managing director Kapil Mehan said in the statement.
The JV agreement also provides that it can engage in sales and after sales services of other Yanmar brand machinery as may be mutually agreed between parties.
Coromandel International currently offers FMS only in certain areas of Andhra Pradesh and these services mainly focuses on paddy transplantation. The company also sells sprayers and drip irrigation equipment through its retail outlets.
The company is a part of the Murugappa Group and is the second-largest phosphatic fertiliser player in India. It is engaged in the business segments of fertilisers, specialty nutrients, crop protection and retail.
Yanmar Co, founded in 1912, provides diesel engines, and agricultural and industrial machinery. It has subsidiary locations in Asia, North America, Europe, South America and Japan.
(Edited by Joby Puthuparampil Johnson)