Jun. 19, 2018
Summit Agro International Ltd.
Local subsidiary established in India for agrochemical tradeAim to bolster agrochemical business operations in Asia
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Masayuki Hyodo) and Summit Agro International Ltd. (Head Office: Chuo-ku, Tokyo; President: Yukihiko Miki; hereinafter, “Summit Agro”) (hereinafter, these two companies will be collectively termed “Sumitomo Corporation Group”) in April 2018 established Sumisho Agro India Private Limited (Head Office: Mumbai; hereinafter, “SAIN”) as a local subsidiary to undertake agrochemical trading activities in India.
India is the world’s second-largest producer of agricultural products, and its agrochemical market is now on the order of 300 billion yen (ranking 5th worldwide in 2016), growing at the rate of annual 7%. At the same time, it continues to gain in status as a supplier of agrochemicals products such as technical grade of active ingredients (Note 1). There is considerable room for improving yield per unit area in India’s crop production, and growing needs for safe and efficient crop production are expected to drive an expansion of its agrochemical market.
Primarily responsible for registration, holding and development functions for safe high-quality new products from Japanese agrochemical manufacturers, SAIN devote ourselves to maximize the sales of such new technology brought from Japan. It will also be enhancing its functions as a strategic partner for Japanese agrochemical manufacturers by stepping up its procurement of raw materials from within India.
SAIN provides locally in India functions that had for the most part been provided by Summit Agro from Japan, enabling more rapid responses to changing needs. By supplying locally-procured goods via the Sumitomo Corporation Group’s network, one of Summit Agro’s key assets, SAIN will aim to further exhibit its presence in the Asian agrochemical market.
Demand for food in the Asian countries, including India and Southeast Asia, is expected to surge with economic development and population increases, making it essential to improve agricultural productivity. Improved agricultural productivity will directly lead to higher revenues for Asians whose livelihood is agriculture, and help alleviate the impact of the uncertainties (weather, etc.) facing agriculture.
The Sumitomo Corporation Group has positioned Asia as the third important region after Europe and the Americas for its agribusiness network, and has been steadily adding up business functions across Asia. The Group is committed to contribute to the improvement of safety and productivity of crop production in Asian countries.
(Note 1): Technical grade of agrochemical is substances manufactured through the chemical synthesis of the active ingredients. Because technical grade is most cases rather viscous with high purity and difficult to handle, the final products are produced through a physical processing called formulation.
|■ Profile of SAIN|
|Company name||:||Sumisho Agro India Private Limited|
|Head Office||:||Mumbai, Maharashtra State, Republic of India|
|Investment ratios||:||Summit Agro International Ltd.: 99%
Sumitomo Corporation: 1%
|Primary businesses||:||Development, registration and sales of agrochemical and agricultural materials in India
■ Sumitomo Corporation Group’s agrochemical sales network
■ Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This Project especially contributes to “Contributing to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles.”