Mitsui’s Investment In BIL To Support Sustainable Growth & Expand Business Base Of Agricultural Sector

Mitsui & Co. Ltd. and Nippon Soda Co. Ltd recently acquired majority shares in Bharat Insecticide Limited, an Indian agrochemical company, through the special purpose company co-founded by Nisso and Mitsui. Mitsui has a strong track record in distributing agrochemical and pharmaceutical products in India. Since 1988, they have been working with Indian manufacturers to facilitate the trading of these products with Japanese companies. However, their investment into BIL is the first time they have established a direct presence in India’s rapidly growing agrochemical sector. 

Through their investment in BIL, the intent is to gain access to a robust distribution network that connects to millions of farmers in India. While BIL is already a well-established supplier of generic agrochemical products, Mitsui aims to expand its portfolio to include innovative new proprietary products to further strengthen its position as a market leader in India. 

While discussing how this acquisition will be symbiotic to Mitsui’s business growth, Kimihide Kondo, General Manager, Mitsui & Co. explained, “Mitsui has a two-pronged strategy to grow our agrochemical business: expanding its worldwide distribution network and widening its product portfolio. 

We believe this is an attractive time to invest in BIL and establish our presence in India’s agrochemical market. BIL is a strong homegrown company with an established local distribution network and strong manufacturing capability, which makes it unique. Through BIL, we hope to introduce Japan’s innovative agrochemical products to India and distribute BIL’s range of products through our network in Asia, the Middle East, and Africa. Expertise in applying global best practices and maximizing operational efficiency are a few of the ways Mitsui can support BIL to further build on its success.” 

Kondo also expresses how the investment in BIL is aligned with their strategic priorities, with an aim to support the sustainable growth of the Indian agricultural sector. “Agricultural business is one of the core businesses in the current middle-term management plan (MTMP). Our investment in BIL is in line with our plan to support the sustainable growth of the agricultural sector and expand the business base for agricultural inputs, crop protection and seeds,” he adds.

Owing to this alliance, BIL will also be in a unique position to leverage the synergies in area of product development with access to Mitsui's global assets and Nisso's world-class R&D capabilities. Kondo opines here, “Both Nisso and Mitsui are fully committed to support BIL in building its success further by leveraging both companies’ existing product line-ups, global network and strong track record. We are confident BIL will be able to transform itself into a world-class company with strong capabilities in distribution and manufacturing in the very near future. To accelerate this, we plan on bringing talents with agrochemical expertise and local experience to support BIL’s effort in strengthening its position as a key market leader in India.”

Since 1950s, Mitsui has progressively expanded its footprint in India and its portfolio now covers many sectors including mobility, infrastructure, chemicals, iron & steel, mineral & metals, energy, food, retail, healthcare and ICT. Today, they have 31 direct and indirect investments across the country. 

To get the India perspective of the same, we spoke to Faisal Ashraf, Managing Director, Mitsui & Co. India on the company’s long-term view on investing in India. He stated, “We are continuously adapting and innovating to meet India’s changing needs.  In recent years, we have ventured into new businesses catering to consumers in the healthcare, retail, and food & beverages sectors.  

Sustainability is another key area of focus and we have recently invested in solar energy solutions providers, as well as in EV related manufacturing and service providers. 

We continue to look favorably at India as a market, on account of its young and growing population and potential for long-term economic growth. We are keen to partner with Indian companies, from conglomerates to startups, offering access to our vast global network and world-class management expertise.”