United Phosphorus appoints McKinsey

United Phosphorus appoints McKinsey
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First Published: Wed, Feb 14 2007. 12 15 AM IST
Updated: Wed, Feb 14 2007. 12 15 AM IST
Mumbai: United Phosphorus, India’s largest agrochemicals company, has appointed McKinsey & Company to advice it on global business integration. The company closed six acquisitions and a few joint venture deals abroad last year.
United Phosphorus currently has a presence in about 30 countries.The company’s move is quite significant now as several Indian companies, which have made overseas acquisitions in the past ,have still not been able to ensure the best synergy since they could not integrate the international business successfully. Business integration is a crucial aspect in the corporates’ inorganic growth strategy, especially when the acquired entities are based out of different geographies and follow different business models. Rajju Shroff, chairman and managing director, United Phophorus said, “McKinsey will advice the company on financial control, best use of resources and the production facilities in different geographies.” “They will also draft future growth strategy and the investment plans ,” he added.
Besides companies, United Phophorus had also acquired several brands of global companies, including Bayer CropScience, Dow AgroSciences and DuPont. McKinsey’s mandate in the company will also include the better market positioning of these brands in non-traditional markets. The company hadalso acquired the global Propanil herbicide business from Dow AgroSciences LLC in November 2006.
In September 2006, the company announced the purchase of the Bensulfuron-Methyl business, a rice and aquatic herbicide from DuPont. Under this agreement, the company and its subsidiaries throughout the world can start selling this product. The company had acquired the French company, Cererexagri, in November last year. With this, acquisition, the company became the third largestgeneric agrochemical company in the world.
This was the sixth acquisition of the company in the last calendar year, following the acquisitions of Advanta BV, Cropserve, products from Bayer CropScience, Bensulfuron from DuPont. United Phosphorus’ revenue for the year ended March 2006 was about $410 million (Rs180 crores).
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First Published: Wed, Feb 14 2007. 12 15 AM IST
More Topics: Money Matters | Commodities |