Ending its chase for buyouts, UPL now eyes consolidation

If select tech-led deals emerge, UPL will evaluate; but large, debt-heavy buys off the table

- T. Surendar & Satish John

The agro-chemicals company's restructuring move signals a strategic shift from aggressive acquisitions to deleveraging and capital discipline.

(HT)

Agro-chemicals maker UPL’s restructuring may have been pitched as value unlocking, but the market response has been sceptical.

When trading closed Monday, the stock had lost more than 14%, as brokerages flagged a largely-unresolved debt overhang.

The listed parent will transfer its Indian crop protection business and its global crop protection arm into a new India-listed subsidiary, UPL Global Sustainable Agrisolutions Ltd (UPL GSAL), through a share swap.

Existing shareholders of UPL will receive proportionate shares in the new entity, which will house the core crop protection operations. The parent will retain a majority stake, while specialty chemicals (under Superform) and seeds (Advanta) remain wholly owned verticals within the broader group architecture.

After years of building a sprawling global crop protection franchise through large acquisitions, chairman and group CEO Jai Shroff is drawing a line under that phase and shifting to consolidation, specialty chemicals and capital discipline.