Insecticides (India) to set up R&D joint venture with Japan’s Otsuka AgriTechno

New Delhi, September 27, 2012
In its endeavor to provide latest technology to the farmers,India’s leading agrochemicals manufacturing company Insecticides (India) Ltd (IIL) is partnering with Japan-based Otsuka AgriTechno Co. Ltd (OAT) to set up a joint venture (JV) for research and development (R&D) of new products. The JV will allow both partners to tap into skilled yet relatively inexpensive technology talent in India to develop new molecules for global markets, including India and Japan.

Under the terms of the JV, both the companies have agreed to establish a 4000 sqmresearch centre in Bhiwadi, Rajasthan. The state-of-the-art research centrewill be first of its kind, employing both Japanese and Indian researchers under the same roof.

OAT would leverage its product development experience in Japan to contribute towards R&D process and know-how of the research and invention methods.The JV would mainly focus on research and invention of new agricultural chemicals, and it will manage the intellectual property developed at the research centre.

IIL and OATwilleach have the exclusive right to develop, productize and commercialize the new products across the world in their specified territories. IIL will have the opportunity to manufacture the products invented at the JV, for international requirements ofOAT and IIL as well as their respective partners.

IIL will hold 30% voting rights in the JV and the restwill be held by OAT.

Commenting on the development, Rajesh Aggarwal, Managing Director, IIL, said: "We arecommitted to providing world class agrochemicals to farmers. This JV reflects our commitment in that direction. It will help IIL to move up in the value-chain and own intellectual property. The new products invented in the research centre will help farmers to increase their crop yieldmulti-fold".

"The research centre will have brains from both India and Japan. A team of scientists will work at the centre to invent about 4-5 molecules in next 5 years. We will primarily target insecticides and herbicides(no fungicides I think)," Mr. Aggarwal said.

Commenting on this partnership, Akihei Mori, President of OAT said: "This JV will be a new milestone for our company. The products which will be invented at the new research centre will immensely benefit farmers in India, Japan as well as in other parts of the world. We hope the JV will help both the companies to substantially enhance values to mutual shareholders. We are very excited to work with our partner IIL".

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