Shroff hinted that the earlier construction involving UPL’s native crop protection business being housed in India and the global crop protection enterprise being housed in an abroad entity was not the best company construction.
“This will likely be shareholder pleasant. UPL India and UPL Global was inflicting confusion for shareholders. India is a way more appreciated market right this moment,” stated Shroff.
Shroff stated that there was volatility within the world crop safety enterprise and normal world volatility, and mixing the worldwide enterprise with the India enterprise was in that backdrop.
“Investors who want to invest in Brazil, Africa, US can get that exposure through this company (new listed entity). It presents good opportunities for various types of investors including family offices,” stated Shroff.
The reorganisation introduced on Friday is nearly a reversal of a company construction that was created by an earlier reorganisation of UPL in 2022. As per that reorganisation, the worldwide crop safety enterprise was parked in an abroad entity referred to as UPL Cayman Ltd and the native crop safety enterprise was parked in an Indian entity referred to as UPL SAS.
UPL has been contending with the problem of debt reduction after it acquired Arysta Crop Sciences for $4.2 billion in 2018. It has ₹30,000 crore debt. That acquisition was supported by $1.2 billion of funding from Abu Dhabi Investment Authority and TPG. They got 22% stake in UPL Cayman Ltd in lieu of that funding assist.
