UPL is a leading global generic player in the agro chemical industry on March 1 announced a long-term strategic collaboration with FMC Corporation, a leading global agricultural sciences company. The agreement provides UPL access in key markets prior to patent expiration, to commercialize Rynaxypyr active, FMC's leading insecticide.
As per the agreement, UPL will toll manufacture and supply Rynaxypyr to FMC in India, and FMC will supply the active ingredient to UPL depending on the markets. The deal adds a key portfolio of products to UPL's business and supports FMC in maximizing the penetration of this important active ingredient.
"We are very excited to work with FMC on this mutually beneficial agreement. The collaboration clearly demonstrates our commitment to our OpenAg Purpose to create an agriculture network that feeds sustainable growth for all," said Jai Shroff, Global CEO of UPL. "Early access to Rynaxypyr formulations in key markets allows UPL to provide growers with more sustainable product choices," according to Diego Casanello, COO of UPL. "This agreement enables us to add a new core active ingredient to our portfolio and to develop a new family of innovative, high-value solutions for farmers."
"We are pleased to engage in this strategic relationship with UPL, adding a new global partner to our diamide growth strategy," said Mark Douglas, FMC president and chief executive officer.
"This is an important collaboration for FMC to expand our leading diamide technology in diverse geographies and crops with differentiated formulations. FMC has continued to grow the diamides significantly since acquiring them in late 2017, including achieving double-digit year-on-year growth again in 2020. We forecast the diamide franchise will continue to grow above market rates, and our strategic partners are an important component in that growth," he added.
Rynaxypyr is considered a reduced risk pesticide due to its favourable toxicological and environmental profile. It is a useful tool for farmers in integrated pest management systems. This provides opportunities for growers to implement more sustainable solutions, supporting UPL's mission to make every single food product more sustainable.
Shares of the company gained Rs 29.15, or 5.20%, to settle at Rs 590.25. The total volume of shares traded was 455,587 at the BSE (Monday).