Safex Chemicals India Limited, a leading agrochemical company in India, announces acquiring Mumbai-based Shogun Organics Limited. The acquisition will provide Safex a platform to backward integrate into the agrochemical technical segment and enter the Home Care & Agrochemical Technical Manufacturing segment. Meanwhile, the promoters of Safex, Mr. SK Chaudhary, Mr. Neeraj Jindal, Mr. Rajesh Jindal, and Mr. Piyush Jindal will join the board of Shogun Organics.
Founded in 1991 by late Mr. SK Jindal and Mr. SK Chaudhary, Safex manufactures and sells branded agrochemicals that help enhance the protection and productivity of Indian crops. The company has redefined the branded formulations segment in the Indian agrochemical market, through its unique multi-brand model and direct distribution strategy. It recently raised $50 million from leading India-focused growth private equity firm, ChrysCapital. Shogun Organics, is a market leader in the Indian home care technical segment and the company has approvals for manufacturing technicals for agrochemicals. The transaction was advised by Investec India (sole financial advisor) and Rohilla & Co. (legal counsels).
Commenting on the acquisition, Neeraj Jindal, Director, Safex, said, “We are pleased to welcome Shogun Organics and its team as part of the Safex Group. We believe Shogun Organics with its dominant leadership position in the Indian home-care technicals segment, strong customer relationships and export capabilities is an ideal fit for the next phase of Safex’s growth journey. We intend to leverage Shogun’s existing infrastructure to backward integrate into the agrochemical technicals segment and expand into the agrochemical exports market”.
“Safex is excited to partner with Shogun’s management team in its growth journey. Home care technicals is an attractive market and Shogun has consistently maintained more than 50% market share in the segment. We believe there are strong synergies between the two companies and the combined entity would provide a platform which will further propel Safex into a marquee player in the agrochemical and home care technicals segment”, said Piyush Jindal, Director – Safex.
Safex is amongst the fastest growing agrochemical companies in India with a 26% revenue CAGR over the past 4 years. It has consistently outperformed the industry in 9 out of the last 10 years. Today, Safex has a pan-India presence with a network spanning 10,000+ distributors across 17 states.
About Safex Chemicals
Founded in 1991, Safex Chemicals is a leading player engaged in manufacture and sale of crop protection products across India. Starting from the two northern states of Punjab and Haryana in 2010, the Company has successfully expanded into 17 states with a pan-India distribution network of more than 10,000 dealers and services more than 20 lakh farmers. Safex has a unique marketing strategy with comprehensive product portfolio of over 100 products across insecticides, herbicides, fungicides, micronutrients, pesticides and plant growth regulators. It has been amongst the fastest growing agrochemical players in India with revenues of INR 700 Crores in the current fiscal (grown 18x in the last 11 years).
About Shogun Organics
Founded in 1993, Shogun Organics is the largest player in Indian home-care technicals segment with a dominant market share and also has approvals for manufacturing technicals for agrochemicals. Shogun manufactures active ingredients and technicals primarily used in the home care and mosquito repellent industries. Shogun has a strong customer base with leading players like Godrej Group and Reckitt amongst its customers. Shogun also exports its products to over seven countries.
