The board approved a joint plan of arrangement aimed at unlocking shareholder value and streamlining the group structure. Once completed, the move will result in two listed companies UPL, which will continue as a diversified agricultural and specialty chemicals platform, and a new entity, UPL Global Sustainable Agri Solutions, which will operate an integrated crop protection business.
The restructuring will bring together UPL’s domestic and overseas crop protection operations under UPL Global, positioning it as a focused, integrated crop protection player with an independent management structure and capital-raising flexibility.
This plan includes three main steps. UPL Sustainable Agri Solutions, which houses the Bharat Crop Protection platform and in which UPL holds a 90.91% stake, will be merged into UPL. Second, India’s crop protection business will be vertically demerged from UPL to UPL Global.
Third, UPL Crop Protection Holdings, the vehicle through which UPL holds 77.78% of its international crop protection business, will be merged into UPL Global.
Upon completion, UPL will be listed on the Global Stock Exchange and will serve as a dedicated crop protection platform covering Indian and global markets.
The company said the restructuring is designed to provide a clearer value proposition for investors. By separating the crop protection business from a broadly diversified portfolio, shareholders will have the option of investing in a focused pure-play crop protection company or a more diversified agricultural and specialty chemicals business, depending on their investment preferences and risk appetite.
UPL also said the move will streamline its group structure by consolidating crop protection operations into a single entity. This is expected to improve operational synergies in research and development, manufacturing and global market access.
An integrated framework is likely to strengthen coordination between product development and commercialization, particularly across geographies. The company highlighted that UPL Global will benefit from UPL’s established manufacturing base and research capabilities along with a broad international product portfolio.
By placing these assets under a consolidated crop protection unit, management believes the business can operate with a sharper strategic focus and improved capital allocation.
Another key objective is to increase strategic and financial flexibility. After the separation, UPL and UPL Global will be able to raise capital independently. This is expected to allow each entity to optimize its capital structure according to its specific growth strategy. UPL Global, as a focused crop protection platform, can attract a unique set of global investors, strategic partners and lenders who are particularly interested in that segment.
The separation will enable UPL Global to expand its capital base and pursue growth opportunities with greater agility, the company said. By more closely aligning business strategy and capital allocation, the Group expects to drive long-term value creation for stakeholders.
The transaction is subject to regulatory and other approvals and is expected to be completed in 12 to 15 months.
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