UPL Ltd to retain revenue streams from its speciality chemical arm after restructuring

Mumbai, Mar 5 (PTI) UPL Ltd on Thursday said that post-restructuring it will retain revenue streams from its speciality chemical arm, Superform, and formulations, ensuring that it remains a strategic operating holding entity with significant scale and size.

It added that UPL will function as the incubation arm for scaling businesses, besides continuing to house the R&D, formulation, supply contracts, among others.

Post-restructuring, UPL will continue to accrue revenue from formulation streams, as well as from the full consolidation of Superform, a statement said. Superform had reported revenue of more than Rs 10,000 crore and EBITDA of over Rs 1,100 crore in FY25.

According to the Scheme of Arrangement filed on stock exchanges, Superform will continue to remain a wholly owned subsidiary for the foreseeable future.

Agro-chemical firm UPL Ltd is integrating Indian and international crop protection businesses into a single listed entity 'UPL Global', as the company aims to create a dedicated pure-play platform for the growth of this business globally while simplifying group structure.

UPL Ltd is a global provider of sustainable agriculture products and solutions, with annual revenue exceeding USD 5 billion.

The UPL board last month approved a composite scheme of arrangement among itself, UPL Sustainable Agri Solutions Ltd (UPL SAS), UPL Global Sustainable Agri Solutions Ltd (UPL Global), UPL Crop Protection Holdings Ltd (UPL Cayman) and their respective shareholders.

UPL holds 90.91 per cent stake in UPL SAS and 77.78 per cent stake in UPL Cayman, its international crop protection business.

The scheme proposes to consolidate the Indian crop protection business held in UPL SAS and the global crop protection business held in UPL Cayman, under a single entity, creating a focused, pure-play crop protection platform, according to the scheme aimed at simplifying the group structure and unlock shareholders' value.

As per the scheme, UPL SAS will be merged with UPL in the first step. Then, there would be a vertical demerger of India's crop protection business from UPL into UPL Global. Lastly, there would be an amalgamation of UPL Cayman with and into UPL Global.

The UPL Global will be listed on the Indian stock exchanges. The process is expected to be completed in the next 12-18 months. PTI IAS MR