UPL Limited , a global leader in sustainable agriculture solutions, has unveiled plans for a significant internal restructuring of its business operations. The company intends to integrate its Post Harvest Business, DECCO, with its Advanta Seed Business, marking a strategic move to enhance synergies and streamline operations.

Integration Details

According to the company's filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), Advanta Mauritius Limited, a subsidiary of Advanta Enterprises Limited, has approved the purchase of the post-harvest business currently housed under Decco Holdings UK Limited. Decco Holdings is a wholly-owned subsidiary of UPL Corporation Limited, Mauritius, which in turn is a wholly-owned subsidiary of UPL Limited.

Financial Implications

The transaction is proposed to be concluded at an enterprise valuation of approximately US $502 million, subject to closing adjustments and findings. As per the consolidated financial statements of DECCO for the year ended March 31, 2025:

Strategic Rationale

UPL stated that both entities share a strong service-led culture and a commitment to delivering sustainable, science-based solutions to farmers and food producers worldwide. The integration is expected to bring significant potential upside, driven by:

• Synergies in adjacent focus areas
• Guidance from experienced and proven Advanta leadership
• Shared back-end infrastructure
• Overlapping presence in emerging markets
• Opportunities for enhanced digitization

Transaction Details

• The integration represents an internal group realignment.
• Post-transaction, DECCO business will be consolidated with the Advanta seed business.
• UPL's effective holding in the integrated entity will be approximately 78.21% after the transaction's conclusion.
• The sale/disposal is expected to be completed on or before December 31, 2025.

Regulatory Compliance

The transaction is subject to shareholders' approval of UPL Limited, as it falls under the category of a material related party transaction. UPL has assured that the transaction will be executed at arm's length, based on a valuation report received from KNAV Advisory Private Limited, a registered valuer.

This strategic move by UPL demonstrates the company's commitment to optimizing its business structure and leveraging synergies across its diverse agricultural solutions portfolio. As the integration progresses, it will be interesting to see how this realignment impacts UPL's market position and operational efficiency in the competitive agricultural solutions sector.

UPL Ltd. , a global leader in sustainable agriculture solutions, has announced a significant internal realignment and completed a substantial block trade on the National Stock Exchange (NSE), demonstrating continued market activity in the agrochemical sector.

$502 Million Internal Realignment

UPL's subsidiary Advanta Mauritius has approved the $502 million acquisition of Decco Holdings UK, a wholly owned subsidiary of UPL Corporation Mauritius. This related-party transaction is part of an internal business realignment aimed at consolidating UPL's post-harvest operations under its seed platform. Key details include:

• Decco's consolidated revenue: ₹933.00 crore (1.98% of UPL's revenue)
• Decco's net worth: ₹431.00 crore
• Deal completion: Expected by December 31, 2025
• Shareholder approval required

Following the completion, Decco's operations will integrate with Advanta's seed business, where UPL will maintain a 78.21% effective stake. The company anticipates operational synergies, enhanced digitalization opportunities, and scale advantages across emerging markets.

Block Trade Details

The block trade, executed on the NSE, involved the following key details:

This substantial transaction highlights the ongoing interest in UPL's shares and potentially reflects strategic movements within the company's ownership structure.

Recent Corporate Developments

Strategic Investments

1. Thailand Investment: UPL Global Limited, a UK-based step-down subsidiary of UPL Ltd., has entered into a Share Subscription Agreement to acquire a 49% stake in Grow Chemical Co Ltd., a Thailand-based company, for $0.76 million. This move aims to strengthen UPL's presence in the Southeast Asian market.

2. Decco Acquisition: The $502 million acquisition of Decco Holdings UK by Advanta Mauritius is expected to bring operational synergies and enhance UPL's post-harvest capabilities.

Changes in Promoter Group Shareholding

Recent disclosures indicate some movement within the promoter group shareholding:

• Nerka Chemicals Private Limited increased its stake in UPL Ltd. from 21.29% to 21.41%.
• Uniphos Enterprises Limited reduced its stake from 5.05% to 4.94%.

Market Implications

The execution of the block trade, coupled with the strategic investments and the subtle shifts in promoter group shareholding, indicates that UPL Ltd. is actively managing its capital structure and expanding its global footprint. These moves could potentially impact the company's market position and future growth strategies in the agrochemical industry.

UPL shares closed 2.45% lower at ₹710.15 ahead of the announcement of the Decco acquisition.