Sumitomo Corp. and Summit Agro International Ltd. announced it established a local subsidiary, Sumisho Agro India Private Limited, in Mumbai to undertake agrichemical trading activities in India.
“India is the world’s second-largest producer of agricultural products, and its agrichemical market is now on the order of 300 billion yen (ranking 5th worldwide in 2016), growing at the rate of annual 7%. At the same time, it continues to gain in status as a supplier of agrichemicals products such as technical grade of active ingredients. There is considerable room for improving yield per unit area in India’s crop production, and growing needs for safe and efficient crop production are expected to drive an expansion of its agrichemical market,” according to a Summit Agro statement.
Primarily responsible for registration, holding and development functions for safe high-quality new products from Japanese agrichemical manufacturers, the Indian subsidiary will concentrate on maximizing the sales of such new technology brought from Japan. It will also enhance its functions as a strategic partner for Japanese agrichemical manufacturers by stepping up its procurement of raw materials from within India, the company said.
The Indian business functions that had for the most part been provided by Summit Agro from Japan, will enable more rapid responses to changing needs. By supplying locally-procured goods via the Sumitomo Corporation Group’s network, one of Summit Agro’s key assets, the Indian unit will aim to further exhibit its presence in the Asian agrichemical market.
Demand for food in the Asian countries, including India and Southeast Asia, is expected to surge with economic development and population increases, making it essential to improve agricultural productivity. Improved agricultural productivity will directly lead to higher revenues for Asians whose livelihood is agriculture, and help alleviate the impact of the uncertainties (weather, etc.) facing agriculture.
The Sumitomo Corp. Group has positioned Asia as the third important region after Europe and the Americas for its agribusiness network, and has been steadily adding up business functions across Asia.