Mahyco

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 Mahyco International Pte Ltd. (“Mahyco International” or the “company”) is a subsidiary of India’s leading seed producer Maharashtra Hybrid Seeds Company Ltd (Mahyco India or the “Sponsor”- https://mahyco.com/). Established in 1964, Mahyco India has its headquarters in Mumbai and field research station in Jalna, Maharashtra. Mahyco India was the first Indian company to introduce hybrid seeds across field crops (including grains and cereals), cash crops (such as cotton and sunflower) and vegetables and to commercialize Bt cotton in 2002. The Sponsor focuses on research, development and commercialization of a variety of seeds to produce quality seeds that ultimately improve farmer’s income. Mahyco India has total processing capacity of 720,000 quintals/annum. The processing plants are located at Vejalpur (Gujarat), Dhanora (Maharashtra), Nizamabad and Kalakkal (Andhra Pradesh), Kota (Rajasthan) and Khandwa (Madhya Pradesh). In addition, contract processing plants are located in D’Raja, MeraPhata and Chikali in Maharashtra as well as in Mansa, Vijapur, Modasa, Bodeli and Idar in Gujarat. Mahyco India has over 20,000 retail points, and its seeds are used by over 10 million farmers. Mahyco International was founded in 2013 to establish a separate focus on developing international business and currently sells open pollinated (OPV) cotton seeds in Africa and hybrid and OPV rice seeds in Vietnam and Bangladesh. Mahyco International has subsidiaries in various countries in Africa (Zimbabwe, Malawi, Kenya, Nigeria, Tanzania and South Africa) which has either been acquired or newly set-up (company acquired 60% of Zimbabwe-based Quton Seed Co. in FY15, has 60% shareholding in subsidiaries at Tanzania, Zimbabwe and Malawi and also acquired Mahyco Grow in South Africa). Mahyco International’s subsidiaries in South-East Asia are in Vietnam and Bangladesh and there are plans for expansion in Indonesia and Philippines. Currently about 500,000 farmers across Africa and 25,000 farmers across South-East Asia use Mahyco’s products. The expansion plans include introduction of hybrid and insect tolerant cotton in Africa after obtaining regulatory approvals for commercialization of its products and introduction of hybrid rice and insect tolerant Brinjal varieties in South-East Asia. The Company currently has 2 breeding stations, one in Vietnam and the other in West Bengal (India), from where it serves Bangladesh and it aims to expand to other countries in South-East Asia. There are no processing facilities owned by the company in South-East Asia and company has about 84 demonstration plots in Vietnam and Philippines with over 400 production farmers in Vietnam. Within Africa, the company has 4 processing facilities located in Zimbabwe, Tanzania, South Africa and Malawi and around 3,250 demonstration plots across Zimbabwe, Malawi and Zambia. Company has access to about 32 ginner network (with ginning facilities being owned by the respective ginner) and around 35,000 production farmers across Zimbabwe, Tanzania, Malawi and South Africa. The total cost of the Project is estimated at US$26 million to finance the company’s expansion into Sub-Saharan Africa (SSA) and South-East Asia (including Bangladesh) in its primarily cotton and rice seed business (the Project). IFC proposes to support the Project with US$20million in funding, comprising of a US$10 million equity investment from IFC’s own account and a US$10million equity investment in its capacity as Implementing Entity of the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP). The balance is proposed to be funded through internal accruals.