Deal culminates three year research by AG Global.
By Deepak Chitnis
WASHINGTON, DC: One of the leading organic fertilizer manufacturers in the US, AG Global, has signed a long-term supply deal with India-based conglomerate EID Parry India Ltd. to secure neem (Indian lilac) plants and related products from the subcontinent.
The deal was announced on Wednesday, with the agreement bringing together two of the biggest and most well-known agricultural firms in the world.
Parry, in particular, is the world’s largest manufacturer of neem-based products. The neem plant, known by the scientific classification Azadirachta indica, is only found in India, Pakistan, and Bangladesh, and is commonly used in food, medicine, toiletries, and for industrial and agricultural applications. Studies have revealed that the plant is anti-fungal, antibacterial and antimicrobial.
As a manufacturer of all-natural fertilizers, adding neem to its product line makes incredible sense for AG Global. Parry will also benefit by gaining access to AG Global’s distribution networks across North America.
AG Global CEO Brian Iversen said as much, revealing that the deal with Parry marks the culmination of a three-year research process into neem and its potential uses in fertilizer.
“After three years of in-house product development and research conducted with the Vineland Research and Innovation Center [in Ontario, Canada] and the Guelph Turfgrass Institute, we are now ready to move forward with neem as a key component of AG Global’s product offering” said Iversen, in a press release. “This partnership with Parry America is a direct response to positive research findings and the search for new and environmentally friendly fertilizer and pesticide solutions.”
Parry America, Inc. CEO Narasimha Rao Kothapalli also voiced his adulation at the new long-term agreement, the specific length of which was not revealed.
“Working with AG Global, we have the best partner to develop and cultivate sales opportunities in the home and garden market for neem-based products in North America,” said Kothapalli, in the same press release. “AG Global’s commercial skillset and ability to bring environmentally-friendly agricultural products to market have resulted in enormous growth and response from all market sectors. This new generation of products improves our ability to be responsive to the changes in our environment in a responsible manner in North America, and throughout the world.”
Parry America Inc. is a subsidiary of EID Parry (India) Ltd., a public company headquartered in Chennai, that has been in business for more than 225 years. Currently, Parry markets more than 1.5 million tons of fertilizers and helps improve agriculture productivity and techniques around the globe.
AG Global is a portfolio company of Riverstone Holdings, an “energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27 billion of equity capital raised.”
To contact the author, email to deepakchitnis@americanbazaaronline.com