Merger of Group Companies in India

Aug. 2, 2018

Sumitomo Chemical Company, Limited ("Sumitomo Chemical") announced today that the Board of Directors of each of Excel Crop Care Limited ("ECC") , whose equity shares are listed on the National Stock Exchange of India Limited and the BSE Limited, and Sumitomo Chemical India Private Limited ("Sumitomo Chemical India"), both being Group companies of Sumitomo Chemical, resolved yesterday on a merger between the two companies, subject to receipt of all regulatory and other approvals as per applicable laws. Upon merger, Sumitomo Chemical India will be the surviving company. Furthermore, the merged Sumitomo Chemical India is expected to get its equity shares listed on the National Stock Exchange of India Limited and the BSE Limited post completion of the merger and after receipt of approvals from the regulatory authorities.

In light of a vigorous expansion of food demand spurred by a population growth in India, Sumitomo Chemical established Sumitomo Chemical India back in 2000 as its manufacturing and marketing base for crop protection products in the country. Thereafter, Sumitomo Chemical constantly endeavored to fortify the foundation of its crop protection business in the country through various initiatives, including the acquisition of a local manufacturing company in 2010. In 2016, Sumitomo Chemical acquired majority stake in ECC, an agrochemical company with strong brands and broad sales channels, which helped solidify Sumitomo Chemical Group's presence in India, the seventh-largest agrichemical market in the world, as of 2016, with its growth prospect being as high as 4.6 percent over the five years through 2021.

Upon completion of the intended merger, the new Sumitomo Chemical India will fully leverage the rich product portfolio and established sales network of ECC and Sumitomo Chemical in a mutually complementary manner and also make more focused and efficient use of their management resources so that the company will become a leading player in the India’s crop protection market which holds the promise of a continued high growth. Outside India, the new Sumitomo Chemical India will make the most of the two companies’ overseas sales networks to achieve a further expansion in sales. Needless tosay, such an endeavor to drive business growth and expansion will always be accompanied by concurrent and consistent efforts to strengthen each company's management foundation such as legal and ethical compliance and proper internal control, among others.

Sumitomo Chemical positions the field of life science, including crop protection business, as one of its key business domains that are likely to show high growth in the future. Through the undertaking announced today and other initiatives, Sumitomo Chemical will promote expanding activities further in the crop protection field, contributing to ensuring the stable supply of safer and secure food which is in growing demand globally.

Profiles of Sumitomo Chemical India and ECC

Company Name	Sumitomo Chemical India Private Limited
Headquarters	Mumbai, Maharashtra, India
Established	April 2000
Business	Development, manufacturing and sales of crop protection products, household insecticides and feed additives

Company Name	Excel Crop Care Limited
Headquarters	Mumbai, Maharashtra, India
Founded	1941
Established	2003
Business	Manufacturing and sales of crop protection products

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