Mahyco (IFC-42190)

Regions
  • Africa
  • East Asia and Pacific
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bangladesh
  • Burkina Faso
  • Kenya
  • Malawi
  • Nigeria
  • Tanzania
  • Vietnam
  • Zambia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 17, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Mahyco International Pte Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 26.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 20, 2024

Disclosed by Bank Oct 3, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank document, Mahyco International Pte Ltd. (“Mahyco International” or the “company”) is a subsidiary of India’s leading seed producer Maharashtra Hybrid Seeds Company Ltd
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$10 million 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.

The Project compromises funding the technology costs, working capital needs, pre-commercialization costs and capex in several countries in SSA including Nigeria, Malawi, Kenya, Zambia, Tanzania and Burkina Faso and in Asia (including Bangladesh, Vietnam, Indonesia, the Philippines, Laos and Cambodia).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Mahyco India or the “Sponsor”- https://mahyco.com/ was 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 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.

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.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Mahyco India Parent Company Agriculture and Forestry owns MAHYCO INTERNATIONAL PTE. LTD. Client Agriculture and Forestry

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

1/ Project Contact

Mahyco International Pte. Ltd.
Subbarao Appemane
Sr Vice President corporate communications
+91-22-67573000
subbarao.appemane@mahyco.com
4th Floor, Resham Bhavan, No.78, Veer Nariman Road, Mumbai - 400020
www.mahyco.com

2/ Local Access for Project Documentation

Mahyco Grow South Africa

24 Bank Street, Groblersdal 0470

Limpopo, South Africa

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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