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Summit Partners makes first India investment in Krishidhan Seeds

Growth equity investor Summit Partners has completed its investment of USD30m in India’s seed trading company Krishidhan Seeds.

The minority investment will be used for research and development, technology and product-related acquisitions, international expansion, and company infrastructure.

Krishidhan Seeds develops, produces and distributes proprietary hybrid seeds and selections to Indian farmers.

The company has experienced sales growth of six times over the last five years. It reported consolidated revenues of approximately USD61m for the year ended September 2009 and is on track to generate more than USD88m for the current financial year.

Sushil Karwa, managing director of Krishidhan Seeds, says: “Summit Partners is a global growth equity firm with a successful history of partnering with family-owned businesses and helping them realise their full potential. The Summit team demonstrated a genuine understanding of our business dynamics, the marketplace, and opportunities for our ongoing success. The Krishidhan team is excited to partner with Summit to achieve the next phase of development for our company. We are committed to sustainable agriculture with the next generation in mind.”

Amit Chaturvedy, vice president of Summit Partners, says: “India is one of the major agrarian economies of the world, with a growing population and rising per capita income that have placed significant pressure on its agricultural productivity. Krishidhan’s research-driven products increase farm productivity and offer Indian farmers a strong value proposition – which will increase as Krishidhan commercialises more than 125 hybrid seeds and selections from its product pipeline over the next three years. We are very impressed with Krishidhan’s commitment to R&D, growth trajectory, dynamic management team, and well-controlled business operations through SAP. We look forward to a successful partnership.”

Chaturvedy will become a director on the Krishidhan’s board effective immediately and Summit’s Vinay Kashyap will become a board observer.

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