SeedCo close to selling Quton

Published: 14 November 2013

Seed manufacturer, Seed Co Limited, is close to sealing a deal for the disposal of its cotton planting seed unit, Quton, to an Indian firm Mahyco.

The deal is expected to improve cotton production in the country and comes after Seed Co shareholders recently approved a $60 million deal under which French-based international vegetable seed developer Vilmorin & Cie will acquire a 25 percent stake in the local company.

The seed company is said to have put a price tag of close to $40 million on Quton.

Seed Co acquired Quton from Cottco in 2006.

Quton is the only cotton planting seed company in Zimbabwe and its main role is breeding, processing and marketing cotton seed to largely smallholder farmers in the SADC region.

Group chief executive officer, Morgan Nzwere, said the group was looking for a strong technical partner for its cotton seed business.

Mahyco is being represented by Ernst and Young India on the deal which is expected to be concluded early next year.

Group public relations manager Marjorie Mutemererwa said Mahyco would be a technical partner in Quton.

This suggests Seed Co will not completely exit the company.

Founded in 1964, Mahyco is the pioneer of high quality hybrid seeds.

Equipped with the best of technology and driven by an intensive research unit, Mahyco is said to have revolutionized the Agrarian face of India.

Mahyco produces seeds for a wide range of crops including hybrid cotton, hybrid field crops and hybrid vegetables.

"It all started with a vision to change the agricultural face of India and to make India self- sufficient," said Mahyco on its website.

Quton sales and marketing executive, Petronella Murambiwa, last week said the cotton outlook in Zimbabwe was bright despite the challenges that they had been facing due to climatic changes.

She said planting of cotton began on October 23 and will end in mid November although this can be extended if there was need.

"It will be a better season for both farmers and ginners," she said about the industry's outlook.
- fingaz