HYDERABAD: Crop protection products manufacturer Coromandel International Limited (CIL)on Saturday announced that it has entered into an agreement with Japanese firm Yanmar Co Ltd and Mitsui & Co (Asia Pacific) Pte Ltd, to establish a joint venture for manufacturing and marketing of Yanmar branded rice transplanters and harvesters.

According to the company, the joint venture agreement provides for setting up of manufacturing facility initially for manufacture of rice transplanter and harvesters. It is also proposed to indigenize certain components over a period of time to bring down the overall cost of the products, the company statement said. The project is estimated to be Rs 40 crore.

CIL also pointed out that under the joint venture agreement, the capital contribution will be in the ratio of 40% by the company, 40% by Yanmar and 20% by Mitsui.

Commenting on the joint venture, CIL managing director Kapil Mehan said, “The development of cost competitive agriculture manufacturing capability will allow Coromandel to further scale up its farm mechanization services (FMS) through its retail outlets.” CIL currently offers FMS only in certain areas of Andhra Pradesh and these services mainly focuses on paddy transplantation.