Delving Up Profits: How UPL Harvested 88,204% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in UPL in August 2002, you could have had ₹19.2 crores today! This multibagger gave its investors ₹8,82,04,000 returns and ₹10,44,82,278 in dividends.

🌾 Stock: UPL Ltd.

🌱 About the Company
UPL is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, speciality chemicals and the production and sale of field crops & vegetable seeds.

Here are the major defining factors of the company:

▪️ Is the fourth-largest seed-producing corporation in the world and the fifth-largest agrochemical company, with operations in 138+ countries.

▪️ Being a global producer of sustainable agriculture goods and solutions, it has an annual turnover surpassing $5 billion and has market access to 90% of the world’s food basket.

▪️ Has more than 25 R&D facilities spread across the world. The company has been granted 1,266 patents and has 1,283 product formulations.

▪️ Offers more than 13,600 products, which include seeds, crop protection and post-harvest solutions, and has a presence across the entire agriculture value chain.

🏭 Brand Positioning

▪️ Has made more than 40 successful acquisitions over the past 25 years and its growth strategy is to buy businesses with a large industry presence.

▪️ Derives 80% of its revenue from branded products and it intends to position itself as a branded generic manufacturing company rather than a commoditised agro company.

▪️ Has 44 manufacturing facilities which are spread across the world.

♟️ Market Positioning
With its firm control over the supply chain, UPL has been both a price-setter and a disruptor. By lowering pricing or switching away from Chinese suppliers, it can increase market share. When you pair UPL’s low-cost manufacturing and distribution power with Arysta’s asset-light, high R&D business strategy, they are capable of instantly bringing the competition right to the big players.

On August 20, 2002, the shares of the company were trading at ₹0.87, while they were priced at ₹768.25 as of August 19, 2022.

Categories: Multibaggers


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