FMC India Commercial Business Up for Sale Amid Financial Restructuring
10 August 2025, New Delhi: FMC Corporation has announced its decision to divest its India commercial business amid ongoing financial challenges and a prolonged market slowdown in the country. The move comes as part of a broader strategic shift to streamline operations and focus on more profitable segments, following a tough quarter marked by sluggish cash flow and persistent destocking in India.
Despite reporting second-quarter revenue of $1.05 billion—up 1% year-over-year—FMC’s net income plunged by 77% compared to Q2 2024. The sharp drop is primarily attributed to the absence of one-time tax incentives that had boosted last year’s figures. Adjusted EBITDA for the quarter stood at $207 million, a modest 2% increase, while free cash flow fell significantly to $40 million—down by $241 million from the previous year—highlighting mounting pressure on the company’s financials.
One of the key pain points has been FMC’s performance in Asia, particularly India. The company reported a 17% year-on-year revenue decline in Asia, driven by reduced volumes and lower pricing in India amid continued channel destocking. This sluggish demand in India, coupled with price pressure from cost-plus contracts and currency headwinds, appears to have been a tipping point for FMC’s leadership.
As a result, FMC’s Board of Directors has approved the sale of its India commercial business, which includes its on-ground sales and marketing operations. However, the company plans to maintain a strategic presence in India through a supply agreement with the eventual buyer, ensuring that its patented molecules—including next-generation diamide technologies and biologicals—remain accessible in the Indian market.
Notably, FMC will retain its manufacturing footprint in India, reflecting the country’s importance as a cost-effective production base, even as it scales back direct commercial engagement.
The company clarified that the India commercial business will be classified as “held for sale” starting in Q3 2025. While revenue from India will still be reported in top-line figures, it will be excluded from forward-looking earnings metrics like adjusted EBITDA and adjusted EPS. FMC has reaffirmed its full-year 2025 guidance, but revenue projections now exclude India, resulting in an expected range of $4.08 to $4.28 billion, down 2% at the midpoint compared to 2024.
Industry observers see this move as a signal of how global agribusinesses are reassessing their exposure in price-sensitive and inventory-heavy markets like India, where volatility, regulatory complexities, and delayed channel recovery continue to pose long-term challenges.
The sale process is currently underway and is expected to conclude within the next year.
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