July 19, 2002, Tuesday
Source: The Financial Express
Rallis Taps Avesthagen For Biotech Foray

Sambit Datta

Mumbai, March 18: Rallis India, agrochemicals major under the Tata group fold, is in talks with Bangalore-based Avestha Gengraine Technologies (Avesthagen) for a possible foray into biotechnology. The move comes in the wake of Rallis' keen interest to make an entry into biotech as well as farm management services.

Tata group investment vehicle Tata Industries has already picked up five per cent stake Avesthagen.

According to group sources, "Biotechnology is being seen as the emerging sector and Rallis has identified this sector as one of its thrust areas for growth.

Rallis India has initiated talks with a few companies for a partnership in its biotech foray, and Avesthagen is one of them."

However, sources said that plans are yet to be finalised. Analysts believe that since Tata Industries already has a stake in Avesthagen, it can help Rallis in leveraging its strength as a fully integrated biotechnology and bioinformatics. Biotechnology is not a capital intensive industry, but the investment is in the form of intellectual property."

Avesthagen is the brainchild of Dr Villoo Morawala Patell, a biotechnologist and PhD from the University of Louis Pasteur, Strasbourg, France.

The company aims to improve productivity in agriculture and develop agro-technologies that would lead to value addition in food and pharmaceutical products. Avesthagen's initial focus is on plant genomics, mainly rice. The company's synergistic model of Intellectual Property Development adds strength to its unique characteristics to become a leading biotechnology platform in India.

Rallis India, which passed through a difficult year, has embarked on a five point growth strategy. The five-point strategy includes sharpening business and product portfolios, improving cash management, introduction of new products, reducing costs throughout the value chain and strengthening controls and business processes.

Rallis has made a significant presence in the international market through its export division and its association with various companies.

In order to expand its geographical footprints and give a boost to exports, the company is planning to make inroads into markets in Australia and Far East. It expects to achieve a turnover of over Rs 100 crore from exports.