August 27, 2003
Source: The Financial Express
Avesthagen, Kerala Govt Tie Up For Rs 10-cr SPV

Our Corporate Bureau

Thiruvananthapuram, August 26: Avestha Gengraine Technologies (Avesthagen) has tied up with Kerala government for a Rs 10-crore Special Purpose Vehicle (SPV) firm. The MoU for this was signed on Tuesday by Villoo Morawala-Patell, founder-CEO, Avesthagen and John Mathai, principal secretary (industry), Kerala government.

The strategic alliance will be constituted within three months, Kerala industry minister PK Kunjhalikutty said in a function to mark the signing of the MoU. Since the niche area for Kerala in the $150 billion world biotech market is in phytopharmaceuticals and nutraceuticals, Avestagen will furnish the technical expertise to sharpen this advantage.

"The first assignment of Avestha Gengraine-Kerala government SPV will be to validate Ayurveda or tribal medicine products of companies equipping them for the international market," Dr Patel said. But even before that the Bangalore-based BT firm will have to take the lead in securing funds for the SPV. "A detailed business plan including specific research objectives, investment particulars and milestones, is almost ready," she said.

At a later stage, the alliance will also be more effective in utilising Avesthagen Inc. USA to find suitable partners for commercialisation of Kerala products worldwide, said V Ramachandran, vice-chairman, Kerala State Planning Board. The newly-formed SPV will thus fill strategic gaps in the value chain leading to promoting phytoceuticals in international market. MS Valiathan, chairman, Kerala Science and Technology Committee, who is a pioneer in public private partnership models in biotechnology startup, forged the alliance between Kerala BT and Avesthagen. The tie-up also comes within a week of the state announcing its BT policy.