Rallis buys Metahelix Life for Rs 100 cr

Rallis India Ltd,a Tata Chemicals unit,announced acquisition of a majority stake in Metahelix Life.

Rallis India Ltd,a subsidiary of Tata Chemicals,today announced acquisition of a majority stake of 53.5 per cent in Bangalore-based Metahelix Life,a seeds research company.

“We have acquired Metahelix Life in an all-cash deal of Rs 99.5 crore,funded largely through internal accruals. The acquisition will bring in significant capabilities in seeds play,” Rallis India’s Managing Director and Chief Executive V Shankar told reporters here.

The acquisition is the company’s first inorganic foray in the seeds space,providing a strong platform in the entire value chain that comprises breeding,production and marketing of seeds,Shankar said.

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Rallis plans to increase its stake in the company up to 100 per cent in five year’s period.

Rallis will subscribe to an additional equity of Rs 25 crore to increase its stake in Metahelix to 59.02 per cent on a fully diluted basis. Rallis stake in the company to go up to 100 per cent in five year’s period,Shankar said,adding that Rallis may also invest in the company’s R&C facilities.

“This acquisition aims at predominantly driving the agricultural productivity and yield enhancement in the country. There is an increasing demand of quality and with this new acquired strength,Rallis will be in a firm position to provide a trustworthy portfolio of seeds to the Indian farmers,” Shankar said.

Rallis India,known for its manufacturing capabilities in crop protection chemicals,sees huge opportunity in quality seeds development.

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The global seeds and traits industry is estimated at USD 42 billion and India’s share is USD 1.5 billion.

Metahelix Life Sciences,which focuses on seed research,has research facilities in Bangalore,Hyderabad and Ahmedabad including many product testing locations across the country.

Metahelix has a product portfolio in rice,maize,millets and vegetable seeds along with good germplasm with many exciting products in the pipeline. It has nationwide sales presence through Dhaanya Seeds,sold through around 1000 distributors. Metahelix is the first Indian company to have a proprietary Bt trait,cry1C approved in cotton.

Elaborating on the business prospects,Shankar said,”We believe that the revenues from the entity will exceed Rs 1,000 crore cumulatively by 2015. The deal works out to twice the projected revenues of next year”.