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Nath Seeds to be split into three firms

Our Corporate Bureau  |  Mumbai 

Hybrid seeds and biotech company firm has decided to vertically split the company into three independent entities.
The company is also planning to rope in a strategic partner for its hybrid seeds and corporate farming business.
While the seeds business will be consolidated into Nath Bio-Genes (India), its and would be housing the group's teak plantation, real estate and technology development arm.
N Kagliwal, chairman, Nath group, said: "The objective is to sharpen our focus in each of the core areas of operation. Also, while seeds business is a highly profitable business, agri-farming business is a time consuming one. Hence, the restructuring plan will realign the group operations in a way that one business does not eat into the other and at the same time each business will get dedicated focus."
"The demerger also unfold the opportunity to invest a strategic partner. We are, however, not looking at a strategic stake divestment from the fund raising point of view. With strong sentiment on the biotech industry, there is no dearth of financial investors. We are looking at a strategic partner who will add value in terms of technical expertise," Kagliwal added.
All the three would be listed on the stock exchanges and the shareholder of will be given shares in the two newly formed in the ratio of their holding in Nath Seeds.
The Bombay High Court has already approved the restructuring plan of the company.
Nath Bio-Gene will have a turnover of Rs 41 crore in 2003-04 and around Rs 50 crore in 2004-05. The net profit for the current fiscal is expected to be around Rs 6 crore and Rs 13 crore in 2004-05. The Rs 200 crore Nath group also houses paper and chemical businesses.
Nath Seeds has a tie-up with the Chinese Academy of Agricultural Science for securing genetic biotechnology technology. The company plans to launch BT cotton seeds in the next two years.

First Published: Fri, January 23 2004. 00:00 IST