French major acquires 15% stake in Riddhi Siddhi Biols

Virmagam-based, Riddhi Siddhi Gluco Biols Ltd (RSGBL), approved preferential allotment of 15,78,100 shares to Roquette Freres, French company at a price of Rs 200 per share which is at a premium of Rs 190 per share.

The French based starch company will invest around Rs 31.56 crore in the Indian company to acquire 14.95 per cent of stake.

It has also approved issuance of 85,500 warrants to Roquette and 5,00,000 warrants to promoters and associates, convertible any time within 18 months at a price of Rs 200.

Currently, RSGBL has two manufacturing units - one in Karnatak and one in Gujarat.

"But we will invest some amount in our research and development centre in Pondicherry which we took over from Hindustan Lever," informed Ganpatraj Chowdhary, MD of RSGBL.

He also said before acquisition by French company, RSGBL was having only 30 products and the French company is producing 650 products.

"Slowly and gradually we will also increase our products in India. Initially we have plan to launch a product which will replace sugar that is used by pharmaceutical companies and beer companies as raw material," said Chowdhary.

He further added that company's total income was around Rs 250 crore this fiscal and in next fiscal comany is expecting rise upto Rs 330 crore.

"From last six year our company is growing at 25 to 30 per cent and the pace will continue for next two years," expalined Chowdhary.

According to Chowdhary, Gujarat is not right place for manufacturing starch based proudcts. "So we will further invest in Karnatak unit," he said.

However, company is also looking towards rise in export. "Last year we export worth of around Rs 7 crore and this year there was rise of 100 per cent and we export worth of around Rs 15 crore," said Chowdhary and claimed that by next year company will export worth of Rs 30 crore.

Talking about the French company, Chowdhary said that Roquette Freres is the largest producer of polyols in the world.

The consolidated turnover of the company is close to 2 billion Euros. "The company is employing 6,000 people and has production facilities in Europe, USA and Asia.

The company markets its products in more than 100 countries," he added.

Chowdhary also said, "The knowledge, R&D capabilities and experience of Roquette will pave way for us to consolidate our leadership in the starch and its derivatives segment in the country and introduce many new products," he said.

We are confident of taking rapid strides in the growth of the company and creating value for all the stake holders, he added.

The board of Riddhi Siddhi has also approved allotment of 5,27,800 shares to Yatish Trading Company Pvt Limited, Mumbai at the same price, he informed.