Rallis buys 23% stake in Waste Agro Organics

Group firm Rallis India today announced acquisition of 22.8% stake in Maharashtra-based Waste Agro Organics Pvt Ltd (ZWAOPL) for Rs 10 crore.

Early this year, Rallis had entered into the Definitive Agreements for the acquisition of ZWAOPL.

"Rallis completed the First Closing in terms of the agreements by acquiring the first tranche of shares comprising 22.8% of the equity," the company statement said.

In the first phase, Rallis will invest Rs 10 crore for acquiring 22.8% shares in ZWAOPL. Of which, Rs 5 crore would be invested in the company and rest Rs 5 crore for purchase of shares from the current shareholders, it said.

ZWAOPL will be a subsidiary of Rallis, which has rights to raise its stake to 51% in this new firm in a year's time as per the Definitive Agreements, it added.

Announcing the development, Rallis India Managing Director V Shankar said, "With this acquisition, Rallis has further strengthened its product portfolio with organic manure and soil conditioner products...."

Rallis further said it will also have exclusive sales and marketing arrangements with ZWAOPL for domestic and international markets.