Rallis Lines Up Rs 133 Crore Spread

Rallis India, the agrochemicals arm of the Tata group, is keeping aside the Rs 133 crore from the sale of real estate property for future diversifications.

The company's chief executive officer, Rajeev Dubey, said: "The entire amount will be kept in a trust under the direct supervision of the company's board of directors." He declined to specify what could be the nature of the diversification planned.

"We are looking at various options. This also includes biotechnology. If we decide to go ahead it could be related to seeds," he said.

"The company is looking at various models: organic growth through in-house research, or acquisitions and even strategic alliances with multinationals," Dubey said.

Dubey added that other investments could be in farm management services and fertilisers.

Rallis chairman Freddie Mehta, earlier at the annual general meeting, said: "Operations of the company's subsidiary Siris India was being shut down from June 1 as the net worth was completely eroded."

Rallis is merging five of its subsidiaries with itself, but the Siris was left out of the consolidation process. Around 16 per cent of Siris' equity was owned by other Tata group companies, which has now been bought back by Rallis for Rs 2.8 crore.

Dubey later said Rallis has yet to decide on the future course of action for Siris. Referral to the Board for Industrial & Financial Reconstruction in the interim was mandatory.

Rallis, as part of the its turnaround strategy, has also decided to rationalise its manufacturing operations that would include shutting down some its existing plants. Dubey, however, declined to give details on this.

The company would also look at rationalisation of manpower. Dubey told journalists that the company was looking at the option, but did not specify the number employees that could be excess. Rallis currently has around 1,900 on its rolls, while subsidiary Ralchem has another 500.

Dubey said the company was looking at exports aggressively and in the current year has identify high-margin products for the export market.