Best Roses Biotech forms JV with Malaysian firm

With a rapid growth of floriculture business in Gujarat, flower growers and exporters seems to have started scouting opportunities in foreign land.

Best Roses Biotech Pvt Ltd, a rose exporter based in Navsari of south Gujarat, has formed a joint venture with a Malaysian company to launch a floriculture project in Malaysia.

Best Roses has entered into a 49:51 joint venture with Malaysia's Fasih Laris SDN BHD. "The JV will set up a greenhouse spread across 45 acres and it will mainly grow dutch roses. We are investing close to Rs 28 crore for the project", said Kumar Patel, director, Best Roses, which has 15 acres greenhouse at Navsari in south Gujarat.

 

"As part of the JV, Best Roses will take care of implementation, marketing and technical know-how", he added.

Apart from this, the local company also tied-up with Nepal-based Everest Floriculture in October 2008.

Best Roses exported 70 lakh pieces of cut-roses last fiscal.

"There is a huge demand in global flower market, which is estimated to be USD 60 to USD 70 billion. Cut-roses constitute 25 per cent of the total flower market in the world", Patel said.

In addition to establish its projects outside the country, the Gujarat-based mid-sized company is also looking at acquiring existing greenhouses in the state. Currently, the company is in talks with three independent greenhouse owners and plans to approach more players.

"For individual greenhouses, the production cost tends to increase. However, the input cost goes down, when we place orders in big volumes for raw material and fertilisers. It will be a win-win situation for both the parties as we will give management rights to the owner of acquired greenhouses", he revealed.

In order to fund its expansion plan, the company is considering coming up with IPO. "Within 24 months, we intend to come up with our public issue", Patel added.