Spanish biotech firm AlgaEnergy and Krishi Rasayan Exports (KREPL) have formed a joint venture for manufacturing bio-stimulants based on microalage that boosts soil health, and plan to invest about USD 20 million in next 3-4 years in the business.
The partner companies also said their JV firm AgMA Energy will have a soft launch of its products, which can be used on all kinds of crops, in the country during this Kharif season.
The aim of the JV -- entered between AlgaEnergy's Indian subsidiary MicroAlgae Solutions India Pvt Ltd (MASI) and KREPL's sister concern Agrolife Sciences Corporation -- is to tap not only the Indian market but also other countries barring Europe, where AlgaEnergy has strong presence.
"We will work jointly. We have the technology and KREPL has the market penetration...We are planning to invest USD 20 million in the next 3-4 years," AlgaEnergy's Asia Pacific Business Vice President Debabrata Sarkar told PTI.
The JV firm AgMA Energy has already been established and is headquartered in the national capital. "We have the technology and KREPL has the market penetration. We will invest equally but in stages," he said.
The technology solution that the Spanish firm offers can be used not only in agriculture and acqua-culture but also in human and plant nutrition as well as in cosmetics among other areas, Sarkar added.
"It is a natural product that helps improve the quality of the soil without destroying the environment. We see huge potential in India and other Asian countries," AlgaEnergy International Agribusiness President Douglas Wagner said.
Though the monetary investment will be significant, but the bigger investment is sharing of the knowledge and technology in India and other Asian markets, he said.
KREPL Executive Director Rajesh Agarwal said the company has already done pilot study of the products in Punjab, Haryana, Maharashtra, Jammu and Kashmir, and Andhra Pradesh.
"The company will soft launch the products during the kharif season in June-July. The products can used for all kinds of crops but doses will differ," Agarwal said.
Initially, KREPL will manufacture the products from its existing plants, and separate plants will be set up in the next 2-3 years, he added.
The company plans to market the products under its brands and also distribute through few fertiliser firms in the later stage, Agarwal noted.
"The price of the products is yet to be decided but it will be affordable to the farmers," Sarkar said, adding that farmers will benefit from the products which will help them get higher yields, improve quality of the crop and eventually reduce the use of fertilisers/pesticides.
Agrochemical makers, like KREPL, are keen to invest in microalgae solutions due to their bio-stimulant and biofertiliser properties.
KREPL is into the business of crop protection chemicals, crop nutrient, public health and household, farm equiopment and pest control among other areas. It has seven manufacturing sites and one research and development unit with 3,000 distributors and 6,700 dealers.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)