Searle To Become Rpg Life Science

Searle (India) Ltd, the RPG group pharma and agrochemicals company, is being renamed 'RPG Life Science Ltd'. The renamed company will have an equity base of Rs 35 crore.

Searle's present equity base of Rs 20 crore will be expanded to Rs 35 crore with the private placement of Rs 15-crore worth preference shares.

The board of directors will meet later to finalise the rate of dividend on these redeemable preference shares which will be issued at par, said company sources.

Industry sources see Searle's renaming as part of a larger plan to re-structure the company's operations after the RPG group enters into a pharma joint venture with GD Searle & Co of the United States.

 

Analysts consider the renaming a move to cash in on the goodwill the RPG brand commands.

When asked about the joint venture plans, KK Maheshwari, president of Searle (India) Ltd, said: "The board will meet in the near future to decide on the modalities of the agreement with GD Searle & Co."

Maheshwari, however, declined to give any details.

Regarding the preference issue, Maheshwari said that this was being done to raise funds for expansion.

He said the company could also borrow abroad for this purpose.

Meanwhile, the board's borrowing powers are being increased from Rs 150 crore to Rs 200 crore.

The company is currently expanding capacities at its existing plants at Vashi in Navi Mumbai, Ankleshwar in Gujarat and Panoli, also in Gujarat.

Installed capacity for pesticide intermediates has risen from 246 tonnes per annum (tpa) to 486 tpa this year.

In another move, Searle (India) is planning to increase the foreign investment limit in the company to the maximum permissible 30 per cent of paid-up equity.

At present, foreign institutional investors (FII), overseas corporate bodies (OCB) and non-resident Indians (NRI) hold a 6.27 per cent stake in the company.

Ajit Gulabchand on board

Ajit Gulab-chand, chairman of Hindustan Construction Co is being inducted on the board of Searle (India) Ltd. He had been appointed as an additional director in the companyabout two months ago.