Rallis picks up majority stake in Metahelix for Rs 100 cr

Rallis picks up majority stake in Metahelix for Rs 100 cr

NEW DELHI: Tata Group firm Rallis India has said that it has acquired majority stake in Bangalore-based seed research firm Metahelix Life Sciences for nearly Rs 100 crore in what was an all-cash deal.

With the signing of this deal, the company has announced its foray into seeds business, which is a key focus area of the firm under its growth agenda, the company said in a filing to the Bombay Stock Exchange on Thursday.

“Metahelix Life Sciences is the company’s first inorganic foray in the seeds space providing a strong platform in the entire value chain that comprises breeding, production and marketing of seeds,” the filing said.

Rallis, which has bought 53.5 per cent stake in the Bangalore-based firm for Rs 99.5 crore, will infuse another Rs 25 crore to increase its stake to 59.02 per cent. Further, pursuant to the terms of definite agreement, signed between both the companies, the company will enhance its shareholding in Metahelix to 100 per cent over a period of five years.

Elaborating on the business prospects of the acquisition, the Rallis India Managing Director and CEO, Mr V. Shankar, said: “We believe that revenues from the entity will exceed Rs 1,000 crore, cumulatively, over a five-year period.”

Rallis India is a subsidiary of Tata Chemicals, engaged in the manufacturing of crop protection chemicals.

Metahelix Life Sciences boasts of a good product portfolio in rice, maize, millets and vegetable seeds, and has nationwide presence through its brand ‘Dhaanya Seeds’. — PTI