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Bayer India, the Indian arm of the German pharmaceuticals and chemicals major Bayer AG, is planning to hive off its non-crop science business into a separate company.
The company has informed the Bombay Stock Exchange that its board of directors will meet on August 27 to consider the proposal to form a 100 per cent subsidiary of Bayer India and the transfer of non-crop science business to the proposed subsidiary company.
A company spokesperson declined to comment further on the issue. The crop science business of Bayer group in India accounts for around Rs 660 crore (Rs 6.60 billion) of the total group total turnover of Rs 1,600 crore (Rs 16 billion).
The move appears to be in line with the ongoing integration process between Bayer Crop Science India and Bayer India. The idea behind the integration process, according to the company, is to project `one face to the consumer'.
The group has been going through a recast process in India for sometime now. This includes the consolidation and restructuring of the group companies in India.
The German group's presence in other areas of business in India include healthcare, polymers and chemicals. The other Bayer group companies in India include Bayer Pharmaceuticals, Bayer ABS, Bayer Diagnostics, Bayer India Polymers.
The global acquisition of Aventis' crop science unit for a total consideration of $6.63 billion vaulted Bayer AG to number two position in the global agrochemicals market from the sixth position.
According to the company, the crop protection industry in India is seeing new chemistry products with traditional products being discouraged.
While the company sees an opportunity in the increasing brand consciousness among the Indian farmers, the entry of generics and low priced imports of poor quality products stands as a threat to the company.