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Venky's to vend vet lines of US-based Alltech

Avertino Miranda

Venky's India, a part of the Rs 7.50 billion Venkateshwara Hatcheries group has entered into a marketing alliance with the $200 million US-based animal health care products company Alltech Inc to sell the latter's products in India.

The VH group is also in advance talks with US-based firm Bio Sentry to float a joint venture called Venkateshwara Bio Sentry India to sell in the local market disinfectants, detergents and formulated solutions for cattle and poultry farms, hospitals, hotels and fast food chains.

The VH joint venture with Bio Sentry will have a 60:40 equity participation respectively and has proposed local manufacturing facility with a capacity to produce 16,000 kilo litres per annum. Bio Sentry's products will be marketed to south east Asian countries too.

The joint venture is expected to be floated in the next 15 days time.

Alltech's 4 animal health care products: Mrcosorb, Sel-Plex, Bio-Mos and Allzyme Vegpro will be marketed by the Animal Health Products division of Venky's India. All the 4 products are feed additives that combat toxins and bacteria in the feed.

"The 4 enzyme-based products have a market potential of Rs 150 million to Rs 200 million in India and are much superior to the comparable ones available in the domestic market," Anuradha Desai, chairperson of the VH group said.

"We have a presence in 60 countries with 10 manufacturing facilities and our core competency is to produce solutions for all animals. We improve the digestive system of animals so that they can utilise the food better," TP Lyons, chairman of Alltech Inc said.

Alltech has already set-up a 100 per cent local subsidiary to carry out its India activities with headquarters in Bangalore with an initial capital of $500 million.

Alltech Bio Tech India, the 100 per cent subsidiary of Alltech Inc plans to set-up a bio-science park in India with an investment of $ 1.5 million.

"Our vision with Venky's is to have a bio-science park which will have research and development, training and market driven and linked to a production facility. But the entire investment for the setting up of the park will come from Alltech," Lyons said.

Alltech has undertaken research on yeast enzymes and fermentation. In tie-up with Venky's, Alltech is setting up a research centre in India to measure the bird's immune system.

"The formulations for farms and hotels for hygiene will meet local requirements and not necessarily what they produce in the US," OP Singh, general manager, Animal Health Care Products division of Venky's said on its venture with Bio Sentry.

The Animal Health Products division of Venky's India posted a turnover of Rs 260 million in fiscal 2000-2001, as against Rs 250 million in the corresponding period of the previous year. In the current year, the company has projected a sharp rise of 42 per cent following a slew of products being introduced for the domestic animal health care market.

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