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Rallis to merge five arms with itself

BS Corporate Bureau

The board of Rallis India, the agrichemicals company from the Tata fold, has decided to merge five subsidiaries with itself at its meeting on Wednesday.

The subsidiaries are the Rs 1.3-billion Ralchem, Rallis Finance & Investments Co, Rallis Hybrid Seeds, Rallis Farm Management Services and Sankhya Garments.

As the companies are all wholly owned subsidiaries, the merger is a mere book entry, analysts said. They said the move could be aimed at bringing al agri-related activities under one roof.

Company officials were not available for comment.

Under its new managing Rajeev Dubey, who replaced Vijai Rai, its managing director for the previous 15 years, it has undertaken a major restructuring exercise. It has recently exited from its fledgling pharmaceuticals business to focus on the core operations of seeds and agrichemicals.

Rallis' agrochemicals business has also grown over the last two years, with subsidiary Ralchem having taken over Voltas' agrichem plant two years back. It also has a marketing alliance to sell sister company Tata Chemicals' fertiliser produce.

Rallis Farm Management Services was set up to provide farm advisory services and trial cultivation of select crops.

The Rs 14.32-billin Rallis has an equity base of Rs 320 million and a net worth of Rs 1.57 billion. It also has a huge debt liability of Rs 3.36 billion as at March 31, 2000.

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