Japan’s SDS picks up majority stake in Chennai firm

Tags: News
Japanese SDS Biotech has picked up 65 per cent stake in Chennai-based agro-chemicals manufacturer Sree Ramcides Chemicals. The new joint venture - SDS Ramcides Crop Science will invest Rs 150 crore and target a turnover of Rs 500 crore in five years.

SDS, subsidiary of Tokyo Stock Exchange-listed $47 billion Idemitsu Kosan, has picked up 36.29 per cent stake held by ePlanet Capital, facilitating an exit to the private equity firm, which had invested Rs 22.5 crore in 2008. Remaining stake was bought from one of the promoters.

The enterprise value of the Rs 120 crore Ramcides was determined to be Rs 182.5 crore. As per the valuation, SDS has bought the stake for around Rs 118 crore. Ramcides has three manufacturing facilities in Jammu, Chennai and Pudukottai in Tamil Nadu, producing four products in the categories of herbicide, fungicide, insecticide and plant nutrient. The facilities totally produce 5000 kl liquids, 1000 tonnes of wettable powder and 10,000 tonnes granules per annum.

“We are into formulations and SDS is a supplier of raw materials and active ingredients. SDS also has robust research and development activities. We have a strong presence in India and Africa and SDS is strong in Asia and has now got into the US and Europe markets. SDS wants to make India its manufacturing hub and also explore the African market. On the other hand, we hope to enter Asian markets like Vietnem and Thailand as well as Australia and US,’ said R Gopal, MD of Sree Ramcides Chemicals.

SDS Ramcides Crop Science will invest Rs 150 crore in five years and set up a manufacturing facility in India for herbicides and fungicides. The JV is also keen on R&D activities and targets to come out with three products in the categories. It looks forward to a turnover of Rs 500 crore in five years and Rs 250 crore by 2014-15.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

THE BLAME GAME

In decision-making, the fundamental attribution error (FAE), also known as ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture