DCM Shriram Consolidated acquires 100% stake in Hybrid Seeds Business
DCM Shriram Consolidated Ltd (DSCL) said that the company’s wholly owned subsidiary, Shriram Bioseeds Ltd (SBL) has acquired the JV partner’s entire 49% stake in the Hybrid Seeds Business for about USD 13.32 million.
New-Delhi headquartered, DSCL, is a diversified agribusiness and chemical company with four primary businesses – sugar, urea, polyvinyl chloride and caustic soda/ chlorine. Earlier, the company along with its subsidiary Shriram Bioseeds (Mauritius) was holding 51% stake in the JV Company.
The Hybrid Seeds Business, which operates in India, Vietnam, Philippines and Thailand, offers high yielding hybrid seeds for Corn, Cotton, Rice, Millet and Vegetables. The company has built a strong research base and has extensive production, processing and sales and distribution network.
With the completion of this transaction, DSCL's has acquired M/s. AFFEE Investments Corp; Bioseeds Genetic International and Zeus Investments Ltd, as its 100% subsidiaries.
Market analysts expect that the full ownership of Hybrid seed business will enable DSCL to achieve better integration of this business with its overall agri-business, and expand the product portfolio in other countries, where Hybrid Seed business operates as standalone businesses so far.
Shares of the company, declined Rs 3.25, or 6%, to end at Rs 52. The total volume of shares traded was 120,988 at the BSE. (Wednesday)