• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

C.R. Sukumar

Hyderabad , Dec. 16

FOLLOWING the differences on `speed and style' of running the Chennai-based joint venture, both ABL Biotech and Shantha Biotech are on the verge of parting ways in the joint venture - Shantha Marine Biotechnologies.

The joint venture is an autonomous subsidiary of the Hyderabad-based Shantha Biotech and is currently being run by ABL Biotech.

The Rs 10-crore joint venture had announced plans of pumping in Rs 90 crore over the next five years.

While Shantha Biotech is the major holder in the venture with a 60 per cent equity stake, ABL Biotech holds 40 per cent. The joint venture was envisaged to develop asthaxanthin, an antioxidant and gamma linolenic acid that find direct application in treating obesity. It produces beta-carotene from an indigenous strain of marine algae.

With the ABL founder and the Managing Director of Shantha Marine, Mr K.O. Issac, recently stepping down from the key post in the joint venture, the market was ripe with the news on the partners planning to part ways.

The market sources say that Mr Issac had put in his papers in protest against the decision of Shantha Biotech to bring in a new Chief Operating Officer into the joint venture above him. His exit was followed by a sizable number of employees of Shantha Marine putting in their papers.

Admitting that there were some differences among the partners on the speed and style of running the business, a senior Shantha Biotech official told Business Line that talks were currently on between the partners.

"As per the initial agreement entered into between the partners, either we should buy them out or sell our holding. Either way, there is a likelihood of management change. We expect to arrive at a decision soon."

However, the official said the differences would not have any impact on the plans of Shantha Marine to set up a unit in the Marine Biotech Park coming up at Visakhapatnam.

Article E-Mail :: Comment :: Syndication

Stories in this Section
ITC proposes to re-enter tea biz

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line