The Hindu Business Line : Nath Seeds to spin off agri-businesses into 3 independent cos

NATH Seeds Ltd has decided to spin off its three agri-businesses - hybrid seeds, corporate farming, teak plantation and real estate - into three independent companies.

The company had received consent from the Bombay High Court to reorganise its business. The new structure would be in place by February 2004, the company said.

Nath group has already merged its seeds business relating to field crop seeds, vegetable seeds and transgenic seeds into a single entity. The seed business will be managed by Nath Bio-Genes (India) Ltd.

The shareholders of Nath Seeds will be given shares in the other two companies in the ratio of their holding in Nath Seeds. Shares of all three companies would be listed on the Bombay Stock Exchange and the National Stock Exchange.

"The restructuring will provide for a clear focus on the respective businesses and also facilitate acquisition of new technologies and strategic and financial alliances. The new structure will also help in accelerating induction of professional management and unleash the intrinsic value of the research-driven seeds company," Nath Seeds said in a news release.

The company will mainly focus on research and development. It has secured its genetic technology from the Chinese Academy of Agricultural Science on an exclusive basis. It is also in negotiation with several companies for licensing of BT technology. The company is expecting to launch BT cottonseeds in the next two years.