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Ambarish Mukherjee

New Delhi , March 3

SHRIRAM Bioseeds Genetics India Ltd, a subsidiary of DCM Shriram Consolidated Ltd (DSCL), will focus on research and development (R&D) over the next few years and develop special varieties of hybrid seeds that are drought resistant.

The R&D efforts would also focus on developing high resistance to different diseases.

"We would be focussing on market need based research. The three areas that deserve focus now are how to develop drought resistant varieties, tolerance to disease and high yields," Mr Sinha said.

The company has also signed an agreement with Monsanto for Bt cotton and would be distributing the seeds in India.

The company has already put in place a team of 30 scientists for R&D and has its operations spread over India, the Philippines, Vietnam and the US.

It has also developed varieties of corn, cotton, bajra, sunflower seeds, with its next focus area being hybrid paddy, he said, and added that the other crops that could be taken up include soyabean, mustard and wheat seeds

The company is expecting to notch a turnover of around Rs 60 crore for full fiscal 2004-05 and a growth of about 15 to 20 per cent during fiscal 2005-06.

During the current financial year, the company's turnover from Indian operations is expected to be around Rs 40 crore, and foreign operations would contribute approximately another Rs 20 crore, said the Deputy Managing Director of DSCL, Mr Rajiv Sinha.

DSCL had entered into a joint venture with Bioseed Genetics International Inc (BGI) in 1993 for setting up joint venture company Shriram Bioseed Genetics India Ltd (SBGI) in Hyderabad.

This was with a view to grow, process and market hybrid seeds in India, officials said. The initial capital of the new company was Rs 2 crore with BGI having a 51 per cent stake and DSCL a 49 per cent.

Besides subscribing the equity capital, BGI also provided the entire research support to SBGI. The joint venture enabled DSCL to source high-quality hybrid seeds from SBGI and market through its network in north and central India, the official said.

"Over the last several years, DSCL has been focusing on agri business and has taken several strategic steps to increase its agri business portfolio," company officials said.

The company that was manufacturing and selling only urea, eventually started trading in other agri inputs such as MoP, DAP, seeds and pesticides in a major way.

Two years ago, the company decided to increase its presence in the hybrid seeds business.

Accordingly, it negotiated with BGI for acquiring majority stake (51 per cent) in the entire international operations of BGI relating to research, production of parent seeds, production and marketing of hybrid seeds. Through this transaction, DSCL acquired ownership and started sharing the benefits of research of hybrid seeds in India and also in the research, production and marketing of hybrid seeds being carried out by BGI in the US, the Philippines and Vietnam.

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