The Hindu Business Line : Punjab Chem sets Rs 2,000-cr capex for next 3 years

“The investment will be through a combination of debt and equity. Various options like foreign currency convertible bonds (FCCB), issuing warrants and partly from internal accruals,” said Mr Shalil Shroff, managing director, PCCPL.

The company recently issued 15.10 lakh warrants at Rs 136 to the promoters group and others.

The warrant is convertible to equity shares in 18 months at the ratio to be fixed by the Board.

The company is in advanced stages of signing an agreement to acquire a major agro-chemicals product portfolio from a well-known US firm. “I can not reveal the name of the company due to secrecy clause in the agreement, but the deal should be in the range of $5 to $10 million,” Mr Shroff said.

The deal would pave the way for the company to enter the US agro-chemicals market, valued at around $7 billion. The company is also scouting for acquisitions in South-East Asia and China.

PCCPL has set aside Rs 50 crore for product acquisitions in India. In the financial year ended March 2008, the company expects its turnover to touch Rs 320 crore against last year’s Rs 272 crore.

“We are also looking at targeting distribution of other company products in global and Indian markets as they provide a margin of 32-35 per cent. With expansion plans in place, the turnover will increase to Rs 500 crore plus in FY ’09,” he said.

The company last August acquired the Netherland-based AgriChem from Pevobel NV and Gevobel NV for €39.5 million (Rs 225 crore).

AgriChem undertakes substance formulation for crop protection, and its product range includes herbicides, insecticides and fungicides. Its products are registered in several European countries and the UK. It has an in-house R&D and own formulation facilities.

AgriChem is organised as a holding company and subsidiaries, with different subsidiaries undertaking production, trading and facilities management activities, the release added.

In 2006, the company acquired Argentina-based Sintesis Oujmica for $10 million.

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