The Hindu Business Line : DSCL planning to hive off Hariyali venture into subsidiary

New Delhi, May 11 DCM Shriram Consolidated Ltd. (DSCL) is planning to hive off its agri-retail business, Hariyali Kisaan Bazaar into a subsidiary this financial year and grow it by intensifying expansion operations.

Expansion

The company is in the process of increasing its national footprint by scaling up its retail presence from the current 150 outlets to 300 by December this year. It is looking at fresh locations in the states of Gujarat, Maharashtra, Tamil Nadu, and Karnataka.

As of now, the company has outlets in most of the northern states and Andhra Pradesh in the south.

“The plan to hive off Hariyali is on the cards. It is doing well and we are in the process of aggressive expansion,” said Mr Ajay Shriram, Chairman and Senior Managing Director, DSCL.

“This will enable us to give ESOPs. Besides making it a separate entity will help focus on the business to go up, there will be a new board in place, with funding options for the future opening up,” explained Mr Vikram Shriram, Vice-Chairman and Managing Director.

Agri needs

Through the Hariyali venture DSCL has capitalised on its over 35 years of experience in the agri-input market.

The retail chain provides end-to-end ground level support to farmers by making available all their agri needs, be it seeds, fertiliser, implements among others and advice on adoption of new technologies.

According to the company, the scale up would help it to cater to cultivable land of over 30 million acres and touch the lives of over 10 million farmers. The company has till date invested around Rs 250 crore in the retail venture, including a land bank of 35 sites.

Apart from the agri retail business, DSCL has also been growing its seeds business. Two months ago it acquired the entire stake of its joint venture partner (49 per cent) in the hybrid seeds business which operates in India, Vietnam, Philippines and Thailand for $13.32 million.

“The business gives us a 100 crore turnover. To grow it we are looking at new marketing locations in South China, Laos and Cambodia,” said the Shriram brothers.

DSCL offers a range of hybrid seeds via its subsidiary Shriram BioSeed Genetics India Ltd. At present, it markets corn, bajra, jowar, paddy, BT cotton and sunflower. The business is an R&D-led operation with research centres located in Philippines, Vietnam and Hyderabad.

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