Rallis India seeking global manufacturing contracts for Dahej unit
Oct. 20, 2011
"Lot of MNCs, particularly from Japan, are thinking of moving their manfacturing to India. Our Dahej plant has started operations and we see it achieving full capacity utilisation by December or January as we eye more contracts," Managing Director and Chief Executive V. Shankar said.
The company's Dahej plant manufactures pesticides, herbicides and insecticides.
Earlier in the day the company reported a flat consolidated net profit of 585.2 million rupees on higher interest burden on investments made at the Dahej plant and acquisition of seed-making company Metahelix.
Rallis bought a majority stake in the Bangalore-based seeds firm for 995 million rupees in December, marking its first inorganic foray into seeds - a key focus area for the firm.
The company paid interest of 31.9 million rupees in the September quarter against a gain of 600,000 rupees the year ago.
Rallis expects a seasonal boost next quarter, when an extended monsoon would mean a good rabi, or winter-sown crop season.
"The operations at Dahej plant and higher sales of herbicide seen for wheat crop in the rabi season will drive our sales in Q3," Shankar said.
Rallis shares rose nearly 13 percent in the September quarter while the benchmark BSE index fell by a similar quantum in the same period.
More from AgroNews
Subscribe to daily email alerts of AgroNews.