Tata Chemicals hikes stake in Rallis India with investment of ₹208 crore

Tata Chemicals has acquired 97,00,000 equity shares of its subsidiary Rallis India at ₹215 a share representing 4.99 per cent of the paid-up share capital of Rallis by way of a block deal on Tuesday.

The acquisition, which was worth ₹208 crore, has resulted in an increase in shareholding of the Tata Chemicals in Rallis to 55 per cent.

Rallis India net profit was down marginally at ₹63 crore in the June quarter against ₹67 crore logged in the same period last year.

The company recorded a lower revenue of ₹782 crore for the quarter ended against ₹863 crore over previous year.

During the quarter, the company repaid ₹25 crore of working capital loan.

Sanjiv Lal, Managing Director & CEO, Rallis India, said, the Crop Care Business of the company was affected by high market inventories, steep price drops, and delayed onset of monsoon.

Though revenues were lower, he said the company’s margins were largely maintained through better product mix and dynamic pricing actions.

Early this year, Rallis India signed a Memorandum of Understanding with drone manufacturer, Garuda Aerospace to supply pesticides and crop nutrients for a pilot demonstration and spraying of pesticides on fields through drones mainly in Maharashtra and Andhra Pradesh.

The drone pilots will conduct demonstrations on about 1,000 acres of land on crops, such as paddy, onion, Bengal gram, wheat, and vegetables. This drone-based solution will also enable businesses to achieve their sustainability goals by helping drive the efficient use of resources.