Rallis net flat in Q2

Rallis India, a Tata Group company, has reported that its net profit was almost flat at Rs 58.52 crore (Rs 58.58 crore) in the second quarter of this fiscal on the back of good rainfall leading to lesser spraying of herbicides and pesticides by farmers.

The company's income rose 19 per cent to Rs 439 crore (Rs 368 crore) in the quarter under review.

Mr V. Shankar, Managing Director, Rallis India, said there were minimum attacks of fungal occurrences and pest due to the continuous rainfall in July and August. However, the company has managed to maintain its EBITDA at Rs 173 crore (Rs 141 crore).

"The good rainfall has set the stage of an encouraging Rabi season. The soil moisture has improved and better income for the farmers from the Kharif crop will help them invest generously in the Rabi season,” he said.

Replicating the success in Tamil Nadu, Rallis India has signed a memorandum of understanding with the Maharashtra Government for working together with the farmers growing pulses in the State. The company has launched nine products in herbicides, insecticides and pesticides.

Rallis India has launched agriculture training programme for unemployed village youths in Bolpur (West Bengal), Baramati (Maharashtra) and Dharwad (Karnataka).

As part of the pilot programme, the company has selected 25 unemployed youths from each village for a one-year programme on the nitty-gritty of agriculture.

"We pay a stipend of around Rs 5,000 for each trainee to avoid drop outs. These boys will be employed by Rallis. Getting a person from the city for a village job with all capabilities is becoming difficult and comes with a huge cost,” he said. The company plans to launch this programme in seven more villages soon.

Rallis has also launched a Web site dedicated to grape growing farmers of Maharashtra. The Web site provides all the details including rain forecast, help on pest attacks, market price and export opportunities. As grape farmers are more sophisticated the IT solution will of help to them, said Mr Shankar.