• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Latha Venkatraman

Mumbai , Nov. 10

IN the consolidating scenario of the agrochemicals industry, Excel Crop Care's decision to pick up 25 per cent equity holding in Aimco Pesticides stems from its need to step up capacity.

There are many synergistic fits between Excel Crop and Aimco. "We were looking for capacity expansions as we were faced with constraints. Aimco's adequate capacity at its manufacturing facility aided our decision," said Mr Deepesh Shroff, Managing Director of Excel Crop.

Chlorpyriphos is one of the products where Excel Crop faced capacity constraints. Aimco has a manufacturing facility at Lote Parsuram in Ratnagiri, Maharashtra.

Excel Crop recently announced that its board had approved the company's plan to subscribe to 23 lakh equity shares of Rs 10 each of Aimco Pesticides on preferential basis at Rs 24.50 a share amounting to 24.90 per cent stake in Aimco.

As a follow-up to the issue, it is making an offer to the shareholders of Aimco Pesticides to acquire 18.5 lakh equity shares - representing 20.03 per cent stake - at Rs 24.50 a share for a total of Rs 4.53 crore.

Aimco Pesticides ended 2004-05 with net loss of Rs 0.4 crore on net sales of Rs 22.79 crore. Excel Crop Care ended 2004-05 with a net profit of Rs 21.93 crore on net sales of Rs 387.72 crore.

According to Mr Pradeep Dave, Chairman and Managing Director of Aimco Pesticides, this move would help Nufarm of Australia have a holding in the company indirectly (currently, Nufarm has 14.69 per cent stake in Excel Crop.).

Aimco would also benefit from Nufarm's reach in the global agrochemicals market.

Exports contribute 25 per cent of Excel Crop's turnover.

"Our presence in the domestic and export markets are quite strong. We have 240 registrations," said Mr Dave. He is also the promoter of the company.

"There is no overlapping of products. In fact, we will be able to drive growth for both companies well," he added.

Aimco will become an affiliate of Excel Crop but the management control and business will continue to vest with the promoters of the company.

Aimco plans to invest Rs 10 crore in expansion activities, Mr Dave said.

The Excel Crop Care scrip ended at Rs 195.30 against the previous close of Rs 194.50 on BSE on Friday. Aimco's scrip closed at Rs 28 against the earlier close of Rs 28.25 on BSE.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GAIL opens air pollution research centre in Pune

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line