Oriental Seritech, based at Nasik in Maharashtra, is a silk yarn-growing company, the pioneer of bivoltine-silk technology. Rallis India will take up research-farming through this company, besides manufacturing silk yarn. The company is expected to go in for bulk sales.

With the demand exceeding supply, Rallis will sell the entire produce in the domestic market, sources said.

Oriental Seritech has a 412-acre farm near Nasik. The company was in the midst of setting up a state-of-the-art silk-weaving, printing and processing plant near Mumbai. However, Rallis India will utilise these operations for research farming and increasing yields. The expertise from research-led operations may be offered to other farmers at a later stage.

Being already involved in the seed business in the country, the new business ofsericulture will not be anything different to Rallis India.

Mitsubishi of Japan is the technology partner of Oriental Seritech in its sericulture business and is assisting the company in developing bivoltine expertise through exotic silkworm races and state-of-the-art reeling technology.

However, its tie-up with Spinhutte GmbH, which was the collaborator in weaving and processing technology, had fallen through. Japan, which is acknowledged as the worldwide leader in sericulture technology, is partnering with Oriental Seritech through Mitsubishi. Rallis India recently set up Rallis Farm Management Services to provide services in corporate farming dealing with a wide range of subjects involving improvement of yield, seed procurement, soil fertility or even macro issues about the agro economy and farm management or financing, etc.

On sales of Rs 1,206 crore in 1997-98, the company posted a net profit of Rs 23 crore. The company focused on exports of agrochemicals, and by introducing additional products andmaking new strategic alliances, the company achieved a growth of 23 per cent last year.