Rallis managing director Vijay Rai confirmed the development in a faxed response to The Financial Express and added that "these products are manufactured by Monsanto India and the active ingredients could be imported or indigenous".

In India, the Monsanto group broadly operates through three companies: Monsanto India, which is 100 per cent held by Monsanto USA; Monsanto Enterprises, which is a 100 per cent subsidiary of Monsanto India and Monsanto Chemicals, a 40 per cent subsidiary of Monsanto USA.

Monsanto Chemicals formulates and markets weedicides for soyabeans, tea and other crops. Key brands include Roundup, Machete and Avadex. Finer details of the co-distributorshiparrangement could, however, not be ascertained.

The Monsanto group which has been in the midst of a squall over its alleged plans to bring in the "terminator gene" is expected to gain from Rallis' strong and widespread distribution network. However, it is not clear whether this arrangement could also be extended to products developed by Monsanto's joint venture with Maharashtra Hybrid Seeds Company (Mahyco).

The Rs 1,206 crore Rallis India Ltd, which recently closed in on an acquisition of a strategic share in Zimbabwe-based CAPS Ltd, had seen an eight per cent growth in its agrochemicals turnover in 1997-98. The company's performance had been hit due to an erratic monsoon and falling product prices.

The company's latest acquisition is expected to improve Rallis India's exports of agrochemicals by almost Rs 10 crore in the first year. Rallis hopes to expand its strength in the agrochemicals market using the CAPS retail base.

The Indian agrochemicals market has, of late, seen a host of big namescombine forces to take on market-related challenges and increasing competition. The most recent planned alliance would see Cyanamid Agro, part of the $13.5 billion American Home Products Corporation, team up with Swiss giant Novartis and Danish multinational Cheminova for crop protection chemicals. Such alliances aim at expanding both partners' businesses by capitalising on their inherent strengths in the particular crop segment.