Bangalore-based Avestha Gengraine Technologies, known as Avesthagen, has decided to terminate the two joint ventures(JVs) it had signed with Limagrain, its partner for agri-biotech business. It is learnt that the differences with the French firm have forced Avesthagen to terminate the JVs. The JV companies, viz, Atash Seeds Pvt Ltd and Ava Seeds Pvt Ltd, will become 100% subsidiaries of Avesthagen. It was in July 2006 that Avesthagen had tied up with Limagrain, a 1-billion euro major in the global seed business.
As per the proposed agreement, two domestic companies, acquired through the JVs, will each go to the two partners. Avesthagen will hold Swaghat Seeds Pvt Ltd, while Limagrain will hold Cee Kay Seeds & Seedlings Pvt Ltd. Atash Seeds, the 50:50 JV company floated for cereal business, had acquired Swaghat Seeds Pvt Ltd, a Hyderabad-based integrated field crop seeds company, while Ava Seeds Pvt. Ltd, a 30:70 JV between Avesthagen and Limagrain, had bought Cee Kay Seeds & Seedlings Pvt Ltd, a Bangalore-based vegetable seeds company last year. Cee Kay Seeds has a portfolio of key vegetable crops such as tomatoes, eggplants, chillies, okra, and melons.
Confirming the development, Viloo Morawala Patell, CMD, Avesthagen, told FE, ?The conflict of ideas forced us to terminate the joint ventures. However, our global alliances for multiple projects in R&D and product developments with Limagrain will continue.? The formalities of split up will be completed by end of March.
The investors in Avesthagen include ICICI Venture Funds, Tata Industries Limited, Godrej Industries Limited, Limagrain, BioM?rieux, Fidelity International, Groupe Danone and New York Life Investment Management India Fund. Limagrain holds 5% stake in Avesthagen.
Meanwhile, Avesthagen is planning to float an initial public offer (IPO) to raise about Rs 1,000 crore this year. It plans to set up manufacturing plants and expand its research and development in agri-biotech. On the pharmaceuticals front, it has 11 bio-similars in the pipeline, which will be launched in Europe through the JV it had entered with Cipla. The JV company had acquired German firm Siegfried Bilogics last year. Limagrain, a farmers? owned international group, is specialised in plant breeding and plant valorisation. Operating through subsidiaries in more than 30 countries, it spends annually more than 100 million euro in R&D.
