Betting big on opportunities in oil palm waste, Sri Biotech Laboratories India Pvt Ltd is planning to sign a technology transfer agreement with a Malaysian company next month facilitating decomposition processes. The company has developed a process by which there is quicker disintegration of oil palm waste which is otherwise considered as a complicated task.
Announcing this to the media, KRK Reddy, CEO, Sri Biotech, said that the company is also in the process of filing a patent on the proposed process technology. Incidentally, oil palm waste takes a lot of time to decompose. But using biocomposites, it is faster by 50%, he said. “As natural decomposition is difficult, the process using multi-microbial strains, facilitates decomposition as well enrich the soil,” he said. Further, the company would also be setting up a technology centre in Malaysia for treating old trees which are affected by Ganoderma, a fungal disease which commonly affects oil palm trees.
Meanwhile, the company announced about the technology transfer of Bollcure. It is a botanical biopesticide for cotton bollworm developed by the The Energy and Resources Institute (TERI). The technology was transferred by Biotech Consortium India Ltd, set up by the Department of Biotechnology, to Sri Biotech. Explaining about bollcure, he said it restricts the growth of cotton bollworm, an insect pest which causes extensive damage to cotton crop. The formulation, containing eucalyptus extract, was developed at TERI that controls the growth of the insect larvae thus preventing crop damage. According to Reddy, trials are underway on insect pests on pigeon pea, chick pea, tobacco, tomato, sunflower, etc apart from cotton.
Sri Biotech has reported a sales turnover of Rs 16.5 crore on a PAT of Rs 2.5 crore. Further, the company is setting up a state-of-the-art production facility at a cost of Rs 15 crore in Pashamylaram Industrial estate and is expected to commence production sometime during March 2008. Also in the process, the company is planning to raise Rs 100 crore from the capital market in the next six months to part-finance its expansion plans. It would soon be roping in a private equity player, apart from the promoters’ share of Rs 50 crore and raise the rest from the public issue.