Rallis bets Rs 200 cr on 2 new units

KOLKATA: Agrochemicals major Rallis India, a Tata group company, is weighing plans to set up two new units. One is likely to be a formulations plant in Jammu, while the other could be a manufacturing facility for agrochemicals or chemical intermediaries at the Dahej special economic zone (SEZ).

V Shankar, CEO and executive director, Rallis India said: “With India being increasingly looked upon as a sourcing hub, we are keen to tap into these opportunities.”

Though no investment figures have been frozen, about Rs 200 crore could be injected in the two new units, a quantum that will be funded through internal accruals and building of cash reserves - for instance, the recent sale of a surplus plot of land in Andhra Pradesh.

Rallis is also looking to enter adjacent areas like specialty chemicals — industrial and agricultural, if necessary through the inorganic route. “We are looking at specialty chemicals that are complementary to Rallis’ competencies. These are niche but high margin businesses,” said Shankar.

m_madhumita@dnaindia.net