Mumbai, India
December 9, 2010

Rallis india Limited, a subsidiary of Tata Chemicals Limited, today announced acquisition of a majority stake of 53.5% in Metahelix Life Sciences, a Bangalore based seed research company with a portfolio of seeds successfully commercialized over the last three years. The acquisition is an all cash deal of Rs 99.5 Crs, funded largely through internal accruals.

Seeds has been identified as one of the key pillars for Ralllis under its "Rallis Poised" growth agenda. This is in line with the strategy of Tata Chemicals to offer the entire suite of agri-inputs for the benefit of the farming community. Having a strategic connec to agriculture, seeds will provide a value creating proposition for future growth at Rallis, Metahelix Life Sciences is the company's first inorganic foray in the seeds space, providing a strong platform in the entire value chain that comprises breeding, production and marketing of seeds.

Rallis will subscribe to an additional Rs 25 Crs. to increase its stake in Metahelix to 59.02% on a fully diluted basis. Furthermore, pursuant to the terms of the definitive agreements signed, Rallis will enhance its shareholding to 100% in Metahelix over a period of five years.

Speaking on the occasion, Mr. V. Shankar, Managing Director & CEO, Rallis India, said: "This acquisition aims at predominently driving the agricultural productivity and yield enhancement in the country. Farmer adoption of good hybrid seeds is rapidly growing and with this newly acquired strength Rallis will be in a firm position to provide a trustworthy portfolio of seeds to the Indian farmers."

The competencies of Rallis in terms of farmer relationships and channel partnerships would also leverage the offerings from Metahelix. The offerings will supplement the Rallis portfolio, and the robust distribution channel available throught the Tata Kisan Sansar (TKS) platform will enable a wider reach. This also is an opportunity to drive the synergies that exist between Rallis and Tata Chemicals Limited.

Elaborating on the business prospects, Mr. Shankar added: "We believe that the revenues from the entity will exceed Rs 1000 Crs. cumulatively over a 5-year period. The deal works out to twice the projected revenues of next year."

Website: http://www.meta-helix.com

Published: December 10, 2010