08 Nov, EOD - Indian

SENSEX 79486.32 (-0.07)

Nifty 50 24148.2 (-0.21)

Nifty Bank 51561.2 (-0.68)

Nifty IT 42050.15 (0.71)

Nifty Midcap 100 56352 (-1.33)

Nifty Next 50 69774.2 (-1.23)

Nifty Pharma 22542.25 (0.07)

Nifty Smallcap 100 18445.6 (-1.70)

08 Nov, EOD - Global

NIKKEI 225 39500.37 (0.30)

HANG SENG 20728.19 (-1.07)

S&P 6035.5 (0.33)

LOGIN HERE

Rallis India Ltd

You are Here : Home > Markets > CompanyInformation > Company Background
BSE Code : 500355 | NSE Symbol : RALLIS | ISIN : INE613A01020 | Industry : Agro Chemicals |


Company History

Rallis India Limited is a leading player in the agricultural inputs industry. Being as Tata Enterprise since 1964, the Company is a leading crop inputs company with presence across the agricultural input value chain. It markets products for each step of crop cycle to facilitate an integrated crop management system and increase agricultural yield and farm income. It has a diversified portfolio and a channel network of 4,500 dealers and 60,000 retailers.

Rallis India Limited was incorporated on August 23, 1948. The Company is engaged research, development, manufacturing and distribution of Crop Protection and Crop Nutrition solutions. It provide safe and sustainable products in Crop Protection, Crop Nutrition and Seeds. Its Crop Protection portfolio of Active Ingredients, bulk and branded formulations covers fungicides, herbicides and insecticides and caters to domestic and international markets. Besides, the Crop Nutrition portfolio, focused in domestic market, consists of biostimulants, biofertilisers, biopesticides, organic fertilisers, water soluble fertilisers as well as micro and secondary nutrients.

Its Agribusiness division is the distributor of Pesticides, fertilisers, micronutrients, seeds, animal feed and other agro inputs. It has 4 production facilities, of which, 2 are located in Gujarat (at Ankleshwar and Dahej) and 2 in Maharashtra (at Lote and Akola).

The company discontinued marketing of Monsanto seeds during the year 2001-02. The company commenced production of a range of ethylene oxide condensates based surfactants, which found captive use in its agrochemical formulations during 1999-2000. This helped the company to reduce the cost. During 2000-2001, the company established seed processing facilities at Dhar (MP) and Patancheru, near Hyderabad and research infrastructure, quality control and storage facility at Patancheru.

The Rallis Agro Research Centre, based in Bangalore, leads in toxicology and entomology research. Its facilities and research practices (GLP) are recognised by Bundesgesundheitsammt (BGA), Germany.

The Fine Chemicals division of the company operates two factories both in Tamilnadu at Ootacamund and Cuddalore. The company has suspended the manufacturing activity at Cuddalore plant as the third party manufacturing offers a cheaper alternative. Rallis is the leading producer and distributor of agro-based tanning materials from a variety of forest products. During 2004, the company sold out its Gelatin business of the Fine Chemicals Division to Sterling Biotech Ltd.

Rallis is undertaking restructuring of its business, which includes consolidation, merger and selloff. First step in this regard was taken by Rallis is merger of its 5 subsidiaries viz Ralchem Ltd,Rallis Finance & Investments Co Ltd, Rallis Hybrid Seeds Ltd, Rallis Farm Management Services Ltd and Sankhya Garments Ltd with itself. The petitions has been filed and the company awaiting final hearing by the court. It has also filed a petition for merging sixth subsidiary viz. Siris India Ltd with itself. During 2003-04, the Company received the approval from the court for the merger of six subsidiaries with itself.

The Pharmaceutical business of Rallis, which engaged in marketing of household remedies and manufacturing of basic drugs was sold to Shreya Life Sciences Pvt Ltd. a member of Russia based pharma marketing and distribution company for Rs.49 Crore. And the transfer of business is completed effective June 30, 2001. The company has also completed the sale of its Andheri property to Orchid Print India Ltd., a wholly owned subsidiary of Tata Sons Ltd during the year 2001-02.

Rallis has discontinued the distribution of bulk fertilizers and the arrangement with Tata Chemicals came to an end from 1st March 2003. It is also shifting its focus from a seeds distributor to become a sourcing and branding company with focussed R&D.

During 2005, the company transferred its Knowledge Services Business which includes the Research & Development Centre at Bangalore,as a going concern to Advinus Therapeutics Pvt Ltd with effect from 1st April 2005 for a consideration of Rs.26 Crores.

In the year 2005, the company increased its installed capacity of Pesticides (Solids) by 920 Tonnes. With this expansion, the total installed capacity of Pesticides (Solids) has increased upto 22825 Tonnes.

In 2006, the company has been established new Development Center at Patancheru. All Research and development, including NMITLI and NPDL, is being carried out at this new location. All the regulatory studies required for obtaining the registrations are being outsoured through Advinus Therapeutics Pvt Ltd and other government and private institutions.

The company has started the sourcing and markeitng of Bt Cotton Seeds. An Alliance with Nuziveedu Seed Company, a Major Player in hybrid and Bt Cotton seed market, has been estahlished for purposes.

In 2007, The company has incorporated a subsidiary in Australia viz. Rallis Australasia Pty Ltd., in order to enhance its presence in Australia.The company has successfully launched three new products in the year viz. Nova, Applaud and Taqat. Applaud has been a great success in the year, wherein the company gained a phenomenal response from paddy growers.

The first year of Bt cottonseed marketing has been rewarding and valuable experience gained, which will support expansion of this activity in the coming year. Preparation to expand into marketing of seeds in the rice and vegetable markets has been initiated.

During the year 2014, Rallis India acquired additional stake of equity shares in Zero Waste Agro Organics Limited (ZWAOL), a subsidiary company of Rallis India pursuant to the Share Subscription and Share Purchase Agreement dated 23rd April 2012. Consequently, the shareholding of the Company in ZWAOL has increased from 22.81% to 51.02%. During the year, the Company has also acquired additional stake of equity shares in Metahelix Life Sciences Ltd. (Metahelix), pursuant to the Share Purchase Agreement dated 9 December 2010. Consequently, the shareholding of the Company in Metahelix has increased from 77.02% to 80.5%.

During FY 2016, the Company acquired the balance equity shares in Metahelix Life Sciences Ltd. (Metahelix). Consequently, the shareholding of the Company in Metahelix has increased from 80.51% to 100%, making Metahelix a wholly owned subsidiary of the Company. The company has made an investment of Rs 73.33 crores for acquiring an additional 20,953 Equity Shares of Metahelix.

In FY16, the Company signed an Agreement with Ikea India Pvt. Ltd., for assignment of its leasehold rights in respect of its leasehold land at Turbhe, Navi Mumbai, for a gross consideration of Rs 214 crores. The arrangement is subject to the Company obtaining necessary approvals under various regulations.

During the year 2016, the Company's Board approved granting of a Corporate Guarantee in respect of credit facilities of up to Rs 270 crores availed by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total obligations of Advinus under such borrowings. The Guarantee has been issued during the first week of April 2016.

During FY 2017, Metahelix has invested USD 1,22,500 for 1,22,500 Equity shares of USD 1 each, with 65.77% shareholding in an Indonesian Joint Venture (JV). Mr. Suresh Vaswani, the JV partner has invested his share of USD 1,27,500 for 63,750 Equity Shares of USD 2 each, with 34.23% shareholding. The JV Company PT Metahelix Lifesciences Indonesia, has initiated seed production operations in March 2017. Testing and evaluation of new products in Maize and Rice in Indonesia shall be initiated during 2017-18.

During the year 2017, the Company has acquired the balance Equity Shares in Zero Waste Agro Organics Ltd. (ZWAOL). Consequently, the shareholding of the Company in ZWAOL has increased from 73.63% to 100%, making it a wholly owned subsidiary of the Company. The Company has made an investment of Rs. 19.49 crores for acquiring an additional 19,421 Equity Shares of ZWAOL.

During the year 2018, Metahelix has invested USD 183,750 for 183,750 Equity shares of USD 1 each with 65.77% shareholding in its Indonesian Joint Venture (JV) Company PT Metahelix Lifesciences Indonesia (PT Metahelix) as per the commitment in the JV Agreement. The JV partner has also invested his share of USD 191,250 for 95,625 Equity Shares of USD 2 each with 34.23% shareholding. The total equity of PT Metahelix stands at USD 625,000 as on 31 March 2018.

In FY 2017-18, the Company received four registrations for the domestic market (two each for domestic and export category) and 12 registrations for the international market. Moreover, the Company has completed field trials of three more products and is ready for the registration process.

During year under review, the Company has gained 11 new registrations in strategic overseas markets. Partnership models with strategic customers that were adopted during the year helped the Company in its growth journey through leveraging each other's strengths. IBD continues its focus on developmental activities in key geographies in Latin America, South East Asia, Europe and African markets.

During the year under review, 3 Blocks (Afzalpur, Bijapur and Bhalki) from 3 Districts (Gulbarga, Bijapur and Bidar) in Karnataka were covered under PPP IAD Project with Karnataka Government for Pulses Productivity improvement for Red Gram (Pigeon Pea) and Bengal Gram (Chick Pea), which are saviour crops for farmers apart from major crops in that area. Increase in productivity and quality helps farmers for additional income generation and fetching better prices for their produce.

During the year 2019, the Board of Directors of the Company approved the proposal for the merger of Metahelix, a wholly owned subsidiary of the Company, with the Company and their shareholders and creditors pursuant to Sections 230 to 232 of the Act and as per the terms and conditions mentioned in the Scheme of Amalgamation. The merger is subject to the necessary approvals/ sanctions from the jurisdictional National Company Law Tribunal or such other competent authority and shareholders and creditors of Metahelix and the Company, as applicable.

During the year 2019, the Company has made an investment of Rs 19.60 lakhs in Rallis Chemistry Exports Limited, wholly owned subsidiary of the Company, by way of equity shares.

The NCLT, Mumbai Bench had sanctioned the Scheme of Arrangement in FY 2019-20, where Zero Waste Agro-Organics Limited (ZWAOL), a wholly owned subsidiary was merged with the Company and ceased to be a subsidiary effective from July 9, 2020.

In FY 2021, Company launched 4 new products in Crop Protection (including 3 in-house formulations) and 6 new products in Crop
Nutrition (including 2 in Biopesticides). It increased the number of dealers by 5% and retailers by 17%. It continued up-stocking of raw materials to avert production disruptions due to potential supply chain issues and price hike. It acquired 9 new registrations internationally. It attained global leadership in most Active Ingredients manufactured. It invested in research, registration and manufacturing to expand portfolio. It added 2 new manufacturing plants at Dahej, to strengthen capabilities across business segments. It launched and promoted 2 botanical biopesticides through strategic partnerships.

The Company gained 17 new registrations in the overseas market in FY 2022. Infrastructure and people skill-sets were augmented at the Bengaluru R&D centre and chemistry platforms were expanded. The herbicide Active Ingredient capacities at Dahej were enhanced to service the International business. It launched 6 new products such as, Aquafert Cotton, Aquafert Apple, Ralli Derma, Ralli Flomonas, Ralli Pecilo and GeoGain K+. It strengthened presence in Soybean and Paddy crops with newly-launched Prodim, PePe and Preet Plus. In addition, the Herbicides portfolio gained market share in crops such as Paddy, Soybean and Pulses. Research and Development activities were intensified and more than 20 products covering multiple segments across categories were chosen for commercialisation. PT Metahelix Lifesciences Indonesia ceased to be a subsidiary of the Company effective from March 23, 2022.

During the year 2022-23, the Company launched Clasto for Cotton white fly, which is also the carrier of dreaded cotton leaf curl virus. The Paddy portfolio further strengthened with the launch of Clue for brown plant hopper menace and Dext for borer segment. It launched Onto for control of sucking pests in tea and also having wider application in multiple crops. It launched Zaafu and Ayaan; launched Daksh Plus, a highly differentiated wheat herbicide during Rabi 2022.