Financial Daily from THE HINDU group of publications
Saturday, Dec 28, 2002
Financial Daily from THE HINDU group of publications Saturday, Dec 28, 2002 |
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Corporate
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Mergers & Acquisitions Calibre Rehabs to acquire Saptarishi Agro Our Bureau
CHENNAI, Dec. 27 THE acquisition by Calibre Rehabs, a sister concern of the Chandigarh-based leading mushroom exporter, Agro Dutch Industries Ltd, of Saptarishi Agro Industries Ltd is expected to help Saptarishi's prospects, according to industry sources. They told Business Line that Calibre Rehabs' move to acquire Saptarishi is seen as a synergistic step that would boost the latter's long-term prospects. Saptarishi Industries, according to them, has been plagued by quality problems and low yields, both of which could be addressed by Agro Dutch, which is among the largest producer of mushrooms in India. In addition the company has strong marketing tie ups in the US which is a major market for mushrooms, sources said. The Dutch collaborator in Agro Dutch Industries Ltd (originally Scelta BV) was also instrumental for setting up Saptarishi in the early 1990s. Therefore, the expectation is that Agro Dutch is better equipped to handle the production quality issues and technical management of the unit. The acquisition is expected to yield multiple benefits, they said. Meanwhile, the Tamil Nadu Industrial Development Corporation (TIDCO), which is an associate partner with little less than 11 per cent stake in Saptarishi, has approved the proposal. It is now up to the Saptarishi board, and due diligence is on, sources said. TIDCO, which initially had a 26 per cent stake in Saptarishi Agro, is expected to hold on to its stake. Agro Dutch accounts for a major share of India's mushroom export with modern facilities for processing and packaging. The Indian promoters hold a 36 per cent stake with the public 34 per cent, financial institutions 3.7 per cent and NRIs 9.8 per cent.
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