Rallis banks on new products for growth

Rallis, the agrochemicals company of the Tata group, is betting on new products leveraging on its research and development centre.

New products contributed 20-25 per cent of its turnover. The company has launched a new insecticide brand Manik, Reeva 5 in the cotton segment, Samarth in the fruits and vegetables segment and Fateh in the wheat segment.

The company has alliances with multinational companies such as Du Pont, Syngenta, Bayer and FMC Corporation.

Addressing shareholders at the company's 56th annual general meeting, chairman R Gopalakrishnan, said, "We plan to strength the interface between the farmer and company much more than earlier through marketing and distribution.

Traditionally, Rallis' strength has been on its vast distribution network. Also, develop improved product offerings through research. " The distribution channel has been realigned and it has a strength of 1,500 dealers across the country. For the last few years, Rallis has been restructuring itself and has turnaround its financial performance. It is now focusing on manufacture and sales of pesticides (both technical materials and formulations).

Pesticides contribute more than 90 per cent to the Rs 489.19 crore turnover. The company has sold its gelatine business, properties and has raised money through preference shares.

Manpower has reduced from 1,954 to 1,356 in 2003-04. The company recently exited its overseas joint venture Pazchem Ltd that was in exports. Its international business contributes 20 per cent to the turnover and it exports to Japan, US, Spain, Israel, Bangladesh, France, Denmark, Kenya and Australia.

The company has streamlined its speciality fertilizer and seeds business by phasing out products with low gross contribution.