Advanced Enzyme Tech to buy stake in 2 Chinese firms

Mumbai-based Advanced Enzyme Technologies Ltd (AETL), the country's second largest natural enzyme manufacturers, is planning to set up base in China by acquiring minority stake in two Chinese technology companies.

AETL has earmarked an investment of Rs 10 crore for the acquisition and has an equity collaboration with the Japanese enzyme major-Higuchi.

The company is eyeing China not only market expansion but technology exchange as well, according to C L Rathi, managing director of AETL.

"China has a well developed enzyme market and we are scouting for ideal partners to leverage our capabilities both in terms of market potential as well as technology exchange. However, it is very early to reveal the details of the investment," he said.

" Along with forming equity collaborations with two Chinese companies, we will also be setting up a marketing outfit in China shortly," Rathi added.

The two Chinese companies that AETL has identified for investment are currently leading players in the world enzyme market in pharma and non-pharma segments, respectively.

AETL manufactures and markets natural enzymes for a wide range of industrial applications. However, the mainly focuses on enzymes used in the industries like pharmaceuticals, nutraceuticals, animal nutrition and healthcare and agriculture.

At present, AETL is one of the leading solution provider and application specialist for the processing industries. With the proposed expansion plan in the overseas markets, the company has set a revenue target of Rs 500 crore by the end of 2006-07.

The company supplies it's products to over 100 major industry players in the areas of pharmaceuticals, nutraceuticals and non pharma sectors like food processing, leather, textiles and beverages.

The Rs 100 crore company has its research centre and manufacturing facilities in India and plans to set up three new manufacturing plants in the country. Rathi said that the additional manufacturing facilities are coming up at Indore in Punjab, Jalna and Vasinj in Maharshtra.

The Indore plant is a dedicated to export purpose and the other two facilities are dedicated to animal nutrition products and textile and leather industry application products respectively.

AETL had set up a research centre and a production plant in US recently.