Diversified group DCM Shriram Consolidated today said it will merge its subsidiary Shriram Bioseed Genetics with itself and expects to complete the process in the next four to five months.
The group also said it has earmarked an investment of Rs 25-30 crore in the next two years for research and other working capital purposes for its bioseed genetics venture.
"Now the board has approved the proposal to merger of Bioseed Genetics with DSCL and would be completed in the next four-five months. We are in the process of applying to the Stock Exchanges," DCM Shriram Consolidated Chairman and Senior Managing Director Ajay Shriram told PTI.
The company has constituted a committee to carry out the proposed amalgamation. Shriram Bioseed Genetics was floated as a 51:49 joint venture between DSCL and a Thailand-based NRI in early 90s. In 2008, DSCL had bought out its partner's stake for about Rs 50 crore.
"Bioseed has been growing as per our business plan. We expect it to be the growth drivers of the group in future... We will invest around Rs 25-30 crore in the next two years on research, besides on other working capital," Shriram said.
Shriram Bioseed Genetics had recently tied up with a Dutch firm KeyGene to develop new crop varieties for India and South-East Asia.
