Rallis eyes niche chemical segment

The Tata group-promoted pesticide maker Rallis India is to broaden its product portfolio beyond agri-business and pesticides.

The company will foray into newer speciality chemicals segment and look at various high potential areas such as construction chemicals. The company plans to seek the assistance of an international consulting firm for its product search.

According to official sources, the company is planning an investment of about Rs 300 crore to set up a greenfield manufacturing facility for its new range of products. Rallis has already acquired 150 acres in Dahej (Gujarat) for the purpose.

The facility would produce goods for both domestic and international markets. The company is also looking for contract manufacturing deals with global speciality chemical makers, sources say.

"We are looking at newer areas of development through the proposed speciality chemical business. For instance, construction chemicals is a niche area with a lot of potential. However, we are yet to finalise an area," sources pointed out.

The choice of the location will also help Rallis leverage on the group company, Tata Chemicals. Rallis has been in the process of gradual restructuring over the last few years.

Having divested its pharmaceutical division some six years ago, Rallis has been positioning itself as a agro-chemical company.

The company stopped marketing fertilisers of Tata Chemicals some time back. Similarly, Rallis had handed over its entire clinical trial and research and development facilities in Bangalore to Advinus Therapeutics, another Tata group firm that focuses on drug research.