Hyderabad-based Super Agri Seeds Private Limited is planning to tie-up with two European agro-based companies for research and development (R&D) by next year.
“We are in the process of forming joint ventures with agro-based companies in Europe and Asia for R&D in crops like sunflower, corn, jowar and vegetables, besides making an entry in biotechnology,” Ravi Srinivas, managing director of Super Agri Seeds, said here on Friday.
Super Agi has raised Rs 50-crore private equity from the $120-million India Agri Business Fund, for which Rabo Equity Advisors is an investment advisor. The company will use the funds for new product development and scaling up its R&D activities in the next two years,
Currently, the private seed industry is pegged at around Rs 9,000 crore, and growing at 20 per cent per year.
Super Agri markets about 140 hybrids and varietal seeds under the ‘Super Seeds’ brand, mainly in the Andhra Pradesh and Uttar Pradesh markets. The company, with strengths in cotton, corn, rice and vegetable, has lined up 60-62 new hybrid products in the next two years.
The company is targeting to achieve a Rs 350-crore turnover by 2015, as against the expected turnover of Rs 75 crore this year. “We are quite positive on the growth. With new products in the pipeline and plans to spread our base pan-India, we are hopeful of achieving the target by 2015,” he said.
IABF to close $120-million fund this year
India Agri Business Fund (IABF), a $120- million equity fund instituted in 2008 for which Rabo Equity Advisors is an investment advisor, is planning to close the fund by this calendar year.
“We have already deployed 65 per cent of the fund and invested in eight companies including LT Foods, Sri Biotech, Geepee, Global Green, Super Agri and Daawat. The remaining fund will be invested in the in two-three deals over a few months,” said Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors.
Srivastava said that the company was finalising deals with two companies in the food and agriculture space in two months. On Friday, Rabo Equity Advisors has signed an agreement with Hyderabad-based Super Agi Seeds for Rs 50-crore fund.
The $120-million IABF is sponsored by the Netherlands-based Rabobank and was formed for promotion of food and agribusiness companies in the Indian market.
Replying to a query on its exit plans in the invested companies, he said, "Currently, the agri and seeds market is growing. We do not see any plans to exit in the near future. It may happen after three-four years.”
Rabo Equity is also planning its second fund, valued at $250 million, later this year. “For the first fund, the deal size is smaller with an average of $ 6 million, whereas the average ticket size for the second fund will be 15-16 million,” he said.
