In line with the global spin-off of Novartis AG's agrochemicals business prior to its merger with that of AstraZeneca, its Indian subsidiary, Novartis India, will soon transfer its agrochemicals and seeds business to a separate company.
The board of directors of Novartis India will take up the matter at a meeting to be held on May 30, 2000.
The board will also approve the financial results for the year 1999-2000.
In December 1999, Swiss life sciences company Novartis AG had disclosed it would merge its agrochemicals and seeds businesses with that of AstraZeneca of the UK. The new entity is to be called Syngenta.
The agrochemicals and seeds business constituted about 50 per cent of the Rs 770 crore turnover of Novartis India in fiscal year 1998-99.
The crop protection division is expected to have grown 10 per cent this year while the seeds business is growing at 15 to 20 per cent.
A Novartis India statement said the board would meet to "approve the scheme of Arrangement for the transfer of the agribusiness of the company comprising Crop Protection Chemicals and the Seeds Business."
A company spokesperson said if the board approved the move, the next step would be to secure shareholders' approval at an extraordinary general meeting. She declined to offer any further comment prior to the board meeting.
The crop protection division has already divested one manufacturing unit in Panoli, Gujarat to Hikal Chemicals as a precursor to the merger.
AstraZeneca has an 100 per cent subsidiary here. Between the two of them, they now have two manufacturing units -in Santa Monica, Goa and Ennore, Tamil Nadu respectively.
Following the spin-off, Novartis India will be a pure human and animal health company.
At the time of the global announcement, analysts had said the move to spin off the agri businesses would leave Novartis to merge with a pure pharmaceuticals company pushing it up the pecking order.
