AgrEvo buys out Biogentic

MUMBAI, MAR 7: Hoechstschering AgrEvo's 100 per cent buyout of Biogentic Technologies BV (BGT), the Dutch holding company of the Proagro ...

MUMBAI, MAR 7: Hoechstschering AgrEvo’s 100 per cent buyout of Biogentic Technologies BV (BGT), the Dutch holding company of the Proagro Group, will give the German giant a dominant position in the Indian seeds sector. The Proagro Group is the second largest seeds company in India in the combined hybrid and non-hybrid sectors.

AgrEvo’s acquisition comes even as the German giant is in the midst of a proposed merger with French multinational Rhone-Poulenc to form Aventis. When formed, Aventis is expected to focus on three key areas in agrochemicals: traditional agrochemicals, crop improvement & biotech seeds and environmental health. The Proagro acquisition, by and large, fits into the second category.

Hoechst Schering AgrEvo GmbH (AgrEvo) on February 24 completed a definitive acquisition of Biogentic Technologies BV (BGT) for an undisclosed sum. The Proagro Group of companies comprises the Proagro Seed Company, Proagro-PGS India, Hybrid Rice International and MISR Hytech. With the exception of theEgypt-based MISR Hytech, the Proagro group of companies is headquartered in New Delhi.

Proagro group managing director SK Kapoor told The Indian Express that the deal would strengthen the combine’s position, though it would "take some time" to become number one in the seeds segment. Senior Hoechst officials could, however, not be reached for comment.

The Rs 70 crore Proagro group has around 600 employees on its rolls, besides four research stations located in Delhi, Gurgaon, Hyderabad and Aurangabad. The deal will also give Proagro total access to AgrEvo’s biotechnology portfolio besides facilitating the transfer of technology to India, which would mean superior products for existing Proagro customers.

The Proagro Seed Company is already ranked number one in the corn and millet segments, among others, while it holds the number two position in the sunflower and grain sorghum segments. The company is developing hybrid cotton for India and other Asian markets. Asked whether the Proagro group wouldeventually be merged into AgrEvo India, Kapoor said, "We are an AgrEvo group company", but added that it was too early to predict whether the two entities would be combined. Hybrid Rice International (HRI) is the market leader in India in hybrid rice and is active in other important south-east Asian markets.