Shares of this Tata group company that manufactures agrochemicals rose by nearly 2 percent after completing a partnership with Australia’s Bio-gene Technology Limited to produce an insecticide.
Price Variation
In Monday’s trading session, Rallis India Limited’s share price surged 1.9 percent to an intra-day high of Rs.358.75 per share, up from the previous close of Rs.351.95 apiece.
What led to the Rise
Rallis India Limited, a Tata Enterprise, and Bio-Gene Technology Limited have completed the pilot-scale production of Flavocide, a novel insecticide derived from nature.
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The production demonstrated consistent quality and yield at a pre-commercial scale. Flavocide produced by Rallis will be used in upcoming testing activities to support the registration process for Flavocide.
Rallis can also produce sufficient quantities of Flavocide for future supply to Bio-Gene’s commercial licensees.
Business Segment and Revenue Mix
The company’s diverse business segments including Crop Protection Products, Plant Growth Nutrients, Seeds, Contract Manufacturing, and Agri-Services are designed to meet the evolving needs of farmers. It generates 60 percent of its revenue from international markets and 40 percent from domestic operations.
Management’s Comment
Dr. Gyanendra Shukla, MD & CEO of Rallis India Limited, emphasized the company’s commitment to sustainable solutions in Crop Protection through its partnership with Bio-Gene. Rallis successfully developed and scaled up Bio-Gene’s patented Flavocide insecticide, highlighting their dedication to innovation.
Although the business impact is not material at this stage, Rallis looks forward to supporting the global commercialization of Flavocide in the coming years.
Extensive Network
Rallis India has an extensive distribution network with 7,000 dealers and over 100,000 retailers across the country, reaching 80 percent of India’s districts. The company also has global access to more than 70 countries and maintains marketing alliances with several multinational agrochemical companies.
Financials
Turning towards the financials of the company, Rallis India reported Q1 FY25 revenue of Rs.783 crore, up 10.8 percent from Rs.436 crore in the previous quarter Q4 FY24. Profit After Tax (PAT) increased to Rs.48 crore, compared to a net loss of Rs.21 crore during the same period.
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Company Profile
Rallis India Limited, a subsidiary of Tata Chemicals Limited is primarily involved in manufacturing and marketing agri-inputs. The company focuses on the production, distribution, sales, and marketing of crop protection products and a range of field crops.
Written by – Siddesh S Raskar
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