Bangalore-based lifesciences company Avesthagen Ltd has teamed up with Limagrain, a UK-based cooperative group, to set up a joint venture company, Atash Seeds Pvt Ltd.
Limagrain incidentally is also an existing strategic investor in Avesthagen.
Avesthagen will license its patented technologies to Atash Seeds to develop, produce and market seeds nationally and internationally by leveraging Limagrain’s domain expertise, knowledge and marketing strengths, said a company statement.
Atash Seeds, to be based out of Hyderabad, will be headed by an international CEO from Limagrain.
Avesthagen-- backed by ICICI Ventures, Fidelity and New York Life Investment Management India Fund—recently announced plans to raise up to Rs 700 crore through an initial public offering to commercialise its products that are in various stages of development. It is expected to clock a turnover of Rs 100 crore this fiscal. It also counts Tata, Godrej, Meditab Specialities, Danone, Limagrain and bioMerieux as its strategic investors.
Avesthagen says, the JV will offer an opportunity to the company to increase its revenue and market share. Villoo Morawala-Patell, founder and CMD of Avesthagen Ltd, says, Atash Seeds will grow in geometric progression. Morawala-Patell will be the chairman of the JV company.
Apart from this partnership, Limagrain has also entered into an exclusive worldwide licensing pact with Avesthagen for developing and marketing genetically modified seeds such as maize, wheat, barley, rice and sunflower.