DCM Shriram Consolidated Ltd (DSCL) has informed BSE that the Company had a Joint Venture for Hybrid Seeds business whereby it owned 51% of the business and the Joint Venture Partner owned balance 49%.

In a transaction concluded on March 18, 2008, Company through its 100% subsidiary has acquired the entire 4.9% stake of the Joint Venture Partner. Accordingly, the following Companies have become its 100% subsidiaries:

- Shriram Bioseeds Ltd, Mauritius.

- Affee Investments Corp., British Virgin Island.

- Bioseed Genetics International Inc., Panama

- Zeus Investments Ltd, Mauritius

In this regard the Company has issued the following press release:

“DCM Shriram Consolidated Ltd (DSCL) has announced the acquisition of the entire stake of its JV partner(49%) in the Hybrid Seeds Business Which operates in India, Vietnam, Philippines and Thailand.

In a transaction completed March 18, 2008, DSCL’s 100% subsidiary, Shriram Bioseeds Ltd (SBL) Mauritius, acquired the JV partner’s entire 49% stake in the Hybrid Seed Business for a total value of approx. USD 13.32 million. DSCL already owns 51% stake and management control of this business.

The Hybrid Seeds Business offers high yielding hybrid seeds for Corn, Cotton, Rice, Millet and Vegetables. The Business has built a strong research base and has extensive production, processing and sales and distribution network. It is poised for aggressive growth in coming years with a strong product pipeline. The business operates in India, Vietnam, Philippines and Thailand, and is building presence in new overseas markets.

DSCL has very extensive agri presence in India comprising agri-inputs (fertilizers, pesticides, seeds, micro-nutrients etc.), agri output and its pioneering rural retail initiative ? Hariyali Kisaan Bazaar. Full ownership of Hybrid seed business will enable DSCL to achieve better integration of this business with its overall agri business, and expand the product portfolio in other countries, where Hybrid Seed Business operates as standalone businesses so far.

Commenting on the development Mr. Ajay S Shriram, Chairman & Sr. Managing Director and Mr. Vikram S Shriram, Vice Chairman & Managing Director in a joint statement said “This acquisition with enable faster growth of our hybrid seed business in India through exploiting synergies with other agri business of the Company. At the same time, it would enable DSCL to offer complete agri inputs portfolio in overseas markets by leveraging the brand and distribution network of Hybrid seed business.

With the completion of this transaction, DSCL’s has acquired M/s. AFFEE Investments Corp;
Bioseeds Genetic International and Zeus Investments Ltd, as its 100% subsidiaries.”