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August 23, 2007
Russell Credit Limited, a wholly
owned subsidiary of ITC
Limited, has acquired 100% equity stake in
Technico Pty Limited,
Australia (Technico) from its promoters comprising Chambal
Biotech Pvt Ltd, Singapore, a K.K.Birla group company, Gresham
Rabo, a fund management company and other
institutions/individuals based in Australia. Technico has
operations primarily in India, Canada and China.
The acquisition is expected to provide strategic sourcing
support to ITC’s Salty Snacks business through secured long-term
access to high quality chip grade potato seeds. ITC had earlier
launched ‘Bingo!’ in 16 different varieties, including
potato-based salty snacks, which has received encouraging
support in the market garnering shares of over 10 % in the
markets it serves. The acquisition of Technico Pty Limited will
provide a strong synergy to the potato-based value chain,
enhancing farmer capabilities through access to high quality
seeds and internationally benchmarked best practices in
agronomy. This is in line with ITC’s abiding philosophy to
contribute to the development of the agriculture-based rural
economy and secure competitiveness of the value-chains created
by the Company through its agri and foods businesses.
ITC’s extensive ‘e-Choupal’ network will leverage the
proprietary technology [TECHNITUBER®], which enables the rapid
multiplication of seed potatoes from pathogen tested plantlets
in controlled environments, to provide improved and consistent
yields to farmers. The Company will also use its sourcing
strengths to make available such superior quality horticulture
produce through its ‘Choupal Fresh’ stores. This is also
expected to benefit vendors and other intermediaries in the
retail chain through higher value realisation.
The acquisition reflects ITC’s endeavour to create enduring
value in its agri-food business by bringing superior R&D based
technology to agriculture, thereby empowering farmers and
enabling higher returns to both the agri and retail
value-chains. |
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