Demerger of seeds biz to take 2-3 months: Camson Bio Tech

Speaking about the company’s plans to demerge the seed business into a different entity, Santosh Nair, CEO of Camson Bio Technologies in an interview to CNBC-TV18 said the demerger process would take two-three months.The company has already got an approval from Sebi and stock exchanges, he added.The company basically had two verticals; the biocides business and hybrid seeds business. Since both the businesses now are growing rapidly, it was time to unlock value both for shareholders and focus on driving the businesses differently, said Nair. S,o the decision to demerge, he added.

Below is the transcript of Santosh Nair's interview with Ekta Batra & Anuj Singhal on CNBC-TV18.Ekta: We do understand that you all are looking to demerge your seed business to different entity, tell us why and what is the rationale behind this restructuring? A: We have announced this particular restructure sometime back and if you see now we were just going through the approval process. So we have got the approvals from Sebi and the Bombay Stock Exchange (BSE). Now we are at the court now so hopefully this would take about 2-3 months from now for the whole process to get going from now on. Having said it is important to understand the business that the companies does. We have two distant verticals one is the bio side which is replacement to all your chemicals pesticides as so on. The other is the hybrid seeds business so we were too small initially when we started off because both were complementing each other in terms of the business. But now that both the business are growing at a rapid pace we thought that it is time that we unlock value both for the shareholders and also to bring in more focus in terms of driving these two business differently as it has got two different regulations which governs the business per se. So that was the whole objective in terms of getting to this decision in terms of de-merging both the businesses.Ekta: Would there be any sort of unlocking of value of any of the businesses post the de-merger for example may be getting another investor on board, separate listing? A: As of now we have not really thought about it but over a period of time we would love to have some strategic, some technological partner that could come in the seed business so that is the objective. It is too early in time for us to make a decision but we would definitely won’t to look at some of the strategic investors coming in the seed business per se.