An article in Business Line dated 5th Sep, 2010 stated that Canada and Australia specially grow pulses, just to export it to India, looking at its increasing demand for pulses (that is a key part of its meal). The potential that these 2 countries see is so high that they have some Special Economic Zone (SEZ) being set up, where pulses would be grown specially for India. India produces 14-15 million tonnes of pulses and the target is to increase it to 38 tonnes by 2025 to meet the growing demand, ensuring that no protein deficiency problem arises among poor. Looking at this big opportunity, the Tata group has also decided to exploit this through its 2 companies - Tata Chemicals and Rallis India (subsidiary of Tata Chemical). They went on to do a pilot study in Tamil Nadu and Punjab to know everything from procuring seeds to growing to selling them.
Rallis even entered into a public-private partnership with TN-IAMWARM. Through this they gave seeds and a package of practices to about 1000 farmers to grow pulses on 3500 acre land. Rallis has developed seed farms to multiply and produce quality blackgram seeds. This has helped the farmers improve their farm yields and income by Rs.5000 per acre. Rallis then buys back the produce, packages it and sells it as Tata Urad Dal, under the brand name i-Shakthi. They are using the distribution network of Tata Chemicals to market the packaged pulses.
This is a brand new synergistic relationship showcased by Tata Chemical and Rallis India. By venturing into new and different projects together, in the future they can create alot of value for the shareholders.
In one of my earlier posts, I have mentioned about Tata Chemicals Limited (TCL). This stock is definitely a long term stock for me that I want to have in my portfolio for the rest of my life. It actually believes in creating value for its shareholders and at the same time helping out the society as well. It is in TATA's that we trust.
Happy Investing.
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