The centre announced yesterday, a hike in minimum support price (MSP) for 14 kharif or summer-sown crops. Further, the promoter entity for Dhanuka Agritech has also sold 23.3 lakh shares or 4.9 percent stake to the government of Singapore in a block deal. RG Agarwal, Chairman of Dhanuka Agritech, discussed the details with CNBC-TV18.
In terms of demand, he said, “Farmers have started their activities. Demand is regularly increasing. In the next five years, the agri sector is going to perform very well.”
“We got a good proposal from GIC, which is a government of Singapore fund. We were holding 75 percent of the company since its inception and never offloaded any share, rather bought back our shares three times. So, we got this opportunity through GIC, which is a good fund, so we decided to hive off 4.9 percent stake to GIC,” he shared.
“The money will be used by promoters to create their own assets,” he added.
“The money will be reinvested as per the needs of the company,” Agarwal said.
The company doesn’t have any immediate plans to sell promoter stake as of now. “If some inorganic growth opportunity comes up, then we can consider it, otherwise the company would like to hold it,” he stated.
On new plant in Dahej, he said, “We are working with Japanese companies. We will be creating an export division and we are in negotiation with an international company – we can manufacture for them and export to them apart from our domestic and local markets. The demand is increasing in other unregulated markets as well.”
For the full interview, watch the accompanying video.