The new plan envisages formation of two separate joint ventures out of the formulations and fermentation pharma business.

"The company is also in discussions with a few multinationals to form separate joint ventures for each of the three divisions out of the pharma and biotechnology businesses. The company is looking for strategic partner who will bring in the technology and financial assistance and we are not averse to taking a minority stake in the proposed JVs, provided we are able to find a suitable partner," Spic's director (agro inputs), S Stalin told The Financial Express.

"The pharma business of formulations and formulations will be further spun-off into two separate joint ventures. Since most our our joint ventures are doing exceedingly well, we prefer to hive off a few business divisions into separate joint ventures," said Stalin.

The company is expected to obtain the shareholder's approval for spinning off the pharma and the biotech businesses into three separate ventures in the forthcoming annual general meeting.

Spic's pharmaceutical business generated a business of close to Rs 80 crore for the year ended March 2000 and biotech division reported a turnover of around Rs 16 crore.

Further, Spic has already proposed to hive off its Rs 100 crore heavy chemicals division at Manali into a joint venture with Tamilnadu Petroproducts (TPL). The heavy chemicals division is producing chlorine, caustic soda and industrial grade ammonium chloride and suffered mainly due to the drop in caustic soda prices and high cost of power. Spic's JV with TPL has synergy since TPL would require more chlorine to increase the capacity of epichlorohydrine, which goes to the epoxy resin plant. Also, the division will integrate its operations with two other associate firms, Manali Petro and Spic Organics, which consume chlorine.

Spic has invested close to Rs 200 crore in the pharmaceutical division and about Rs 30 crore in the biotechnology division. While the pharma division is primarily involved in the business of penicillin-G, the company has already started the formulation business in a big way. Spic's biotechnology business includes a tissue culture plant in Coimbatore and facilities in Porur (near Chennai) and Hosur. It has successfully developed products like Neemgold (a botanical pesticide) and Biogold (a branded bio-fertiliser). The division also sells hybrid cotton seeds and recently developed high-yielding tomato, cabbage and brinjal seeds.

Although the company already maintains high level of environment safety measures, we will look for strategic partners in the field of saftey, energy and environment management through the forthcoming mega event India Chem 2000 (a joint event being organised by the department of chemicals & fertilisers and Ficci). The event is expected to offer Indian corporates a lot of opportunities in these three key areas, said Stalin.

"Spic recently achieved the five star award from the British safety Council for saftey measures installed in the company's manufacturing premises and are among the few Indian companies to achieved this recognition," he said.