Rallis India managing director, Vijay Rai, told The Financial Express that the new animal health group will act as a separate selling unit within the overall purview of the company's pharmaceutical division. The unit will essentially focus on feed additives, preventive care and therapeutic segments in the veterinary pharma business.

Rallis has already launched products like RFF-44 an amino acid-vitamin mineral mixture for poultry, Tephrosol-A a herbal liver tonic for poultry and livestock, Haemoferon-5 an iron dextran injection and Livoderm a liver extract ointment for wounds, burns and dermastoses in animals.

Other key products include Relyte-Vet oral rehydration salts and Tatafen 20E an ectoparasite for livestock and poultry.

In the preventivecare segment, Rallis is expected to act as exclusive distributors for products made by British multinational, Coventry Chemicals, while other launches slated in this area include a rodenticide branded Ratox.

Rallis' animal health products are made at the company's facilities at Dhar, in MP and Ooty, though the company also avails of third party manufacturing. This business, managing director Rai said, is expected to generate about Rs 25-35 crore within three years. Distribution is being handled by C&F agents, though currently the thrust is on in markets in Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu.

On the company's alliance with the UK-based Phytopharm for development of plant-based medicinal treatments, Rai said that the real impact would only be felt five years down the line. The agreement became effective in January 1998. Phytopharm is expected to render technical assistance to its Indian partner as part of the alliance.

The agreement covers the development of, among others, anti-cancerdrugs and Rallis would conduct initial toxicological and clinical tests for such products. The Indian partner will use its primary extraction plants at Aurangabad in Maharashtra and Cuddalore in Tamil Nadu for this purpose, besides its R&D facility at Bangalore.

While Rallis will retain marketing rights of products developed under the arrangement in India, international rights have been assigned to the UK-based company. Rallis is expected to receive a royalty payment on international sales.

Rai said that products developed under the deal would be jointly patented, though Rallis is expected to hold patents only in India.

Rallis has also forged marketing alliances with Norsk Hydro of Netherlands and Abbott Laboratories, USA, for speciality fertilisers. Rai said that more products would be added to the existing range once these are successfully handled.