The company has informed that it has signed a Business Transfer Agreement with Riddhi Siddhi Gluco Biols Ltd (RSGBL) for transfer of its functionalised biopolymer business. In December 2004, the Company had obtained approval of its shareholders through postal ballot for divestment of its functionalised biopolymer business. The proposed divestment is in line with the Company's focused business strategy and consequent exit from its non-core businesses. The functional biopolymer business comprises manufacture and marketing of tapioca and corn based specialty modified starches mainly for the paper industry. The business pioneered the concept of wet- end starch use in paper making in India and enjoys a dominant market share in the high-end paper starch segment. The proposed transfer of business to RSGBL, which is structured, on a slump sale / going concern would include the manufacturing facility at Pondicherry together with employees directly relevant to the business with continuity of service and full protection to existing terms and conditions of service. With a sales turnover of Rs 150 million (approx), the impact of disposal of this business is insignificant for the Company both in terms of sales and profits.