The Tata group is planning to take over pesticide-maker Rallis India, oldest companies in India, with its agro-chemicals Tata Chemicals.

The merger process is on the way but the companies would take some time to take any decision since both the companies are listed on Indian markets.

Both companies have same line of businesses, providing synergies in terms of complementary products.

The merger eyes a 15% to 20% reduction in Rallis' raw material, employee, logistics and other operational expenses, the sources added.

The Tata Chemicals Board has sanctioned a plan to buy 35.8 per cent in Rallis. The process would take place through share transfers from promoter group companies for a price not more than Rs 850/share.

Analysts said that acquisition would cost around Rs 320 to Rs 360 crore.

Presently, Tata Chemicals’ holding in Rallis is 9.4%, which will rise up to 45.2% after the purchase of shares from group companies, including Tata Tea (24.52 per cent), Tata Sons (7.52 per cent), Tata Investment Corporation (2.42 per cent) and Ewart Investments (1.35 per cent).