HC nod for Nicholas Piramal, Rhone Poulenc merger

By Our Special Correspondent

MUMBAI, OCT. 9. Nicholas Piramal India (NPIL) today announced that the merger process of Rhone Poulenc India (RPIL) with it was complete following the sanction of the merger by Mumbai High Court.

``Following the merger proceedings, which began when NPIL acquired the equity stake held by Aventis Pharma in Rhone Poulenc India in December 2000, several initiatives had been taken to set the process of integration between the two companies in place," sated a Nicholas Piramal release.

``With the merger now complete, Nicholas Piramal is now the second largest pharmaceutical group in India, as per ORG, when assessed together with its joint ventures / subsidies," stated Mr. Ajay Piramal, Chairman, Nicholas Piramal. According to him, the integration process is well underway and it will lead to putting in place the best-in-class processes along with manpower rationalisation and substantial cost reduction while maximising efficiency.

``We are also putting in place major plans to emerge as one of the most focused, cost effective and leading research companies in the Indian pharma industry.

The acquisition of RPIL was a major step towards achieving a critical mass and NPIL is now poised to achieve a new level of growth and profitability. It is the ideal launch pad for new products," Mr. Piramal added.

``As per the integration plan we have rationalised the number of production centres by closing down the erstwhile RPIL, Bhandup plant in Mumbai," said Mr. Vijay Shah, Chief Operating Officer and Executive Director of NPIL. Workers have been offered a VRS package for which the response has been excellent.

This will give a long term cost benefit to NPIL. At the supply chain level, steps have been taken to integrate the CFAs and depots and obtain economies of scale in procurement and distribution.

The consolidated sales and marketing team, following the acquisition is now 1,200. However, said Mr. Shah, the marketing and sales functions would operate independently in order to ensure that the complementary strengths created by the brand portfolio of the two companies, with its presence across a wide range of therapeutic segments, was optimised.

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