Business
Nicholas buys ICI's drug business
By Our Staff Correspondent
MUMBAI
JAN. 25.
Nicholas Piramal (India) (NPIL) has announced the acquisition of the entire pharmaceutical business of ICI (India) for Rs. 70 crores on a going concern basis. With this acquisition, NPIL has emerged as the leading player (as per ORG) in the fast growing cardio vascular segment (CVS) of the Indian pharmaceutical market and a significant competitor in the critical care segment. The transaction will be completed consequent to approval from ICI shareholders. The acquisition cost also includes payment towards acquiring the net current assets of ICI's pharma business.
Through this acquisition, NPIL has also acquired a foothold in the export market for select niche or specialty bulk drugs (Halothane and Monosulfiram) with no competition from India and limited international competition.
"This is a strategic acquisition for NPIL. The acquisition gives muscle to our already strong presence in the cardio vascular segment of the market and will provide us with an excellent platform to develop a base for focused growth in critical care and exports. The acquisition will add well-entrenched brands with excellent profitability and growth potential to our cardio vascular portfolio. The Chennai plant manufactures bulk drugs for exports and for captive consumption for the domestic formulation market. It has a young and focused fieled force which will add to our efficiencies in the specialised CVS and critical care market," said Ajay Piramal, chairman, NPIL.
Further, Mr. Piramal said, "The acquisition is extremely significant from our analysis of the changing patterns of the pharma market. The pharma market is showing a significant shift in patterns with growth emerging from traditional segments like anti-infectives, gastro-intestinals, and dermatology products to lifestyle products like cardio-vascular and central nervous system drugs with a sociological changes impacting disease patterns. Cardio vascular drugs market in India is about Rs. 1,300 crores and is growing at 21 per cent annually".
The acquisition gives NPIL key brands in the CVS segment like Tenormin, Inderal, Zestril and Tenochlor, besides Fluothane and Diprivan in the critical care segment. The speciality bulk drugs exported include Halothane and Monosulfiram. ICI's annualised turnover of its pharma business in 2001-02 is Rs. 76 crores and for the year ended 2000-01 it was Rs. 69 crores.
Send this article to Friends by
E-Mail
Business
|
