Nicholas piramal buys-out partners 50% in Sarabhai piramal pharmaceuticals for rs. 693 million

Nicholas Piramal India Limited (NPIL) today announced the buy-out of its partners 50% stake in Sarabhai Piramal Pharmaceuticals Private Limited (SPPL) for Rs.693 million.

Mumbai (PRWEB) December 31, 2003 --SPPL is a 50:50 Joint Venture of NPIL with Ambalal Sarabhai Enterprises Limited (ASE). The Company had FY2003 Sales of Rs. 1.8 billion and Profit after tax of Rs. 176.5 million.

Signing the agreement, Mr. Ajay Piramal, Chairman, NPIL said, The SPPL buy-out is in-line with Nicholas Piramals objective of consolidating its pharmaceuticals portfolio. This acquisition will elevate NPIL to the 4th position in the domestic market with 4.4% market share".

NPIL had invested Rs. 225 million in SPPL and has received Dividends aggregating Rs. 240 million till FY2003. Profits for FY2004 will accrue fully to NPIL.

SPPL commenced full operations in FY99 with Sales of Rs. 587.5 million. The Company currently has 12 Brands with Sales over Rs. 50 million, forming over 60% of its Sales. Out of this, 5 Brands have Sales over Rs. 100 million. SPPLs leading brands include Pentids, Esgipyrin, Tossex, Mazetol, Resteclin and Suganril.

As per ORG-MARG MAT Oct-03, the deal increases NPILs domestic formulations market share to 4.4%, up from the current 3.4%, bringing it to 4th rank. Besides, NPIL will also improve its ranks in therapeutic segments such as Pain Management (No.1 from No.7), CNS (No.2 from No.4), Respiratory (No. 3 from No.4) and Hormonal (No. 5 from No. 8).

On the market coverage front, NPILs field force will now increase to 2,805 up from 2,010 at present - making NPIL the distinct leader in India market reach. The deal enhances the field force available for marketing of products of the two Companies in eight therapeutic areas.

NPIL is the flagship company of the Rs. 3500 crore Piramal Enterprises (PEL), one of India's largest diversified business houses. PEL also has interests in Retailing, Textiles, Auto-components and Engineering. The Group is headed by Mr. Ajay Piramal, who is also the Chairman of NPIL, and among the most respected names in Indian industry.
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Abhijit (98204 54194) Srinand (98203 63227) @ Imprimis Life 2438 0264