GSK sells Ankleshwar unit to Glenmark

EPP News Bureau - Mumbai

GlaxoSmithKline Pharmaceuticals Ltd has decided to sell its Ankleshwar bulk drug manufacturing unit to Mumbai-based Glenmark Pharmaceuticals Ltd for a consideration of Rs 14 crore. At a meeting today, the Committee of the Board of Directors of GlaxoSmithKline approved the sale of the right, title and interest of the company in the assets and immovable property, says a GSK release. This decision, however, is subject to the approval of GSK shareholders, the release adds. The unit has been engaged in the manufacture of the bulk drugs ranitidine, griseofulvin, salbutamol and cephalexin. The cost of manufacturing the said drugs at this unit has been an issue for many years, despite various projects undertaken for increasing productivity, the release says. This has resulted in products manufactured at this unit being grossly uncompetitive and uneconomical. For this reason, the cephalexin plant was mothballed in 1998 and griseofulvin and ranitidine plants were functioning well below capacity, the release adds. In 2001, the utilisation of the ranitidine and griseofulvin plant was much below the installed capacity. Hence the production of these plants was curtailed and eventually ceased at the end of August 2002, the release states.

The company, thereafter, offered voluntary retirement scheme and the scheme was accepted by all workmen. All the 214 workmen have accepted the VRS scheme, which has cost GSK Rs 17 crore. The scheme for the 50 management staff working in the unit is open till 30 November, 2002. Sources say the shareholders approval will be taken through postal ballots.