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NPIL buys-out partner’s 50 pc stake in Sarabhai for Rs 693 million
EPP News Bureau - Mumbai
Nicholas Piramal India Limited (NPIL) has announced the buy-out of its partner’s
50 per cent stake in Sarabhai Piramal Pharmaceuticals Private Limited (SPPL)
for Rs 693 million.
Signing the agreement, Ajay Piramal, chairman, NPIL said, ‘‘The SPPL
buy-out is in-line with Nicholas Piramal’s objective of consolidating its
pharmaceuticals portfolio. This acquisition will elevate NPIL to the 4th position
in the domestic market with 4.4 per cent market share.’’
According to a press release, 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 per cent of its sales. Out of this, five brands have sales over Rs 100 million.
As per ORG-MARG MAT Oct-03, the deal increases NPIL’s domestic formulations
market share to 4.4 per cent, up from the current 3.4 per cent, bringing it
to fourth rank, the release said.
It added, on the market coverage front, NPIL’s 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 has appointed McCann Healthcare India (MHI)
- the healthcare division of McCann Erickson to design its communication
strategy for its various brands.
The company has entered into
the annual retainer ship contract with MHI to derive the brand growth
through the professional advertising agency.
MHI will work on various NPIL
brands in ant diabetic, CNS and respiratory segments to reveal the hidden
potential of the strong brands.
NPIL is expected to spend around
Rs 400.0 million per annum on total ad spend, marketing and promotion.
We expect enhanced growth rates from the well-established brands of NPIL,
due to additional inputs from the ad-agency.
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