The Hindu Business Line : Wockhardt acquires Farex, Protinex brands

Post-acquisition
Wockhardt is in the nutrition business and the acquisition would bring in synergies.
Royal Numico will also offer technical know-how to Wockhardt for the manufacture of specialised sugar-free infant food products.

Mumbai , June 30

Popular baby-food Farex and nutrition beverage Protinex have come into the fold of drug-maker Wockhardt Ltd, boosting its nutrition business revenues up to Rs 120 crore.

The Mumbai-based drug maker has acquired Dumex India Pvt Ltd along with its two products Protinex and Farex, from Royal Numico NV of The Netherlands, for an undisclosed amount, the company said.

The two brands, with a 50-year brand-equity, at present generate annual sales of Rs 60 crore, Wockhardt added.

Wockhardt is in the nutrition business and the acquisition would bring in synergies, said its Chairman, Mr Habil Khorakiwala. The deal signals Royal Numico's intentions to exit India and focus on markets like China.

Wockhardt also inherits a field-force team of 235 people and assets including a plant at Ludhiana, which will be disposed, he told newspersons after the company's annual general meeting here on Friday.

The company has its spray-dry milk processing plant at Chandigarh and it will change the acquired company's name, `Dumex', in six months.

Royal Numico will also offer technical know-how to Wockhardt for the manufacture of specialised sugar-free infant food products currently marketed in India and internationally, under its brand names Dulac and Dupro.

At present, these products are imported from New Zealand and Malaysia. Both Protinex and Farex have a history of different owners. Protinex was acquired by Dumex from Pfizer in 2002. Farex was acquired by Dumex from Heinz, who in turn had bought it from Glaxo.

Wockhardt has an existing presence in infant nutrition with Dexolac, Nusobee and Firstfood brands.

Earlier this year, Wockhardt launched a new division called Wockhardt Speciality Nutrition to market disease-specific dietary supplements for patients on dialysis, ICU patients and diabetic patients.