Business Daily from THE HINDU group of publications
Wednesday, Jul 26, 2006
Business Daily from THE HINDU group of publications Wednesday, Jul 26, 2006 |
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Corporate
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Restructuring Lupin to close down Hong Kong arm P.T.Jyothi Datta
Mumbai , July 25 Drug-maker Lupin Ltd has decided to close its subsidiary in Hong Kong. In the last two years, this is the third overseas subsidiary that the Mumbai-based company has decided to wind-down. A decision to close its subsidiary in Thailand was taken earlier this year, while its South African subsidiary was closed last year. Lupin Hong Kong Ltd is a wholly-owned subsidiary started about four years ago, essentially as a trading company to support Lupin's business in China. But with the company selling its active pharmaceutical ingredients, largely in the anti-tuberculosis segment, directly into the Chinese market, the subsidiary became dormant, said a source familiar with the development. Lupin sales to China is over Rs 90 crore, the source said. The Hong Kong subsidiary, however, posted a loss of Rs 0.29 crore for the year ended March 31, 2006, according to Lupin's annual report. In February, the company had decided to divest its 60 per cent stake in its subsidiary in Thailand. Last year, it divested its 60 per cent stake in its subsidiary in South Africa. It continues to have its subsidiaries in the US and Australia. Despite shutting shop in certain markets, Lupin still does business with them through the mother company, the source said. The consolidation is to focus its energies on the significant markets, he said, adding that Lupin had closed its subsidiary in Venezuela about fours years ago, by selling its stake to the joint venture partner.
First quarter results
Lupin has posted a 17.4 per cent growth in net profit at Rs 50.65 crore for the first quarter ended June 30, 2006, compared to Rs 43.15 crore in the corresponding period for the previous year. Total income (net of excise) increased from Rs 365 crore to Rs 495.16 crore, the company told the Bombay Stock Exchange. The group posted a net profit after minority interest of Rs 53.55 crore for the quarter ended June 30. Total income (net of excise) was Rs 526.12 crore. The company's shares were marginally down at Rs 851 on the BSE.
More Stories on : Restructuring | Pharmaceuticals
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