Business Daily from THE HINDU group of publications
Tuesday, Jun 12, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Jun 12, 2007 ePaper |
|
|
|
|
|
|
|
Corporate
-
Overseas Investments Vivimed Labs close to buying European firm M. Somasekhar
Looking ahead The company has identified two companies in Europe. It plans to shift the acquired company's manufacturing base to India. Vivimed plans to expand presence to 50 countries by 2010 from the existing 25-30.
Hyderabad June 11 Vivimed Labs, a specialty chemicals and home & personal care (HPC) product company, has firmed up plans to acquire a mid-sized company in Europe to expand its global reach and product portfolio. The Hyderabad-based company has raised $12 million through foreign currency convertible bonds (FCCB). It intends to use the funds along with internal accruals for acquiring a specialty chemicals company abroad this fiscal, according to Mr Sunil Arab, Vice-President (Corporate Strategy & Business Development). "We have identified a couple of European companies and are confident of completing the buy, after due diligence. The target companies typically should have sound product line, marketing network and regulatory expertise," he told Business Line here. The acquisition is to get market and regulatory advantages in Europe. We will shift the acquired company's manufacturing base to India, where Vivimed Labs has four units in Hyderabad, Bidar (Karnataka), Hardwar (UP) and Kashipur (Uttaranchal) to manufacture specialty chemicals. It is a major supplier of these active ingredients to global majors. Vivimed has a robust pipeline of at least 23 products such as Triclosan (oral care), Avo Benzone (sunscreen), and skin, hair care, etc. It is the country's top producer of the active ingredients that are necessary to manufacture these H&PC as well as industrial care products. With the market for these products growing substantially in the country, the company has set itself on a consolidation and expansion mode, Mr Sunil said. The global market for active ingredients in H&PC is estimated to be about $25 billion, out of the total cosmetic care industry size of about $250 billion. Vivimed plans to expand its presence to 50 countries by 2010 from the existing 25-30. Japan, China, Korea and the Gulf countries are new destinations contemplated.
New products
Vivimed, which reported a turnover of Rs 75 crore in the first 9 months of fiscal 2006-07, plans to introduce at least four new products during 2007-08. It had entered the contract-manufacturing sector recently and is working with six global majors. Similarly, talks are in advanced stage with some US companies for setting up dedicated manufacturing facilities, based on the company's expertise, Mr Sunil said. The company's large product portfolio, regulatory approved manufacturing facilities, ability to scale up production of active ingredients quickly and tie-up with international logistics companies would help it grow fast in the booming personal care industry both domestic and global, he added.
More Stories on : Overseas Investments | Mergers & Acquisitions | Chemicals
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|