The Hindu Business Line : Nicholas Piramal looking for buyers for tail-brands: Ajay

WITH a string of acquisitions and joint ventures in its kitty, is the Rs 1,100-crore Nicholas Piramal India Ltd (NPIL) spreading itself too thin? Though there is a strategy behind its acquisition spree, the company has nevertheless rationalised its product portfolio and would in fact look for suitable buyers for its `de-prioritised' brands, said Mr Ajay Piramal, Chairman, NPIL.

Responding to a query from Business Line on whether inorganic growth was in fact being a drag on the company's performance, as it would be saddled with products that were not top of its charts, Mr Piramal said that the company had indeed completed a process of restructuring where its products were differentiated into primary, secondary and tertiary categories.

"The primary category comprises the top 10 brands that contribute about 36 per cent of the company's revenues. NPIL has registered a growth of 13 per cent in the first half, compared with the pharma segment that grew at 4 per cent. But the top 10 brands, which are aggressively marketed by the company, grew by an impressive 16 per cent," he pointed out.

The secondary category comprises products that are less aggressively marketed, and finally come the tail-brands that are not marketed at all. He admitted that the company was looking for buyers for products that were not being marketed; however, no agency had been appointed to undertake the match making. He was unwilling to mention brands falling in this category.

NPIL's bestsellers in the pharma business include Phensedyl, Ismo, Supradyn, Gardenal, Stemetil, Haemaccel and Rejoint. The secondary category includes brands such as Paraxin, Flagyl and Omnatax.

With its strength in the cardio-vascular segment, the company also has a presence in antibiotics, respiratory, pain-management, neuro-psychiatry and anti-diabetics segment.

Having recently parted ways with Roche in the biotech segment, NPIL is making its own forays in biotechnology, which, according to industry sources, include scouting for potential targets for acquisition.

NPIL's acquisitions include the Indian operations of Roche Products Ltd, Boehringer Mannheim India Ltd, Hoechst Marrion Roussel Ltd's Research Centre, Rhone Poulenc India Ltd and more recently, ICI India Ltd's pharma division and Aventis' Research facilities. NPIL's joint ventures include those with Allergan Inc and Boots Plc, among others.

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