The Hindu Business Line : Dr Morepen brand to return to Morepen Labs

MOREPEN Laboratories Ltd has increased its holding in Doctor Morepen Ltd (DML), a company which was hived off into an independent entity. With this, DML will become a subsidiary of Morepen Lab and the popular brand Dr Morepen will return to the parent.

The company has converted its outstanding preference capital of Rs 65.74 crore in DML into equity capital. Consequently, its holding has jumped up from 13.95 per cent to 83.44 per cent. In a statement, Mr Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd, said, "The return of Dr Morepen will give us access to not only a brand but a distribution network too. In addition, Dr. Morepen's OTC range gives us a ready product basket for export of OTC products."

DML was hived off to focus on growth in the FMCG segment. Dr Morepen brand will now focus exclusively on health and of pharma products under the banner of Morepen.

DML, which was incurring heavy loss when it was hived off in March 2003, is now generating cash profits and the value of brands has multiplied many times. The present value of the brand is estimated to be around Rs 100 crore.

Dr Morepen's basket includes products like Burnol, Lemolate, Isabgol, C-Sip, C-Candy, 2Kool besides a chain of stores under the Lifespring banner.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page