Hyderabad, Nov. 14
The board of directors of Aurobindo Pharma Ltd has decided to divest its entire shareholding in the China-based wholly owned subsidiary - Aurobindo Tongling (Datong) Pharmaceutical Company Ltd. The board, at its meeting on Tuesday, also decided to acquire Senor Organics Pvt Ltd, a Hyderabad-based profit making and small-sized pharma company into bulk drug intermediates.
The company has informed the stock exchanges that the board has authorised the Managing Director to negotiate and finalise the above deals, subject to statutory compliances. When contacted, a senior company official told
Business Linethat the company had decided to divest holding in Chinese venture since the venture was incurring losses and operations were not proving remunerative.
The company was in favour of shifting the focus of its global operations more towards remunerative markets such as the US and Europe, he said. The Chinese pharma subsidiary suffered a loss of Rs 6.55 crore on a turnover of Rs 131.01 crore. As on March, the company's total assets stood at Rs 126.98 crore, while the liabilities amounted to Rs 108.85 crore.