Comments
Piramal Enterprises is set to acquire four brands from multinational drugmaker Pfizer Limited for Rs 110 crore, a move that will strengthen Piramal’s presence in the consumer products segment.
The acquisition includes names that many associate with their childhood, like Ferradol and Waterbury’s Compound, besides Neko and Sloan’s. The agreement would also include the trademark rights for Ferradol and Waterbury’s Compound in Bangladesh and Sri Lanka.
These brands have both a legacy and high consumer pull and are available in India for over 30 years, the company said, adding that it targeted a marketplace that is pegged at Rs 7,000 crore.
In a statement reflecting Chairman Ajay Piramal’s penchant for acquisitions, his daughter and Executive Director Nandini Piramal said that the company’s consumer products division, presently ranked seventh in the country, was targeting the top three slots in the over-the counter (OTC) space by 2020. “Acquisition is one of the important routes to help us achieve our goal and in the last six months we have done two acquisitions in the consumer products business,” she said.
The other two acquisitions included Littles baby care range of brands and the gastro-intestinal portfolio of brands from MSD (Merck Sharp and Dohme). Pfizer’s brands would fit into this strategy, she said.
In its earlier avatar as Nicholas Piramal and subsequently as Piramal Healthcare, the company was known in industry circles for its growth through acquisitions. But that changed in 2010 when it sold its domestic formulations business to US drugmaker Abbott for 17,000 crore. From there on, they exited the pathology business as well, even as the company made strategic investments in finance, real estate and telecom. About four years ago, it made another big ticket acquisition by buying US-based Decision Resources Group for Rs 3,400 crore, marking its entry into the healthcare information management business.
On the company’s latest acquisition, Kedar Rajadnye, Chief Operating Officer with Piramal’s consumer products segment said that existing brands in their portfolio, such as Saridon, Ipill, Lacto Calamine, Tetmosol and Caladryl were leading players in their segments.
“Non-core”
On its part, Pfizer said it was divesting its four “non-core” products in line with its strategy to stay committed to its core business by actively promoting new and innovative products in key therapeutic areas, besides growing its power brands.
The four brands on the block were marketed by its Global Established Products business in India. Pfizer’s portfolio presently includes medicines, vaccines and other consumer health care products. “This enables us to serve patients and physicians through a wide range of products in therapy areas most vital to public health. Our focus will remain on building and strengthening our presence in these segments,” S. Sridhar, Pfizer Managing Director said in a statement.
The deal is subject to regulatory approvals and fulfilment of certain conditions by both parties, Pfizer said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.