GSK Pharma looking to sell fine chemicals biz
After its recent decision to sell the animal health business, GlaxoSmithKline Pharmaceuticals Ltd is looking for a suitable buyer for its fine chemicals business in India.
As part of GSK Pharma’s efforts to focus on its pharmaceuticals business, it is open to selling its fine chemicals business, said Mr Kal Sundaram, GSK’s chief in India.
"Long term, we are going to be focusing on pharmaceuticals. If we can find the right partner who will value our people (that is what exactly we did for animal health), who is culturally aligned to our value system, where our people and the products have long-term future, we are open to considering. But we are not in a hurry, necessarily," Mr Sundaram told Business Line in an `exit’-interview.
Mr Sundaram is to hand-over charge of his present responsibility and take-up a new assignment with GSK International from January 1.
Stressing on the "right partner", Mr Sundaram added: "..Our interest will be certainly the people, the cultural alignment of the businesses, long-term commitment in India. … If somebody’s core business is laboratory fine chemicals for example, the opportunity for the people and products will be much better. Those opportunities we are open to."
GSK Pharma had two peripheral businesses in India, animal health or Agrivet Farm Care (AFC) and fine chemicals or Qualigens Fine Chemicals (QFC). In April, GSK Pharma decided to sell AFC to the France-based Virbac Animal Health India Private Ltd for Rs 207.1 crore.
GSK is not present in animal health in other global markets. AFC represents about eight per cent of its sales. It clocked revenues of Rs 119 crore in 2005. It is a similar situation with fine chemicals too. GSK is present in the fine chemicals business only in India and QFC clocked sales of Rs 70 crore in 2005.
The chemicals sector is seeing a steady growth and a pharma-industry representative points out that large multinational players in this segment include Dow Chemical, BASF and Bayer .
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