NPIL buys out Boots in jt venture co
Drug-maker Nicholas Piramal India Ltd (NPIL) has acquired the balance 51 per cent equity held by The Boots Company Plc in joint venture company Boots Piramal Healthcare Pvt Ltd. NPIL has been paid a one-time amount of Rs 17.8 crore for this transaction.
Boots Piramal Healthcare is a 49:51 joint venture between NPIL and Alliance Boots and The Boots Company is a subsidiary of Alliance Boots. Boots Piramal markets the over-the-counter (OTC) brands of Alliance Boots and Nicholas Piramal in the Indian market.
Following the global acquisition of the OTC healthcare business of Alliance Boots by UK’s Reckitt Benckiser Plc, the former decided to exit the venture in India, an NPIL note said. The company will now become a wholly owned subsidiary of Nicholas Piramal and the name of the company will be changed to remove the words "Boots" from its name, the note added.
The commercialisation of the former Boots OTC brands in India will now be taken over by Reckitt Beckiser (India) Ltd, the Indian subsidiary of Reckitt Benckiser Plc, UK.
The erstwhile joint-venture company will continue to actively market and distribute its own OTC brands — Saridon, Polycrol and Lacto Calamine, which are large and growing brands. The field force and marketing team will also come into its fold.
NPIL further said that since the OTC business was central to its strategy to strengthen its presence in the local market, it would continue to invest heavily and grow its OTC brands. Further, the company plans to launch OTC brands in new therapy areas, as well as transition some of its prescription brands to OTC through leveraging its sales and marketing team.
NPIL shares were marginally down at Rs 236.40 on the BSE.
Source:
