Ajanta's 50 crore acquisition programme
By Praveen Chandran | 12 Dec 2001
Say senior Ajanta Pharma officials: “We have plans to acquire brands in four therapeutic areas - pain management, cardiovascular, nutracuticals and diabetics. We have asked some merchant bankers to bring in potential brands and it is expected that a deal may be made in three months.“
They say the company has also decided to take its recently-launched new drug delivery system Nimlodi, the controlled release-form drug for arthritis patients, to European and US markets through marketing joint ventures. Ajanta is also exploring possibilities to take its two other over-the-counter products - Carofit (the anti-oxidant drug) and Ocugold (a natural solution for macular degeneration) - to European and US markets.
In the domestic market, Nimlodi will be marketed under the Ethi-Care division of Ajanta. Currently, the pain management segment in India is valued at Rs 1,000 core and the company has projected a sales turnover of Rs 10 crore for Nimlodi in its first year of launch.
The officials say the company has formed two joint venture companies in the Confederation of Independent State (CIS) countries. The domestic pharma company has signed a memorandum of understanding with Kyrgyzstan and Tajikistan governments to set up manufacturing and marketing companies in these countries.
As per the agreement, Ajanta's joint ventures manufacture and market a complete range of dosage forms such as tablets, capsules and injectables, covering wide therapeutic groups. Each of these joint ventures is headed by professionals from the industry and is aptly supported by well-qualified technical, commercial and marketing personnel.
Ajanta had earlier set up three companies in the CIS nations in joint ventures with respective local governments there. These companies are Ajanta Kazakhstan, Ajanta Turkmenistan and Ajanta Uzbekistan. Ajanta Kazakh is currently in the implementation stage while the other two joint ventures have already commenced operations.
The officials said they would hold a 60 per cent stake in the Ajanta Kyrgyzstan joint venture, while the local government would hold the remaining 40 per cent in the company. Similarly, in the Ajanta Tajikistan joint venture, Ajanta would hold a minority stake of 35 per cent and the Tajikistan government would hold a 65 per cent stake.
They say the new joint venture companies are expected to start their operations by fiscal 2002-03 and these new companies would manufacture and market all Ajanta brands in the respective countries. Ajanta Pharma is one of the largest Indian investors in the CIS nations in the pharmaceutical sector, and also among the beginners to set up a manufacturing base in Mauritius.