and Indian pharma companies are showing interest in acquiring
a stake in the Rs 190-crore Ahmedabad-based Paras Pharmaceuticals.
These include pharma giants Novartis and Pfizer.
goods (FMCG) company Godrej Consumer Products is also
said to be interested. Novartis has confirmed that it
is interested in acquiring a stake in Paras Pharma.
Last year Paras
Pharma itself had evinced interest in multinational drug
majors Pfizer, Novartis and Glaxo acquiring a stake in
its equity. The promoters of Paras Pharma are said to
be hoping for a price between 2.5 and three times its
declared annual sales of Rs 190 crore.
Paras Pharma sources
say the company is also considering various options including
the outright sale of the business or brands, or taking
in a strategic partner.
Apart from pharmaceuticals,
Paras Pharma is present in cosmetics and healthcare products,
though its leading brands Moov, Krack and D''cold are medicines.
Paras Pharma''s top brands will attract drug companies
with interest in the consumer healthcare business.
Pfizer is present
in the over-the-counter (OTC) drugs business with Benadryl
cough syrup, Gelusil antacid and Listerine mouthwash,
while Novartis has a presence in consumer healthcare with
products like calcium supplement Calcium Sandoz.
in Paras Pharma is on account of its FMCG products including
Livon hair conditioner, Dermicool powder and Freshia skin
Pharma has been consistently successful with its OTC drugs
like Moov, D''cold and Krack Cream for the feet. The firm
has carefully chosen its line of attack, exploiting weaknesses
or gaps in the market. Moreover, its marketing strategy
has also been very successful.
Paras Pharma was
founded in 1980 and is a closely held company owned by
three brothers, Girish, Darshan and Devendra Patel.