Nicholas Piramal hikes its stake in JV by 9%

Praveen Chandran
09 September 2002

Mumbai: The domestic pharma company Nicholas Piramal India Ltd (NPIL) has hiked its stake in Boots Piramal Healthcare Pvt Ltd (BPH) by another 9 per cent. NPIL’s equity stake in the joint venture (JV) has been increased from the current 40 to 49 per cent.

The company’s move is to consolidate its position in the over-the-counter (OTC) segment in India. BPH is a JV between NPIL and the UK-based Boots Pls.

Say NPIL sources: “Given that BPH will be the driving force for NPIL in the OTC segment and to reflect the changed product portfolio, NPIL’s equity stake in the JV has been increased from 40 to 49 per cent.” NPICL was restructured recently and henceforth it will focus only on OTC products.

NPIL brands like Polycrol and Lacto Calamine will be marketed by this JV, say the sources. “The company will also work as a super distributor for Saridon, a leading brand in the anti-pain segment. It is expected that these new products, along with Strepsils and Clearasil, will enable BPHL to become a leading OTC company in India.”

As part of the restructuring, leading brands like Melalite and Lobate will now be withdrawn from the JV and marketed by a newly-created division of Nicholas Piramal — Glotek — from the current fiscal. For the financial year ended March 2002, BPHL had posted a 30-per cent rise in net profit at Rs 5.68 crore, while the turnover at Rs 40 crore showed a growth of 22 per cent over the previous fiscal.

The sources say BPHL is currently evaluating the options of enhancing its portfolio of brands that can be sold through general stores. The company is planning to enter the OTC segment in categories such as vitamins, minerals and supplements where it still does not have a presence. It is also planning to foray into the herbal market, either by acquiring or establishing a new brand in this segment.