Global drug majors bid for India's Paras

A clutch of global pharmaceutical majors have tendered bids for a majority stake in Indian drug-maker Paras Pharma , a report said Tuesday.

British giant GlaxoSmithKline , France's Sanofi-Aventis, Swiss multinational Novartis, and US-based Johnson and Johnson have all made bids for the over-the-counter drug major, reports said, citing sources close to the bidding process.

The initial bids ranged between the 600 and 700 million-dollar mark, one source told the newspaper, undershooting the expected valuation of close to one billion dollars.

"Serious players such as Japan's Taisho Pharmaceuticals are expected to join the race," one of the sources added.

Paras owns popular brands in the Indian market like anti-cold medication D'Cold and pain-relieving ointment Moov.

A Novartis spokesman contacted by AFP refused to comment on the report.

Emami eyes Paras Pharma buy, Marico too interested

The makers of Boro Plus, Emami, is looking to acquire Ahmedabad-based Paras Pharmaceutical, the makers of over-the-counter personal care brands such as Moov, Krack, Livon, Dermicool and Set Wet. "Paras has some good brands and we are interested in this acquisition. We are exploring the opportunity," said Harsh Agarwal, Emami's group director. He however refused to divulge details.

Marico Ltd, another FMCG company, is also in the race for the 70 per cent stake in Paras Pharma that private equity firms Actis Advisors and Sequoia Capital India Advisors are looking to offload, reportedly for as much as $700 million (R3,262 crore).

A source said Emami is likely to make an announcement soon. The Paras Pharma spokesperson remained uncontactable.

Emami is also in talks with other companies and looking for acquisitions, though Agarwal said "it is too early to talk about numbers."

Paras' Ahmedabad plant lies idle

The manufacturing plant of Paras Pharmaceuticals situated at Kalol near Ahmedabad has been lying idle for sometime now. The revelation was made by S Raghunandan, managing director and chief executive officer, Paras Pharma at a press meet here today to announce the launch of its two new variants in Gujarat.

“All the manufacturing takes place at our hi-tech manufacturing facility at Baddi because it is an excise free zone. We have not closed the Ahmedabad facility as we can use it as an option if there is any problem with our Baddi plant. Even if our Ahmedabad plant is idle, about 100 of our employees at the facility have not been laid off and are being paid,” Raghunandan said. The company's Baddi plant is spread over 43,000 square meters.

After launching Livon serum hair detangler, the FMCG company has plans to launch Livon conditioners this month.

"We have an 80 per cent market share in the 400 crore serum hair detangler segment. In order to get into a wider market, we have decided to launch the Livon conditioner this month," Raghunandan added.

Talking about the future plans of the company, Raghunandan said that the company will focus on international market growth in the next fiscal.

Currently, the company is busy promoting the ayurvedic syrup D'Cold Natural and the recently introduced Moov – Neck & Shoulder.

Commenting on this, Ajay Rawal, general manager, healthcare division of Paras said, "While D'Cold Natural has the natural ingredient haldi, it comes in a taste that will be liked by all. On the other hand, Moov-Neck & Shoulder is aimed at mostly bike-riders and computer-users. According to statistics, there are about 5 crore sufferers of neck and shoulder pain in India at present. Moov expects to touch a Rs 100 crore portfolio soon."

The company has a market share of 20 per cent out of the Rs 500 crore pain relief segment.

Paras Pharmaceutical reported a turnover of Rs 400 crore in the last fiscal and expects a growth rate of 25 per cent this fiscal.

The other brands of the company are Recova, Set Wet Hair Gel, Set Wet Deo, Krack, Itchguard, Dermicool, Ringguard, Stopache to name a few.