Wockhardt had, in February this year, bought out the Tata group's 50 per cent stake in Merind for Rs 47 crore, backed by a successful open offer to purchase the outstanding equity shares at Rs 260 a share.Wockhardt chairman and managing director HF Khorakiwala said that the company's synergy team and an external consultant would formulate an integration strategy in the next two months. No official confirmation on McKinsey's appointment could, however, be got.

"While synergising the two organisations, we will also strive to develop key Merind products like dexamethasone and amitriptiline into big brands. Another new thrust area forMerind, besides vitamins and corticosteroids, will be anti-infectives," Khorakiwala said. Merind's dexamethasone range (branded Decadan) and the anti-depressant amitriptiline (tryptomer plus libotryp) range are leading brands in their respective segments.

Moreover, while rationalising all elements of the group's businesses, the exercise will help the group cash in on Merind's export potential though this would be woven into Wockhardt's overall strength in the international market. Before the takeover by Wockhardt, Merind had planned to re-organise the business of Tata Pharma, by which the latter would become an export company and a manufacturing base.

Khorakiwala, however, indicated that the group will "need all its facilities", though Merind's Patalganga facility has been redesigned to meet its animal-health production needs.

Merind had earlier shifted its multi-purpose bulk drug unit from Bhandup in Mumbai to Patalganga, while discontinuing production of chloroquine phosphate essentially due todumping allegedly from China. The two organisations together operate through nine manufacturing units across the country.

Asked if the group would consider a consolidation of operations of Merind and Tata Pharma, Khorakiwala said that financial restructuring aspects would be addressed after six months or so. Besides, Tata Pharma is a 100 per cent subsidiary of Merind, and so to that extent it is already a single organisation, he said.

Merind recently completed the buyout of the remaining 26 per cent equity in Tata Pharma from Lakme for approximately Rs 3.7 crore, making it a 100 per cent subsidiary. Meanwhile, Merind has reworked its strategy for exporting key antispasmodics brand, Spasgan, to the huge Russian market. Spasgan will now be manufactured outside the country and made available in Russia.

This will ensure that the Supreme Court order suspending the production of fixed-dose combination formulation of analgin with antispasmodics in the country is complied with. On new products in the pipeline,Khorakiwala said that clinical trials were on for an indegenously devleloped recombinant erythropoetin for the treatment of cancer and renal failure therapies.

Wockhardt would, however, eventually be looking at the $1 billion global market once the product goes off patent in early 2000. In the intravenous fluids category, the group plans to introduce a host of specialty products including amino acids for liver disorders.

Board revamped

The Merind board has been restructured with the induction of the top Wockhardt management recently. The six-member Merind board which earlier included Dr FA Mehta, ND Khurody, T Pooran and DE Udwadia has since resigned.

The new Merind board will comprise the Wockhardt team of chairman and managing director HF Khorakiwala, executive director JS Khorakiwala, company secretary Rajiv B Gandhi and senior vice president (business planning) Vinod Pabi. This is the first major restructuring effort at the top management level since the acquisition of Merind by Wockhardt.