FKI president Rakesh Bhargava said the company would zero in on two brand acquisitions, one asset buyout and broad-based joint venture (all expected to be concluded in 1999), though details on the proposed alliances were unavailable. Indications are that the German giant has also been "in touch with" the core group, though there has been no formal discussion on any possibilities.

Bhargava said the company plans to expand capacity at the Ranjangoan unit to 12 million bottles (approximate investment: Rs 15 crore), even while diversifying product range by August 1999. Currently, the company's facility at Ranjangaon and Nashik have a combined capacity of 45million bottles. "By 2000, the company intends to expand capacity by setting up a new factory or acquiring an existing one. Besides, the Nashik plant would also consider manufacturing amino acid infusions and liquid diets from the next year," he added.

FKI, the erstwhile Fresenius Mafatlal Medicals, had earlier sealed a Rs 5 crore asset acquisition from the Torrent group, besides taking over Iveon Laboratories in 1996. The Fresenius group had, in October 1998, acquired the entire 49 per cent holding of the Arvind Mafatlal group in Fresenius Mafatlal Medicals.

The rechristening to FKI follows Fresenius AG's global acquisition of the nutritional infusions business of Pharmacia & Upjohn outside Germany. Swedish giant Kabi, a world leader in parenteral nutrition, was the predecessor of Pharmacia's nutrition business. The $5.1 billion Fresenius is a leader in the field of dialysis, clinical nutrition and fluid therapy.

FKI plans to launch, during 1999, the entire discontinued range of total parenteralnutrition (TPN) products of Pharmacia & Upjohn. Specialty products such as Vitrimix and Intralipid are also set to be launched during the year. Other products slated for launch include trace element injections, propofol injections, Amino Mix II in non-PVC double chamber plastic bags etc. FKI has an equity base of Rs 63.2 crores, with gross fixed assets of Rs 47.2 crore.

Insight

Market grapevine has it that Fresenius is eyeing certain clinical nutrition brands from Wander Ltd, an erstwhile Sandoz (now part of Novartis) group company. No official confirmation could, however, be got. Though details on the product were unavailable, Wander was at one time expected to hand back a key nutritional brand, Spert, to the Novartis group arm, Novartis Nutrition India Pvt Ltd.

Interestingly, Wander has seen mixed parentage. While the Sandoz group had in November 1995 divested its 55 per cent stake in Wander to the Mumbai-based Pharmaceutical Products of India Ltd, indications are that the Sandoz group hasbought back over 20 per cent equity in the company from Pharmed of Bangalore. No official confirmation was, however, available.