Hoechst's divestment plans follows the announcement of a revised time-table for the proposed merger with French giant Rhone-Poulenc to create Aventis, a global leader in the agrochemicals and drug industry.

Indications are that the mandate for the divestment of Hoechst's animal health business, Hoechst Roussel Vet, has been given to JP Morgan. A faxed query to HR Vet's Indian headquarters, however, drew no response.

Analysts were, however, not totally surprised by Hoechst's proposed plans to offload its holding in HR Vet following CEO Klaus Dietz's statement in the company's annual report. Dietz said,"The process of giving new strategic direction to HR Vet has advanced to the point where we will seek development opportunities independent from the new life-sciences company, Aventis".

Analysts say that a host of industry giants including Bayer, Novartis and even Pfizer may throw their hat into the ring though there is no official confirmation on this.

Hoechst's move, it is believed, will prevent any possible cannibalisation of business given Merial's (a joint venture company of the Rhone-Poulenc group) dominant position in the animal health segment.

In India, HR Vet, which became a stand-alone company in August 1996, could see a change in its parentage (if any deal goes through), though it is unlikely to affect its current manufacturing and marketing operations. HR Vet India is a 100 per cent subsidiary of HR Vet GmbH.

Headquartered in Pune, HR Vet India is one of the three largest veterinary phamaceutical companies in India following the merger with BAIF Laboratories. HR Vet India had, in thesecond quarter of 1998, taken over the assets of BAIF in a Rs 12 crore deal. BAIF's Pune unit manufactures the foot & mouth disease vaccine and poultry vaccines.

Key animal health products in the HR Vet portfolio include Taktic, Iliren and Candur DHLP and the company's sales are expected to touch Rs 100 crore by the turn of the century.

The Indian arm is expected to emerge as the key sourcing centre in Asia for a range of products including Panacur (the foot & mouth disease vacine), Floxadine (an antibiotic for cattle and poultry) and Butox.