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K Baburajan
Bangalore, July 6: The Strides group of pharmaceutical companies are all set to merge soon with the Karnataka High Court approving the scheme of amalgamation.
The group is expecting the necessary approvals from the Mumbai High Court within a couple of weeks for the same purpose. The merger of the Strides group of firms will create a Rs 100 crore pharmaceutical company in the country.
The decision to merge its group companies, like Remed Laboratories India and Plama Laboratories Ltd with Strides Pharmaceuticals, reached in September, 1996, was a part of the globalisation of the Strides group.
``We have already received approvals from our creditors and shareholders. We are aiming a Rs 130 crore turnover during the next fiscal,'' Strides Arcolab executive director R Ramachandran told The Financial Express.
``The new entity will have enough financial muscles to firm up its future plans in the country. The group is not planning to retrench any employees after the merger,'' he added.
The stock ofPlama Laboratories, one of the Strides group of companies, at the Bangalore Stock Exchange is picking up. On Monday, the scrip touched the day's high of Rs 18.25, close to the 52-week high of Rs 19 and closed at Rs 18. ``The scrip is attracting a lot of interest and around 6,700 shares were handed over during the day,'' marketmen said.
With the merger of the group companies the Strides group will have complete facilities of research and development, bulk drugs, formulation parenterals and soft gelatine capsule manufacturing facilities under a single umbrella in the country.
Earlier the merger plan of the Strides group had hit a roadblock with the Mumbai and Bangalore High Courts going slow in approving the scheme of amalgamation. In fact, the company was expecting to announce the details of the merger during the last fiscal.
The exchange ratio of 1 share of Strides Arcolab Ltd for every 8 shares of Plama Laboratories Ltd and 2 shares of Strides Arcolab Ltd for every 3 shares of Remed Laboratories IndiaLtd has been proposed by the board of directors of the companies in September 1996.
Established in 1990 Strides Pharmaceuticals Ltd has a marketing and equity support from Arcolab S A of Geneva, technical and equity support from Remed S A of Belgium, and advanced soft gelatine technical knowhow from Pharmagal Engineering Srl of Italy on an exclusive basis.
Remed Laboratories India had implemented a manufacturing facility for small volume parenterals in Bangalore with an investment of around Rs 8.75 crore. The total turnover of Remed during the fiscal 1995-96 was Rs 9.09 crore and the net profit was Rs 0.13 crore.
Recently Strides had set up a formulation drug manufacturing plant at Anekal Taluk near Bangalore, comprising a soft gelatine block in association with Pharmagel Engineering Srl of Italy. The Rs 38 crore project was funded by a term loan of Rs 9 crore from IDBI, internal accruals of Rs 2.75 crore and an equity of about Rs 26.25 crore.
The revenue of Strides for 1995-96 was Rs 48.42 crore andthe profit after tax was Rs 4.78 crore. The earning per share was Rs 17.79 on a share capital of Rs 2.68 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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