Clearine, a combination of naphazoline and boric acid, is an anti-allergic with estimated sales of just Rs 3-4 crore. The brand is, however, associated with Vijay Mallya's UB group.

In an interview with The Financial Express, Novartis India president and managing director Erwin Schillinger said the new unit-Novartis Consumer Health-will help align more-or-less with the structure worldwide. The new sector is being headed by Holger Kunze and has 17 employees.

"Many of products, like calcium, are prescription products here. But worldwide these products and others belong, in concept, to the OTC segment. Now we are trying to build up something similar here. But, there will be no overlap with the nutrition segment. OTC pharmaceuticals will remain with Novartis India, " he said.

Globally, the Novartis sector concept of consumer health has three legs: OTC pharmaceuticals, functional foods and medical nutrition. However, Novartis Nutrition India essentially promotes medical nutrition products.

Asked whether the OTC pharma business will always remain with the 51 per cent owned Novartis India, he said: "I don't know whether it will always remain with Novartis India but the actual status is that we have no plans to separate it in the near future."

On whether the Swiss parent plans to take its holding in the Indian arm beyond 51 per cent, Schillinger said: "We looked at it and came to the conclusion that for the time being we will not opt for going to 74 per cent. But my feeling is that we will not go for it in the near future too."

On whether there is any move to divest, globally, the agri business, he said no such decision had been made. "The only thing that changed when the merger (Ciba Sandoz) happened was that it was taken for granted that agri business is just a part of the life sciences structure. It is not at all a position that we will divest or go out of this domain and all options are open," he said. For India, the agri business is still an important sector and close to half of Novartis' business is in the agri business domain.

Schillinger also said India could offer "some advantages" in the development part of the Novartis' global research effort. This is done via the Swiss giant's 100 per cent arm, Novartis Enterprises Pvt Ltd, "for very specific reasons" and is considered to be the development centre for the generics sector.

"As far the real basic research (for new compounds)is concerned, we have to rely on established centres in the world and though I will not exclude it in future in India. However, in the development part of research, India could offer some opportunities," he said.

The company plans to introduce four generic products in 2000 and several others in 2001. In crop protection, Novartis will launch four insecticides and five herbicides in the near to medium term. On acquisitions as a vehicle for growth (Novartis was, at one time, in talk with Astra IDL for a buyout), he said: "We are open to all growth options. Basically, we we will grow by our own forces. Generally, any acquisition should fit with the Novartis product range. We are not looking just at any product because they make turnover. But in India we are little bit more flexible because we have to compete in Indian conditions."

He said the overall Novartis dividend policy which involves a payout ratio of between 25 per cent and 40 per cent of group net profits would not necessarily be applicable to India. This strictly applies to the parent company, he said.