Mallya said that while the proposed merger in India is not going to be very easy, shareholders could be rest assured that their interest will be more than adequately protected.

The global merger between Hoechst AG and Rhone-Poulenc SA was completed in December 1999 resulting in the formation of global life sciences giant, Aventis.Mallya also said that HMR deputy managing director Ramesh Subrahmanian will take charge as managing director from current MD, Debabrata Bhadury, later this year. Bhadury will take over as vice-chairman of the company.

HMR is also expected to shortly introduce a paediatric formulation of Allegra (a non-sedating anti-histamine) and Tavanic infusion (for respiratory infections), while Arava is likely to be ready for launch in the first half of 2001. HMR is also evaluating the possibility of a relaunch of Baralgan.

Mallya said that HMR is not paying royalty to its parent company on any of the new products, though this position "may or may not change in the future". Royalty outgo in the previous year was "a stray case for Chiron vaccines," he added. HMR plans a capital expenditure of Rs 22 crore for 2000-2001, 50 per cent of which would go towards IT upgrades.

Mallya also said that the parent company has started sourcing an intermediate for Articaine from the company's Ankleshwar factory, while another intermediate for Ramipril-one of the five largest products of the collaborators - will also be sourced.

For calendar 2001, bulks worth Rs 9 crore are likely to sourced from HMR India while in the case of formulations this is likely to be worth Rs 100 crore. Discussions are also on for sourcing opportunities for Daonil from Hoechst's Goa facility.

Hoechst net spurts 43%
Hoechst Marion Roussel India has registered a 43 per cent increase in net profit at Rs 7.7 crore for the quarter ended June 30, 2000 as against Rs 5.4 crore in the corresponding period of the previous year. Net sales for the quarter dipped marginally to Rs 130 crore from Rs 133 crore in the previous year.

Profit before tax at Rs 14.6 rose 25 per cent. The company expects to register a growth rate of over 10 per cent per annum. The marginal decline in sales is largely due to divestment of brands like Haemaccel and Omnatax to Nicholas Piramal, Mallya told shareholders. The divestment is part of HMR's effort to focus on new generation products, largely in sync with that of the parent company's portfolio.