While sources say that much broader voluntary retirement scheme (VRS) is in the offing, Glaxo India's official spokesperson, in response to queries from The Financial Express, said: "There is no general VRS. As a result of the selection process and for those who are unable to move to Mumbai, separation benefits are being given."

SBPI's Bangalore head-office, constructed few years back at a cost of around Rs 15 crore, is also expected to be eventually leased out.

While details on the numbers involved could not be obtained, analysts expect the combined entity to emerge with a significantly leaner sales force. "We expect the combined sales strength to come down to around 1,900 from the current figure of over 2,300," an analyst with a foreign brokerage firm said.Analysts, however, do not expect the entire rationalisation process to be "without its share of pains and trouble". Says an analyst with a leading Indian brokerage firm: "Though the management has shown its resolve while putting in place a common team at the top level, it may not be as smooth at the operational level given the various issues like unions etc involved." Labour issues have been at the heart of inordinate delay in the legal merger of Burroughs Wellcome's with Glaxo India.

GIL and SBPI have proposed to merge their Indian operations in the ratio of one equity share of GIL for every two shares of SBPI held. The combine will have a market share of around 7.2 per cent, even as merger synergies are expected to accrue from 2002, and reach its peak by 2003. The merged entity, with a topline in excess of Rs 1,300 crore and a bottomline of around Rs 100 crore, will have a basket of around 250 brands.