Brands galore

Nicholas Piramal: Merger spin-off may flow in future

Nicholas Piramal, which has been registering a 15 per cent plus growth rate in sales income during the last few years, has clocked only 7 per cent to Rs 127.3 crore in the first quarter to June 2001; less than the industry’s growth of nine per cent.

Vitamins A sale, accounting for 13 per cent of total sales, was hit by cheaper imports, lower demand from end users and segment shrinkage. Operating profit increased by 5.4 per cent to Rs 25.2 crore but margin fell a tad lower to 17.7 per cent (18 per cent). Net profit improved by 11 per cent to Rs 16.9 crore.

Merger of Rhone-Poulenc with the company may help it to widen its product portfolio and cover a number of therapeutic segments. Rhone-Poulenc’s 85 brands in different therapeutic segments takes NPIL’s total brands to around 255.

The merger between NPIL, Rhone-Poulenc, Super Pharma Ltd and NPIL Fininvest Ltd, when sanctioned by the Hon High Court, Mumbai, shall be effective from April 1, 2001.

During the current quarter, the company plans to launch three new products, “Xarb”-Irbesartan and “Stormix”-Clopidogrel in the cardiovascular category and “Rejoint Plus” for arthritis.

NPIL has completed three projects in clinical research. For genomics and DNA, database is being created in three therapeutic areas. It has also identified plans to consolidate its pharmaceuticals business through greater focus on therapeutics and brand building besides selective product launches. The company will also put greater emphasis on reducing operating cost besides giving thrust to marketing alliances.

NPIL has been feeling the impact of an unwieldy portfolio, huge marketing force and cultural problems between the merged entities. The company should make the best of a large field staff and wider territorial coverage of the merged entity if it wants to realise desired growth.

-- Dhruv Rathi