India's Jubilant to acquire two European pharma companies

23 April 2004 08:01  [Source: ICIS news]

NEW DELHI (CNI)--India’s Jubilant Organosys Ltd (JOL) has decided to acquire a controlling stake in two European pharmaceutical firms operating under the same management.

 

The company has not disclosed the names of the takeover targets nor their acquisition costs - apparently because the deal has yet to be finalised.

 

The acquisition may partly be financed with funds to be raised from overseas investors.

 

The company decided last month to mop up $55m through an issue of foreign currency convertible bonds to fund its growth plans.

 

A JOL release said that the company had signed a memorandum of understanding with the management of two European pharmaceutical companies to purchase an 80% equity stake in each of them, subject to due diligence and regulatory approvals.

 

One of the European companies is engaged in marketing of drug formulations and the other is engaged in regulatory affair services, dossier development, formulation developing and licensing.

 

JOL expanded its presence in the pharmaceuticals business in 2002 by acquiring the active pharmaceuticals ingredients business of Max India. It later launched initiatives to strengthen its pharmaceuticals and life science chemicals division through capacity expansions, new product launches and research & development.

 

The company is expanding its custom research and manufacturing services (CRAMS) in a big way to serve customers in India as well as abroad.

 

JOL operates its production complex at Nanjangud near Mysore in Karnataka. It also has plants at Gajraula in Uttar Pradesh, Vadodara in Gujarat and Nira in Maharshtra that produce a wide range of commodity and speciality chemicals.

 

The company has the capacity to produce 142m litre/year of ethanol which is used as feedstock for petrochemicals, 268 000 tonne/year of vinyl acetate monomer (VAM), 21 150 tonne/year of speciality polymers and 48 560 tonnes/year of speciality chemicals.

 

JOL’s other products include acetaldehyde, polyvinyl alcohol (PVA) and animal feed pre-mixes.

 

The company earned a net profit of Rs237m ($5.3m/Euro4.5m) on total income of Rs2.34bn in the third quarter of its financial year to 31 December 2003. It has not yet declared its results for 2003-04.

By: Naresh Minocha
+65 6780 4359

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