Jubilant Organosys appears to be taking one more step in transforming itself into a pharmaceutical company. The company is looking at selling its industrial and performance products division and expects to realise Rs3.0-3.5bn from the sale, says this report in today’s Economic Times. There was no official confirmation on this from the company.
The division, with sales of around Rs12bn, includes acetyls, PVA, adhesives, animal nutrition, fertilisers and agrochemicals. Jubilant has been steadily expanding its presence in the fast growing pharmaceuticals and custom research and manufacturing services (CRAMS) space over the last few years through mergers and acquisitions.
Selling the ‘non core’ business makes sense and the news was welcomed by the stock market. But will Jubilant be able to find a single buyer for the diverse products that make up the industrial and performance products division?