Emami may hive off Zandu Chem

Emami, which recently bought Zandu Pharmaceuticals for a little over Rs 700 crore, is evaluating the possibility of hiving off Zandu Chemicals, a subsidiary of Zandu Pharma, because of its limited growth prospects.

Harsh Agarwal, recently appointed as the managing director of Zandu, said, "Zandu Chemicals is close to Rs 30 crore now and is not showing good prospects, the reason why we may hive it off in another 10 days. Moreover, chemicals business is not our core area of operation and, therefore, it is not adding value to our FMCG business."

Zandu Pharma has 95 per cent stake in Zandu Chemicals. Emami is also planning to merge Zandu Pharma for ease in operations and management control. "All our product launch plans are on track. We intend to strengthen distribution reach of Zandu products first and then concentrate on introducing new products under the brand," Agarwal said.

"While we intend to launch ayurvedic healthcare products under the Zandu brand, herbal personal care products will fit the Emami brandname better," Agarwal pointed out.