Ind-Swift Group Scripts Consolidation Blueprint

Promoters of the Rs 207 crore Ind-Swift group have drawn up a consolidation plan. The Chandigarh-based group comprises two comprises -- Ind-Swift Ltd and Ind-Swift Laboratories Ltd -- and is promoted by the Mehta, Jain and Munjal families. While Ind-Swift Ltd deals in finished products, Ind-Swift Laboratories deals in bulk drugs.

To begin with, the promoters intend to buy out the 25.5 per cent stake held by the Punjab State Industrial Development Corporation (PSIDC) in Ind-Swift Laboratories. According to Ind-Swift Ltd joint managing director G. Munjal, the promoters have the option to buy out the PSIDC shareholding in the company next year at the price of Rs 30 per share.

"This is the price we had agreed to when PSIDC made the investment in 1997. We are looking at buying out these shares," Munjal said.

At the moment, the promoters hold a 36 per cent stake in Ind-Swift Laboratories. While 33.57 per cent shares are with the public, financial institutions hold 30.43 per cent stake. Apart from PSIDC, the Unit Trust of India holds a 4.98 per cent stake. If the promoters buy out the company shares from PSIDC, their shareholding will rise to 61.45 per cent.

According to Munjal, the promoters are also looking at merging the two group companies. "The merger will give us added strengths as we want to become an integrated global pharma company engaged in the production and marketing of innovative pharmaceutical products," he added.

The group has five manufacturing facilities and a workforce of 1,250. It has a presence in therapeutic segments like hormones, diabetology, neurology, cardiology, anti-aids and anti-virals.

Ind-Swift recently launched its pioglitazone (used in the treatment of diabetes) and candesartan (used in the treatment of cardiovascular ailments) at a discount of 60 per cent to the competing products in the market. Glitter, Ind-Swift's pioglitazone, will be priced at Rs 2 per tablet. According to Munjal, the other pioglitazones in the market are not avialable at less than Rs 4.50 per tablet.

Similarly, Candez, Ind-Swift's candesartan, will be made available at Rs 2.50 per tablet. Munjal said this is 60 per cent lower price of the competing brand, Ranbaxy's Candesar. The company managing director hopes to corner a 10 per cent share of the pioglitazone and candesartan markets in a year.