Piramal buys 5 OTC brands from Merck for Rs 92 cr

Company aims to become top three companies in the space by 2020

Piramal Enterprises on Wednesday said it had acquired five health care brands from Merck Sharp & Dohme for Rs 92 crore, as a part of its strategy to grow its over-the-counter (OTC) business.

This is Piramal Enterprises’ second acquisition in the OTC segment in a month and the company aims to be placed among the top-three in the space by 2020. In November, the company had acquired baby care brand Little’s.

The five products acquired from Merck are in gastro-intestinal segment and indicated  for constipation, diarrhoea and stimulating appetite. The acquired brands are Naturolax, Lactobacil, Farizym, Lynoral and Pregcolor.

“The gastro-intestinal segment is valued at Rs 2,000 crore and is growing at 15-16 per cent annually. We have an antacid brand Polycrol, No. 1 brand in eastern India. With these additions, our basket of offerings in the gastro intestinal market will become larger,” said Kedar Rajadnye, chief operating officer, consumer products division.

The company said its consumer health care business has been growing at 24 per cent annually over the past six years and many of its brands feature in the top one or two rank in the respective product categories.