Sarabhais put Baroda drug unit on the block

The Baroda-based Ambalal Sarabhai Enterprises Ltd (ASEL) has put its bulk drug manufacturing facility at Ranoli near Baroda and a 50 acre land adjacent to the facility on the block.

The Ranoli facility has not been operational for quite some time as production was shifted to the company's integrated plant at Baroda few years ago.

The property disposal is part of a business restructuring of the company. ASEL is pursuing a major restructuring aimed at furthering strategic alliances and collaborations. The company had appointed PriceWaterhouseCoopers as its consultant.

Mohal Sarabhai, director, said with commitment of the management to turnaround the company through alliances, restructuring of operations and cutting down its high-cost debt, ASEL is expected to improve profitability in the next two years. However, he declined to give details of the valuation of the property.

To expand the market for its products, the company is negotiating with some overseas parties who would provide necessary technology as also buyback arrangements of the products manufactured. Upon finalisation and implementation of such an arrangement, it is expected that there would be a considerable increase in the volume of the bulk drug business and increase in profits, Sarabhai said.

The business interests of ASEL, which is currently the largest manufacturer of Vitamin C in the country, includes drugs and pharmaceuticals, industrial chemicals, detergents, toiletries, electronics, engineering products, paper, glass and plastic containers and packaging materials.

ASEL has a major presence in anti-infectives, anti-epileptic and non-steroidal anti- inflammatory drugs. The company is also present in the veterinary healthcare sector, through a joint venture with Cadila Healthcare.

ASEL has aggressively formed alliances in the last couple of years to leverage its technical expertise and strong brands. On the domestic front, the company has formed a 50:50 joint venture to market the brands.

The company has tied up with BV Chiron of the Netherlands for marketing anti-cancer products in India, Grunenthal of Germany to manufacture and market Tramadol (an analgesic), with Biobrass of Brazil for the marketing of procine and insulin and with Abic of Israel for the marketing of poultry vaccines in India.

Just what the doctor prescribed

The Ranoli manufacturing facility has not been operational for quite some time

The property disposal is part of a business restructuring

ASEL has gone for a string of alliances such as BV Chiron (the Netherlands), Grunenthal (Germany), Biobrass (Brazil), Abic (Israel)

The business interests of ASEL includes drugs and pharmaceuticals, industrial chemicals, detergents, toiletries, electronics, engineering products