Nicholas Piramal to merge consumer unit

Nicholas Piramal India Ltd has decided to merge its 100 per cent consumer products and over the counter (OTC) business arm, Nicholas Piramal Consumer Products Pvt Ltd, with the parent company, citing administrative reasons.

"Boots Piramal is already a 100 per cent subsidiary of NPIL and the merger is because of administrative reasons. There is no need to continue it as a separate entity as the joint venture with Boots is no longer there," said Ajay Piramal, chairman, NPIL.

He said the merged entity has a current turnover of about Rs 50 crore. The board of directors of NPIL approved the merger, today.

Nicholas Piramal Consumer Products Pvt Ltd, formerly Boots Piramal Healthcare Pvt Ltd, was started as a joint venture between UK-based Boots plc and NPIL. NPIL's equity stake in the JV was increased from 40 per cent to 49 per cent in 2002.

NPIL made the company a 100 per cent subsidiary by acquiring the remaining 51 per cent stake in September 2006, following the household product major Reckitt Benckiser Plc's takeover of Boots group's non-prescription drugs business in 2005.

The brands of Boots Healthcare include Strepsils medicated sore throat lozenger, Clearasil for acne treatment, icy (throat lozenge) and Sweetex (artificial sweeteners). The OTC brands from NPIL marketed by the JV include Aspro, an analgesic, Lacto Calamine skincare lotion and Polycrol, an antacid for gas trouble.