Burroughs To Sell Off Aurangabad Unit

The multinational is currently scouting for a potential buyer and is talking to several pharmaceutical majors including Ranbaxy, Torrent and Cadila, it is learnt .

The decision to sell the unit follows a refocusing of the company's strategy after the worldwide merger of its parent, Wellcome Plc with Glaxo Plc of the UK early last year.

The plant was set up as part of former managing director D K Bose's growth strategy.

However, a change in the Burroughs Wellcome management following the departure of Bose and the global merger resulted in these new developments.

The Hongkong and Shanghai Banking Corporation (HSBC) has been retained by the company to find a prospective buyer for the plant. When contacted, however, HSBC refused to comment on the subject. The plant had been set up shortly before the company changed hands. In fact, even before the plant could commence production, the new management decided to restructure its business.

 

Glaxo Plc of the UK, after taking over Wellcome, has emerged as the largest pharmaceutical company in the world.

Following the merger worldwide, the Indian operations too are being merged.

At present, the boards of both the Indian companies have been integrated. The management integration saw several top executives of Glaxo India moving to Burroughs Wellcome India. After the merger, the companies would enjoy a market share of 7.2 per cent because of the expanded product portfolio.

An analyst said out that the actual merger of the two companies, when it happens, is likely to set a new trend in the domestic market and pose a major threat to other multinationals operating in India.