Hoechst To Acquire Major Stake In Vaccine Venture

Hoechst Roussel Veterinary Pvt Ltd (HRVPL), the wholly-owned subsidiary of Hoechst Roussel Veterinary Gmbh of Germany, is picking up majority stake in a new joint venture with the Pune-based Bharatiya Agro Industries Foundation Labs.

The joint venture company, which is yet to be christened, will make and market veterinary vaccines.

The move has already been announced worldwide. The latest annual report of Hoechst says the company's move will help drive growth and volumes in India, one of the priority countries for the company in the Asian region.

"Achieving a strong presence in the rapidly growing markets of Asia is a high priority for Hoechst Roussel Vet. Currently, the company achieves five per cent of its sales in Asia.

 

Hoechst Roussel Vet plans to acquire Bharatiya Agro Industries which produces vaccines and veterinary drugs for the local market and also exports them to other Asian countries," the report concludes.

Bharatiya Agro Industries and Foundation Labs and Hoechst Veterinary are in the process of obtaining clearances from the regulatory authorities.

Hoechst Veterinary's officials confirmed the development but could not disclose more details. "The company could not cope with the rapid changes in technology, and does not have sufficient funds to invest in large scale research. Marketing so many products is also not fetching sufficient returns," they said.

The company has nearly 50 veterinary products out of which vaccines will be transferred to the new joint venture. Bharatiya Agro will continue to market other drugs.

The joint venture with Hoechst Veterinary would ensure that its products continue to reach consumers.

The new arrangement between the two companies was on the cards for some time as the veterinary division of the Hoechst group had been marketing Bharatiya Agro's products.

Bharatiya Agro has also leased out its vaccine manufacturing facilities to Hoechst.

It was set up in the early 1990s as a wholly-owned subsidiary of Bharatiya Agro Industries Foundation, a public trust engaged in rural development activities.

The trust also owns another company called BAIF Research Foundation.