New Prescription For Merind

The Rs 400-crore Wockhardt announced that it will buy the Tatas 50 per cent stake in Merind and its 100 per cent subsidiary, Tata Pharma. The purchase will cost Wockhardt a total of Rs 47 crore, at a price of Rs 260 a share. Merind director A H Tobaccowala revealed that the offer price was below the companys expectations; but it was accepted due to community consciousness and the fact that he was associated with Wockhardt as a member of its board. Wockhardt also plans to make a public offer for the remaining shares "" the company has set up a Rs 200-crore fund especially for brand and company acquisitions. Wockhardt managing director, H F Khorakiwala, sees future sales coming largely from organic growth "" aided by acquisitions in India and abroad. Wockhardt is targeting a turnover of Rs 1,000 crore by the turn of the century. The buying up of Merind and Tata Pharma will improve Wockhardts retail offtake position from rank 19 to nine in the ORG rankings.