Reckitt To Hold 60% In Venture With Piramal

Reckitt & Colman, (R&C), will hold 60 per cent stake in its joint venture with Nicholas Piramal to market OTC products of both companies. Nicholas Piramal will hold the rest.

It is believed that R&Cs majority stake will be divided between Reckitt & Colman UK and its Indian subsidiary, Reckitt & Colman of India. To be christened shortly, the joint venture company will market products of both partners, like Aspro, Disprin, Gelore and Geladent.

Analysts said, the companies decision to start a separate OTC (over- the- counter) outfit is in line with the strategy of other multinationals, which maintain independent OTC operations. An analyst at a leading research firm said, Selling OTC products is a different ball game altogether. A company has to spend large sums on advertising its products and with competition growing, you have to be very focused on brand promotion. Nicholas Piramal is likely to hold the stake in the joint venture with Reckitt through its wholly owned subsidiary, Global Home Products. Global Home Products had been floated for entering into alliances for the OTC category of products.

 

Recently, Nicholas formed a 50:50 joint venture with Ambalal Sarabhai Enterprises called Sarabhai Piramal Pharma. The new company will reportedly acquire brands from Sarabhais Suhrid-Geigys division.

Besides, Nicholas is in talks with Knoll India for acquiring some OTC brands. The company is also planning a joint venture with Boot Plc of UK.