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May 24, 2001
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Money > Reuters > Report May 24, 2001 |
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ICI India mulls drugs unit sale, tie-upChemicals maker ICI India is in talks with Indian pharmaceutical firms to hive off its drugs unit or enter into a partnership for the drugs business, a director of the company said on Thursday. "We are in negotiations with a number of parties, but nothing has fructified yet," ICI director Daljit Singh said from New Delhi. Britain's ICI Plc has a 51 per cent stake in ICI India. Pharmaceuticals is a peripheral business for ICI India, which is best known for its paints. ICI shares were down 3.6 per cent at Rs 69.9 in early afternoon trade. "We are looking to align our businesses with the parent company in the long term, and pharmaceuticals is a regional business for ICI Plc. We do not see it as part of our portfolio here in the long term," Singh said. "We are evaluating all options that make sense for our shareholders, customers and employees. We could be looking at a joint venture, strategic alliance or a divestment," he added. Bombay-based unlisted drug firm US Vitamins is one of the bidders for the business, its managing director said. "ICI has a cardiovascular drugs business that is a good fit with ours," Prashant Tewari said. The Financial Express, an Indian business daily, reported on Wednesday that US Vitamins and Pharmacia & Upjohn India, the Indian arm of Pharmacia Corp had bid for ICI India's drugs business. A Pharmacia & Upjohn India official declined to comment. The pharmaceuticals business remained part of ICI India even after the worldwide split of ICI in the early 1990s transferred the drugs business in most countries to Zeneca Plc which later became part of AstraZeneca Plc. The business, located in Madras, makes cardiovascular drugs, antiseptics and anaesthetics. Singh said the drugs business contributed around Rs 500 million to ICI India's sales of Rs 8.73 billion for the year to March 2000, and he expected it to touch Rs 630 million for April-March 2000-01.
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