Apr 17, 2012

India - Piramals eye more buyouts in pharma, finance, security systems


MUMBAI: After its second acquisition of molecular imaging development portfolio of Germany's Bayer Pharma, Piramal Healthcare is eyeing more buyouts in pharma, home finance and home security systems businesses, Piramal Group Chairman Ajay Piramal said today.

"We plan to expand activities in the pharma-based areas, financial services sector and home security systems in the near future through an inorganic growth route," Piramal said.

Earlier in the day, Piramal Healthcare signed an agreement to acquire worldwide rights to the molecular imaging R&D portfolio of Bayer Pharma AG through its newly-created subsidiary -- Piramal Imaging.

Last year, the city-based company had acquired assets of BioSyntech after it had sold its drug formulations business to the global drug giant Abbott Pharma for USD 3.8 billion in May 2010.

It had also acquired financial firm Indiareit Fund Advisors and Indiareit Investment Management, Mauritius for Rs 225 crore in May, 2011.

Sitting on a huge cash pile, the Piramals also made a strategic investment in Vodafone India by picking up 1 per cent stake in the country's second largest mobile operator in two installments for Rs 5,856 crore.

The company will fund its acquisitions through strong internal resources, Piramal said.

The company is sitting on a huge cash pile as the flagship company, Piramal Healthcare sold its formulations division in May, 2010 for USD 3.8 billion (Rs 18,500 crore). The company has received upfront payment of USD 2.12 billion (Rs 10,000 crore).

"We are expecting rest of the money in installments of USD 400 million (around Rs 2000 crore) each for the next three years, Piramal said.

In the financial service sector, the company is floating two NBFCs under a holding company PHL Finance which will focus on lending to real estate, promoter financing, hospitals and educational institutes.

Replying to a query on the company's investment in Vodafone, Piramal said, "We have made a short-term strategic investment in the company."

In August, 2011, the company had bought 5.5 per cent stake in telecom major Vodafone for Rs 2,856 crore and another 5.5 per cent stake for Rs 3,000 crore this February.

Piramal Healthcare is today one of the country's largest healthcare companies, with a growth track record of above 29 per cent CAGR since 1988.

Piramal Healthcare had consolidated revenues of USD 650 million in FY2010-11. With assets across North America, Europe and Asia, apart from the domestic assets, Piramal Healthcare is also one of the largest custom manufacturing companies across the world.

It also has significant presence in the global critical care space, with selling anaesthesia products to over 100 countries.




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