Cadila realigns consumer products division

18 June 2008

Mumbai: Pharma company Cadila Healthcare has announced that it plans to restructure its consumer products division by consolidating it with subsidiary company Carnation Nutra Analogue-Foods.

The company's board of directors accorded 'in principle' approval to the consolidation of the consumer products division with Carnation Nutra Analogue-Foods at its meeting, subject to approval by the promoters. This was disclosed by Cadila in a filing with the Bombay Stock Exchange (BSE).

Post consolidation, Cadila's promoters would need to consider reorganising their shareholding, though Carnation would continue to be a listed subsidiary of the company. Additionally, Cadila also authorised an independent director to finalise the structure of scheme, including valuation to determine the share exchange ratio in relation to the proposed restructuring.

The statement said that the final decision on the scheme and share swap ratio will be taken at a subsequent board meeting.
'Sugar Free' and 'Everyuth' are two well known brands of the consumer products division, which are likely to transfer to Carnation Nutra Analogue-Foods once the spin off and consolidation of the division takes place.

Cadila's consumer product business showed an impressive 26 per cent growth, climbing to Rs150 crore in financial year 2008. Most of the company's consumer products are marketed under its umbrella brands 'Sugar Free' and 'Everyuth'.

'Sugar Free' is a low calorie sweetener used in lieu of sugar. The product notched up sales of around Rs60 crore last fiscal. The 'Everyuth' brand covers a range of skin care products, and tallied sales of around Rs35 crore.