Piramal Healthcare to foray into financial services

Pharma major Piramal Healthcare is expanding into the financial services sector and plans to set up two NBFCs which will lend to infrastructure and other sectors. The company has already received RBI approval to set up an NBFC which will lend to other sectors, including real estate.

Piramal Healthcare also said that it is acquiring Indiareit Fund Advisors and Indiareit Investment Management Company as a part of its foray into financial services. The acquisition is to cost Rs 225 crore.

Indiareit Investment Management Company is manager to offshore real estate private equity mutual funds investing in India. The company has Rs 3800 crore of assets under management.

Piramal healthcare, last year, sold its formulations business to Abott and also sold its diagnostics business to Super Religare. Piramal Healthcare, currently, has more than Rs 3000 crore post the sale of the two businesses, which will be used towards expansion.

The company plans to invest Rs 1000 crore in the NBFCs, said Ajay Piramal, chairman, Piramal Enterprises. Piramal Healthcare will continue to seek acquisition opportunities in the main pharma business, even as we look for opportunities to diversify into non-pharma businesses, he said. 

The company plans to invest Rs 200 crore for expanding capacity in its pharma solutions business which, it expects, will grow 20-25% in the next three years. Piramal Healthcare also expects its over-the-counter (OTC) medicines business to grow at 25-30% over the same time period. The company will look at new product launches and buy-outs for further growth in OTC business.