Abbott to keep Piramal business separate after acquisition

Abbott Laboratories, which completed its acquisition of the Rs17,000-crore Piramal Healthcare Ltd's domestic pharma business on Wednesday, will maintain the latter as an independent unit reporting directly to the global company's newly created 'established products division'.

At the same time, Abbott plans to make India a "prime focus target" to outperform the industry growth of 15 per cent and aims at a turnover of $500 million in India by 2011, company officials told the media in various interviews.

The new parent company doesn't anticipate a sudden integration of operations with the business of the almost century-old subsidiary Abbott India Ltd, Michael J Warmuth, senior vice-president and the new head of Abbott's established products division, told Mint on Thursday.

Sales of Piramal's domestic formulation business acquired by Abbott stood at around $430 million for the year ended March 2010.

 ''Piramal's healthcare solutions business has a large portfolio of 350 branded generics, including several market-leading brands that hold the Indian company's reputation. We will operate this as a separate business unit, led by its current local management team,'' Warmuth said. The division focuses on branded generics and looks for opportunities in emerging markets.

Abbott, which has become India's largest drug maker by market share after acquiring the Piramal business, completed the deal, which was signed in May, ahead of its original schedule of six months.