Glaxo acquires five veterinary brands from ICI
20 May 1999
Glaxo India has acquired five veterinary brands, having a turnover of approximately Rs 10 crore, from ICI India for a consideration that is 1.5-2 times the brands' turnover, it is learnt. However, no official confirmation could be obtained for the same. The sale leads to conclusion of ICI's veterinary business in India.
The agreement covers only transfer of brands, manufacturing process and goodwill, and excludes transfer of assets and workforce, sources close to the deal say.
Of the five brands, Nilverm, used for deworming sheeps and goats, is the major brand with sales in the range of Rs six crore. Others include dog soap Betmosol, Zinal used as a dewormer in cattle and sheep, Antrycide injectable for mange in pets and Nilzan.
Glaxo, which has a strong franchise in the cattle treatment business, would benefit with the acquisition, industry observers opine. "ICI brands would attain would attain a growth rate of 18 per cent, in line with our agrivet business, in the year 2000,' says P V Nayak, head of Glaxo's agrivet business. Glaxo's agrivet business turned in Rs 70 crore sales as of December 1998.
Veterinary business of pharma multinational is considered to be lucrative, with profits estimated at 20 per cent of the sales.
ICI's presence in pharmaceuticals is by way of a marketing tie-up with Zeneca for anaesthetics and cardiac products.