Sterling Bio to acquire gelatin company in China

Mumbai: Pharmaceutical company Sterling Biotech Ltd is acquiring China Gelatin Ltd in an all-cash deal.

The acquisition would enable the company to tap new growth markets in the Far East, including China, Sterling Biotech informed the Bombay Stock Exchange. China is amongst major consumers of gelatin globally and this acquisition would be the first overseas one by Sterling Biotech, the company said in its filing with the BSE.

The transaction would be completed upon receipt of all necessary government approval under applicable laws by each party, the company further said.

Sterling Biotech Ltd, the largest manufacturer of gelatin has undertaken expansion of Rs236 crores. The gelatin demand in domestic market to grow by 15 per cent while globally the growth to be around 3 per cent.

The company reported net sales of Rs276.6 crore the six months ended June 2006 with net profit of Rs2.2 crore.