Mumbai, Feb 6: Boots Plc of UK is understood to have issued a notice for discontining its existing licensing arrangement with Knoll India for three over-the-counter (OTC) products. The products are Strepsils, brand extension Strepsils Icy and Sweetex.The move is a precursor to Boots forging a new joint venture in the country for marketing these products, even as Knoll plans to focus on its prescription business. Boots is understood to be on course to finalising the details of the new arrangement. Strepsils, Strepsils Icy and Sweetex are estimated to have a turnover of about Rs 17 crore.
Industry sources said under the original arrangement, a 60-day notice was to be given for the withrawal of the brands from the existing deal with Knoll. The existing arrangement will cease to exist as on March 1, 1998. The two brands and one brand extension were among the products retained by Boots when it sold part of its global business to Knoll. Currently, these three products are marketed by Knoll India's 100 per centsubsidiary, Beem Healthcare along with seven other brands namely Burnol, Aciguard, Coldarin and Saccharin, Mylol, Cherana and Fenox.
While Knoll has already sold Burnol to Reckitt & Colman and Coldarin to Johnson & Johnson, the company was reportedly examining the option of selling both the remaining brands and its 100 per cent subsidiary. Beem Healthcare has a sales force of about 50.
Significantly, Knoll has already acquired an anti-epilepsy brand, Epilex, from Reckitt & Colman India whose strategy is to focus on the over-the-counter segment. Epilex, a Rs 5 crore brand, is expected to complement Knoll's Eption brand in the same segment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
