Senior Intas officials confirmed the acquisition and said that it formed part of the group's inorganic growth strategy and would help the company carve a niche for itself in the opthalmology segment.

The fast-growing Intas Labs, led by the Chudgar family, has identified oncology, paediatrics, opthalmology and critical care products as new growth areas. The company currently focuses on areas like cardiology, neurology, pschiatry and gastroenterology.

Officials said that Andre brings with it roughly 100 employees and has a facility at Baroda, in Gujarat. It has roughly 34 brands and 51 packs in its product portfolio. "We expect the integration to happen by October 2000," officials added. Andre Labs accounts for sales of roughly Rs 8 crore, while Intas registered a turnover of over Rs 100 crore and a profit after tax of Rs 7.6 crore for the year ended March 31, 1999.

While the finer details on the consideration paid could not be obtained, industry experts say the deal possibly marks the beginning of another round of consolidation. "As we move towards 2005, more and more small players like Andre will find it difficult to take on competition in the emerging scenario. Thus, it makes sense to integrate with a larger player, with greater financial/marketing muscle," an industry expert said.

Intas, which is targeting sales of Rs 225 crore in 2000-2001, spends approximately four per cent of turnover on research and development. The company has a well-established direct marketing network in India with over 650 medical representatives and field staff. Intas' distribution channel includes 19 depots and over 1500 wholesalers and the company claims that it covers over one lakh retailers around India.

Intas has launched a slew of new products like Intalol (atenolol), Melonex (meloxicam), Dizep (diazepam) and Sparinta (sparfloxacin) in the recent past.