MUMBAI, Oct 6: The Rs 400-crore Sarabhai group and the Rs 1,000-crore Piramal Enterprises, have formed a 50:50 joint venture for marketing a range of healthcare products. The Ajay Piramal group's latest venture comes at a time when it is close to finalising a similar joint venture with Reckitt and Colman for over-the-counter products.

The new joint venture company, Sarabhai Piramal Pharmaceuticals Ltd (SSPL) has an authorised capital of Rs 25 crore and will be independently managed by professional managers.

The venture will target products in the areas of pain relief, inflammation in the diseases of the bones and joints and anti-cancer drugs. It is, however, understood that the initial portfolio of the SSPL will comprise Ambalal Sarabhai's products, though both partners were expected to contribute to the venture's product basket shortly.

A Piramal press release said the alliance would benefit from the established market presence of Sarabhai and "the innovative and alliance" skills of the Ajay Piramal group. t is unclear whether Ambalal Sarabhai would be compensated for the brands which currently form part of the new venture's portfolio.

Amabalal Sarabhai, however, is reportedly set to receive about Rs 35 crore as compensation for its brands and an additional consideration for the intellectual capital, though no official confirmation was available.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.