MUMBAI, Mar 20: The $2-billion German multinational Braun has initiated talks with a host of domestic companies including Wockhardt and the Ahmedabad-based Core group for a possible alliance to enter the Rs 300-crore parenteral market. Braun's managing director in India, Naidu, said the company was talking to several corporates for a proposed entry into the segment either through an acquisition, equity participation or a manufacturing alliance. "We have exchanged views with a host of companies including Wockhart and Core, but are keeping our options open at present. We are open to acquisitions or even an alliance, which will entail manufacture of Braun products here," he said.Braun operates through its subsidiaries B Braun Medical (India) and B Braun (India) Pvt Ltd. Naidu said the German multinational was unlikely to go public. The Rs 675-crore Wockhardt commands a market share of around 50 per cent in the domestic parenteral market.
Analysts said an alliance with Braun could add value to its top line.Wockhart recently acquired the UK-based Wallis Laboratories and Tata group company, Merind, catapulting it to the fourth position in the Indian pharmaceutical industry.
Asked whether Braun would pursue an alliance with the Core group despite its financial health, Naidu said that it was "difficult to say". The group, facing difficut times, got a minor reprieve when the Ahmedabad high court recently rejected an appeal application filed by Amex Bank seeking a stay on the operation and implementation of an earlier winding-up petition, which had been dismissed.
Industrial Credit & Investment Corporation of India (ICICI) has recently drafted a restructuring plan for Core Healthcare. In India, Braun is active in medical devices, surgical instruments, the dialysis market. Its key products include state-of-the art ones in the invtravenous-therapy systems market, namely Certofix Duo, Certofix Trio and Vasofix. The first two products offer optimal therapy for intensive-care patients and incorporte the valve-needleconcept, thereby preventing blood leakage during venepuncture and guide-wire insertion.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
