MUMBAI, June 22: Hoechst Roussel Vet (India) has, as part of its strategy to emerge as the group's Asian sourcing base, taken over the assets of Pune-based BAIF Laboratories Ltd (BLL). The Rs 12-crore acquisition will catapult HR Vet to third position in the Indian animal-health industry.HR Vet, which was set up in August 1996, is a 100 per cent subsidiary of the HR Vet GmbH, the animal-health outfit of the Hoechst group.
HR Vet chairman and managing director of Hoechst Schering AgrEvo KK Unni, told The Financial Express that the deal was completed in the second quarter of 1998 and marks the first acquisition globally by the German multinational in the animal-health business.
"The BLL deal is aimed at enhancing our market share with the addition of new products, even as it helps expand our base in India. Moreover, it will also boost exports of biological veterinary products," Unni said.
The buy-out of BLL will bring with it a modern facility at Pune in Maharashtra and an employee strength ofaround 150, taking HR Vet's total headcount to around 300.
The unit manufactures the foot and mouth disease vaccine and poultry vaccines and Hoechst has already invested an additional Rs 3 crore in Pune to upgrade the unit in line with that of the multinational's international standards. BAIF Laboratories Ltd is essentially owned by Arvind Mafatlal.
Unni said the Indian arm would also function as the German multinational's Asian sourcing centre for a range of animal-health products including the foot and mouth disease vaccine, Panacur, Floxadine (an antibiotic for cattle and poultry) and Butox.
"Besides, our German parent has consented to bring in hi-tech products including genetically engineered ones. New products in the pipeline in 1998 are Stenorol, Pantol-C, Candur R, Cobactan LC, Regumate, Adjuvant and Tonophosphan Compositum and FMDV Oil," he added.
HR Vet in India also imports a key poultry feed supplement, Sacox, from its German parent even as it will continue sourcing certain bulk drugs fromHoechst Marion Roussel, the group's pharmaceutical entity. Sacox, which was launched in 1997, has already notched up sales of Rs 4.5 crore.
Unni said that HR Vet India which began with a modest turnover of Rs 30 lakh some years ago was expected to cross the Rs 100-crore mark by the turn of the century, even as it hopes to become the number two player in India in 1998. Turnover for the current year is expected to be around Rs 63 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
