Bayer chairman HV Goenka told shareholders at the annual general meeting here on Tuesday that the company was targeting a turnover of around Rs 500 crore for the full year, even as it had received registration in India for imidacloprid, the world's largest-selling insecticide.

The registration will allow the company to introduce brands like Gaucho 70 WS, used for treatment of seeds and Confidor 200 SL, for foliar application on cotton.

Goenka also said that Bayer had decided to restructure its pharmaceuticals business in India and would "discontinue marketing activities while retaining the manufacturing facilities at Thane, after upgrading them to good manufacturing practices (GMP) standards".

He, however, added that the revamp would have no adverse impact on the company's profitability and would, in fact, lead to an improvement,as the funds released could be used for other profitable businesses.

The lack of critical mass and the restrictive pricing policy of the government has resulted in the pharmaceutical business making an insignificant contribution, even losses, in the last many years, he said. Bayer's pharmaceutical business was ranked 59th in India with a market share of 0.5 per cent.

Bayer AG proposes to set up a new marketing joint venture with an Indian pharmaceutical company following the restructuring. Bayer India managing director Alan P McGilvray said that talks were at an advanced stage, and the new venture was expected to be finalised towards the end of the year. Bayer AG is expected to hold a 51 per cent stake in the venture with the Indian partner holding the balance.

Though the revamp will not result in any fixed-asset transfer to the new marketing venture, the latter "would be requested to absorb 275 pharma marketing employees," Goenka said. The new venture would take over the marketing and distributionnetwork at a price to be determined by a valuer.Further, the new venture would be requested to use Bayer India's Thane facilities for toll manufacture of the pharma products, even as the company would be free to undertake this activity for other companies.

In the case of Jagat Chemicals, the company's 100 per cent subsidiary, Goenka said that since the interim dividend was being paid out of the reserves, permission was sought from the centre. Jagat Chemicals had sought permission to pay an interim dividend at the rate of 220 per cent for January-December 1997. Meanwhile, in the consumer-care business, the company has launched Baygon Genius Liquid Vaporiser in the northern and western markets.