The new joint venture company, Boots Piramal Healthcare Ltd (BPHL), will have an initial share capital of Rs 5 crore and will market a range of popular BHI brands like Strepsils, Icy and Sweetex (an artificial sweetner). Key NPIL brands covered under the alliance include Lobate and Melalite (both dermatological products), according to a press release.

BHI brands like Strepsils are already being marketed by NPIL in India under a licence arrangement, which will "terminate" once the joint venture outfit is operational. Sales of the brands covered under the joint venture during 1997-98 stood at Rs 24.8 crore and the current fiscal could see the figure surpass Rs 300 crore. The venture will initially have an employee strength of around 50.

BHI regained control of Strepsils and other over-the-counter products (OTC) in India, Pakistan and Canada last year when Boots and Knoll AG agreed to accelerate the harmonisation of their respective portfolios. This followed the acquisition of Boots Pharmaceuticals by Knoll AG in 1995.

BHI managing director Barry Clare said, "Since regaining control of the Strepsils brand in India last year, BHI has been considering how best to establish a presence here. In NPIL, we have an Indian partner which is a leading company in both the pharmaceutical and OTC sectors".

Nottingham-based BHI is a leading OTC self-medication company which operates in Europe, the Far East and Pacific region. Major BHI products include Nurofen, Strepsils and dermatological brands like Lutsine, Onagrine, Curatoderm etc.

NPIL chairman Ajay Piramal said, "NPIL is committed to developing partnerships with leading healthcare companies to bring in technology, accelerate new product research and development and provide opportunities for exports. Boots is very well respected in healthcare and NPIL looks forward to a progressive relationship".

The alliance with the UK-based Boots forms part of the Piramal group's strategy "to build small alliance companies even as the equity holding rests with Nicholas Piramal". Nicholas Pirmal has already forged a string of similar alliances with the Sarabhai group, Reckitt & Colman and Nexstar (essentially for the anti-fungal brand Ambisome).

While Sarabhai Piramal's monthly sales are in the region of Rs 5 crore, Reckitt Piramal sales for the six-month period (March-August 1998) are already in excess of Rs 120 crore. Reckitt Piramal is already scouting for further strategic brand acquisitions.

Asked whether the Piramals could eventually look at a strategic buy-out of the Ambalal Sarabhai group, sources said, "We are moving more and more towards friendly alliances and future strategies will depend on the merits of the situation".