Boots' Indian investment is at present only a small part of its annual turnover of more than five billion pounds or eight billion dollars. But Boots, a leading world company, views the joint venture as a beginning in what it sees as a promising market.

"India represents an opportunity for both partners to grow their business," Boots Healthcare International (BHI) MD Barry Clare said after the deal. Since regaining control of the Strepsils brand in India last year, he said, BHI has been "considering how best to establish a presence in India." Now, he said, "the combined strengths of BHI and NPIL will provide a platform forsignificantly increasing the profile of BHI and its brands in India."

BHI regained control of Strepsils and other over-the-counter products in India, Pakistan and Canada last year after Boots and Knoll AG speeded up harmonisation of their respective product portfolios following the acquisition of Knoll by the former in 1995. Recently these brands were marketed by NPIL under a licence agreement with Boots.

The new joint venture company in India will be known as Boots Piramal Healthcare Limited (BPHL). It is expected to employ a staff of around 50 at its head office in Mumbai.

The business of the new company will be focussed on BHI's existing core product categories of analgesics, upper respiratory and dermatological skincare. The joint venture company will initially market Strepsils, Icy (throat lozenge) and Sweetex, an artificial sweetener.

Sales of these brands last year were worth Rs 250 million, according to a statement from the Bootshead office in Nottingham. "These are expected to grow significantly over the coming years, with both parties looking to introduce new products through BPHL."

NPIL chairman Ajay Piramal was quoted as saying that "Boots is very well respected in healthcare and NPIL looks forward to a progressive relationship."

Boots established its international wing in 1992 and it has already clocked sales of more than half a billion dollars. BHI has operating companies in Europe, the Far East and the Pacific region. The company markets its products in more than 130 countries.

In the year ended March 31 last, Boots made a profit before tax "and exceptional items" of 553 million pounds on a turnover of 5,022 million pounds. The company's business is mainly pharmacy and manufacturing, and retailing, though it has recently added on property.

Boots is one of Britain's 30 largest public limited companies and is the fifth largest retailer in Britain, with more than 1,300stores across the country.

Boots is the largest contract manufacturer of cosmetics and toiletries in Europe. Apart from manufacturing for its own companies, Boots develops and manufactures products for several retailers in Britain and abroad.