The French group, at present, has two pharmaceutical entities, Rhone Poulenc India, essentially for prescription drugs, and Rhone Poulenc Rorer, which handles the acquired Max range and institutional sales. Globally, the Rhone Poulenc group has only one publicly-listed life-sciences company, following the Rs 15,000-crore cash-tender offer by Rhone Poulenc to buy out the 33 per cent outstanding shares in Rhone Poulenc Rorer.

Though a consolidation of Rhone Poulenc's pharma operations is expected, the situation has been complicated by the fact that the French parent has a minority holding in Rhone Poulenc India. Rhone Poulenc Rorer India, on the other hand, is held 51 per cent by Rhone Poulenc Rorer France while 49 per cent is held by Rhone Poulenc India.

Analysts saythat a stake hike, from 40 to 51 per cent, seemed imperative in Rhone Poulenc India to align the Indian operations with the global set up. The company already has shareholder approval for buyback of shares.

Similarly, Rhone Poulenc Chemicals India, which under the new circumstances may be divested, is again held 49.5 per cent by Rhone Poulenc India, while the French parent (now Rhodia) holds the balance. Last year, Rhone Poulenc combined its chemicals, fibres and polymers businesses into a single entity christened, Rhodia.

The French giant's agrochemical entity, Rhone-Poulenc Agro India, is also held 50.5 per cent by the overseas parent, while Rhone Poulenc India holds the balance stake.

In contrast, the Hoechst group is marked by relatively simpler equity structures with the German parent holding a majority stake in both the pharmaceutical and agrochemicals entities. The UB group is the second largest shareholder in both entities, though the group's holding may come down marginally, once the proposedmerger goes through.

On the labour front, the pharmaceutical combine will have an employee strength in excess of 3,000, though the agrochemicals entity is significantly leaner with "personnel power" of around 570.

Though it is still early days to gauge the CITU-controlled Rhone-Poulenc union's stand to any possible downsizing, union sources claim that it would not be open to irrational rationalisation.

Union sources say that Rhone Poulenc had been pruning its work force at Bhandup and the present strength at the facility stands at around 330 employees from the original level of over 800. The last voluntary-retirement scheme, which union sources say was rather attractive, entailed an outgo of Rs 10.79 crore. Around 126 employees had availed themselves of the scheme and women employees were even given 50 grams of gold for every year of completed service, they add.

The Hoechst merger with Roussel India had also been challenged by labour, though the issues raised were not specifically related torationalisation pressures.