After a board meeting held here on Monday, Bayer India managing director, Alan McGilvray, said in a statement that the restructuring exercise is aimed at "assuring a no-loss situation" for its shareholders. "It will see Bayer India discontinue all future investments in pharmaceutical sales and marketing. Bayer's pharmaceutical business, currently ranked 60 in India (market share of 0.5 per cent), has not been able to achieve the critical mass required to make it a self sustaining profitable activity, the statement said.

He said the reorganisation would also help secure the group's Thane facility as a potential flagship site for the German multinational's South East Asian operations. The German parent is expectedto make significant investments to upgrade manufacturing standards.

Though the revamp will not result in any asset transfer to the new entity, Bayer India shareholders will be duly compensated. The company will appoint an external valuation agency for this purpose. The domestic pharmaceutical business accounts for around Rs 40 crore of Bayer India's turnover.