Zydus group’s Cadila Healthcare has entered into a share purchase agreement with Ambalal Sarabhai Enterprises to acquire the remaining 50% holding in their JV company, Sarabhai Zydus Animal Health. This acquisition will make the company a 100% subsidiary of Cadila Healthcare. The value of acquisition (50% stake) is yet to be finalised, said Cadila’s spokesperson.
Sarabhai Zydus Animal Health, formed in 2000, is among the leading animal healthcare companies in India that posted a turnover of Rs 88.87 crore in 2006-07. It markets a wide range of therapies and has a strong presence in the livestock, poultry and companion animal business. With 250 employees, the company has a countrywide marketing network. It also has alliances with Abic, a Teva group company, and Lillydale of UK.
“This year we expect to cross the Rs 100-crore turnover mark. Now, that Zydus group has full control of the company, we will consider setting up our manufacturing facilities,” said Arun Atrey, managing director, Sarabhai Zydus Animal Health.
Last year, the company’s performance was hit by bird flu. “This year, we do not expect it to recur and the preparedness on the part of the government and industry is much better,” said Mr Atrey.
The animal health business in India is still very small with an estimated turnover of Rs 1,100 crore, while the global market size is about $18 billion.
“But, with organised retailing growing in a big way and contract and corporate farming going to take off, the demand for animal health business is going to shoot up,” said Mr Atrey.
Currently, the company has very small export sales as it does not have its own manufacturing facilities. “But, as there is a big global opportunity for outsourcing to India, we will now set up our production facilities in the future,” he added.
In 2000, the JV partners pooled the animal healthcare business of both the groups to create Sarabhai Zydus Animal Health one of the leading animal healthcare companies in India. The company commenced operations from April 2000.
It is one of the leading player in the anti-infective segment, which is the largest segment in the animal healthcare industry. With a major presence in therapeutic areas of anti-bacterials, analgesics, antihelminthics, poultry vaccines, probiotics, tonics and feed supplements, Sarbhai Zydus Animal Health is exploring novel ways of reaching veterinarians and farmers.
Source : Economic Times