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Emami picks up 23.61 pc stake in Zandu for Rs 130 cr

Emami picks up 23.61 pc stake in Zandu for Rs 130 cr

Author | exchange4media Kolkata Bureau | Tuesday, Jun 03,2008 8:51 AM

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Emami picks up 23.61 pc stake in Zandu for Rs 130 cr

Emami Ltd, which had picked up a 3.91 per cent stake in Zandu Pharmaceutical Works Ltd 10 months ago, has now increased its stake in the company to 27.5 per cent. Emami has spent Rs 130 crore to acquire the additional 23.61 per cent stake in Zandu from the Vaidyas, the existing promoters of Zandu.

As per the official declaration available with BSE, the promoters hold 42 per cent stake in Zandu, with the remaining 58 per cent with the general public. With this latest acquisition, Emami is expected to become the largest promoter shareholder with nearly 70 per cent of total promoters’ stake in Zandu upon completion of the necessary legal and regulatory compliances.

Harsha V Agarwal, Director, Emami Ltd, said, “Zandu has tremendous business potential, which can be exploited with strong marketing, R&D and other operating efficiencies, coupled with long term entrepreneurial vision. Emami, with its strong marketing acumen and operational efficiency, can help Zandu reap its true potential. There is strong synergy between the businesses of Emami and Zandu. If Emami and Zandu’s respective expertise are combined, it can reach to greater heights.”

Emami has bought stake in Zandu through companies like Bhanu Vyapar Pvt Ltd, Suraj Viniyog Pvt Ltd, Suntrack Commerce and Diwakar Viniyog.

Agarwal further said, “Emami’s objective is to capitalise on synergies of each other’s strengths. Specific brand plans would be made in due course in consultation with the existing management.”

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