Emami may have lost Paras on staff absorption

MUMBAI: While the absorption of Paras Pharma employees by Reckitt Benckiser (RB) has not been discussed yet, but a strong reason why the UK-based major pipped homegrown FMCG giant Emami to acquire the Ahmedabadbased company could be issues pertaining to the existing manpower.

A source close to the development told TOI that Reckitt Benckiser has agreed to accommodate Paras’s manpower.
“There could be minor churning here and there. But a big upheaval in unlikely,” said the source.

Paras employs around 700 people at various locations, including its manufacturing plants in Kalol in Gujarat and Baddi in Himachal Pradesh.

Kolkata-based Emami had reportedly made a higher bid—of around Rs 3,400 crore as against RB’s Rs 3,260 crore. While the “terms and conditions” of Emami’s bid are believed to be behind its rejection, Actis and Paras reportedly chose RB due to their ‘agreements’ on manpower issues. Actis, which took control of the Ahmedabadbased FMCG major in 2008, has completely overhauled its manpower in the past two years. Paras Pharma’s employees, when contacted by TOI, said they have not been told anything yet.

“Earlier this year, Paras came up with a voluntary retirement scheme for its 80-odd workers at the Kalol plant in Gujarat. Around 90% of them opted for it,” said the source. A substantial part of manufacturing is likely to shift to Paras Pharma’s new facility at Baddi, a tax-free zone, according to sources.

When Paras was in talks with several bidders, sources say the promoters were concerned about the fate of employees. Officials at Paras Pharma refused to comment on the issue and an emailed query sent to Actis remained unanswered.
RB India CMD C M Sethi, in a recent interview, had indicated that employee absorption was yet to be finalized.

Emami eyes $331 mn buyout

Emami plans to spend as much as $331 million to buy overseas companies after losing a bid to acquire Paras Pharma. Emami is looking to acquire companies or brands in the US, Africa, Turkey and Egypt, chairman R S Agarwal said.