Aurobindo Pharma to divest Chinese arm
Hyderabad-based Aurobindo Pharma has decided to disinvest its loss-making subsidiary in China while acquiring a small manufacturing unit in Andhra Pradesh.
By TNN |
HYDERABAD: Hyderabad-based Aurobindo Pharma has decided to disinvest its loss-making subsidiary in China while acquiring a small manufacturing unit in Andhra Pradesh. The Aurobindo Pharma board today authorized the senior management of the company to finalise both the deals.
The company is disinvesting its entire stake in 100% subsidiary in China, Aurobindo Tongling (Datong) Pharmaceutical Company Ltd (ATDPL), as the latter has been incurring losses for the last three years. ATDPL is engaged in the manufacture of pharmaceutical products catering to the local Chinese market.
The Chinese subsidiary clocked sales of Rs 131 crore and incurred net loss of Rs 6.55 crore for the year ended March 31, 2006. Aurobindo and Aurobindo (Datong) Bio-Pharma Company Ltd, China both have equal shareholding in ATDPL. The biopharma company, which manufactures some raw materials for Aurobindo's captive consumption, will, however, continue its operations in China.
On the other hand, Aurobindo plans to acquire Senor Organics Pvt Ltd, a small profit-making company. Senor's manufacturing facility is adjacent to Aurobindo's Unit 8, bringing in great synergies besides easier integration. Senor's sales for the last two financial years were Rs 4.5 crore and Rs 2.8 crore while its paid-up capital is Rs 1.5 crore, Aurobindo Pharma told the Bombay Stock Exchange. The company's stock closed at Rs 606 on BSE today, down 1.62%.
The company is disinvesting its entire stake in 100% subsidiary in China, Aurobindo Tongling (Datong) Pharmaceutical Company Ltd (ATDPL), as the latter has been incurring losses for the last three years. ATDPL is engaged in the manufacture of pharmaceutical products catering to the local Chinese market.
The Chinese subsidiary clocked sales of Rs 131 crore and incurred net loss of Rs 6.55 crore for the year ended March 31, 2006. Aurobindo and Aurobindo (Datong) Bio-Pharma Company Ltd, China both have equal shareholding in ATDPL. The biopharma company, which manufactures some raw materials for Aurobindo's captive consumption, will, however, continue its operations in China.
On the other hand, Aurobindo plans to acquire Senor Organics Pvt Ltd, a small profit-making company. Senor's manufacturing facility is adjacent to Aurobindo's Unit 8, bringing in great synergies besides easier integration. Senor's sales for the last two financial years were Rs 4.5 crore and Rs 2.8 crore while its paid-up capital is Rs 1.5 crore, Aurobindo Pharma told the Bombay Stock Exchange. The company's stock closed at Rs 606 on BSE today, down 1.62%.
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