Monday, March 17, 2008

Vivimed Labs Looking At 2 Acquisitions In US, Europe

Hyderabad: Vivimed Labs, a speciality chemical and Home and Personal Care (H&PC) company, is likely to take over two companies in the US and Europe. The Hyderabad-based company, which has bought UK-based James Robinson last month, is currently in talks with the target firms, and the acquisition is almost certain. The Rs 140-crore company (2006-07) believes that an inorganic growth path is the best way, given the global potential for H&PC products. Vivimed, which is a eligible supplier of ingredients to over 30 global personal care products, is planning to transfer the manufacturing of James Robinson''s products to India. The global H&PC market is pegged at $275 billion, with 12 per cent growth per annum. Australia and Asia have a 1 per cent share in this, while India''s share is below 0.5 per cent and there is lot of scope for a middle-tier company like Vivimed.

In the speciality pharma division, which pools in 30 per cent of the revenue, Vivimed is working on anti-TB and anti-hypertension drugs in addition to its existing anti-cancer range. By 2010, its revenues will come equally from H&PC and speciality pharma. Vivimed is hoping to clock revenue of Rs 195 crore, with about Rs 20 crore as net profit this fiscal year.

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