Piramal acquires 5 OTC brands from MSD for Rs. 92 cr

The acquisition, done by the company's consumer products division, includes brands in the gastro-intestinal segment like Naturolax, Lactobacil and Farizym.

Piramal Enterprises Ltd. has announced the acquisition of five brands from MSD for INR 92 crore. 

The acquisition, done by the company's consumer products division, includes brands in the gastro-intestinal segment like Naturolax, Lactobacil and Farizym. 

"The gastro intestinal market which addresses the constipation, diarrhea and appetite stimulant categories is a INR 2,000-crore market growing at 15-16% per annum," says COO of consumer products division, Kedar Rajadnye.

Piramal Enterprises intends to offer these brands through the over-the-counter (OTC) route.

The Indian OTC market is valued at approximately Rs. 15,000 crore, growing at around 14% per annum. 

At present, Piramal Enterprises has six brands that figure in the top 100 OTC brands of the country. With this deal, the count will increase to eight brands.

"Our aim is to be a significant player in all the businesses we have retained in the healthcare segment. The consumer products business started its journey as an independent player in 2009 and was ranked 40th among all OTC players in India," says Nandini Piramal, ED, Piramal Enterprises. 

"The business has grown rapidly at 24% over the past six years and is now ranked seventh among all OTC companies in India. In line with our strategy, we aim to be a top-3 player in the OTC market by 2020 and the addition of this portfolio of brands will help us move swiftly towards that objective," she adds.

Jaypee Group looks to exit Yamuna Expressway

The group is in talks with IDFC Alternatives and I Squared Capital to sell the six-lane toll-based project in Uttar Pradesh that connects Noida with Agra along the Yamuna river, it adds.

The debt-laden Jaypee group is in talks to sell its entire shareholding in the 165km Yamuna Expressway project after it failed to get a favourable response for the partial stake sale, reports a business daily.

The group is in talks with IDFC Alternatives and I Squared Capital to sell the six-lane toll-based project in Uttar Pradesh that connects Noida with Agra along the Yamuna river, it adds.

IDFC Alternatives, which earlier pulled out of from the stake sale talks as it was not keen on acquiring a partial stake, has come back to the negotiation table, according to the newspaper.

The Yamuna Expressway project includes construction, operation and maintenance of the expressway and rights for developing over 6,175 acres of land. 

Jaypee Infratech is developing five townships along the expressway.

Built under the private-public-partnership (PPP) mode with the Uttar Pradesh government, the Yamuna Expressway had a project cost of over INR 12,000 crore.

IDFC Alternatives has estimated the expressway’s enterprise value at Rs. 3,300 crore, reports the daily.

Chambal Fertilisers to exit shipping business

The company has decided to exit the shipping business in view of the long-term shipping industry outlook and the requirement of funds for a new ammonia-urea project, proposed to be set up in Rajasthan’s Kota district.

Chambal Fertilisers & Chemicals Ltd. on Tuesday said that its Board of Directors has approved a plan to sell its shipping business due to unfavourable outlook for global trade.

The company has decided to exit the shipping business in view of the long-term shipping industry outlook and the requirement of funds for a new ammonia-urea project, proposed to be set up in Rajasthan’s Kota district.

The sale is subject to the approval of the company's shareholders, Chambal Fertilisers told stock exchanges on Tuesday.

Chambal Fertilizers said that the Board gave its in-principle consent to the sale or disposal of one or more or all of the five ships owned by the company; or sell, transfer or dispose of the entire shipping undertaking or business of the company on slump sale basis or some other appropriate structure.

“The proposed transaction(s) will be consummated as and when the company receives commercially viable and acceptable offers from third parties in this regard,” the company said.

In 2004, Chambal Fertilisers had decided to enter the energy transportation sector and acquired India Steamship Co. Ltd., one of India’s oldest shipping companies.

Currently, India Steamship has a fleet capacity of over 5,00,000 DWT in the form of five Aframax tankers.

FDA woes spoil Dr. Reddy’s 2015 party

The entire USFDA episode of Dr. Reddy’s Lab is expected to see foreign investors reducing their holding in December quarter and in 2016 as well. The FII holding shares of the company was 38.53% as on 31 December 2014, which has now reduced by 1.8 percentage points to 36.73% as on September 30, 2015.

The adverse impact of the FDA action saw the company’s stock tumbling by nearly 30% from November 5 to date. Prior to the FDA warning letter being issued to the company, shares of Dr. Reddy’s rose a whopping by 33% between December 31, 2014 to November 4, 2015. The stock pared all the gains till November 4 and tumbled into negative territory. Shares of Dr. Reddy’s plunged by 7.12% (YTD) in CY2015 at a time when the BSE Healthcare index soared by 12.25%. In CY2015, the company’s market capitalization on BSE eroded by Rs. 3,998.20 crore to Rs. 51,421.15 crore (as on December 22) from Rs. 55,282.86 crore as on December 31, 2014. During CY2014, the shares of Dr. Reddy’s hit a 52-week high of Rs. 4,382.95 on October 20, 2015. On December 11, Dr. Reddy’s touched a 52-week low of Rs. 2,950.50 on BSE.

In addition, the company’s American Depository Receipt (ADR) listed on the New York Stock Exchange (NYSE) tumbled by 9.97% (YTD) to US$ 45.42 from US$ 50.45 as on December 31, 2014.


USFDA warning and its aftermath

The USFDA warning followed the earlier inspections of the company’s sites by the agency in November 2014, January 2015 and February 2015 respectively. In a response, the company’s CEO G V Prasad had said, “We take quality and compliance matters seriously and stand by our commitment to fully comply with the cGMP quality standards across all of our facilities. We will embark on an initiative to revamp our quality systems and processes, as an organization-wide priority.” However, the company responded to the drug regulator on December 7 and since then, there has been no major positive impact on the company.

In wake of the warning letter, media report cited on November 26 that the USFDA will ban all drugs of the company made at certain units unless they conform to global standards. Also, the District Court of Delaware, US, passed an order on November 10, granting a Temporary Restraining Order (TRO) with immediate effect on sales, delivery, transfer or disposition of its generic Esomeprazole product in the US market after AstraZeneca objected the usage of the colour Purple if the said generic drug.

New drug launched in 2015

The company launched total 7 new products (drugs) in CY2015. However, all the launches took place before the FDA issued warning letter on November 5.

In May the company launched Somazina, the innovator brand of Citicoline, for the treatment of post-stroke patients in India and around the world. Also, Dr. Reddy’s launched HAiROOTZ in June, the first hair growth supplement to be marketed in India as over-the-counter (OTC) by the company. The company launched Memantine hydrochloride tablets USP, 5 mg and 10 mg, a therapeutic equivalent generic version of NAMENDA in June.

In August, the company launched PRAMIPEXOLE dihydrochloride extended-release tablets 0.375 mg, 0.75 mg, 1.5 mg, 3 mg and 4.5 mg, followed by the launch of MINTOP PRO - Procapil Hair Therapy in September. In the same month, Dr. Reddy’s launched Esomeprazole Magnesium Delayed-Release Capsules USP, 20 mg and 40 mg.

And lastly, before the company received the FDA warning letter, it launched a pain killing spray Nise D, an OTC product.

New collaborations

It was again before the FDA debacle that the company seemed well on its path of expanding collaboration on research and commercialization front. In January, the company announced Collaboration, License and Option Agreement to Discover, Develop and Commercialize Small Molecule Antagonists for Immuno-oncology and Precision Oncology Targets with Curis and Aurigene.

In order to tap the growing market for Hepatitis C drug in India, Dr. Reddy’s entered into a partnership with Hetero Drugs in March. The company inked a distribution pack with AstraZeneca India in May for saxagliptin and its fixed dose combination with metformin, in Type 2 Diabetes. In August, the company entered into a strategic collaboration with Amgen to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. In September, the company joined hands with PanTheryx for a multi-country supply and licensing agreement to market and distribute PanTheryx’s DiaResQ®, for infectious diarrhea in India and Nepal under the Reliqua brand. The company also signed a commercialization deal with an Australian firm Hatchtech for Xeglyze Lotion, in the same month. Just a day before receiving the FDA warning letter, the company entered into a strategic alliance with Biocodex to market and distribute Biocodex products in the Romanian market on November 4.

The entire USFDA episode of Dr. Reddy’s Lab is expected to see foreign investors reducing their holding in December quarter and in 2016 as well. The FII holding shares of the company was 38.53% as on 31 December 2014, which has now reduced by 1.8 percentage points to 36.73% as on September 30, 2015.

The year that started on a positive and a progressive note for the company ended on a gloomy note. The positive trend seen in the company operations on business as well as in company books started evaporating since November 5. This is certainly not a desired year end for the company. 

SAIL to unveil Rs. 400 cr VRS; to cut 1500 jobs

The company's Board of Directors is likely to approve the VRS plan in its next meeting, which is scheduled towards the middle of next month, according to the business daily.

Steel Authority of India Ltd. (SAIL) will soon launch a ~INR 400-crore voluntary retirement scheme (VRS) after a gap of nearly 10 years, as it looks to reduce its workforce by 1,500 from the current level of 91,000, reports a financial newspaper.

The company's Board of Directors is likely to approve the VRS plan in its next meeting, which is scheduled towards the middle of next month, according to the business daily. 

The VRS would be launched immediately after the Board’s approval across its five integrated steel plants and non-plant set-ups, targeting both executive and non-executives, says the newspaper.

The VRS is likely to be offered to workers who are in the 46-50 years age bracket. SAIL is likely to keep both the deferred payment option as well as one-time payment option open for employees who would opt for VRS, reports the daily.

SAIL had a staff strength of 1.47 lakh in 2001.

Natural attrition reduces the company's employee strength by around 4,000-5,000 every year, a SAIL official has been quoted as saying.

ONGC, IOC eye more projects in Colombia

Currently, Mansarovar Energy Colombia, a joint venture (JV) formed by ONGC and Chinese oil company Sinopec, is engaged in the exploration, development and production of oil and natural gas in Colombia.

Oil and Natural Gas Corp. Ltd. (ONGC) and Indian Oil Corporation Ltd. (IOC) are looking for more projects in Colombia, reports a financial newspaper.

Currently, Mansarovar Energy Colombia, a joint venture (JV) formed by ONGC and Chinese oil company Sinopec, is engaged in the exploration, development and production of oil and natural gas in Colombia.

ONGC Videsh Ltd., which currently holds seven blocks in Colombia, intends to expand its presence in the country.

A joint working group is meeting shortly to discuss the expansion of energy cooperation between the two countries, according to the business daily.

ONGC Chairman and Managing Director D.K. Sarraf is believed to have held preliminary talks with the Colombian executives, it adds.

Colombia, which has emerged as a new source for crude oil exports in recent times, could look at long-term deals with IOC for supplying crude to its Paradip greenfield refinery, reports the newspaper.

India is planning to increase crude oil imports from Colombia by 20-30%, according to industry people. 

Earlier this year, Union Petroleum Minister Dharmendra Pradhan discussed the matter with his Colombian counterpart Tomás González Estrada and other senior officials in Bogota.

Rupee at 1-month high; opens at 66.26/$

The currency touched a high and low of 66.21 and 66.24 respectively. India’s current account widened to 1.6% of GDP during the second quarter of the FY 2015‐16, when compared with the reading of 1.2% during the prior quarter.

Indian rupee extended its gain for the seventh consecutive session and opened at 66.26/$ higher by 7 paise in early trade on Wednesday as against the previous close of 66.32/$. Indian rupee traded on a firm ground, deriving cues from sharp fall in oil prices and softness in US dollar against the basket of currencies. RBI’s involvement in the Forex markets has also provided lot of stability to the Indian rupee. India’s current account widened to 1.6% of GDP during the second quarter of the FY 2015‐16, when compared with the reading of 1.2% during the prior quarter. However on yoy basis, the deficit has narrowed from the 2.2% during the same quarter last year.

On global macroeconomic front, US Q3 GDP growth was downwardly revised to 2%, when compared with the earlier estimate of 2.1%. Consumer spending grew at a 3%, in line with the prior projections. Healthy consumer spending is attributed to strengthening employment and housing markets. Low energy prices and ensuing rise in personal savings also boosted spending.

On Tuesday, Indian rupee ended at 66.32/$, higher by 3 paise. The currency touched a high and low of 66.21 and 66.24 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.29 and for Euro stood at 72.33 on December 22, 2015. While, the RBI’s reference rate for the Yen stood at 54.68, the reference rate for the Great Britain Pound (GBP) stood at 98.7052.  

Wipro to acquire Viteos Group for $130 mn cash consideration

The IT services industry is moving to an 'as-a-Service' model, and the future of BPS is going to be BPaaS (Business Process as-a-Service). Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction/outcome-based pricing models, Shaji Farooq, said.

 Wipro Ltd, a leading global information technology, consulting and business process services company today announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry for a purchase consideration of USO 130 million.

Wipro currently is one of the leading providers of Business Process Services (BPS) to some of the global investment banks. The company specializes in Platform-led Transformation and Utility­ based Offerings in Reconciliation, KYC, Settlements, Middle Office, Asset Servicing, Syndicated Loans and Reference Data Solutions, with coverage across asset classes. These credentials of Wipro are primarily on the Sell-Side and this acquisition will add similar capabilities on the Buy­ Side.

Viteos was founded in 2003 and is headquartered in Somerset, New Jersey. The Viteos Group provides customized straight-through-processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investment management industry in the United States, Europe and Asia. It is a leader in shadow-accounti ng services and offers a full range of middle and back-office outsourcing through its 400+ employees.

Viteos licenses its proprietary platform which offer transformation and integration of post-trade operations. This platform can be leveraged to launch solutions across other segments of Capital markets. These technology-based solutions will bring in non-linear and higher revenue realization. Viteos will retain its identity to leverage its brand in the Buy-Side and expand its offerings into the larger asset management industry with the backing of Wipro's size and presence. The management team at Viteos will continue with the business and drive the platform based outsourcing business services.

"The IT services industry is moving to an 'as-a-Service' model, and the future of BPS is going to be BPaaS (Business Process as-a-Service). Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction/outcome-based pricing models. Viteos will further our strategy in the Capital markets domain," said Shaji Farooq, President  &  Chief  Executive,  Finance Solutions, Wipro  Limited.

"We welcome Viteos employees to the Wipro Family. We are excited to join hands with Viteos and expand our Capital markets portfolio in fund accounting services and enhance our Business Process Services capabilities," said Nagendra Bandaru, Senior Vice President and Head - Business Process Services, Wipro Limited. He added,  "Viteos brings with it experienced leadership, domain expertise and unique BPaaS capability. We believe we will be able to leverage synergies to offer platform-based transformational services to our customers and continue to dominate the Capital markets outsourcing space."

"Our search for a global partner who gives Viteos exceptional market reach in expanding our presence while preserving the entrepreneurial characteristics of Viteos culminated with this acquisition by Wipro. We are excited to be part of a trusted global leader and the transaction is a further recognition of our value and validation of our commitment to deliver excellence through our investments in people, process and technology. It gives me immense pleasure in continuing to be part of a growth story that can reach even greater heights," said Shankar Iyer, CEO & founder  of Viteos  Group.

The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016.

Tata Steel, Piramal Ent, ONGC among 23 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Tata Steel: Tata Steel UK Limited (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), announced the signing of a Letter of Intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business.

Thomas Cook: Quess Corp Ltd., a subsidiary of travel services provider Thomas Cook, has acquired Styracorp Management Services and IME Consultancy for an undisclosed sum.

SAIL: Steel Authority of India Ltd. (SAIL) will soon launch a ~INR 400-crore voluntary retirement scheme (VRS) after a gap of nearly 10 years, as it looks to reduce its workforce by 1,500 from the current level of 91,000, as per media reports.

Uttam Galva: Uttam Galva Metallics has signed an agreement with South Korea's Posco to use its steel making technology at the upcoming 1.5 million tonnes plant at Wardha in Maharashtra.

Godrej Industries: Godrej Industries has sold over 2% stake in Godrej Properties in open market for Rs. 132.18 crore, according to reports.

Piramal Enterprises: Piramal Enterprises has announced the acquisition of five brands from MSD for INR 92 crore. The acquisition, done by the company's consumer products division, includes brands in the gastro-intestinal segment like Naturolax, Lactobacil and Farizym. 

Oil and Natural Gas Corp: ONGC will convert Rs. 5,000 crore of existing loans into equity of its overseas arm ONGC Videsh Ltd. (OVL) in order to expand the exploration and production (E&P) business abroad.

Orchid Pharma Ltd: The company has informed BSE that Orchid Europe Limited, UK a wholly-owned subsidiary of Orchid Pharma Limited, India has entered into a long term financial arrangement to avail up to US$ 800 million as loan with Line Trust International, Guernsey, UK.

Mahindra & Mahindra: M&M has sought a reduction in the 30 per cent excise duty on its popular utility vehicle (UV) Bolero from the Uttarakhand government,  as per media reports.

ONGC, IOC: Oil and Natural Gas Corp. Ltd. (ONGC) and Indian Oil Corporation Ltd. (IOC) are looking for more projects in Colombia, as per media reports.

TCS: TCS  has been recognized by Gartner, Inc. as a ‘Leader’ in its ‘Magic Quadrant for Application Testing Services, Worldwide’ report, by Susanne Matson and Patrick J. Sullivan, November 23.

RCOM: RCOM is in talks with Aircel to consider the potential merger of the Indian wireless business of RCOM and Aircel.

Tech Mahindra: Tech Mahindra launched its automation framework AQTTM to help deliver continuous increase in business efficiency, making it faster, cheaper and better to our stakeholders and ourselves.

Prestige Estates Projects Limited: Prestige Estates Projects will buy back joint venture partner Red Fort Capital's over 60 per cent stake in business park Exora.

Canara Bank: The bank plans to raise Rs. 2,400 crore from bonds to fund business growth. It has received 'IND AAA' rating with stable outlook to the proposed Tier II bond issuance programme.

Jet Airways: Jet Airways  has been appointed Amit Agarwal as the Chief Financial Officer of the Company with effect from December 22, 2015.

Glenmark Pharma: Glenmark Pharmaceuticals has been granted final approval by the United States Food & Drug Administration (U.S. FDA) for Linezolid Tablets, 600 mg, the therapeutic equivalent of Zyvox Tablets, 600 mg of Pharmacia and Upjohn Company, a subsidiary of Pfizer, Inc. 

Somany Ceramics: The board has approved the issue and allotment of 35,34,600 Equity Shares of face value Rs. 2/- each to Qualified Institutional Buyers (QIB) at the issue price of Rs. 339.5 per Equity Share, amount aggregating to Rs. 120 crore.

JBF Industries: The company will issue and allot 1,63,74,370 fully paid up equity shares of Rs. 10/- each on preferential basis to KKR Jupiter Investors Pte Ltd., Singapore, at Rs. 300/- per equity share (at a premium of Rs. 290/- per equity share.)

UltraTech Cement: The limestone mine allotted to the UltraTech Cement in Chhattisgarh's Raipur district had come under the scanner as the state government announced to cancel the No-Objection-Certificate granted to the company required to commission the mining operation, due to environmental issues. 

Adani Enterprises Ltd: The Australian government has approved the expansion of the Abbot Point coal terminal in north Queensland, which will enable coal shipment from proposed mining projects in the Galilee Basin, including Indian infrastructure conglomerate Adani Group’s $16 billion Carmichael mine.

Chambal Fertilisers: Chambal Fertilisers & Chemicals Ltd. on Tuesday said that its Board of Directors has approved a plan to sell its shipping business due to unfavourable outlook for global trade.

Opto Circuits (India) Ltd: The company has informed BSE that Opto Cardiac Care Limited, a subsidiary of the Company has been successful in getting back Criticare Systems Inc USA, which was placed in Chapter 128 (Bankruptcy Court) by Aurora capital, who bought the loan from the Company's lender DBS bank limited.