Acquiring Lab Base

Acquiring Lab Base Hansavivek E MERCK (INDIA)'s non-resident shareholders have reduced their equity holding in the company from 51 per cent to 40 per cent to enable the company to effectively participate in the growing market in which it operates. As a first step towards a diversification/expansion programme, the company proposes to acquire a significant shareholding in another Indian company, 'Suneeta Laboratories' of Indore. This company has a strong scientific base and is equipped with professional and qualified scientists. With this acquisition, it is hoped that it would be possible to enlarge the scope for manufacturing several active ingredients. It is intended to develop a separate pharmaceutical line in that company. Such a participation will also contribute to the solving of the bulk drug/formulation ratios prescribed under the new drug policy. In the pharmaceutical division, several essential drugs are intended to be introduced during the current year, such as praziquantel, sep- topal beads and anti-cancer products. Other products planned for introduction are anti- The Week's Companies malarials and anti-inflammatory. In the chemical division, the BDH programme, introduced last year, has progressed satisfactorily. This range is being increased rapidly. In addition, several other specialised items like indicator papers and diagnostics have been introduced in the market. Meanwhile, the company's application for regularisation of capacity under the liberalised scheme has been approved by the government, subject to environmental clearances which too have been obtained. The company has earned a gross profit of Rs 2.88 crore against Rs 2.54 crore in the previous year, while sales have expanded from Rs 30.40 crore to Rs 38.85 crore. These figures reflect contraction of margins. Net profit is Rs 1.67 crore (Rs 1.22 crore). The directors have recommended a dividend of 15 per cent on the enlarged capital as against 18 per cent paid last year on the old capital base. The distribution is covered 2.53 times by earnings as against 2.49 times previously. During the year, the company's exports amounted to Rs 4.13 crore as against Rs 2.39 crore achieved last year. The main countries to which export were effected were USSR, the US and Poland.