Lyka Hetero Drugs, a joint venture between Lyka Labs and Hetero Drugs, has tied up with the Industrial Development Bank of India and Rabo Bank to raise Rs 50 crore to fund the acquisition of 36 brands from Lyka Labs.
The funds will be raised as long-term loans, and negotiations are on with Standard Chartered and Rabo Bank to mop up an additional Rs 10-15 crore as working capital.
Lyka Hetero is a 49:51 joint venture between Lyka Labs and the Hyderabad-based Rs 600 crore Hetero Drugs.
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The joint venture, which will have 585 people during the current fiscal from the present 200, is planning to rake in a revenue of Rs 100 crore during the next fiscal, Ketan Bhasin, chief executive officer Lyka Hetero, said.
As part of the JV agreement, Lyka Labs has received Rs 50 crore for transfer of its domestic brands/trade marks, technical knowhow and related information.
Besides, Lyka Labs will receive royalty at 4 per cent of net sales for three years. Lyka plans to utilise this amount to pay of its debts.
Lyka Hetero has drawn up a domestic business plan that will include the setting up of four divisions - cardiovascular division for chronic management, hospital division for oncology and anti-AIDS drugs, anti-allergics and lifestyle products.
From the cardio vascular division, it is expecting a revenue of Rs 15 crore in the first year of operations, Bhasin added.
In addition to this, a franchisee division was also formed recently to undertake the marketing of Lyka