Nicholas Piramal board okays Canere, Sarabhai mergers

Nicholas Piramal board has approved the merger of Hyderabad-based Canere Actives and Fine Chemicals.

Canere's facility, according to the company, is ideally suited for on-patent, custom manufacturing contracts that Nicholas Piramal is negotiating with three of the top 20 global innovator companies.

"The merger will expedite contracts and save time on DMF and regulatory clearances," the company said in a release.

Nicholas Piramal will pay Rs 116.2 crore comprising an issue of 5 per cent cumulative redeemable preference shares aggregating Rs 38.37 crore and debt of Rs 77.83 crore towards the merger.

The board also approved the merger of Sarabhai Piramal with itself.

Nicholas Piramal recently acquired its joint venture partner's stake in Sarabhai Piramal. The full operational and integration benefits arising from the merger are expected to flow in fiscal 2005.

Canere is a new active pharmaceutical ingredients (API) facility with a capacity to produce 350 tons of high-end API per annum.

The unit, located in the vicinity of Nicholas Piramal's existing USFDA-approved API facility at Digwal in Hyderabad, is all set for USFDA inspection.