Intas animal healthcare unit may acquire poultry drug unit

The Rs 1,000 crore, Intas Pharmaceuticals Ltd, a major player in the Indian pharmaceutial industry is set to acquire a poultry drug manufacturing unit for its animal healthcare division - Neovet.

With a growth 7 per cent witnessed by the animal healthcare product industry, Intas Pharma is Looking at consolidating its animal healthcare business as it is mulling acquisition of a drug manufacturing unit in the poultry segment.

Presently, the company is into manufacturing drugs for livestock and in companion animal segment.

"We are keen to acquire units that are into poultry drug manufacture," said Vijay Teng, vice president, Neovet. He further said that the company is keen on acquiring a mid-sized company in the poultry drug manufacturing segment.

According to an estimate, the livestock industry contributes 9 per cent to the GDP (Rs 10,50,000 crore), next to agriculture.

Meanwhile, in case of milk, the country is the top milk producer and aquaculture is emerging as a sector with immense export potential.

There are at least 75 million dairy farmers in the country and approximately 70 per cent of population depends upon crop agricultural and animal husbandry. While in the poultry segment, India is the fourth largest egg producer.

Looking at the growth of the poultry sector, the company intends to tap the pharmaceutical market catering to poultry industry. "The acquisition would be between Rs 30 crore and 40 crore for poultry segment," added Teng.

Until now the company did not enter the poultry drug segment as the poultry sector is a highly price-sensitive sector and price erosion affect the sector.

With the improvement of the sector, it is more stable in term of drug price, according to Teng.

Presently, the company is strengthening its livestock business and consolidating its companion business as well as small ruminant business (goat and sheep) in domestic market.

The consolidation might take at least one more year, before the company enters the poultry drug segment.

The company hold 5.5 per cent market size in therapeutics for the livestock segment, while the company's overall market size stands at 3.7 per cent. Its 90 per cent business is prescription-based.

The animal healthcare industry is worth Rs 1,350 crore, of which livestock makes up 52 per cent, poultry segment about 32 per cent, companion segment 10 per cent.

Intas's animal healthcare division expects to touch a turnover of Rs 50 crore this fiscal and by 2010 it expects to touch the Rs 100 crore mark. The company expects the acquisition of poultry business to boost turnover by 2010.

Intas's animal healthcare division is also in talks with a European pharma company for technology transfer for drugs in three segments - anti-parasitic, anti-protozoan and anti-infective.

"We are also looking at biological drugs transfer from abroad for companion animals segment," added Teng.