Wyeth Labs to sell Forhans brand for Rs 3.6 crore

As part of a restructuring strategy, Wyeth Laboratories is divesting its interests in the oral care business, under the Forhans brand, for Rs 3.60 crore.

In a notice to the Bombay Stock Exchange, Wyeth said that it is seeking shareholders' approval for the sale, transfer, assignment or disposal of its Forhan's brand, business and all assets pertaining to Forhan's business for a price of Rs 3.60 crore. However, the name of the buyer could not be ascertained. The deal is being advised by Rabo India Finance.

The company's oral care arm, the Forhans brand, entered its portfolio after Wyeth's merger with Geoffrey Manners. The integration had led to Wyeth's foray into the consumer healthcare (over the counter products) business.

The other brands owned by Geoffrey Manners included Anacin, an OTC product and Anne French, a female hygiene brand. However, for Wyeth, with its diversified pharma portfolio, Forhans did not fit into its core business plans.

According to industry sources, Forhans, one of the oldest brands in the toothpaste category, currently has a negligible share in the market. This is because of lack of marketing initiative from the company."

The Rs 2,200 crore oral care market is largely dominated by Colgate Palmolive and Hindustan Lever's Pepsodent and Close Up brands, respectively.

The rest of the market is divided among smaller players such as Balsara Hygiene (Promise, Babool, Meswak), Glaxo Smithkline (Aquafresh), Henkel Spic (Neem Active), Vicco.

Wyeth's US-based parent company holds over a 50 per cent stake in the Indian arm, and the Maheshwaris""the Indian promoters of Geoffrey Manners""hold over a 15 per cent stake. The remaining shares are distributed among individual holders.