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Zydus Wellness, owner of brands such as Ever Yuth, Sugar Free and Nutralite, has planned to acquire more brands or a suitable over-the-counter (OTC) products company soon. The subsidiary of Cadila Health has allotted Rs 500 crore for the buyout and is scouting for an appropriate target. "We have not identified any company but we are very actively looking for one. If we get good brands, we may also go for those," Chairman Pankaj R Patel told Business Standard. He is also chairman and managing director of Cadila Health, which has a 75 per cent stake in Zydus.
He said they were mainly scouting for brands in the nutraceutical, cosmaseuticals and OTC segments. "Our focus is primarily in sugar substitutes, personal care and food nutrition supplements, etc. So, we are looking to acquire additional brands which might add to our existing kitty," Patel said.
The acquisition will be funded through the company's cash reserve.
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Zydus has three well-placed brands and is to launch a fourth product, Just Pure, in about a week.
When asked if there were plans to enter the retail business or partner some other firm in this segment, Patel said, "We do not have expertise in that field. So, there are no such plans."
Sugarfree
The company also plans to leverage more on the Sugarfree brand, which currently has a market share of 92 per cent.
The company believes the brand has potential to grow at 20-25 per cent annually over the next few years.
Zydus' net sales were Rs 118.7 crore for the year ended March 2013. On Friday, the Zydus stock ended at Rs 638.60 apiece on BSE, down 1.4 per cent from their close on Thursday.
