Mumbai-based Merck Ltd is considering to sell-off its Taloja plant after the successful completion of its voluntary retirement scheme (VRS). The company also has stopped the manufacturing activities of its products at its Taloja plant. "We are seriously considering to dispose off our Taloja property and are looking for active buyers," said R.L. Shenoy, finance director, E. Merck.
The company has successfully granted VRS to more than 350 employees. This was the second batch of the VRS scheme after the success of the first batch in 2002. The main motive behind these VRS schemes was to make the operations of the company cost effective. This plant made tablets of Polybion, Neurobion and nasal drops.
The company incurred a cost of about Rs. 30 crore in its VRS initiatives.
The VRS initiative is also a part of the E.Merck's shift in focus to high-value therapeutic products leading to better realisations. It is widening its scope in cardiovascular, anti-infectives and anti-malarial segments.
One of its biggest segment for its pharmaceutical business is vitamins and two of its largest products include Polybion which is a vitamin B complex and Evion (vitamin E). While Evion and Neurobion are market leaders with 40 per cent and 60 per cent in their respective segments, Polybion has a market share of around 28 per cent. These three brands contribute over 50 per cent of its retail formulations sales.
"Now the company would be manufacturing the Vitamins on contract basis or would be shifting the manufacturing to the company's other plants," said a Mumbai-based analyst. However, E Merck is gradually reducing dependence on vitamins and launching more products in the dermatology and cardiovascular therapeutic segments. This is partly because the latter provides higher margins and results in greater profitability. The rationale behind the change in the product mix is also partly attributed to the Drug Price Control Order coverage of vitamins.