Merck India has appointed KPMG India as consultants to seek buyers for its Taloja, Navi Mumbai-based factory. KPMG will also carry out the valuation of the plant, which is located in the Taloja industrial zone in Navi Mumbai. "We have handed over the consulting work to KPMG for scouting a buyer for our Taloja plant," said R.L. Shenoy, director (finance), Merck India.
According to him, few parties have already shown an interest in the plant but refused to divulge any further details. As part of an earlier valuation, the company had estimated the property value at Rs 25 crore.
The facility was completely shut down after the successful completion of its VRS scheme. In March Merck offered VRS to more than 350 employees.
The Taloja facility's operations included production of pharmaceutical formulations in tablets, injectables, and nasal drops as well as x-ray contrast media and diagnostics kits. "After the shut down of the facility, a majority of these products are being outsourced," he said.
More than 500 million units of nasal drops, tablets, and ampoules were produced in 1999.
Merck Ltd has posted a net profit of Rs 13.37 crore for the quarter ended June 30, 2003 as compared to Rs 8.80 crore for the quarter ended June 30, 2002. Total income has increased from Rs 97.31 crore in the JQ-02 to Rs 98.98 crore in the quarter ended June 30, 2003.
In an effort to consolidate its product portfolio, Merck India is planning to acquire suitable brands and companies. Besides, the company is contemplating new introductions in its chemicals and pharmaceuticals divisions. The company is also planning to enhance exports especially to other units of its overseas parent.
Strengthening its product portfolio is being seen as efforts by the company to achieve its double-digit growth target in the future. Sales have been sluggish of late, growing only around one per cent during the first five months of 2003. The company is also hoping for a better showing on the export front. The company's exports for the first five months of 2003 stood at Rs 6 crore as against Rs 13.12 crore in 2002.