The Netherlands based animal nutrition major, Provimi Group, has acquired the animal health division of Unichem Laboratory, Agvet, at a total realization of Rs 12.4 crore. The Provimi Group, which took over the brands, trading assets and distribution channels along with 40 employees of Agvet, is already present in India through its 51 per cent subsidiary, Tetragone based in Bangalore.
Agvet at present has 15 brands with total sales of Rs 10 crore annually and most of the products were manufactured at Unichem’s Ghaziabad facility. According to Rakesh Parekh, president- finance, Unichem, the deal is now completely through and the products, related assets, distribution channel and the employees of the division have been handed over to Provimi. “Agvet had a total of 60 people earlier. But, as few people have retired recently and some have been opted out by the MNC, only 40 employees have been shifted to Provimi. The company has also identified few manufacturers to get the products made,” he added.
Parekh added that as Unichem’s core focus is human healthcare products the company’s strategy was to hive off the animal healthcare division. Since the Rabo Bank proposal was found appropriate in terms of realization and the brand valuation, we could close the deal comfortably, he said.
This deal fits well with Provimi’s strategy of expansion in high growth markets as well as product diversification. Provimi’s subsidiary Vetcare in India is primarily active in animal health and nutritional products for poultry, while Agvet mainly serves the dairy segment.
The Provimi name dates back to the early 1930's, established as the animal nutrition activity of the Bonda Group, a Dutch based diversified holding. After the Second World War, Provimi gradually expanded and grew to be an international feed group with operations throughout Europe, Africa, the Middle East, and North & South America.
In 1971, Provimi was acquired by Central Soya in the USA and continued as a feed division until Central Soya itself was acquired by Shamrock (USA) in 1986 and subsequently by Eridania Béghin-Say in 1987.
Under the Eridania Béghin-Say ownership, the Provimi group has successfully pursued an active internal and external growth strategy, resulting in a five-fold increase in sales from 1989 until 2000. As a result, Provimi has become a global leader in animal nutrition, currently employing over 8,000 people in 28 countries worldwide.