Wyeth Ltd is planning to sell off its manufacturing facility in Nashik manufacturing OTC products, cosmetics and toiletries, said highly placed sources in the company. Wyeth had acquired this facility in 2002 when it took over Geoffrey Manners & Co.
Wyeth has currently four units located in Goa, Mumbai, Nashik and Valsad for bulk drugs and formulations.
"Nashik facility will be the next to be sold after the one in Mumbai located in Ghatkopar. The board will shortly notify to BSE about its Nashik sell off plans," said company sources. The company's Board, in May had already notified the Bombay Stock Exchange about its plans of divesting the Mumbai plant.
Industry sources have revealed that the company's Valsad facility will also be sold after some time.
Analysts link the proposed sell off plans with Wyeth's objective to remain purely a marketing company passing out its manufacturing to contract manufacturers.
According to a top shareholder of Wyeth Ltd, the capacities of these plants were traditionally under utilized. "Barring Goa unit, Wyeth Ltd will sell off all its plants in India. Wyeth's future strategy will be towards marketing of innovative products developed abroad by its parent or other MNCs," he said.
Wyeth Ltd makes bulk drugs, injectibles, steroid hormones, veterinary products, tablets and syrups. It markets about 40 brands in the country. 50-60 per cent of its manufacturing is outsourced from contract manufacturers.