Matrix Laboratories Ltd has informed BSE recently that the company has filed a petition in the High Court of Andhra Pradesh for sanctioning of Scheme of Arrangement for Amalgamation between Vera Laboratories Ltd., Fine Drugs and Chemicals Ltd, Medikon Laboratories Ltd, Calibre Engineering Ltd with the company on August 2, 2004.
It may be recalled that the Board of directors of Matrix Laboratories at its meeting held on March 29, 2004 have approved the merger of the companies with MatrixVera Laboratories Limited (Vera), Fine Drugs and Chemicals Limited (FDCL), Medikon Laboratories Limited (Medikon) and Calibre Engineering Private Limited (Calibre) with itself. The proposed merger is subject to the approval of Shareholders, High Court of Andhra Pradesh and other regulatory bodies.
Vera's manufacturing facility has been approved by US FDA and EU regulatory authorities and is likely to fit into Matrix's business plans in terms of manufacturing capacity, product profile and effluent handling facilities. As Vera's manufacturing facility is located in a declared chemical zone with elaborate, safe and huge effluent treatment facility of its own, Matrix will be able to transfer some of its difficult manufacturing processes to this unit. It also helps Matrix in terms of geographical de-risking as all the manufacturing locations of Matrix are located in and around Hyderabad.
FDCL's plant is located at Kazipally which is adjacent to two of the manufacturing plants of Matrix and exclusively handling conversion jobs for Matrix. Medikon, located at Anrich Industrial estate in Bollaram on the outskirts of Hyderabad, has the required infrastructure to manufacture sterile formulations in a small way. Calibre has a small engineering facility basically catering to the requirements of Matrix and located at Jeedimetla.
The merger ratio has been arrived at by the Rambabu & Co, Statutory Auditors and has been approved by the Boards of directors of the concerned companies.
With the merger, Matrix will be one of the largest US FDA - approved API manufacturer in the country. Besides, the decision to merge Vera with Matrix is also based on the synergies- no product overlap, and US FDA facility approval that entails Matrix to manufacture and supply any additional products without specific product approvals.