The Vijay Mallya controlled UB Group has sold the Tumkur manufacturing facility of its subsidiary UB Pharmaceuticals Ltd (UBPL) to Bangalore-based Bayir Chemicals. The unit, which is spread on an area of five acre land has been divested for a consideration of Rs 4 crore. The deal was signed on March 15.
Bayir-Group is believed to be a Rs 50 crore worth Bangalore-based herbals and chemicals exporters. Bayir manufactures and exports nutraceuticals and herbal extracts like glucosamine, bacopa monniera extract, calcium sennocides, embelica Officinale extract, rauwolfia serpentina extract and likewise other products.
UBPL used to manufacture products like ranitidine, ciprofloxacin, and ibuprofen at the plant. The company was a supplier of sulfonamide to companies like Hoechst Marion Roussel (now Sanofi Aventis), a key bulk drug for the diabetic drug glybenclamide.
The divestment is part of the UB group's plan to get out of non-alcohol businesses, since it sees itself as a "beverage alcohol company." UBPL leased the plant to Rallis India in 1997. The lease was terminated in 2002 end. Since then the plant has been lying idle.
"Bayir has plans to upgrade the plant to US FDA standards. They will be manufacturing their own set of products in the plant," said PN Venugopalan, director, UBPL.
He agreed that Rs 4 crore, the price at which the facility was divested is throwaway. The group waited for a long time to divest its pharma units, and had run out on patience, he added.
After this sell-off, UB is free from pharma business, except the stake, which the group holds in Sanofi Aventis.