Novartis India Ltd faced a major setback as the company posted a net profit of Rs 21.8 crore for the quarter ended December 31, 2004 as compared to Rs 48.81 crore for the quarter ended December 31, 2003 with a heavy loss of 55 per cent. Total Income has decreased from Rs 152.48 crore in Q3-03 to Rs 140.83 crore for the quarter ended December 31, 2004.

Meantime, the company informed BSE that Novartis India Board has proposed the sale of Rifampicin bulk drug business & Mahad facility.

The company release says, the Rifampicin business has been facing severe operational challenges for some time mainly due to surplus capacities, cheaper imports and falling domestic prices. This has been a cause of concern for the Company and after closely monitoring developments in the anti-TB market the Board decided to propose to the shareholders sale of the Company's Rifampicin bulk drug business together with its Mahad facility to Sandoz Pvt Ltd for a consideration of Rs 307.70 million.

This consideration will be suitably adjusted to represent any change in net asset value on the date of transaction. The sale will be effective April 01, 2005 or any date thereafter. The Company will seek shareholder's approval of this proposal by postal ballot and necessary regulatory approval, the release added.