A meeting of Board of Directors of Nicholas Piramal India Ltd (NPIL) is scheduled on November 29, 2002 to consider a proposal to merge Global Bulk Drugs & Fine Chemicals Pvt Ltd (GBDFC) with the Company.

GBDFC manufactures Active Pharmaceutical Ingredients (APIs) and Intermediates for global markets. The GBDFC plant, located near Hyderabad, is USFDA approved, with approval obtained for the facility as a whole (and not merely for a single product line) without any deficiency or non-conformity (i.e. without any 483's). In addition to the USFDA approval the plant also holds accreditations and approvals from MCA of UK, TGA of Australia, European Drug Authorities, Canadian Drug Authorities, ISO 14000 and 9001. GBDFC's plant maintains a global standard of quality and its manufacturing facilities are as per cGMP standards.

The proposal for merger does not envisage issue of equity capital by NPIL. NPIL had invested Rs 395 million in Preference Shares of GBDFC, which will be redeemed in cash before the merger is effected. On receiving appropriate approvals for the merger (bot internal and statutory), NPIL's turnover on an annualised basis will go up by Rs 600 million in the financial year 2002-03 primarily of exports.