Wockhardt Ltd has acquired Dumex India Pvt Ltd along with its two products Protinex and Farex, India's best known nutrition brands, from Royal Numico NV of The Netherlands, for an undisclosed amount.
The two brands currently generate annual sales of Rs 600 million.
Besides the two heritage brands with over 50 years of brand equity, the company inherits a strong sales and marketing organisation with 235 personnel. The acquisition follows Royal Numico's decision to focus on China and other markets, a Wockhardt release stated.
"Acquisition of Protinex and Farex is a critical milestone in our growth plans in nutrition business," Wockhardt's chairman Habil Khorakiwala said. "Today's acquisition makes us the undisputed leader in medical nutrition. The global market for medical nutrition is worth $ 32.5 billion."
Under the agreement, Royal Numico will also offer technical know-how to the company for the manufacture of specialised sugar-free infant food products currently marketed in India and internationally, under its brand names Dulac and Dupro. These brands are fast gaining acceptance in the Indian market. Currently these products are imported from New Zealand and Malaysia, the release added.
The company will change the acquired company's name 'Dumex' within six months.
Protinex, acquired by Dumex from Pfizer in 2002, is the market leader and the largest prescribed brand in its category, growing over 20 per cent in volume in recent years. A growing OTC (over-the-counter) segment of consumers has also emerged over the years, who consume the brand for everyday health.
Farex, currently the third largest selling infant nutrition formula in the cereals category, was acquired by Dumex from Heinz, who bought it from Glaxo.
The company is the only healthcare group in India to have its own modern spray-dry milk processing plant in Punjab, built to pharmaceutical standards. The company has a strong presence in infant nutrition with Dexolac, Nusobee and Firstfood brands, with annual sales of about Rs 600 million.
Protinex and Farex are a natural fit that complements the Company's product range. Their acquisition will see the Company's nutrition products sale doubling to Rs 1200 million.
Earlier this year, the company launched a new division called Wockhardt Speciality Nutrition to market disease-specific dietary supplements for patients on dialysis, ICU (intensive care unit) patients and diabetic patients.
The company is the market leader with a 15 per cent share of the Indian nutrition market as per ORG IMB. The company is also in talks with reputed global companies for in-licensing medical nutrition products suitable for the Indian market.
Wockhardt is a technology-driven pharmaceutical and biotechnology company with an active multi-disciplinary research programme employing 400 scientists. Its new drug discovery programme has yielded several promising new molecules, one of which has entered phase II human clinical trials. The US and European Union contribute to half of the company's sales.