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Wyeth sells Ghatkopar plant to Runwal Group
Prabodh Chandrasekhar, Mumbai | Friday, June 11, 2004, 08:00 Hrs  [IST]

Pharmaceutical MNC Wyeth Ltd has sold its steroid bulk manufacturing facility in the central suburb of Ghatkopar in Mumbai to the real estate magnate Runwal Group, it is learnt. Informed sources said the deal was signed on Wednesday, June 9.

Wyeth Ltd had notified its sell-off plans to the Bombay Stock Exchange in May 2004. The 23 acre-spread facility for steroids like prednisolone, metrogestrone, amoxapine, hydrocortisone and hydrocortisone acetate had been closed down since April 2004.

The Ghatkopar unit will be integrated with a Runwal Group pharma subsidiary Ariane Orgachem Pvt. Ltd. The new employer will retain 160 employees working in the Ghatkopar unit.

Wyeth has announced no package of any sort to the parting employees, it is learnt. When contacted by Pharmabiz.com, senior officials in neither companies were available for comment over the deal.

Runwal Group is famous for its residential and commercial constructions across Mumbai suburbs like Ghatkopar, Mulund, Thane, Chembur and also in Pune.

Ariane Orgachem manufactures bulk drugs like furosemide, atenolol, metfomin HCL, acyclovir, mebendazole, and intermediates like atenolol acetate, 2,4 dichlorobenzoic acid, PHAP, PHPA, and furosemide sodium at its Aurangabad and Panvel manufacturing units.

In the meanwhile, the Wyeth employees seem to be unhappy over the Runwal takeover. "Runwal Group is mainly into real estate business. With less experience, it will not be able to match Wyeth's precedence in terms of running drugs business by taking adequate care of the employees' concerns. Moreover, what is the guarantee that the group will not convert its pharma unit into a shopping mall after a few years?" exclaimed Wyeth Employees Union sources.

The union sources claimed that earlier Wyeth management had agreed over offering VRS package (of Rs. 9.55 lakh per employee) to eligible employees and retaining the ineligible employees. This was prior to its divestment plans. "The Wyeth management should show some amount of flexibility in settling the issue with the Union," they said.

The formulation manufacturing at the plant has been closed since 2002.

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