The Board of Directors of Sanofi India Limited on Wednesday approved the Scheme of Arrangement to demerge SIL’s consumer healthcare business into a legal entity.
According to the company’s press statement, this decision will open new gates for the India business and employees in a value-driven move to accelerate growth for both the pharmaceuticals business (SIL) and consumer healthcare business (SCHIL) in India.
“In the rest of the world as well as in India, implementing the global standalone organization of the consumer healthcare (CHC) business within Sanofi is the best platform to unleash its growth potential. The proposed standalone consumer health company in India will be equipped by way of portfolio, specific global skills, consumer-centric mindset to truly evolve as a Fast-Moving Consumer Healthcare company,” the company said in a statement.
Similarly, the General Medicines business will focus on its long-term success factors, expanding its life-changing treatment portfolio available in the country, driving world-class scientific HCP engagement, expanding the reach of its brands, and accelerating its digital transformation.
“Upon completion of the proposed demerger, Sanofi will continue to own 60.4% stake in both entities and Sanofi India Limited shareholders will receive 1:1 SCHIL equity share of INR 10/- each, for each equity share owned. Thus, the proposed demerger is fair for all shareholders. Subject to necessary approvals, SCHIL will be listed on the BSE and the National Stock Exchange Limited,” it stated.
The concerned employees who will transition to SCHIL, will have continuity of service and same terms on the demerger becoming effective, it added.
“This is a momentous opportunity as it will allow Sanofi to unlock and maximize its business potential in both pharmaceuticals and consumer healthcare, with the right assets, structure, and strategy. The pharmaceuticals business will focus on its long-term success factors, expanding its portfolio of life-changing treatments available in India, driving world-class scientific HCP engagement, and accelerating its digital transformation to improve the lives of patients in India. The proposed CHC entity will be a Fast-Moving Consumer Healthcare business which enables consumer-centric strategies, shapes the OTC environment, and focuses on best-in-class digital and ecommerce capabilities,” Rodolfo Hrosz, Managing Director, Sanofi India Limited said in a statement.
According to company’s statement, Sanofi India Ltd.’s consumer healthcare business annual turnover for FY2022 is around Rs. 730 crores. The Company’s top consumer healthcare brands include Allegra, DePURA, Avil, and Combiflam, leaders in their respective categories.
Designed to be a Fast-Moving-Consumer Healthcare organization with an ambitious growth plan, Sanofi Consumer Healthcare India Limited will fully integrate the Sanofi’s global consumer healthcare strategy thus enabling better participation in the Indian CHC landscape and improving lives in India, it claimed.
Sanofi India Ltd.’s pharma portfolio of products includes established and leading General Medicines brands such as Lantus, Toujeo, Clexane, Amaryl, Apidra, Frisium, Cardace, Lasix, Targocid, Cetapin and the recently approved Soliqua. These and other assets like the Goa manufacturing site will continue to be part of SIL, expanding and growing to benefit millions of patients in the country.
Meanwhile, Sanofi Consumer Healthcare India Limited is expected to be fully operational by the second half of 2024, subject to necessary approvals.
The company also announced that there will be no change in the company’s priorities, ways of working or interactions with its external stakeholders. Employees of Sanofi India Limited will continue to stay focused on the business priorities and on delivering our quality medicines to patients in India, it added.
Other business of Sanofi in India, such as Vaccines, Specialty, Clinical Studies are not part of SIL and hence, are not impacted by this announcement, the company informed.
