Emami-Zandu

Capitalising on the acquisition -

* Acquisition why – Emami group looked for a horizontal as well as product extension takeover in terms of Zandu on account of following:

* 100 year old company with a very high brand value with world class manufacturing facility and technology

* Product line of more than 300

* A leader in Ayurvedic healthcare products like – Zandu Balm, Kesari Jivan, Zandu Chyavanprash

* Zero debt company

* A lucrative option for local and international FMCG player

* After completion of acquisition in October 2008, plans to merge the FMCG wing of Zandu Pharmaceuticals with Emami emerged.

Finally as a part of the restructuring process, separation of the FMCG and realty business to allow

efficient functioning of both businesses, following was decided in June 2009:

(Process completed on 28th December, 2009)

* FMCG business of Zandu Pharmaceuticals is to be merged with its counterpart Emami ltd. The shareholders of Zandu will get 14 Emami shares of par value Rs. 2 for every Rs. 100 Zandu share they hold.

* The CEO - Finance Mr. Bhansali of Emami ltd. was of the view that this integration will ensure several operational synergies, more focus, improve profitability, lead to optimum utilization of the current manufacturing facilities and bring about consolidation of Distribution and Sales channels of the two companies.

* Apart from this, the realty undertaking of Emami ltd. was to be demerged into a separate entity, Slick Properties Private Limited to be rechristened as Emami infrastructure. Shareholders of Emami were to get a share of Rs 2 of Emami Infrastructure for every 3 shares of Emami held by them.

* The existing shareholders of Zandu were to hold the shares and the company was to be renamed as Zandu Realty.

* In December 2008 itself Emami ltd. surfaced plans for seeking funding upto $40 – 50 million via the Private Equity route for its healthcare section of Business....