Nirma acquires Core
Healthcare's IV fluids business
Almost eight years after it landed in
debt, thanks to its over ambitious expansion plans, Ahmedabad based Core
Healthcare Ltd. (CHL) has finally found a buyer for its intravenous (IV) fluids
and medical devices business in Nirma Limited. For the FMCG company this would
mean a foray into unchartered territories of pharmaceuticals. The deal for the
sale of CHL's assets and liabilities was wrapped up on Thursday evening with a
Memorandum of Understanding (MoU) being signed between Nirma and the Asset
Reconstruction Company (India) Ltd (ARCIL), CHL founder Sushil Handa said on
Thursday. CHL's stock, which had been on the rise in the past few days, touched
a 52 week high and closed at Rs 16 on both BSE and NSE.
ARCIL a securitisation and reconstruction
company acquired 60 per cent (Rs 380 crore) of CHL's total borrowing of Rs 650
crore (principal amount) about a year and a half ago. The sale is, however,
subject to approval of 20 odd other lenders and the Gujarat High Court, and may
take about six months to materialise. CHL's creditors included Bank of Baroda,
Dena Bank and Deutsche Bank, which together have lent around Rs 270 crore to CHL.
While Handa and ARCIl officials were
tight-lipped on the size of the deal and Nirma officials were unavailable for
comment, a release issued by Nirma stated: "The company has negotiated the
acquisition with ARCIL, which awarded the undertakings of CHL at Sachana. in
Ahmedabad district to Nirma, the highest bidder following its offer dated
November 18, 2004."
According to Nirma, it will carry out a
due diligence of CHL's undertakings over the next one month and has fixed
November 30, 2004, as the appointed date for the de-merger of the undertaking
from CHL and in due course would approach the High Court of Gujarat with a
suitable scheme. ARCIL president and CEO S Khasnobis said that his organisation
would now approach the other lenders for which a joint meeting of all lenders
would be held in a couple of weeks. "In the next three months the financial
aspects of the sale would be worked out, before Nirma approaches GHC for
clearance of the scheme of settlement," Khasnobis said.
The breakthrough comes almost one and a
half years after ARCIL had been hunting for buyers for the pharmaceutical
players, which reached dizzying heights in 1995 putting promoter Sushil Handa in
the top league of Indian entrepreneurs during the early nineties.
Nirma will acquire CHL's still
running IV fluids business (comprising small and large volume parenterals),
medical devices (disposable syringes and needles, IV sets and bags), as well as
speciality injectibles (anaesthetics, plasma expanders, transplant
medicines). The FMCG player will also acquired CHL's 1,300 employees.
ARCIL will also put CHL's tablets
manufacturing facility at Rajpur near Ahmedabad on sale shortly. "While we
have identified an Indian buyer for the plant, IDBI will look for a buyer for
the 20 MW naphtha-based captive power plant as it has bee leased to them."
CHL, which had borrowed around Rs 710
crore saw its total dues go up to over Rs 1200 crore over a period of time. It,
however, settled Rs 110 crore worth of liabilities, including Rs 65 crore of
borrowing with foreign lenders - American Express, Bank of America, Grindlays
and Standard Chartered Bank.
CHL was founded by the Handa brothers -
Sushil and Sunil in 1985 as an IV fluids company with a capacity of 6 million
units per year and investment of Rs. 4.5 crore. In 1988, it tapped the capital
markets with an IPO of Rs 36 lakh and a second offering of Rs 19 crore partly
convertible debentures in 1992 to fund expansion plans. It also issued global
depository receipts of around Rs 80 crore in 1994 at the Luxemburg Stock
(Ref : Times of India Dated December 17,
India's first PET/CT
system launched at Tata Memorial Hospital
The first PET/CT system in India -
Discovery ST has been installed at the Tata Memorial Hospital (TMH), Mumbai by
GE Healthcare, a unit of General Electric Company.
PET/CT scans allow physicians to more
accurately pin-point where disease is located, resulting in better therapy
section. This Discovery ST system is capable of 2D, 3D and 4D imaging with a
large bore for all patient studies or sizes and provides physicians with more
sensitivity, speed, resolution, and diagnostic confidence when treating cancer
This PET/CT system integrates a Positron
Emission Tomography (PET) scanner with a 16-slice Computed Tomography (CT)
scanner all in a single exam, non-invasively. PET creates images of metabolic
activity in the body/ CT creates images of the body's anatomy.
"For more than 3 years now, GE
Discovery PET/CT systems and their advanced applications have given physicians
more diagnostic confidence, enabling them to accurately target disease and appropriately
prescribe therapy particularly in the worldwide fight against cancer,"
Stephan R. Bloze, president & CEO of GE Healthcare Technologies,
International said in a release adding, "With a disease like cancer,
example, clinicians worldwide tell us that PET/CT scans show the size and
location of a tumor, which enables them to prescribe the most effectively
treatment path for the patient."
The Discovery PET/CT will help in
providing a better understanding of cancer, cardiovascular disease, and brain
dysfunction, allowing a more personalized course of treatment with the ability
to monitor response to therapy.
"GE Discovery ST will help doctors
more precisely visualize and diagnose diseases earlier than ever before and is
the first-of-its-king to be installed in India said V Raja, president and CEO GE
Healthcare Technologies, India and MD & CEO, Wipro GE Healthcare. "In
addition to its diagnostic precision the GE Discovery ST can significantly
reduce the time, expense and anxiety of multiple procedures for the
patients that may take place over the course of days, or even weeks," he
Medical research published in the new
England Journal of Medicine indicates integrated PET/CT exams provide extra
information beyond that obtained with visually correlated PET and CT in 41 of
cases because of its proven pinpoints accuracy in locating disease, the release
"The Discovery ST second generation
design will allow a platform for all oncology, cardiac and neurology
applications, on all patient sizes, with existing isotopes today and the
potential for non-pure isotopes in the future," said NR Balamurugan,
Business Manager of Functional Imaging at GE Healthcare.
"We were the first company to bring
revolutionary PET technology India and now are extremely proud to be the first
healthcare company to bring the breakthrough PET/CT technology to India,"
GE Healthcare is a $14 billion unit of
General Electric Company that is head quarter in the United Kingdom.
(Ref : CHRONICLE PHARMABIZ Dated
December 16, 2004)