Comments
Drug firm Vivimed Labs has entered into a definitive agreement for sale of some of its specialty chemicals products to Clariant Chemicals (India) Ltd, an arm of Switzerland-based Clariant AG, for ₹380 crore.
The part of the specialty chemicals division’s business of the Hyderabad-based Vivimed, which is proposed to be divested, accounted for about 10 per cent of the company’s revenue of about ₹1,400 crore, the company said in a statement. Along with the products, the associated trademarks and assets will also be transferred to Clariant.
The company will still retain a significant portion of the specialty chemicals business which is ‘well placed’ to deliver financial returns on the back of its product offerings and existing and future customer relations.
A major portion of the receipts from the deal will be used to reduce debts, thereby saving substantial interest costs.
Further more, it will provide increased financial flexibility to pursue profitable growth across businesses in regulated markets, according to Santosh Varalwar, Managing Director and CEO.
On Wednesday, Vivimed’s scrip gained 5.28 per cent on the BSE to close at ₹345.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.