Sanofi India demerger gets a green light
Upon completion of the proposed demerger, Sanofi will continue to own 60.4 percent stake in both entities and Sanofi India Limited shareholders will receive 1:1 SCHIL equity share of Rs 10/- each, for each equity share owned.
Mumbai: The Board of Directors of Sanofi India Limited today approved the Scheme of Arrangement as per applicable provisions of the Companies Act, 2013, and other applicable laws, between SIL and its wholly owned subsidiary Sanofi Consumer Healthcare India Limited (currently under the process of incorporation) (“SCHIL”) to demerge SIL’s consumer healthcare business into a legal...
Mumbai: The Board of Directors of Sanofi India Limited today approved the Scheme of Arrangement as per applicable provisions of the Companies Act, 2013, and other applicable laws, between SIL and its wholly owned subsidiary Sanofi Consumer Healthcare India Limited (currently under the process of incorporation) (“SCHIL”) to demerge SIL’s consumer healthcare business into a legal entity, i.e., SCHIL, subject to approval by shareholders and regulators upon incorporation of SCHIL.
"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 release stated.
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. The concerned employees who will transition to SCHIL, will have continuity of service and same terms on the demerger becoming effective.
Rodolfo Hrosz, Managing Director, Sanofi India Limited, “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.”
Sanofi India Ltd.’s consumer healthcare business annual turnover for FY2022 is ~INR 730 crores. The Company’s top consumer healthcare brands include Allegra, DePURA, Avil, and Combiflam, leaders in their respective categories.
Sanofi India Ltd.’s pharma portfolio of products includes 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.
Aditya Narayan, Chairman of the Board, Sanofi India limited, “For nearly seven decades, Sanofi’s commitment to people in India is reflected in its products, quality, access, capacity building, disease awareness, and social impact initiatives. The Company aspires to do much more to tackle India’s healthcare challenges and shape itself to be a cutting-edge healthcare company. The Proposed Demerger will help both entities build a sustainable growth model. Today, Sanofi is in a strengthened position in India, allowing us to deliver better value to our shareholders and other stakeholders.”
"Sanofi Consumer Healthcare India Limited, a Sanofi group company, is expected to be fully operational by the second half of 2024, subject to necessary approvals," the release added.
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