Corona Remedies on Monday announced the acquisition of Obimet and Thyrocab brands, comprising 14 product line extensions, from Abbott India.
“This is our second acquisition after we acquired four products from GlaxoSmithKline in 2017. Obimet will extend and fortify our anti-diabetic portfolio, while Thyrocab will mark the entry into thyroid management. The two segments have a market size of Rs 10,800 crore, and growing at 13% year on year,” Tejas Kothari, head of strategy at Corona, told reporters, adding that they are in active discussions with other companies for more brand acquisitions in the coming days.
The company did not reveal the size of the transaction, but industry insiders pegged the deal at about Rs 50-55 crore. Corona said in a statement that the two brands are expected to generate sales revenue of Rs 25 crore in the first year.
Corona has a manufacturing unit at Solan in Himachal Pradesh. It is in the process of setting up one more plant at Ahmedabad, Gujarat, at an investment of Rs 60 crore, company officials said.
“We have acquired 3 lakh square feet land near Bavla,” said Vijay Charlu, vice president of sales and marketing.
Corona is targeting Rs 1,000 crore turnover by 2021, Charlu added.
BOOSTER DOSE
- Industry insiders pegged the deal at about Rs 50-55 crore
- Corona sees brands generating Rs 25 crore sales in the first year
- It is in the process of setting up a plant in Gujarat at Rs 60 crore
