Mumbai Nirma Ltd. is one of the suitors for Manish Pharmaceuticals, said two people aware of the matter, as the detergent and cement maker takes steps to grow its healthcare business.
Ahmedabad-based Nirma may bid through its healthcare subsidiary AcuLife Healthcare Pvt Ltd. Ltd., the people cited above said on condition of anonymity.
Aculife sells medical devices and critical care medicines under its Nirlife and Oneuse brands.
The owners of Mumbai-based Manish Pharmaceuticals have hired an investment banker to sell the entire business and are seeking 3,000 crore, said the people cited above. The Mint could not identify the other bidders.
Rare Equity, one of the private investment vehicles of Rakesh Jhunjhunwala’s Rare Enterprises, owns a minority stake in Manish Pharmaceuticals, a filing with the corporate affairs ministry shows.
Emailed queries to representatives of Manish Pharmaceuticals, Rare Equity and Nirma Group did not elicit any response.
In FY21, Aculife reported net sales of 467.9 crore more profit 79.4 crore, while Nirma reported consolidated sales of 7,432.2 crore and profit of 490.8 crores as per VCCEdge.
In 2016, Nirma acquired Lafarge’s India cement business 9,000 crores, and changed its name to Nuvoco Vistas. In 2020, it acquired the cement business of Emami Ltd. 5,500 crore. The group listed Nuvoco Vista in 2021.
Manish Pharmaceuticals sells tuberculosis medicines and hormone products, in addition to dermatological ointments and creams, according to its website.
Founded in 1975, the Vinay Sapta-led company made more than 10 acquisitions between 2006 and 2008, according to a report in Economic Times.
It acquired a 51% stake in US-based Sinovix in 2008. Its other acquisitions include Sigma Labs and Hyderabad-based Pharmacia and Smile.
According to an Economic Times article in 2008, Sapte, a Mumbai Municipal Corporation official and the son of an electrical engineer by training, began selling saris before starting a business to sell animal glands to pharma firms.
Manish Pharmaceuticals reported consolidated net sales 427 crore and above profit 60 crore in FY20 as per MCA filing. It has not yet filed the financial statements for FY21 and FY22.
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