Group sells division to Indian giant for R92,8m
Lihle Z Mtshali
Lihle Z Mtshali
India may not be taking over one of our banks, but Indians will be moving into South Africa through a pharmaceutical acquisition.
Listed pharmaceutical group Enaleni Pharmaceuticals yesterday announced that it was selling off the Enaleni Pharmaceuticals Consumer Division to Marico South Africa Consumer Care - a subsidiary of Marico, an Indian consumer products group - for R92,8million.
The transaction is effective from today.
The division manufactures over-the-counter medicines and beauty and wellness ranges. Its most popular product is the Caivil hair products range for ethnic hair.
It also manufactures Just For Kids, a children's range of hair products, and Hercules, which is wellness medication that includes castor oil.
Chris Aucamp, Enaleni's chief financial officer, said Marico would be taking over all operations of the Durban-based factory and would continue operations as normal with no threats of retrenchments or change in products.
"They will probably add some of their products to Enaleni's existing range which will give consumers access to a wider range of products," he said.
Aucamp said Enaleni had taken the decision to dispose of the consumer division so it could concentrate on its core pharmaceuticals business.
"We sold that division because health, wellness and vitality is not our core business and we can now focus on pharmaceuticals," he said.
The group is upgrading its Durban pharmaceutical manufacturing plant after it was forced to shut it down earlier this year when it did not meet international standards.
The pharmaceutical standards were cited as the cause for an Adcock Ingram plant closing in South Africa and moving its factory to India.