Nicholas Piramal India (NPIL), the Rs 5,700 crore research-to-clinics medicine company is embarking on a restructuring exercise that would start with a change in its name.
According to sources in the industry, the broad contour of the restructuring could involve some consolidation of the 14 divisions inside the company in the form of Piramal Healthcare Ltd, possibly into three or four major divisions.
In 2002, NPIL had divided its operations into these strategic divisions from eight business units in order to make each of the units into separate profit centres with a dedicated field force and focus.
In August last year, NPIL spun off its research and development division to form a separate company named NPIL Research and Development, in an effort to de-risk the research activities and attract funding.
The pharmaceuticals division would include the present drug manufacturing and marketing arms, and would continue the company’s prescription and over the counter medicine business. This would include ACTIS, the newly launched division focussed on bringing out medicines for respiratory illnesses.
The pathological test laboratories and diagnostics division, which operates Wellspring, would be under the umbrella of a separate division. The company however, is expected to keep its field force as a consolidated entity, according to sources.
“This is only board approval. (We) still need shareholder approval. Change will take time,” Swati Piramal, director, NPIL told Hindustan Times . Her comments on the restructuring were not available.
The company, controlled by the Mumbai-based Nicholas Piramal Group, is changing its name to Piramal Healthcare Ltd, as a beginning. The company has sent a notice to the Bombay Stock Exchange to the effect.