Sanofi India, a drug firm, has announced the demerger of its consumer healthcare business into a separate entity called Sanofi Consumer Healthcare India Ltd (SCHIL). The company’s board has approved the Scheme of Arrangement between Sanofi India Ltd (SIL) and SCHIL. The demerger is subject to approval by shareholders and regulators. After the demerger, Sanofi will retain a 60.4% stake in both entities, and SIL shareholders will receive 1:1 SCHIL equity shares.
Sanofi India Managing Director, Rodolfo Hrosz, views this as an opportunity to unlock and maximize the business potential in both pharmaceuticals and consumer healthcare. The pharmaceuticals business will focus on expanding its portfolio of life-changing treatments and accelerating its digital transformation to benefit patients in India. On the other hand, the consumer healthcare business will concentrate on consumer-centric strategies, digital capabilities, and e-commerce.
Sanofi’s consumer healthcare business had an annual turnover of Rs 730 crore in FY2022, featuring well-known brands like Allegra, DePURA, Avil, and Combiflam. SCHIL is expected to be fully operational by the second half of 2024, pending necessary approvals.
The demerger aims to establish a sustainable growth model for both entities, providing better value to shareholders and stakeholders. It’s important to note that Sanofi’s other businesses in India, including vaccines and clinical studies, are not impacted by this announcement.
In summary, Sanofi India’s decision to demerge its consumer healthcare business into a separate entity reflects a strategic move to enhance growth opportunities for both its pharmaceuticals and consumer healthcare segments.