George Steuarts Agencies (GSA), a member of Sri Lanka's 175-year old George Steuarts Group, is expecting this year to finalise a deal to buy an equity stake in India pharmaceuticals producer Carewell Pharma, to which GSA already has long time ties as an importer.
This will be achieved through an already set up limited liability company named Carewell-Steuart Pharma (Pvt) Ltd.
The deal will permit GSA, previously only a pharmaceuticals importer, to acquire a stake in the lucrative Indian pharmaceuticals market where Carewell, present since 1987, currently claims a country wide marketing network as well as a government tenders business that includes India as well as state tenders for Tamil Nadu, Pondicherry, and Andhra Pradesh.
Commenting, GSA Chairman Jayantha Wimalagooneratne said that they were in "the process of preparing the final project report to be presented to the Controller of Exchange, to obtain his approval to acquire a stake in [Carewell Pharma], and we expect the 'marriage' to take place during the course of 2010. When this happens, this would be the first time that a Sri Lankan pharmaceutical company has invested in an Indian pharmaceutical company".
Further, the deal will also open up new avenues for imports into the Philippines, where George Steuarts already has a subsidiary marketing its tea to hotels and supermarkets. Notes Mr. Wimalagooneratne, "we have reached agreement with our counterparts in the Philippines to set up a pharmaceutical company in the Philippines, and in fact the name has been already reserved. No sooner we take part in the equity of Carewell Pharma, we would proceed to incorporate Steuart Pharma Philippines Inc. It must be mentioned that in the Philippines too, the government is keen to offer low priced generics to the Filipinos, and therefore, this would be an ideal platform for Carewell-Steuart Pharma to break into that market."
In fact, according to Mr. Wimalagooneratne, "generic products manufactured by Carewell Pharma, now marketed under the name of Carewell-Steuart Pharma are already in the Sri Lankan market. These products are marketed in the private sector by GSA importing the products direct, and also participating in tenders floated by the State Pharmaceutical Corporation and the Director of Health Services".
He also indicated that "fast moving generic products such as antibiotics, anti-inflammatory products, products for respiratory disorders and for cardiac treatments" will be marketed in Sri Lanka and the Philippines using the Carewell-Steuart Pharma 'conduit'. |
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