The Hyderabad-based company has raised $12 million through foreign currency convertible bonds (FCCB). It intends to use the funds along with internal accruals for acquiring a specialty chemicals company abroad this fiscal, according to Mr Sunil Arab, Vice-President (Corporate Strategy & Business Development).
"We have identified a couple of European companies and are confident of completing the buy, after due diligence. The target companies typically should have sound product line, marketing network and regulatory expertise," he told Business Line here.
The acquisition is to get market and regulatory advantages in Europe. We will shift the acquired company's manufacturing base to India, where Vivimed Labs has four units in Hyderabad, Bidar (Karnataka), Hardwar (UP) and Kashipur (Uttaranchal) to manufacture specialty chemicals. It is a major supplier of these active ingredients to global majors.
Vivimed has a robust pipeline of at least 23 products such as Triclosan (oral care), Avo Benzone (sunscreen), and skin, hair care, etc. It is the country's top producer of the active ingredients that are necessary to manufacture these H&PC as well as industrial care products. With the market for these products growing substantially in the country, the company has set itself on a consolidation and expansion mode, Mr Sunil said.
The global market for active ingredients in H&PC is estimated to be about $25 billion, out of the total cosmetic care industry size of about $250 billion. Vivimed plans to expand its presence to 50 countries by 2010 from the existing 25-30. Japan, China, Korea and the Gulf countries are new destinations contemplated.
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