The Board of Directors of Sanofi India Limited today approved the Scheme of Arrangement between SIL and its wholly owned subsidiary Sanofi Consumer Healthcare India Limited (currently in the process of incorporation) ("SCHIL") to demerge SIL's consumer healthcare business into a legal entity, i.e., SCHIL, subject to approval by shareholders and regulators upon SCHIL's incorporation. "This decision will open new doors for the India business and employees in a value-driven move to accelerate growth in both the pharmaceuticals (SIL) and consumer healthcare (SCHIL) businesses in India."
Implementing the worldwide freestanding organisation of the consumer healthcare (CHC) business within Sanofi is the finest framework for unleashing its growth potential in the rest of the world, as well as in India. According to the statement, "the proposed standalone consumer health company in India will be equipped with a portfolio, specific global skills, and a consumer-centric mindset to truly evolve as a Fast-Moving Consumer Healthcare company." Similarly, the General Medicines company will concentrate on long-term success factors such as increasing the availability of life-changing treatments in the country, promoting world-class scientific HCP engagement, expanding the reach of its brands, and advancing its digital transformation.
Sanofi will retain a 60.4% holding in both firms following the proposed demerger, and Sanofi India Limited stockholders will receive a 1:1 SCHIL equity share of INR 10/- for each equity share held. As a result, the proposed demerger is equitable for all shareholders. SCHIL will be listed on the BSE and the National Stock Exchange Limited, subject to relevant approvals. Employees who transition to SCHIL will have continuity of service and the same terms when the demerger becomes effective. "This is a momentous opportunity because it will allow Sanofi to unlock and maximise its business potential in both pharmaceuticals and consumer healthcare, with the right assets, structure, and strategy," said Rodolfo Hrosz, Managing Director, Sanofi India Limited. The pharmaceuticals business will concentrate on long-term success factors such as extending its portfolio of life-changing medications available in India, fostering world-class scientific HCP engagement, and advancing its digital transformation to better the lives of patients in India. The planned CHC organisation will be a Fast-Moving Consumer Healthcare business, enabling consumer-centric initiatives, shaping the OTC environment, and focusing on best-in-class digital and ecommerce capabilities."
Sanofi India Ltd.'s consumer healthcare segment has an annual turnover of INR 730 crores for FY2022. Allegra, DePURA, Avil, and Combiflam are the Company's top consumer healthcare brands, and they are leaders in their respective categories. Lantus, Toujeo, Clexane, Amaryl, Apidra, Frisium, Cardace, Lasix, Targocid, Cetapin, and the recently approved Soliqua are among the General Medicines brands in Sanofi India Ltd.'s pharma portfolio. These and other assets, such as the Goa production plant, will remain part of SIL. Aditya Narayan, Chairman of the Board, Sanofi India limited, “For nearly seven decades, Sanofi’s commitment to people in India is reflected in its products, quality, access, capacity building, disease awareness, and social impact initiatives.
The Company aspires to do much more to tackle India’s healthcare challenges and shape itself to be a cutting-edge healthcare company. The Proposed Demerger will help both entities build a sustainable growth model. Today, Sanofi is in a strengthened position in India, allowing us to deliver better value to our shareholders and other stakeholders.” "Sanofi Consumer Healthcare India Limited, a Sanofi group company, is expected to be fully operational by the second half of 2024, subject to necessary approvals," the release added.
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