New Delhi: FMCG major Emami on Friday said that it has got the Kolkata High Court’s approval for merging the operations of Mumbai-based Zandu Pharmaceuticals with it.
The Kolkata-based Emami, which had acquired Zandu Pharmaceuticals last year for around Rs700 crore, said that the high court has approved the company’s scheme of arrangement on 17 November, with effect from 2 December.
“The high court of Kolkata has approved the scheme of arrangement of de-merger / merger of businesses between Emami Ltd, Zandu Pharmaceutical Works Ltd and Emami Infrastructure Ltd,” the company said in a statement.
Under the arrangement, the FMCG business of Zandu comprising all brands and corresponding assets and liabilities would be demerged into Emami Ltd while the realty undertaking of Emami and Zandu’s non-core business, including realty, are demerged into Emami Infrastructure Ltd.
Emami had bought 68.9% stake in Zandu Pharmaceutical and took management control of the latter.
“The acquisition was aimed at achieving synergetic benefits and to leverage on mutual strengths,” it added.
Emami sells personal care brands like Fair and Handsome, Navratna Oil, Boroplus Antiseptic Cream while from the Zandu portfolio, it has Zandu Balm, Menthoplus Balm among others.