Corona Remedies Private Limited, headquartered in Ahmedabad, has acquired Obimet and Thyrocab brands from Abbott India Limited. This is Corona's second acquisition, after the one from GSK in March 2017.
The two brands, comprising 14 product line extensions, are popular prescription drugs to manage diabetes and hyperthyroidism.
General manager, marketing, Corona, Tejas Kothari said in Ahmedabad on Monday that they saw great potential and future from these brands, and added that the acquisition will strengthen their metabolic segment.
Vice president, finance, Bhavin Bhagat, said both the brands are expected to garner approximate sales revenue to the tune of Rs 25 crore in the first year of integration. In the year that ended on March 31, the company posted a revenue of Rs 415 crore.
With Obimet being the first line of treatment for diabetes, and with Corona's penetration in tier II and III cities, the company expressed hopes of providing world class tablets at affordable prices.
Quoting Indian Heart Association, the company officials said by 2035, there will be 109 million people in the country who suffer from diabetes. Currently, the number is 62 million, with the average age for the onset of diabetes being 42, they said.
The company officials preferred not to quote a figure for the acquisition, but said it was three times the revenues of these brands.
Corona, which currently has one manufacturing plant in Solan, Himachal Pradesh, is gearing up for expansion. Vice president of the company Vijay Charulu said a new unit, at a cost of Rs 60 crore, will come up on a three lakh sqft land at Bavla, near Ahmedabad. The plant, with a manufacturing capacity of 200 crore tablets, 60 crore capsules and three crore liquid bottles per year, is expected to be functional by the end of 2019.
The Solan plant has the capacity of manufacturing 100 crore tablets, six crore capsules and one crore liquid bottles per annum.
The plant at Bavla is expected to give employment to over 300 unskilled and semi-skilled persons, apart from 100 other chemists and production heads.
Currently, the company's exports stand at three to four per cent of their production, and after Bavla plant, it is likely to touch 10 per cent.
Set up in 2014, the company's core focus has been in the fields of gynaecology, infertility, cardiac metabolism, neuropathy and pain management.