Sanofi India’s board has approved the demerger of its consumer healthcare business, creating a separate legal entity called Sanofi Consumer Healthcare India Ltd (SCHIL). The move aims to accelerate growth for both Sanofi India Ltd (SIL) and SCHIL. Following the demerger, Sanofi will retain a 60.4% stake in both entities. The pharmaceuticals business will focus on expanding its treatment portfolio and digital transformation, while SCHIL will prioritize consumer-centric strategies and digital capabilities. The demerger is expected to be fully operational by the second half of 2024, subject to approvals.
Sanofi India, a prominent pharmaceutical company, disclosed on Wednesday that its board of directors has approved the demerger of its consumer healthcare business into a separate legal entity. The decision marks a significant strategic move aimed at accelerating growth for both Sanofi India Ltd (SIL) and its wholly-owned subsidiary, Sanofi Consumer Healthcare India Ltd (SCHIL). The company intends to initiate the demerger process, pending approval from shareholders and regulatory authorities, as per the Scheme of Arrangement.
Sanofi India emphasized that this pivotal step will create new opportunities for its India business and employees, as it aims to unlock and maximize the potential of both its pharmaceuticals and consumer healthcare segments. By establishing SCHIL as an independent entity, Sanofi India aims to enhance its focus and drive value-driven growth in both sectors. Upon completion of the proposed demerger, Sanofi will retain a 60.4 percent stake in both SIL and SCHIL. Existing SIL shareholders will receive one SCHIL equity share, valued at Rs 10 each, for every SIL equity share they currently hold.
Rodolfo Hrosz, Managing Director of Sanofi India, expressed his enthusiasm regarding the decision, highlighting the potential for maximizing business opportunities in pharmaceuticals and consumer healthcare. He emphasized that the pharmaceuticals business will concentrate on expanding its portfolio of life-changing treatments available in India, while also accelerating its digital transformation to enhance patient experiences.
On the other hand, the proposed consumer healthcare business, SCHIL, will prioritize consumer-centric strategies and leverage best-in-class digital and e-commerce capabilities. Hrosz anticipates that this move will position Sanofi’s consumer healthcare business for sustainable growth.
In the fiscal year 2022, Sanofi’s consumer healthcare business achieved an annual turnover of Rs 730 crore. The company’s portfolio includes popular consumer healthcare brands such as Allegra, DePURA, Avil, and Combiflam.
The fully operational status of SCHIL is expected to be realized in the second half of 2024, subject to the necessary approvals.
Aditya Narayan, Chairman of the Board at SIL, expressed optimism about the proposed demerger, stating that it would enable both entities to build a sustainable growth model. Narayan highlighted the strengthened position of Sanofi in India resulting from this strategic move, which is anticipated to deliver enhanced value to shareholders and other stakeholders.
Sanofi clarified that its other businesses in India, such as vaccines and clinical studies, are separate entities from SIL and thus remain unaffected by this announcement.
