Ajay Piramal, chairman of Piramal Healthcare Ltd (PHL), announced on 6 May 2011 his company’s decision to foray into the financial services business through a 100 per cent subsidiary, Piramal Finance.
Piramal Finance will house two non-banking financial companies (NBFCs) as well as a private equity venture. PHL’s current cash in hand is Rs 3000 crore. The company is also slated to receive over Rs 7,000 crore from Abbott over the next four years. OHL had sold it’s formulations business to US-based Abbott Laboratories for around Rs 17000 crore in 2010.
According to the chairman of PHL, within the existing pharma business, which posted a shade over Rs 2,000 crore in revenues in 2010-11 there was no requirement for any huge investment, compared to the cash available with the company. The situation thus prompted the company to look at opportunities in other segments, including financial services.
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