New Delhi: Mankind Pharma, a leading global pharmaceutical firm, has entered into a Business Transfer Agreement (BTA) to transfer its Over-the-Counter (OTC) business to its wholly owned subsidiary, Mankind Consumer Products Private Limited (MCPPL), on a slump sale basis.
In the first quarter of FY25, the OTC business generated revenues of ₹206 crores with an EBITDA margin of 19.5%. For FY24, it recorded total revenues of ₹706 crores, maintaining a robust EBITDA margin of 19.9%. This strategic realignment aims to sharpen Mankind Pharma’s focus on its consumer business, which currently represents 7% of the company’s overall revenue. The consumer portfolio includes well-known brands such as Manforce, HealthOK, Prega News, AcneStar, Unwanted, and Gas-O-Fast, spanning categories like wellness, hygiene, and personal care.
By establishing the OTC business as a wholly owned subsidiary, Mankind Pharma seeks to better meet the unique needs of this segment, allowing for specialized talent acquisition and tailored strategies. This approach is expected to drive the OTC business towards higher growth and enable it to operate independently.
About this announcement, Rajeev Juneja, Vice-Chairman &Managing Director of Mankind Pharma Ltd, said, “This decision has been made because the consumer business was previously managed with a concoction of pharmaceutical and consumer-focused strategies, which we believe can be better streamlined with a more tailored approach. We aim to differentiate the consumer business, with select leadership, specialized talent, and dedicated resources to help it thrive.”
He further added,” The consumer business is very close to our heart, and it currently contributes 7% to our overall business. Our ambition is to elevate this contribution to 15% in the long run. This requires a distinct business, where core stockists, major distributors, and specialized networks play a pivotal role, and we are committed to improving and building on those resources. By sharpening our focus on the consumer segment, we aim to strengthen brand recall and ensure our consumer brands resonate more effectively with our audience. This strategy is designed to accelerate growth in the consumer health space while improving operational efficiency across both pharmaceutical and consumer divisions.”
The transfer will be conducted as a going concern, ensuring continuous operations without interruption. The transaction will be executed for a lump sum consideration. Mankind Pharma plans to focus on innovation in healthcare, addressing evolving consumer demands with new product launches such as Rapid News, targeting health concerns like Dengue and UTI, and Ova News, which emphasizes DIY diagnostic tests.
