French dairy and nutrition major Danone will acquire the nutrition business of Wockhardt Group for 250 million euros (about 1,575 crore), paving the way for its entry into the baby and medical nutrition markets in India.
"Under the agreement, Danone will acquire Wockhardt's nutrition business and brands as well as its related industrial operations from Carol Info Service (located in Punjab, India) for a total of approximately 250 million euros," the French major said in a statement.
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Wockhardt, which said in a separate statement that the deal is subject to customary closing conditions and various approvals, owns brands like Farex, Protinex, Dexolac and Nusobee.
Danone, in its statement, added that credibility of these brands with healthcare professionals in the country will accelerate Danone's entry into the country's baby nutrition market.
Moreover, the nutritional supplement brand Protinex will give Danone a strong foundation for developing its medical nutrition business, the statement further said, adding India is the fastest-growing infant nutrition market in the world, with over 25 million children born each year.
According to reports, Wockhardt may use this money to retire part of its over Rs 3,000 crore debt .
However, this could not be immediately verified from the Indian pharmaceutical and biotechnology major, which has a 5 research centres and 21 world-class manufacturing plants in India, USA, UK, France and Ireland.