Move to Accelerate Growth for Pharma and Consumer Healthcare Businesses in India
Sanofi India Limited has announced that its Board of Directors has approved a Scheme of Arrangement to demerge its consumer healthcare business into a separate legal entity, Sanofi Consumer Healthcare India Limited (SCHIL). The demerger is subject to approval by shareholders and regulators, upon incorporation of SCHIL.
Sanofi India Limited’s decision to demerge its consumer healthcare business into a separate legal entity is aimed at accelerating growth for both the pharmaceuticals business (SIL) and the consumer healthcare business (SCHIL) in India. The demerger will enable Sanofi to unlock and maximize its business potential in both pharmaceuticals and consumer healthcare, with the right assets, structure, and strategy.
Sanofi’s Consumer Health Company in India to be a Fast-Moving Consumer Healthcare Business
The proposed standalone consumer health company in India, SCHIL, will be equipped with the portfolio, specific global skills, and consumer-centric mindset to truly evolve as a Fast-Moving Consumer Healthcare company. The demerger will enable Sanofi to implement the global standalone organization of the consumer healthcare (CHC) business within Sanofi, which is the best platform to unleash its growth potential.
Sanofi India Ltd.’s pharma portfolio of products, which includes established and leading General Medicines brands, will focus on expanding its life-changing treatment portfolio available in the country, driving world-class scientific HCP engagement, expanding the reach of its brands, and accelerating its digital transformation. These and other assets like the Goa manufacturing site will continue to be part of SIL, expanding and growing to benefit millions of patients in the country.
Shareholders to Receive 1:1 SCHIL Equity Share for Each Equity Share Owned
Upon completion of the proposed demerger, Sanofi will continue to own a 60.4% stake in both entities, and Sanofi India Limited shareholders will receive 1:1 SCHIL equity share of INR 10/- each, for each equity share owned. The proposed demerger is considered fair for all shareholders. SCHIL will be listed on the BSE and the National Stock Exchange Limited, subject to necessary approvals.
Sanofi Consumer Healthcare India Limited, a Sanofi group company, is expected to be fully operational by the second half of 2024, subject to necessary approvals. The concerned employees who will transition to SCHIL will have continuity of service and the same terms on the demerger becoming effective. Meanwhile, there will be no change in the company’s priorities, ways of working, or interactions with its external stakeholders. Employees of Sanofi India Limited will continue to stay focused on the business priorities and on delivering quality medicines to patients in India.