New Delhi, Nov 29: After having acquired Burnol and Lifespring, Morepen Laboratories has embarked upon a consolidation exercise to expand business in us generic market and has initiated financial restructuring to become debt-free company in the next three years. "We are undertaking a major revamp exercise which aims at repositioning our business, rationalisation of work force and financial restructuring," Morepen chairman and managing director Sushil Suri said adding that the company would also consider expanding its equity base.
Stating that it was time for consolidation after witnessing fast growth on account of acquisitions and tie-ups, Suri said a new corporate identity had already been adopted as a part of the plan.
Morepen, which acquired Burnol (cream for burns), Lemolate (cough and cold brand) and Lifespring, a chain of health and beauty stores, for about Rs 30 crore, also invested Rs 50 crore in Dr Morepen, it OTC division over the past one year.
Conceding that this had put some pressure on the balancesheet, it said company had already taken initiatives targetting to become debt free in the next three years.
Morepen which has a short-term debt of Rs 240 crore and long-term debt of Rs 360 crore is close to raising 15 million dollar through FCCB (foreign currency convertible bond) for which RBI and SEBI permission was expected soon.
The company is also planning to raise equity from the existing base of Rs 18 crore and is in talks with some strategic foreign financial institutions for giving stake while eyeing GDR (Global Depositary Receipt) also as an option.
"We will finalise the decision on the equity front by the end of the financial year," Suri said. Bureau Report