Orchid Chemicals, Ranbaxy ink product pact

Q: What form will this strategic alliance take? Are you going to float a separate joint venture or separate company or will this be part of listed operations as the tie-up will be either in one company or the other?

A: No, there is no separate company or anything like that. It is a business arrangement where there are many products that we are making and can make going forward. There are many products and markets in which they are present. So, wherever synergies can exist, we can leverage each other's strengths. We are going to do this.

Q: So, will it be a marketing alliance?

A: We will be participating in manufacturing and they will be participating in marketing. So, it is a product development, manufacturing, and marketing kind of scenario.

Q: Will there be a financial tone to this tie-up as well? Orchid is dealing with some previous debt issues, will Ranbaxy also be pumping in cash for this alliance that you might perhaps use for clearing out debt for Orchid?

A: There is no such thing that is envisaged as part of this alliance.

Q: What is the proportion for this strategic alliance, is it going to be a 50-50 tie-up or is it just going to be a marketing understanding that you have?

A: It is product specific for each market. There is nothing like percentages or anything. But for each product if it makes sense for us to produce and for them to sell and we garner some market share and have topline and bottomline impact for both companies, so why not this approach.

Q: At this point, you are not in any conversation with the Ranbaxy management on whether or not you want to divest more stake or sell some additional stake to Ranbaxy?

A: No, the stake is not a part of our discussion at all. That is an independent transaction that happened. I told you the holding that they have in Orchid. There is no stake discussion or no stake sale from our side or any such thing has ever happened.

Q: Have you had any conversations with the large institutional investors because we understand that you were speaking with them about what they plan to do in terms of their stake holding in Orchid? Any sense of what their plan might be over the next few weeks and months?

A: I think individual shareholders' plans are best left to the shareholders because it is their call basically. So, I have no comments to make on those things.

Q: When does this marketing alliance kick off?

A: As soon as possible, because it has just been entered into a memorandum of understanding and then the operating teams will take it forward from a product-market perspective.