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Piramal Enterprises (PEL) is considering a re-entry into the domestic formulations business, according to a report by Mint.
The development comes eight years after the Ajay Piramal-led conglomerate sold its portfolio to US-based Abbott Laboratories for $3.72 billion. Moneycontrol could not independently verify the report.
Chairman Ajay Piramal said the company's non-compete pact with Abbott for the formulations business ends in September, and the company will be reviewing whether or not it wants to re-enter the segment.
Before selling it to Abbott, Piramal manufactured, marketed and sold branded pharmaceutical products in India, Nepal and Sri Lanka through its domestic formulations business.
However, despite selling the business, Piramal retained operations such as critical care, over-the-counter consumer products, custom manufacturing for third parties, manufacture and supply of active pharmaceutical ingredients, diagnostic medical devices, and equipment and diagnostic services.
The company is also considering setting up an asset management business as part of its strategy to focus on fee income, the report stated, citing a top company official.
Piramal Enterprises on Monday posted a huge jump in its March quarter net profit to Rs 3,944 crore, benefiting mainly from a Rs 3,500-crore tax write-back on the merger of subsidiary firms. Its profit for the corresponding period last year stood at Rs 311 crore.
Normalised for the gain, the Mumbai-based company's bottom line grew by 21 percent to Rs 375 crore, having been restricted by an increase in tax outgo.
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