Nirma to shell out Rs. 300 Cr. for Core Healthcare
FMCG major Nirma is expected to shell out around Rs 300 Crore
for the acquisition of Ahmedabad-based Core Healthcare, the largest intravenous
(IV) fluids manufacturer in the country. Though a memorandum of understanding to
acquire the pharma company was signed three months ago, Nirma has since neither
announced the payment details nor the structure of the deal. Nirma has been
eyeing the healthcare sector for a while and this would give it a solid platform
in the segment.
In another related development, Mr Sushil Handa has stepped down
as chairman of the company on Thuesday. Sources say he would now focus his
entire energy on developing Claris Lifesciences Limited, a pharma company that
he promoted about four years ago. He held about 54% stake in Core.
The revenues of Core at present are close to Rs 170
mainly from the HVP segment. Its assets at Sachana, near Ahmedabad is spread
over 650 acres. ARCIL had attached 60% of Core's assets earlier this year.
Except for the lenders liabilities, all other liabilities are restricted and
marginal. Nirma would end up with lenders liability and some other small
(Ref : Economic Times Dated March 10, 2005)
Health Insurance Market And Third Party Administrators
If the business of insuring people's health involves an element
of gambling, what plagues this industry's growth is the distrust between
hospitals and the middlemen appointed by insurance firms who scrutinize a
doctor's decision for repayment. While chiefs of leading hospitals believe the
third party administrators (TPAs) appointed by insurance firms to process
claims, are too bureaucratic and often delay payments, there is criticism about
'over caring' by doctors leading to inflated bills.
Health insurance market in the country is dominated by the
mediclaim policy of public sector insurance companies (almost 80% of the market)
and their clones by private sector players like Bajaj Allianz and ICICI Lombard.
Only a marginal segment of the one billion population is covered by any form of
According to former general manager of LIC S K
state-owned companies are now forking out as reimbursement as much as they
receive as premia a year, making the products unviable. For a health insurance
product to remain viable, the outgo should not exceed 80% of the annual
receipts. A leading New Delhi-based TPA for mediclaim said the PSU policy aims
at covering the poor rather than making profit.
(Ref: Economic Times Dated March 15, 2005)