According to people with knowledge, Mankind Pharma and Baidyanath Ayurveda are two of the businesses that have made expressions of interest (Eols) to purchase all of the government-owned Ayurvedic company Indian Medicines Pharmaceutical Corporation (IMPCL).
According to people with knowledge, Mankind Pharma and Baidyanath Ayurveda are two of the businesses that have made expressions of interest (Eols) to purchase all of the government-owned Ayurvedic company Indian Medicines Pharmaceutical Corporation (IMPCL). According to the previously mentioned reports, a private equity fund and an asset reconstruction business are among the other bidders.
When approached by ET, Patanjali Ayurveda—which was largely anticipated to take part in the bidding process—denied filing an Eol.
“Many accolades were given to IMPCL for its calculated disinvestment. The second step of the transaction will now proceed,” tweeted on October 30 Tuhin Kanta Pandey, secretary of the department of investment and public asset management.
In FY22, the company’s top line brought in ₹250 crore, with a profit margin of approximately 25%.
The government-owned business, which was founded in the 1970s with the goal of advancing Indian medical systems, is a significant supplier to clinics and dispensaries that are part of the Central Government Health Scheme (CGHS).
In September, the government sent out a worldwide invitation to Eol for the planned strategic disinvestment of all 100% of its equity holdings in IMPCL.
The Ayush Ministry is in charge of the company’s administration. Ayurveda, yoga, naturopathy, unani, siddha, and homeopathy are all shortened to “Ayush.” When reached, Mankind Pharma and Baidyanath declined to comment.
Sale process structure
There are two stages to the sale process structure.The first step involves interested bidders submitting Eols, which are subsequently assessed for eligibility based on the company structure and net worth standards specified in the government-supplied information papers.
Shortlisting the Eols
Upon shortlisting the suitable Eols, the bidders will move on to the next phase. They will be permitted to visit the company’s locations and perform due diligence at this point.
Following the completion of due diligence, interested parties will be sent an RFP (request for proposals) to submit financial offers. The Ministry of Home Affairs will concurrently need to provide security clearance to the bidders. Following clearance, financial bids in a sealed cover will be accepted from the cleared bidders. The government will value the business independently and determine a reserve price. Financial bids will be available when the reserve price is announced, with the highest bidder being named the winner.
When IMPCL was founded in 1978, its goal was to produce and distribute authentic and effective Indian herbal remedies.
Jan Aushadhi Kendras
Currently, the company produces 71 unique, 332 Unani, and 656 classical Ayurvedic medications for a wide range of illnesses. The company provides fair-priced government-owned medical stores, known as Jan Aushadhi Kendras, with 6,000 locations and all states covered by the National Ayush Mission (NAM) with Ayurvedic and unani medications.
IMPCL is situated in the Jim Corbett National Park corridor in the valley of the Uttarakhand hills. The plant and registered office of the company are located in Mohan, in the Uttarakhand district of Almora.
