Emami Group The Emami group is looking to restructure the business of its recent acquisition, the Mumbai-based pharma firm, Zandu Pharmaceutical Works. A Rs 2,000 crore diversified group with interests in the FMCG sector, healthcare and realty, Emami also plans to recast its realty business managed by group company Emami Realty.

Speaking to mediapersons after a board meeting in Kolkata on Monday, Emami Ltd CFO & president N H Bhansali said: "The move is part of the group’s overall corporate strategy to reorganise and realign its businesses after taking into account multifarious factors including the commercial angle, corporate governance issue, tax options as well as costs."

"We have formed a separate committee to weigh and evaluate all options including merger, demerger or other alternatives and evolve a restructuring plan for itself, its subsidiary Zandu Pharmaceutical Works and its wholly owned subsidiary, Emami Realty," Mr Bhansali added. Emami Ltd is the group flagship as well as the holding company of both Zandu Pharmaceutical Works and Emami Realty.

Incidentally, the board of Zandu Pharmaceutical Works met separately in Mumbai and formed a committee to consider various options to help realign its business with the holding company, Emami Ltd.

Elaborating, Mr Bhansali said, "for starters, the committee of both Emami Ltd and Zandu Pharmaceutical Works intends to appoint advocates, legal advisors, valuers as well as merchant bankers to get expert advice for the same.”If all goes well, both the committees will take atleast a little more than 30 days to evolve a feasible restructuring plan."

It may be mentioned that following acquisition of 72% controlling bloc of Zandu Pharmaceutical Works in mid-October, Emami Ltd has been looking to consolidate Zandu’s business and become a dominant player in the FMCG segment. Since the company has tremendous growth potential, Emami intends to tap them to improve its topline as well as bottomline.