SABMiller Plc buys stake in Shaw Wallace Breweries (SWB)

27th May 2005: Global brewing major SABMiller Plc today acquired 50% stake of Shaw Wallace Group in the brewing operations of their joint venture, Shaw Wallace Breweries. The acquisition has been done through SABMiller's Indian subsidiary, Mysore Breweries Ltd for an undisclosed sum.

With the acquisition of the 50% stake, Mysore Breweries now controls 99% stake in the joint venture which was formed in 2003 with the rest of shares held by third party minority investors. The acquisition is a part of SABMiller's consolidation strategy in the Indian beer market.

"Beer consumption in India remains around 1 litre per person per year as against 20 litres in comparable developing markets. With the GDP growing over 6%, India has the economic potential to be a leading beer market and SABMiller is well placed to benefit from this growth," SABMiller Africa and Asia Managing Director Andre Parker said in a statement from Johannesburg.

SABMiller had invested US $132.8 million for its stake in the 50:50 joint venture with the Shaw Wallace Group. SBW's brewing operations comprise 10 breweries which supply across India brands, including Hayward's 5000, Royal Challenge premium Lager, Knock Out and Castle Lager.

Samtex Fashions Board to consider merger of SSA International

25th May 2005: Samtex Fashions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2005, to consider the option of appointment of Merchant Banker to advise the Company for merger of its 100% subsidiary Company SSA International Ltd with the Company (parent).

Presently SSA International Ltd is engaged in the commodity export business i.e. Basmati Rice with Equity Capital of Rs 88.50 million. SSA International Ltd has achieved the turnover of Rs 1950 millions in the financial year 2004-2005 with the net profit of Rs 27.30 millions. The Company is marketing its product with the brand name Delight NY, SSA and 272.

Sun Pharmaceutical to raise stake in US arm Caraco to 80%

25th May 2005: Sun Pharmaceutical has decided to increase its holding in US subsidiary Caraco Pharmaceutical to 80% from the present 69%. “In FY05, we increased our holding in Caraco to 69% from the earlier 63%. Our shares-for-products swap agreement with the Caraco management allows us to increase our holding in Caraco to 80% in the next 15 months. There will be a major ramp-up in the number of products to the US. Both Caraco and Sun are filing about 20 Abbreviated New Drug Applications (ANDAs) in the coming fiscal. This has created a need to increase capacities,” a senior Sun Pharma official said.

The local company’s move assumes significance as it is trying to turn multinational. Sun Pharma is targeting over 50% of sales from foreign markets. Its new strategy includes selective large buyouts in the US and in India, and JVs in the UK, Germany and France, besides strengthening drug discovery.

“Overall, we are looking at raising our overseas earnings from 20% to 50% over two years. We will go for one more acquisition in the US and will enter UK, France and Germany via tie-ups,” the official said. Sun Pharma will use proceeds from its $350m FCCB issue for its overseas plans. “We are in talks with various US and European companies,” he added. Sun Pharma has a strong presence in therapeutic segments like psychiatry, neurology, cardiology, diabetology, and gastroenterology, which make up for 70% of the domestic formulations sales.