Mumbai, October 3, 2024: Mankind Pharma, a reputed global pharmaceutical firm, executed a Business Transfer Agreement (BTA) to transfer its Over-the-Counter (OTC) business undertaking to its wholly owned subsidiary, Mankind Consumer Products Private Limited (MCPPL), on a slump sale basis. In Q1 FY25, the OTC business reported revenues , with an EBITDA margin of 19.5%. For FY24, it achieved a total revenue , maintaining a healthy EBITDA margin of 19.9%. This strategic realignment is part of Mankind Pharma’s broader strategy to enhance its focus on the consumer business, which currently contributes 7% to the company’s overall revenue. Mankind Pharma’s consumer products portfolio includes several trusted brands Manforce, HealthOK, Prega News, AcneStar, Unwanted and Gas-O-Fast across categories such as wellness, hygiene, and personal care products.
By subsidiarization of the OTC business into a wholly owned subsidiary, Mankind Pharma aims to better capitalize on the potential of this business segment, recognizing its unique business needs. This dedicated focus will enable in attracting the of specialized talent, tailored strategies around consumer needs and differentiated distribution channels. This move will allow the OTC business to thrive independently and will drive it to higher growth levels.
The transfer of the OTC business, will be undertaken as a going concern, meaning the business will continue to operate without interruption. As part of the slump sale, the transaction has been completed for a lump sum consideration.