Mumbai, Oct. 2: Numico NV is pulling out of India by selling Nutricia India Ltd to a consortium of four domestic companies for an undisclosed sum. The consortium, headed by Mirage Impex Pvt Ltd, is headquartered in Mumbai.
Numico said the divestment was in line with its objective of becoming a high-growth, high-margin specialised nutrition company.
Nutricia India had contributed negatively to its pre-tax profit in the first half of 2003, it added. “Nutricia India is a low-margin start-up operation in dairy and baby food products, comprising a production facility in Etah, a head office in Mumbai and several sales units in various regions in the country,” it added.
The transaction is subject to approval by the Reserve Bank of India and is expected to be completed in the fourth quarter of 2003.
Royal Numico is a leader in specialised nutrition, including baby food, clinical nutrition and nutritional supplements. The company operates in over 100 countries. The specialised nutritional products are targeted at various consumer groups, including infants and people with specific nutritional needs and health-conscious adults.
In 1999, Royal Numico NV had reached an agreement for the acquisition of the dairy business of Hindustan Lever Ltd. The company had then said with this acquisition, it would focus on the production of consumer goods, infant milk formula and baby food for the local market.