Mumbai, Dec 22 :    Mumbai, Dec 22:  Nicholas Piramal India today announced that it has acquired a 40 per cent stake in Rhone Poulenc (India) Ltd at a total cost of Rs 157.5 crore, the largest-ever deal in the local pharmaceutical industry. The cost of the acquisition will go up further to Rs 240 crore in case its open offer for an additional 20 per cent stake from Indian shareholders is fully subscribed. The acquisition will make Nicholas Piramal the second largest player in the pharmaceutical industry behind Glaxo-Burroughs Wellcome and leave behind Cipla and Ranbaxy with the number three and four spots. By virtue of this acquisition, it will become the largest 'Indian' pharmaceutical company. On Tuesday, Nicholas Piramal will seek Sebi's approval to make an open offer to minority shareholders for an additional 20 per cent stake in RPIL at Rs 875 per share, the same price at which it acquired shares from Aventis Pharma. Ajay Piramal, chairman of Nicholas Piramal, told reporters: 'The acquisition will add strong brands with excellent profitability and growth potential to our portfolio. Our products complement each other well and RPIL's sales strengths can be the ideal launching pad for our new products'. The acquired company will change its name within six months. However, RPIL's current brands in the Indian market are now licensed in perpetuity from Aventis Pharma to RPIL, both in the country and in some neighbouring countries. The company will have considerable flexibility in taking key decisions regarding the brands, including line extensions, composition and sourcing. DSP Merrill Lynch advised Nicholas Piramal on the transaction. Shitin Desai, vice-chairman managing director of DSP Merrill Lynch, said a 100 per cent subsidiary has been created called NPIL Finvest Co Ltd which will borrow money to finance the acquisition. The company brings itself a very strong portfolio in therapeutic areas such as the respiratory segment. Wockhardt was one of several contenders vying to take over the Aventis arm. However, Ajay Piramal later said, his company had a history of several transactions with the foreign group. On being asked whether the two companies would eventually merge, Piramalsaid, 'We have not decided on the issue,' he added. RPIL currently has a 438-strong sales and marketing team covering 120,000 doctors and 40,000 pharmacies across the country. It has four brands among the ORG Top 300 and a well-established presence in cough & cold, anti-emetic, anti-epileptic, anti-diarrhoeal and anti-histamine segments. RPIL is ranked 27th by ORG with a 1.12 per cent market share in India. It had a sales turnover of Rs 235.7 crore and a net profit of Rs 36.9 crore in the fiscal year 2000.