Ranbaxy bids for Orchid-Combat lines in Pharmaceutical sector
Posted by seshdotcom on April 8, 2008
There is a fuss around the Pharma Industry as a slowcoach acquisition is made on the chennai based Chemical and Pharmaceutical Manufacturing Unit THE ORCHID CHEMICALS Karapakkam.A firm called Solrex Pharmaceuticals whcih sources say a Small unit of Ranbaxy Pharmaceuticals is all set to acquire some major portion of shares in Orchid chemicals around 10%.In the recent past Ranbaxy has been trying to get an niche in the Southern Market now it tries to achieve it through the Orchid Chemicals Acquisition..
The Orchid Conundrum:
Orchid shares were Bludgeoned without mercy on March 17th when Promoter Holdings of about 7.5% were Sold by Stock dealers who had lent Mr.Kailasham Raghavendra Rao(MAnaging Director and founder of Orchid chemicals)to buy those shares.And Mr.Raghavendra Rao Lost some 75 Cr Rupees in the Selloff-( in Business terminology is Selling of large quantity of shares for a low price which is typically done in a Motto of disposing them)And due to this the share lost 40% of its value one month back but now it has some how it has recovered from the Clobbering
Orchid chemicals employs some 3700 people out of which 600 are scientists and applied scientists.
The Ranbaxy group solrex is confident with the Orchid deal eventhough Mr.Rao is taking all possible steps to bilk the Ranbaxy’s Bid.
Orchid Chemicals is one among the Top 15 Pharmaceutical Companies in India for almost a Decade and mainly its products were Exported to other countries and its Growth has been Prolific in last 5 years