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What made the US FDA issue a warning letter to Sun Pharma’s subsidiary Caraco?

The US FDA had issued a warning letter to Sun Pharma’s subsidiary Caraco Pharmaceutical Laboratories on Oct 31, 2008. The letter is now available on the FDA site detailing the reasons why the warning was issued. It points out deviations from current Good Manufacturing Practice (CGMP) regulations for medicines. These deviations were detected in an inspection between May 1 to June 11 2008, and are mainly due to issues related to quality control. Continue Reading →

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Crisil sells subsidiary in a MBO deal

Crisil, the credit rating agency, has sold a majority stake in Gas Strategies Group, in a management buyout transaction. Crisil had paid 1.5mn pounds to acquire a 100% stake in the Gas Strategies Group (then known as EconoMatters) in December 2003. As of December 2007, it held 400,000 shares of Gas Strategies Group with a book value of Rs 16.2 crore.
 

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Fertiliser companies get liquid

The government has issued 7% fertiliser bonds worth Rs 10,000 crore to 23 companies, representing the subsidy given during FY09. These bonds are not eligible to be kept with banks as SLR but can be bought by insurance companies, in the ‘other approved securities’ list and as special bonds by PF/Gratuity/Superannuation funds. Moreover, they can also be eligible for repo transactions.
 

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Tata Motors opens public fixed deposit tap

Company fixed deposits (FD) were once hot with companies and investors. They enticed investors with slightly higher interest rates and offered a little more to shareholders and investors. But as the fund raising options before corporates increased and India entered into a stable and falling interest rate regime, companies began to close their FD schemes. The main reasons were the slightly higher interest rates, commission to agents, administrative costs and compliance which made it unatttractive.

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Maruti Suzuki’s sales plummet in November

Maruti Suzuki’s sales flash for November’08 looks scary and explains why the auto industry is going on a production slowdown. It sold 52,711 cars during November 2008, down a fifth from the same period last year, and domestic sales were down 27% to 47,704 vehicles. In October –which people thought was a bad month– the respective figures were 7% and 8% respectively.
 

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Carborundum in Rs 250 crore expansion at Volzhsky Abrasive Works

Carborundum Universal (Cumi), the Murugappa group owned industrial abrasives company, is adding to its silicon carbide capacity in Russia, through Volzhsky Abrasive Works (VAW), the company it acquired in September 2007. It will spend $50mn or about Rs 250 crore to build a new plant in the Volgograd region, Russia.
 

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Sun Pharmaceuticals to pay 2x revenues to acquire Chattem?

Sun Pharmaceuticals has acquired Chattem Chemicals Inc, a US-based pharmaceutical company, which makes $26mn in revenues from selling bulk drugs. Chattem had been acquired by Elcat Inc in 1995 from Chattem Inc, for $25mn. Sun has not disclosed the acquisition price but we will try to make some educated guesses.
 

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JSW Steel and Severfield Structures form JV for steel structurals

JSW Steel, India’s third largest steel-maker, will make steel structurals in a joint venture with Severfield Structures. JSW Severfield Structures will be a 50:50 JV, with JSW’s investment being routed through a subsidiary, JSW Building Systems. The JV will spend ₤30mn pounds or Rs 220 crore to set up a plant that will fabricate 35,000 tonnes of structural steel.
 

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