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Grapevine: Fosun to buy 2 Pfizer factories; Sunil Mittal to up stake in CG Power
Photo Credit: Reuters

Gland Pharma, owned by Chinese firm Fosun Pharma, has emerged as the front-runner to acquire the two factories in Chennai and Aurangabad of Pfizer as the American drug maker has decided to sell them as part of its optimisation drive, a person in the know told The Times of India.

Meanwhile, Bharti Enterprises founder Sunil Mittal is aiming to lead the domestic operations’ revival of fraud-hit CG Power & Industrial Solutions Ltd along with other institutional shareholders, by ploughing in working capital, among other things, three people in the know told The Economic Times.

Mittal’ SBM Holdings stake in CG Power stood at 8.3% as on June 30, which according to the persons, the Bharti Enterprises founder is looking to raise. The idea is to take over the management control, the persons added.

“CG Power’s businesses can be separated into three buckets: the operating business in India, holding and investment companies, and the loss-making international businesses. The operational India business is what holds most of the assets and is attractive,” another person said.

“The equity investors are working with the lenders to recast the loans,” said another. 

In another development, state-run Energy Efficiency Services Ltd (EESL) plans to tap into the capital markets at a valuation of about Rs 5,000 crore ($701.4 million at current exchange rate), according to financial services company Investec.

“I have a capital expenditure requirement of around Rs 25,000 crore over the next 3-4 years,” Saurabh Kumar, managing director of EESL said in an interview to Mint. “We will look at listing next year and then we will decide when to do it.”

NTPC Ltd, Rural Electrification Corp. Ltd (REC), Power Finance Corp. Ltd (PFC) and Power Grid Corp. of India Ltd own EESL. 

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