Twilight Litaka Pharma Ltd (TLP) is looking to sell its manufacturing unit located at Baddi in Solan district in Himachal Pradesh, to Herbalife International India Pvt Ltd, a subsidiary of US-based Herbalife International, for Rs 20 crore ($3.45 million).
Herbalife is a nutrition and weight-management company which is operating in 66 countries through a network of over 1.8 million distributors.
In 2007, TLP had partnered with the US-based nutrition company to develop new products of Herbalife for its business in India and to manufacture its food supplement products for the Indian market at the Twilight Group facility at Baddi. Now, it is selling the entire unit to Herbalife. It has proposed to sell the plant and has sought shareholders’ nod for the deal.
The firm has also sought approval for either selling or jointly developing real estate assets in Pune for at least Rs 27 crore. The deals are part of the company's plans to cut debt through sale of non-core assets.
Shares of TLP closed at Rs 3.42, down 3.93 per cent in a weak Mumbai market on Tuesday.
Mumbai-based TLP manufactures drugs and formulations in the form of tablets, capsules, ointment and liquids. It develops drugs in major therapeutic segments such as analgesics, anti-inflammatory, anti-asthmatic, antibiotics, anti-bacterials, vitamins, haematinics and cardiovascular. The company exports its products to over 30 countries across Africa, South America as well as Southeast and Central Asia.
(Edited by Joby Puthuparampil Johnson)