CESC Ventures Ltd. expects its latest acquisition to boost its intellectual property and help introduce new pharmaceutical products to the market, refuting suggestions that it was made at a premium.
Herbolab India Pvt. Ltd. is a high-growth company and its previous year numbers may not be a fair assessment, Suhail Sameer, director of CESC Ventures, told BloombergQuint in response to emailed queries, referring to more than Rs 32 crore the RP-Sanjiv Goenka group company paid for 64 percent stake in the maker of ayurvedic medicines under the Dr Vaidya's brand. Herbolab's sales in the ongoing financial year will be much higher on an annualised basis, he said.
Herbolab reported revenue of nearly Rs 2 crore for the year ended March at a market value-to-revenue ratio of 25 times—higher than listed peers Dabur India Ltd.'s over 8 times and Emami Ltd. nearly 6 times.
The company, CESC Ventures said in an exchange filing, brings synergies to its business and long-term plans. Dr Vaidya's, according to its website, makes herbal medicines for ailments like allergies, cold, cholesterol and weight-related problems.
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