Nicholas Piramal India Ltd has bought out the balance 50 per cent stake in Sarabhai Piramal Pharmaceuticals Ltd from Ambalal Sarabhai Enterprises (ASE) for Rs 69.3 crore (Rs 693 million) in an all cash deal to consolidate its presence in pharmaceutical business.

The board has approved a proposal for acquisition of balance 50 per cent stake in SPPL held by ASE and the buy-out is in line with the objective to consolidate its pharma portfolio, NPIL chairman Ajay Piramal said in a release in Mumbai on Friday.

This acquisition would elevate NPIL's to fourth position in the domestic market with 4.4 per cent market share, Piramal said adding, the deal would improve NPIL's rank in therapeutic segments like pain management (from seventh to first position) and respiratory (from fourth to second slot).

NPIL had invested Rs 22.5 crore in SPPL and received dividend aggregating Rs 24 crore till FY-03. The profits for FY-04 would fully accrue to Nicholas Piramal, the release said.

SPPL, which commenced operations in 1999, posted sales of Rs 180 crore (Rs 1.80 billion) with profit after tax at Rs 17.65 crore in FY-03.

It has 12 brands, including Suganril and Pentids, under its wings, it said.

Following acquisition, NPIL's field force would grow to 2,805 from 2,010 at present.