India’s ‘Pharmaceutical company of poor’ to be sold soon?

By Correspondent On Aug 12, 2023

New Delhi: The country’s third largest pharma company Cipla (The Chemical Industrial And Pharmaceutical Laboratories) is likely to be sold. This company with a market cap of 1.2 lakh crores is going to be sold to a foreign company.

The world’s largest equity firm Blackstone is leading the race to buy this company. A Money Control report reported that Blackstone along with LP (Limited Partners) have made a non-binding bid to buy out the entire promoters’ stake in Cipla.

It should be made clear that Cipla is not sold yet, but the situation of being sold is favourable.

According to media reports, Khwaja Hameed’s family is going to sell its entire 33.47 per cent stake in the company. Cipla is the oldest pharmaceutical company in the country, which emphasizes on keeping the cost of the drug low, more than profit.

The company is even called the pharmaceutical company of the poor, but now this company may be sold. Started in the year 1935, i.e. before independence.

People are shocked by the news of sale of Cipla. The question that came to everyone’s mind was ‘why the company is being sold even after earning profits.’

There are many reasons including the one that the company lacks the successor. The company was started in the year 1935 by Khwaja Abdul Hameed. After his death in 1972, the command of the company was handed over to Yusuf Hameed.

Yusuf Hameed (YK Hamied) is 87 years old. Yusuf Hamid (Chairman) and MK Hamid (Vice Chairman) both belong to second generation and both are old.

For this reason, in the year 2015, he included his sister-in-law Sameena Hamil on the board of Cipla. Samina Hamid is the third generation of the Hamid family and is currently managing the company from there.