Zydus Wellness announces that two-thirds of the deal between Heinz and India will be financed through equity.

Zydus Wellness, a member of the Zydus Group, based in Ahmedabad, announced on Nov. 2 that it would fund two-thirds of the acquisition of 4,595 crore Heinz India through equity and the balance of its loans.

do not give details on the transaction structure. However, some leading private equity firms will partner with the company through equity support. It seems that the parent company Cadila Healthcare is injecting 1,000 crores in the financing of the transaction.

"Management will provide certain options to the board and additional details will be communicated as soon as we can discuss with the board and obtain the clearances," said Sharvil Patel, president of Zydus Wellness, during a call for investors

The Zydus Group concluded last week a definitive agreement on the acquisition of private company Heinz India, together with parent company Cadila Healthcare, for a valuation of 4,595 crore.] The operation, one of the largest mergers and acquisitions in recent years, Zydus has access to brands such as Complan, Glucon D, Nycil and Sampriti Ghee, including two manufacturing sites and a strong distribution network in nationwide.

be finalized in the fourth quarter of fiscal year 19, subject to regulatory approvals.

Alluding to Brand growth strategy, especially at Complan, Patel said that Zydus would focus on segmentation and deepen rural expansion and aggressively invest in promotions.

"The biggest brand among the four is Glucon-D. However, the biggest turnaround potential is at Complan. We see multiple opportunities for these brands. Pharmaceuticals are the legacy of all pharmaceuticals. These are innovative problem-solving products that have been developed by Glaxo. It is possible to integrate science and innovation into many of these brands, particularly Complan, "said Patel.

He believes that the category of health food beverages (HFD) has been because companies have been trying to divest themselves in recent years. "" We are seeing a reduction in promotional spending, brand recall levels are over 90%, products are extremely well understood and penetration is very limited. For Complan, all the segmentation was not done, like others in the industry, "added Patel.

Zydus, he said, believes that the segmentation could be significantly expanded, in depending on age groups and their needs. "Given our strengths in innovation and science, we can customize products with improved science," he added.