epages News [Health Clubs, August 2003]

• Escorts Heart under I-T scan
• Himalaya Herbal to form JV with Mexican Co.
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Escorts Heart under I-T scan

Aug 22, 2003: New Delhi: The Investigation wing of the Income Tax Department of Chandigarh and Delhi on Thursday launched surveys on Escorts Heart Institute and Research Centre to ascertain tax implications of the conversion of assets of this centre from charitable purposes to commercial purposes for the benefit of private persons. The transfer of assets to a private society was done through by a general body resolution on April 1, 2000. "The Investigation wing of the IT department is trying to ascertain whether these assets were used to further the interests of members of the society and if so the tax implications", said sources. The department is now perusing the documents impounded during the course of the survey.

The surveys come after the Escorts Heart Institute has been in the thick of a controversy on its conversion from a charitable status to commercial purposes. The survey was carried out by the department at the Escorts corporate office in Faridabad, its registered office in CP and the Heart Institute. When contacted, an Escorts spokesperson confirmed that survey was being conducted and said it was relating to the heart institute.As reported by ET, there have been differences in the Nanda family on the future of the Escorts Heart Institute. Anil Nanda is opposing the divestment in the institute to a private equity fund, Merlion for Rs 65 crore and says it should revert to the charitable institution status as it was set up by his father, H P Nanda. Rajan Nanda has been expressing his stand that his brother has stepped down from five group companies as part of a settlement and does not hold executive powers in these companies including Escorts Heart. He also believes that due process of law has been followed in the divestment and structure of Escorts Heart.

Himalaya Herbal to form JV with Mexican Co.

Aug 23, 2003: Mumbai: The Bangalore-based Himalaya Herbal Healthcare will be entering into a joint venture with a Mexican manufacturing company in the near future. The agreement is for manufacturing Himalaya’s pharmaceutical range of herbal products and could be extended to the company’s other products. “We are close to finalising the deal to provide the technology for the manufacture of herbal medicines in South America and we will also look at co-marketing of the products,” says Ravi Prasad, president and CEO of Himalaya.

The facility will cater to the Mexican and Brazilian markets initially and subsequently to the entire South American market. If the deal goes through, this will be the first unit to manufacture Himalaya’s products in South America and the third such unit outside the country. Himalaya has recently set up similar units to manufacture and market herbal and healthcare products in Egypt and Syria. According to the agreement, Himalaya will provide the know-how and expertise to set up the plant, to commission it and will also supply raw materials for the manufacture of the herbal products. The company, however, is not planning any financial investment in the project. The Rs 300-crore, closely-held herbal healthcare company is looking for partners in other countries also for such on-shore projects. Himalaya currently has a presence in 56 countries. Most of its products are manufactured in the country and exported to its different markets. Himalaya has started working on a new research and manufacturing facility which will begin operations in ’05. “The new facility will comply with international guidelines,” says Mr Prasad.