Drugmaker Lupin creates a separate entity for its consumer healthcare business

 Earlier this year, Lupin had said it was transferring its OTC consumer healthcare business to a wholly owned subsidiary for ₹550-650 crore. 
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Drugmaker Lupin has created a separate entity for its consumer healthcare business, LupinLife Consumer Healthcare Ltd, as a wholly-owned subsidiary from July 1^st, the company said.

In a move similar to its industry-peers who created separate outfits for consumer healthcare, Lupin said, its specialised consumer healthcare entity will focus on India’s rapidly growing self-care market. Drugmakers including Cipla, Glenmark and Mankind Pharma, besides international drugmakers Sanofi, to name a few, have adopted a similar strategy.

Anil Kaushal will lead Lupin’s new independent entity as Chief Executive Officer, the company said, adding that the restructuring would enable enhanced focus with targeted investments.

Earlier this year, Lupin had said it was transferring its over-the-counter (OTC) consumer healthcare business to a wholly owned subsidiary for ₹550-650 crore. The rationale in separating OTC as an independent entity positioned it “to thrive in the rapidly growing OTC market while allowing it to sharpen its focus on core strengths in prescription drugs,” the company had said.

The revenue of the OTC consumer healthcare business for FY24 for brands proposed to be hived off was about ₹148 crore, or about 1 per cent of the turnover of the company on a standalone basis for FY24 (₹14,666 crore), it added.

Since inception in 2017, LupinLife Consumer Healthcare has emerged with its portfolio of scientifically formulated brands including Softovac, Beplex Forte, Corcium and Aptivate, the company said.

branching out

Explaining why pharma industry players are choosing to spin-out consumer healthcare, Krishnanath Munde, Associate Director, India Ratings and Research Pvt Ltd said, companies were started and built with a pharma focus, and today they find they have strong consumer healthcare and OTC brands, as well. Having achieved a certain size, they are carving-out consumer healthcare to streamline operations and focus between prescription-driven medicines business and the OTC products (that would have a more FMCG-style of promotion.)

Also, it will help bring in funds to fuel growth, as companies could look at a possible listing of the entity, he said. With the parent companies being listed entities, it would not be difficult for the subsidiary to also take that path, he said. Last year, for example, Sanofi Consumer Healthcare India Ltd listed on the BSE and National Stock Exchange (NSE).

Published on July 1, 2025