Johnson & Johnson Sells Its Largest Plant To Hetero
The world’s largest healthcare company, Johnson & Johnson, is seeing a decline in its consumer product demand in India, which leads to selling the largest manufacturing plant in the country at Penjerla in Telangana.
The plant has been acquired by Pharmaceuticals firm ‘Hetero’ for Rs 130 Crore, and it would invest an additional Rs 600 Crore on its upgradation. The firm said that the brownfield manufacturing facility with the land, plant & machinery had been acquired from J&J Pvt. Ltd. in a sale without disclosing financial details.
The J&J Telangana plant, which produces consumer healthcare products, including a baby care range, beauty range, earbuds, electrolyte drinks, and oral & skincare lines, is spread across 55.27 acres. The plant was built in 2016 with the aim of accelerating the sale after an impairment charge of about Rs 310 Crore.
With this acquisition, it would be Hetero’s flagship sterile pharmaceutical and biologics manufacturing unit and is expected to generate 2000 new jobs, the company said in the statement.
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This is the second plant sold by J&J in the country. The last plant was sold this year only (2022) in Himachal Pradesh’s Baddi as part of a strategic management decision. This is not all; last month, the Food and Drugs Administration Agency cancelled the J&J license to manufacture baby care powder after talc samples collected by Nashik and Pune failed quality checks.
Johnson & Johnson’s sales hit severely after the allegations of asbestos contamination in its top-selling talc-based baby powder. In August, the company said it would stop selling talc-based baby care products globally in 2023.
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