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The proposed demerger of the Piramal Group’s pharmaceutical business is on track and is expected to be completed by the third quarter of this financial year. “It’s going as per schedule and I think by October-December quarter, we should be listed and demerged,” Ajay Piramal, chairman of Piramal Group, said.
In October last year, Piramal Enterprises Ltd has approved the demerger of its pharmaceutical business – Piramal Pharma (PPL) via composite scheme of arrangement. PPL’s two wholly-owned operating subsidiaries will be also merged with it. Post the merger, PPL will become one of the largest pharma companies to be on NSE and BSE.
It also had approved the amalgamation of PHL Fininvest with PEL, that will create a listed non-banking financial services entity. The merged housing finance company, post DHFL acquisition, will remain a wholly-owned subsidiary of PEL. Speaking at the FE’s Modern BFSI Summit, Piramal stressed on for a much more supportive financial system, where more credit can be given without “unnecessary risk”.
In his address, Piramal also said that India is also stronger position than most countries, but to reach $10 trillion economy by 2030, growth of banking and financial sectors are “really important”. “Today, to grow at 8%, the growth in the financial sector has to be at least 16-18%. And if you see the numbers in the last several years, it has been just about 9% credit growth,” he added.
“In India, private debt to GDP is just about 54%, whereas in China, if I am not mistaken, its almost like 190%. These are the growth engines that are there, but we are not doing that. And my feeling is that we will have many more banks and NBFCs in the country,” Piramal said. Today, India, for its size of population and size of economy, has just 45 banks, whereas the US has about 4,500 banks. “So, this is not sustainable,” he added.
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