Aug 05
2008

Battle for Zandu rages

Posted by Dstreet dreamer in zanduemamicompany analysis

 

All eyes are on Zandu as the company gears up for its AGM on this Saturday.

With Emami showing keen interest in partnering the Zandu management and the latter brushing the offer aside, the 100 year old Ayurvedic Company may witness a hostile take over.

Its going be a no-holds-barred battle with Emami making an all out effort and Parikhs at Zandu trying their level best to block it.

As the battle rages, few questions arise:

  1. What has Zandu management done
e the 100-year-old brand?
  • Why is that the brand is being allowed virtually disappear from the fiercely competent market?
  • Why has growth at Zandu slowed down?
  • The very mention that Emami is interested in Zandu has resulted in the latter's stock price hitting the roof. If that is the value that a stakeholder can derive, what could be the future scenario like?
  • Why is Zandu management resisting attempts to bring in professionalism into the company?
  • Why have they elbowed out the original promoters - the Vaidyas?
  • Vaidyas say they are keen to protect the interests of the company and keep their ancestors name alive - will somebody listen to them?
  • Pl chk this link for an interesting story: http://www.moneycontrol.com/india/news/business/why-did-devkumar-vaidya-sell-out-zandu-pharma/21/00/350416



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