Mumbai: Domestic pharmaceutical company Glenmark Pharmaceuticals has decided to divest its wholly owned subsidiary, Glenmark Laboratories, for a consideration of Rs 35 crore.

A meeting of the board of directors is scheduled on 14 February 2003 to consider the divestment process, which is subject to shareholders’ approval. The subsidiary is being taken over by Mark Saldanha and his associates.

The company has informed the Bombay Stock Exchange that the proceeds will be utilised for retiring debt and strengthening its international operations.

The 14th board meeting would also consider the sale of its manufacturing plant at Verna, Goa. The plant at Verna was being utilised to manufacture generic formulations for export to Russia, Africa and South America.

Glenmark Pharmaceuticals had plans to tap the huge generic opportunity available in the international market. The company intended to enter the generic market in the US and other countries through Glenmark Laboratories.

The company also intended to increase the authorised share capital to Rs 75 crore from the existing Rs 25 crore by raising the preferential share capital of Rs 40 crore and Rs 10 crore of the unclassified share of the company.