The new company will be called Boots Piramal Healthcare Limited (BPHL) and will focus on developing and marketing healthcare products in the country, a press release from NPIL said.

Boots, which is an established player in the over-the-counter self-medication segment, will initially market only some of its products, Strepsils and Icy (lozenges) and Sweetex, an artificial sweetener, through the new firm. Lobate and Melalite, both NPIL dermatological product brands, will also be marketed by BPHL.

These brands together notched up sales of Rs 248 million in India for 1997-98. Both parties are looking to expand this figure significantly in the coming years, the release said. BPHL will make use of NPIL distribution network in the country to market these products. The pharmaceuticals market in India is estimated to be around Rs 140 billion with the OTC market accounting for Rs 14 billion.

The Boots' brands were so far marketed by NPIL in India under a licence agreement. The licence will terminate once BPHL becomes operational. The firm will be headquartered in Mumbai employ around 50 people. Boots is 274 million pound company headquartered in Nottingham, England.