PharmEasy buys Thyrocare; deal advisor Kotak Mahindra Capital's Rajat Ranjan discusses synergies

“One should try and make a distinction between value and price. When you make a decision of merger and acquisition (M&A) kind then you tend to think of very long-term and in this case the buyer is thinking from a very long-term perspective. Therefore, the overall rationale, what the supply engine and the demand engine can do together does have a clear sense for the buyer that the synergy profile etc., can be interesting,” said Ranjan.

On the business model, he said, “This is a unique combination (PharmEasy-Thyrocare); there was no other such combination available, nothing of this nature. Eventually, the whole idea is to deliver a superlative customer experience and when that happens the price value takes care of itself and there is a business-to-business (B2B) component in the Thyrocare business, the business model is unique and this combination gives a broad drift and direction to the business combined to have more of a B2C layer, going forward.”

“So yes, there would be more business-to-consumer (B2C), there would be more online, there would be more home serve components and the value proposition eventually will be highly superlative to what is there already,” said Ranjan.

Also, watch the accompanying video of CNBC-TV18’s Prashant Nair detailing the new kids buying out the old firms.