French Pharma Sanofi India to Sell Headquarters in Mumbai, Powai

Sanofi, the Indian arm of the French pharmaceutical giant, is set to divest its Headquarters in Mumbai , a standalone building in the posh Powai locality. This building, spanning over 150,000 sq ft, currently houses the company’s country headquarters.

Sources familiar with the matter revealed that Sanofi has been planning this asset monetization for almost a year.

New Office in Vikhroli:

Sanofi has secured a long-term lease for an office in Mumbai’s Vikhroli suburb to accommodate its Sanofi Consumer Healthcare division. The company is also seeking additional space to relocate other operations. The Powai asset is expected to fetch around INR 250 crore based on current property rates.

History of the Powai Property:

Sanofi’s Indian subsidiary acquired the built-to-suit office building from L&T Realty in 2013, located within the L&T Business Park. This commercial complex also houses JP Morgan and L&T Infotech. Sanofi moved its India headquarters to this property in 2015, from its previous 65,000 sq ft head office at Aventis House in Andheri.

Strategic Demerger:

In May 2023, Sanofi’s board of directors decided to demerge its consumer health business into a separate legal entity to independently pursue growth strategies. This proposal was approved by shareholders in December, and the National Company Law Tribunal, Mumbai, sanctioned the demerger in May. The new entity, Sanofi Consumer Healthcare, will operate from the Vikhroli office, which is currently undergoing fit-out.

Commitment to Indian Market:

Sanofi India’s managing director, Rodolfo Hrosz, recently stated that the company remains committed to the Indian market and plans to launch one or two products annually from its innovation portfolio.

Conclusion:

As a commercial real estate expert, this move by Sanofi to divest its Powai headquarters and relocate to Vikhroli highlights a strategic shift towards asset monetization and operational efficiency.

The expected sale price of INR 250 crore indicates robust demand for commercial properties in prime Mumbai locations. This transaction could set a precedent for other multinational corporations considering similar asset optimization strategies in the region.