Detergent major Nirma is leading the race to buy Glenmark Life Sciences for close to a billion dollars. Sekhmet Pharmaventures is also a shortlisted bidder for a controlling stake in Glenmark Life Sciences but has made a lower offer. Both companies have entered the final round of bidding for a stake of about 83 per cent in the company, held by Glenmark Pharmaceuticals.

In 2004, Nirma took a bet on an ailing company called Core Healthcare that made IV fluids. Nirma thought it could disrupt the game with its low-price strategy applied in the case of detergent earlier. But here’s the thing. Nirma soon found that the pharma game was very different from consumer goods. Price isn’t the only factor that pushes buyers to turn to you. There’s the quality factor too. Other small pharma players were able to match Core’s prices. And Nirma couldn’t turn things around. Big Pharma continued to reign supreme.

For Nirma, the acquisition of Glenmark will be a big diversification after it made a cement foray with the acquisition of Lafarge’s cement units. Bankers say Nirma is keen to exit the cement business if it gets a very good offer.