Sanofi India announced on Wednesday that its board of directors has approved the demerger of its consumer health business into its proposed wholly owned subsidiary Sanofi Consumer Healthcare India (SCHIL), subject to shareholder and regulatory approval.

Sanofi will retain a 60.4% stake in both entities following the proposed demerger, and Sanofi India shareholders will receive a SCHIL equity share worth $10 for each equity share held.

SCHIL will be listed on the BSE and the National Stock Exchange, subject to regulatory approval.

The company expects SCHIL to be fully operational by the second half of 2024.

Employees who transition to SCHIL will have continuity of service and the same terms when the demerger becomes effective. The consumer healthcare business generated approximately 730 crore in revenue, accounting for 28% of Sanofi India's revenue in the fiscal year ended 31 December 2022.