Business
Archived — This article has been archived. The information may be outdated.
RPG Life Sciences spends Rs 215 crore on APIs
Livemint··6 Sept
RPG Life Sciences spent Rs 215 crore buying 2 API makers in 5 weeks, Mint reported. Its API unit will buy Actis Generics for Rs 80 crore and Raghava Life Sciences' API business for up to Rs 135 crore. InvAscent is putting Rs 243 crore for a 40 percent stake. Up to Rs 700 crore is earmarked for more deals.
Prism
What It Means For You
- RPG is chasing China-plus-one supply contracts by owning more of the ingredients chain.
- API-unit capacity rises from about 110 kilolitres to roughly 505 kilolitres after the deals.
- Further acquisitions remain possible with the Rs 700 crore inorganic pool, Mint reported.
What's Happening
- Managing director Ashok Nair said customers want diversified sourcing beyond single-country risk.
- Raghava adds an EU-GMP and WHO-GMP plant near Hyderabad and 29 molecules.
- Brokerages described APIs as a medium-term growth driver after the purchases.
The Growth Target
- Nair said RPG grew from Rs 200 crore to Rs 700 crore in 5 years and wants Rs 1,000 crore.
- He pegged the Indian API market at upwards of Rs 1 trillion, growing about 8 percent a year.
- Raghava earned about Rs 19 crore last year; analysts see room to scale toward Rs 200 crore.
all-news
