|
RL Fine Chem divests 70% stake to Chandrapore Estates & MAPE Advisory Group, scouts for pharma buyouts
|
|
Nandita Vijay, Bengaluru
June 22 , 2017
|
|
|
RL Fine Chem has divested its majority stake to Chandrapore Estates and
MAPE Advisory Group. The share holding pattern is now 40 percent with
Chandrapore Estates, 30 percent each held by MAPE Advisory Group and the
promoter of RL Fine Chem. The company is now eyeing for potential
acquisitions of pharma companies to chalk out its inorganic growth path.
Following
the restructuring of the company, Jacob Mathew, managing director and
co-founder, MAPE Advisory Group takes over as the chairman of RL Fine
Chem. “The key reason for our divesture is that it is becoming extremely
difficult for a small and medium pharma enterprise to sustain
operations in a volatile industrial environment. This is despite our
company being a profitable venture and confident to touch INR 230 crore
turnover in fiscal 2017-18”, Anjan K Roy, founder and former managing
director, RL Chem told Pharmabiz in an interaction.
The company
had also gone on to acquire a 42.5 percent in the Hyderabad-based Lee
Pharma which has its advanced manufacturing facilities in API,
pellets-granules and formulations. “Our strategy here is to embark on
forward integration”, said Roy who now prefers to play an advisory role
in the operations.
The Bengaluru-based RL Fine Chem is a
much-sought after exporter of APIs in the area of antidepressant,
antihistaminic, antipsychotic and anti spasmodic drugs among others. It
exports 75 percent of its APIs to 60 countries and 39 percent of its
international revenues come in from the regulated regions of North
America, European Union and Japan besides Latin America. While the
remaining earnings come from the non-regulated and domestic markets.
“On
similar lines is Lee Pharma’s performance in the global regions and we
intend to jointly increase our regulated market presence. Globally,
there is an increasing demand for generics. Therefore, we a see
promising opportunities to spur export earnings”, said Roy.
The
34 year-old company has approved facilities by US FDA, Japan Govt,
AFMC, COFEPERIS and CEP. Of the four units, two plants are in the
Yelahanka Industrial Area in the outskirt of Bengaluru one each at
Hindupur in Anantapur district , Andhra Pradesh and Gauribidanur in
Kolar district in Karnataka.
The key intent of the company is to
focus on the vertical growth of the company. This according to Roy is
possible only if RL Fine Chem enhances its competitive position in the
global market. “We need to sustain the growth momentum driven by global
market orientation for our products by devising dynamic strategies.
This could happen only by acquiring companies with new product
portfolios, technology and skills that can enable reinstate our global
presence.”
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|