ANG Lifescierices India Limited to acquire Baddi Agro Pvt Ltd

The Board of Directors of ANG Lifesciences India Limited in their meeting held on 08.11.2021, had decided to invest in the Equity Shares and Redeemable Cumulative Preference Shares of Baddi Agro Private Limited. Consequent to the acquisition of 51% Equity stake by the Company, Baddi Agro Private Limited will become the Subsidiary Company of ANG Lifesciences India Limited.

Baddi Agro Private Limited has manufacturing unit situated at Baddi Himachal Pradesh (formerly known as Surya Pharmaceutical Limited) which is laced with latest machinery and located proximate to Mentha Leaf cultivation area.

The acquisition will expand its business activities for manufacturing of Menthol API Derivative and other related products.

Baddi Agro Private Limited was incorporated on 14th April-2021 for manufacturing of Menthol API derivatives and other products at manufacturing unit situated at Baddi Himachal Pradesh (formerly known as Surya Pharmaceutical Limited) which is laced with latest machinery and located proximate to Mentha Leaf cultivation area.

The cost of acquisition is Rs 11.05 Cr. consisting of Equity Share Capital of the shares are acquired Rs 2.55 Cr. and Rs 8.50 Cr. of Redeemable Cumulative Preference Shares approximately.

The plant is located on the hills on Himalayas at Baddi adjacent to other plants of ANG Life sciences India Itd having Land measuring 5955 Sq. Mtr together with all plant and machinery. This Facility is laced with latest machinery and located proximate to Mentha leaf cultivation area. The plant is ISO: 9000, GMP Certified and will manufacture Menthol oil, Menthol powder and Menthol crystals with 10000 TPA Capacity. This plant has 20% of World's Overall Menthol Capacity.

The prospect of menthol business appears attractive as the market is large, shortage perpetual and the prospect of menthol being used in every food/fragrance product is high. India produces 95% of the world's mint supply and exports 75% of menthol oil production, the balance contributed by China, Brazil and the US. Mentha oil is mainly used for making mint products, namely mint oils, menthol crystals and menthol powder. In India about 34000 tones Mentha leaves are farmed across 3,34,000 hectares. The domestic demand for Mentha oil is about 8,000-10,000 tones, whereas exports account for 20,000-24,000 tones, growing by 10-12% annually. Export of mint products is increasing, covering menthol powder, flakes, crystals and mint oils. Menthol powder is the single largest exported product group. In 2021, Indian exports of mint products increased significantly, largely owing to a resurgence in demand from the US and Europe.

Product Capacity (MT)

Mentha oil - 2,000 MT
Menthol crystals - 3,600 MT
Menthol powder - 4,500 MT

Shares of ANG Lifesciences India Ltd was last trading in BSE at Rs. 762.35 as compared to the previous close of Rs. 726.50. The total number of shares traded during the day was 69726 in over 886 trades.

The stock hit an intraday high of Rs. 762.80 and intraday low of 743.00. The net turnover during the day was Rs. 53083666.00.

Source : Equity Bulls

Keywords

ANGLifesciencesIndiaLtd INE236W01016 Acquisition BaddiAgro Menthol