Remedium Lifecare Ltd to acquire manufacturing facility in Hyderabad

The Board of Directors of Remedium Lifecare Limited at its meeting has proposed to acquire a Manufacturing Facility in Hyderabad situated at Phase 2, Survey No.10, Gaddapotharam Industrial Area, Jinnaram Mandal, Medak, Sangareddy District, Hyderabad-502319, Telangana, India. having an area of 130680 square feet. The unit is well equipped to produce Intermediates for the Pharmaceutical Industry. The plan, post the successful acquisition is to set up an ultramodern Solvent Recovery Plant for third party purposes. This Solvent Recovery Plant would offer services to the Pharmaceutical and Specialty Chemicals sector. The consideration, of approximately Rs. 38 Crores (Rupees Thirty-Eight Crores) will be paid over multiple milestones.

The Memorandum of Understanding (MOU) to acquire the said manufacturing unit was tabled at the meeting for the discussion. The Board of Directors of the Company has decided to initiate due diligence for the same. Currently the Company is involved in trading and distribution of Active Pharmaceutical Ingredients (API) and Intermediates. With this acquisition, the Company will branch into manufacturing of pharmaceutical intermediates. Subject to satisfactory due diligence, we expect to close the transaction within 30th June 2024.

The acquisition of the manufacturing facility would lead to addition of business activity from pure trading to manufacturing of pharmaceutical intermediate (API).

The dpendency on Supply chain would be reduced due to manufacturing set up of pharmaceutical intermediates.

The addition of business activity will improve profit margins and build capital assets for the company.

The acquisition will facilitate existing customers with assured domestic source of supplies.

Source : Equity Bulls

Keywords

RemediumLifecare Acquisition ManufacturingFacility Hyderabad