From chemicals and building materials, the Nirma Group has taken a big leap into pharmaceuticals, with its agreement to acquire 75 per cent in Glenmark Life Sciences for an enterprise value of about Rs 7,500 crore.
The Ahmedabad-headquartered group, which enjoys high brand recall for its ‘washing powder Nirma’ television commercials, forays into the Active Pharmaceutical Ingredient (API) segment with the GLS acquisition. Nirma’s deal with Glenmark Pharmaceuticals to acquire a majority stake in GLS for a consideration of Rs 5,651 crore, was announced on Thursday.
The transaction expands Nirma’s pharmaceuticals portfolio comprising injectables, parenterals and ophthalmic products, a note from the Group said. It comes close on the heels of the Group’s acquisition of Stericon Pharma in March.
Managing Director, Hiren Patel, said, Nirma has been actively involved in the pharmaceutical sector since 2006, and this transaction presented the “ideal platform to propel our pharmaceutical business into its next phase of growth.” The acquisition of GLS aligned with its own strategic goals, he said, positioning Nirma among the top five independent API companies in India. The move also enables the company to leverage indigenous research and development, he added.
GLS makes and markets APIs and its product portfolio is spread across therapeutic segments, including cardiovascular (CVS) disease, central nervous system (CNS) disorders, diabetes, gastrointestinal health, oncology, pain management and anti-infectives. Its manufacturing facilities are located at Ankleshwar, Dahej, Mohol and Kurkumbh, and its research and development facilities are at Mahape, Ankleshwar and Dahej. GLS is in the process of setting up an API manufacturing facility at Chincholi, Solapur, the note added.
Founded by Dr Karsanbhai Patel, Nirma’s operations are spread across industrial chemicals to detergents, soaps, healthcare products, cement & building materials, and real estate development. The Nirma Group’s annual turnover exceeds $2.5 billion, the note said.
The advisory team for the Nirma Group included Khaitan & Co, KPMG, BCG, Eaishman and DAM Capital.