IndiaRF to Acquire Ind-Swift labs' API and CRAMS Divisions
IndiaRF, the India-focused investment platform promoted by Piramal Enterprises and Bain Capital, will acquire Ind-Swift Labs' active pharmaceutical ingredients (API) and contract research and manufacturing services (CRAMS) business for Rs1,650 crore, the company announced on Sept 6.
The funds will be used to restructure the company's existing debt. Ind-Swift Labs has been burdened by debt, including 743 crore in non-convertible debenture liabilities as of March 31, 2023.
Synthimed Labs, an India Resurgence Fund portfolio company, will make the acquisition. With two manufacturing sites in Punjab and Jammu, Ind-Swift is one of the top ten independent merchant API businesses in India.
Ind-Swift reported Rs 1,207 crore in consolidated revenue and Rs 256 crore in consolidated EBITDA in FY23.
The transaction cannot be completed without shareholder and regulatory approval. According to the statement, Synthimed will also acquire an intermediate manufacturing facility from the promoter group.
"IndiaRF is excited about Ind-Swift's transformation potential." Ind-Swift has a strong market presence as well as a low cost position. We believe the company requires the necessary capital infusion to gain scale and move up the growth curve. "We are committed to investing additional primary capital into the businesses to expand capacity as a result of growth in newer geographies and investment in new product development across both API and CRAMS, in order to provide a broader portfolio of products to its customers," said Shantanu Nalavadi, Managing Director of IndiaRF.