Aurobindo Pharma Expands Presence in Indian Pharmaceutical Market with Strategic Acquisition
Aurobindo Pharma Ltd’s wholly-owned subsidiary, Auro Pharma Ltd, has acquired the branded non-oncology prescription formulations business of Khandelwal Laboratories Private Ltd on a going-concern basis. The all-cash transaction is valued at ₹325 cr.
Acquisition Details
The company’s exchange filing stated that the acquisition was completed through a Business Transfer Agreement (BTA) and is effective from January 1, 2026. The acquired business includes 23 brands marketed across 67 SKUs and nine pipeline products, with major portfolios in anti-infective and pain management.
The business employs around 470 field staff and has a distribution network comprising over 1,600 stockists and related infrastructure. In FY2024-25, the business recorded a turnover of ₹1,135.3 million with an EBITDA of ₹289.9 million, according to the exchange filing.
Strategic Significance
Founded in 1973-74, Khandelwal Laboratories operates in India and specialises in branded oncology and non-oncology prescription formulations. The acquisition will help Auro Pharma strengthen its presence in the domestic pharmaceutical market and complement its existing product portfolio in pain management and anti-infective segments.
Auro Pharma’s managing team said the acquisition will enhance the company’s growth prospects and provide a wider range of prescription offerings to the domestic market. This move is expected to boost pharmaceutical stocks in India and increase investor confidence in the sector.
Market Reaction
Shares of Aurobindo Pharma Ltd ended higher on Thursday, January 1, by 1.18% at ₹1,197.00 on the NSE. This positive market reaction indicates that investors are optimistic about the company’s growth prospects and the potential benefits of the acquisition.
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Conclusion
In conclusion, the acquisition of Khandelwal Laboratories’ non-oncology business by Aurobindo Pharma is a strategic move that is expected to strengthen the company’s presence in the domestic pharmaceutical market. With a growing demand for pharmaceutical products in India, this acquisition is likely to have a positive impact on the company’s growth prospects and provide a wider range of prescription offerings to the domestic market.
As the pharmaceutical sector continues to evolve, it is essential for investors to stay informed about the latest developments and trends. By visiting our website and learning more about the pharmaceutical market in India, you can make informed investment decisions and capitalize on the growth of this sector.