Aurobindo Pharma Limited's wholly-owned subsidiary, Auro Pharma Limited, completed the acquisition of Khandelwal Laboratories Private Limited's branded non-oncology prescription formulations business on January 1 through a Business Transfer Agreement. The transaction, valued at ₹3,250 crores in cash consideration, was executed on a going concern basis and became effective from the same date.

Acquisition Structure and Terms

The deal involves the acquisition of Khandelwal's complete non-oncology prescription formulations business as a going concern, including inventory, intellectual property, employees, and contracts through a slump sale arrangement. The transaction does not involve acquisition of any shares or control of Khandelwal Laboratories itself.

Business Portfolio and Operations

The acquired business portfolio comprises 23 brands marketed across 67 SKUs and includes 9 pipeline products. The major therapeutic areas focus on anti-infective and pain management segments. The business operates with approximately 470 field staff and maintains a distribution network of over 1,600 stockists along with related infrastructure.

Financial Performance

Khandelwal Laboratories' non-oncology business, which has been operating since 1973-74, recorded a turnover of ₹1,135.30 crores with an EBITDA of ₹289.90 crores in FY2024-25. The business has demonstrated consistent performance over recent years.

Strategic Impact and Market Response

The acquisition is expected to strengthen Auro Pharma's presence in the domestic pharmaceutical market and complement its existing product portfolio in pain management and anti-infective segments. Management indicated that the deal will enhance the company's growth prospects and provide a wider range of prescription offerings to the domestic market.

Shares of Aurobindo Pharma ended higher by 1.18% at ₹1,197.00 on the NSE following the announcement. The transaction required no governmental or regulatory approvals and does not constitute a related party transaction, with the promoter group having no interest in the acquired business.

Aurobindo Pharma has announced its strategic plans to acquire a significant stake in the renewable energy sector through a proposed investment in Swarnaakshu Solar Power Private Limited. The pharmaceutical company intends to purchase up to 26% equity stake in the solar power company, marking its entry into the clean energy space.

Investment Details

The proposed acquisition involves the following key parameters:

Regulatory Approval Process

The transaction is subject to obtaining necessary approvals from the state government authorities. Aurobindo Pharma has set March 31, 2026, as the target date for securing these regulatory clearances. The company's ability to complete this acquisition will depend entirely on receiving the required governmental permissions within the specified timeframe.

Strategic Diversification

This proposed investment represents Aurobindo Pharma's diversification strategy beyond its core pharmaceutical business. By entering the solar power sector through Swarnaakshu Solar Power Private Limited, the company is positioning itself in the growing renewable energy market. The acquisition, if completed, would provide Aurobindo Pharma with exposure to clean energy generation and potentially contribute to its sustainability initiatives.