SMS Pharmaceuticals has announced the formation of a new subsidiary unit called SMS Colab Pvt Ltd. This corporate development marks a significant step in the company's organizational expansion strategy.

Corporate Structure Enhancement

The establishment of SMS Colab Pvt Ltd represents a strategic move by SMS Pharmaceuticals to diversify its business operations. The formation of this new subsidiary unit demonstrates the company's commitment to exploring additional avenues within the pharmaceutical sector.

Strategic Implications

The creation of SMS Colab Pvt Ltd indicates SMS Pharmaceuticals' focus on expanding its operational capabilities. This new unit formation aligns with the company's growth strategy and may provide enhanced flexibility in pursuing various business opportunities.

The announcement reflects SMS Pharmaceuticals' proactive approach to organizational development and its commitment to strengthening its market position in the pharmaceutical industry.

SMS Pharmaceuticals has announced the incorporation of its wholly owned subsidiary, SMSco Lab Private Limited, with an authorized capital of ₹15.00 lakh. The new entity is set to manufacture pharmaceutical products in new therapeutic categories.

Subsidiary Details and Capital Structure

SMSco Lab Private Limited has been incorporated with the following financial parameters:

Business Objectives and Operations

The newly incorporated subsidiary will operate as a greenfield project focused on manufacturing pharmaceutical products in new therapeutic categories. The main business objectives include comprehensive pharmaceutical operations spanning the entire value chain.

The subsidiary's core activities will encompass:

• Research, development, formulation, marketing, and production of pharmaceuticals
• Manufacturing and commercialization of intermediates, drugs, bulk drugs, and medicines
• Development of newer medicines for various therapeutic uses
• Manufacturing, importing, exporting, and trading of pharmaceutical products and active pharmaceutical ingredients
• Production and distribution of chemicals, surgical, medical, and scientific equipment

Strategic Vision and Market Expansion

SMSco Lab Private Limited aims to establish and maintain strategic partnerships and joint ventures globally. This approach is designed to expand market reach and enhance product offerings in the pharmaceutical formulations sector, while investing in and managing assets necessary for achieving the company's objectives.

Corporate Structure and Leadership

The subsidiary maintains close ties with its parent company through shared leadership. Mr. Vamsi Krishna Potluri, who serves as Executive Director at SMS Pharmaceuticals Limited, has been appointed as Director of SMSco Lab Private Limited, ensuring continuity in strategic direction and operational oversight.

Regulatory Compliance

The incorporation represents a related party transaction, with SMS Pharmaceuticals holding 100% equity stake in the subsidiary. The company has fulfilled all disclosure requirements under Regulation 30 of the SEBI (LODR) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. As a newly incorporated entity, SMSco Lab Private Limited is yet to commence business operations and has no applicable turnover at this stage.