Aurobindo Pharma Bolsters Domestic Reach with Strategic Acquisition
In a significant move to expand its footprint in the Indian pharmaceutical market, Hyderabad-based Aurobindo Pharma has announced the acquisition of the non-oncology prescription business of Mumbai's Khandelwal Laboratories Private Limited. The transaction, valued at ₹325 crore on a slump sale basis, is a cash deal aimed at strengthening the company's domestic formulations portfolio.
Deal Structure and Effective Date
The acquisition is being executed through Aurobindo's wholly-owned subsidiary, Auro Pharma Limited. According to a regulatory filing by the company, the transfer of the business will officially take effect from January 1, 2026. The final cash consideration is subject to standard working capital adjustments, which are customary in such transactions.
Aurobindo Pharma clarified that this transaction does not fall under the category of a related-party transaction. Furthermore, the company stated that no regulatory or governmental approvals were required to complete this deal, facilitating a smoother acquisition process.
Strategic Focus on Pain and Anti-Infective Segments
The primary strategic objective behind this acquisition is to significantly enhance Aurobindo Pharma's presence in two key therapeutic areas within the Indian market: pain management and anti-infectives. The acquired business from Khandelwal Labs brings with it a portfolio of 23 established brands spanning across 67 stock-keeping units (SKUs).
In addition to the existing products, the deal also includes nine pipeline products in these same segments, promising future growth. The business being acquired has demonstrated stable financial performance, having recorded a turnover of ₹113.5 crore. It has been a part of the Indian pharma landscape since 1973-74, indicating strong brand recall and maturity in the prescription market.
Immediate Scale and Market Access
While the acquisition does not include the inventory, intellectual property, employees, or contracts of Khandelwal Labs, it comes with a substantial operational infrastructure. This infrastructure is poised to give Aurobindo an immediate and significant market foothold.
The acquired business is supported by an experienced field force of approximately 470 personnel and an extensive distribution network of over 1,600 stockists spread across India. This ready-made network will provide Aurobindo Pharma with instant scale and deep market access in the pain management and anti-infective categories, allowing for rapid integration and revenue generation.
This strategic purchase underscores Aurobindo Pharma's focused approach to growing its domestic formulations business by integrating established brands and leveraging existing robust distribution channels.
