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RPG Life Sciences Plans ₹500 Crore Expansion Through Acquisitions
RPG Life Sciences is a medicine company that wants to grow bigger.
It plans to spend ₹500 crore during the next year.
The money will help it improve factories and make more active pharmaceutical ingredients, or APIs.
The company has already bought assets worth ₹200 crore as part of a larger ₹700 crore expansion plan.
It hopes to earn ₹2,000 crore-₹2,500 crore in revenue by 2030.
Its domestic medicine business makes up about 70% of its total business.
The company said sales grew 16% and EBITDA grew 18% in the first quarter of FY27.
It is also entering West Africa and the Saudi region.
Its managing director said the market for GLP-1 anti-obesity medicines is still at an early stage.
RPG Life Sciences plans to deploy ₹500 crore over the next 12 months to expand manufacturing and API capabilities.
The company has committed ₹700 crore for expansion and has already made acquisitions worth ₹200 crore.
Managing Director Ashok Nair said the company is evaluating assets that could strengthen its manufacturing footprint.
RPG Life Sciences targets revenue of ₹2,000 crore-₹2,500 crore by 2030, with APIs expected to play a larger role.
The company reported 16% revenue growth and 18% EBITDA growth in the first quarter of FY27.
- Who
- RPG Life Sciences and its Managing Director Ashok Nair.
- What
- The company plans to deploy ₹500 crore on acquisitions and expansion of manufacturing and API capabilities.
- Where
- The company operates in India and more than 60 international countries, excluding the United States, and is entering West Africa and the Saudi region.
- When
- The investment is planned over the next 12 months; the update was reported on September 6.
- Why
- To strengthen its manufacturing footprint, expand API capabilities, and support its revenue target for 2030.
Key facts
- Planned deployment
- ₹500 crore over the next 12 months
- Committed capital infusion
- ₹700 crore
- Acquisitions completed or made
- Approximately ₹200 crore
- 2030 revenue target
- ₹2,000 crore-₹2,500 crore
- First-quarter revenue growth
- 16% in FY27
- First-quarter EBITDA growth
- 18% in FY27
- EBITDA margin
- 24.5%, compared with 24.1% previously
Quotes
Ashok Nair
Managing Director of RPG Life Sciences
“Currently, the acquisitions we have made are to the tune of ₹200 crore. We are evaluating opportunities that can strengthen our manufacturing footprint. We would like to deploy the ₹500 crore balance in the next 12 months. We are actively pursuing good assets.”
livemint.com
“Our domestic formulation business is around 70 per cent of our total, where we are growing at 16 to 17 per cent -- almost 1.5 times faster than the market. Going forward, we would like to see API have a big play.”
livemint.com
Sources
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