The Board of Directors of Remedium Lifecare Limited has proposed to acquire a manufacturing facility in Hyderabad situated at Gaddapotharam Industrial Area, Jinnaram Mandal, Medak, Sangareddy District, Hyderabad having an area of 1,30,680 square feet.

The unit is well equipped to produce Intermediates for the pharmaceutical industry. The plan, post the successful acquisition, is to set up an ultramodern Solvent Recovery Plant for third party purposes. This Solvent Recovery Plant would offer services to the Pharmaceutical and Specialty Chemicals sector. The consideration, of approximately Rs. 38 crores will be paid over multiple milestones.

The Memorandum of Understanding (MoU) to acquire the said manufacturing unit was tabled at the meeting for the discussion. The Board of Directors of the Company has decided to initiate due diligence for the same. Currently, the Company is involved in trading and distribution of Active Pharmaceutical Ingredients (API) and Intermediates. With this acquisition, the company will branch into manufacturing of pharmaceutical intermediates. Subject to satisfactory due diligence, the transaction is expectd to close before 30 June 2024.

The acquisition of the manufacturing facility would lead to addition of business activity from pure trading to manufacturing of pharmaceutical intermediate (API).

The dpendency on Supply chain would be reduced due to manufacturing set up of pharmaceutical intermediates. The addition of business activity will improve profit margins and build capital assets for the company.