Aanjaneya Lifecare, a Mumbai-based bulk drug manufacturer, has acquired Apex Drugs and Intermediates (ADI), a Hyderabad-based integrated active pharmaceutical ingredient (API) and intermediate company, for Rs.250 crore, including debt of Rs.185 crore and equity dilution of Rs.65 crore.

Aanjaneya has merged both companies' operations and acquired all assets, making it a fully integrated formulation company with an opportunity to enter Hyderabad. Post-acquisition, Aanjaneya would have total sales of around Rs.700 crore with an operating profit of Rs.130 crore and a long-term debt of around Rs.220 crore. In monetary terms, Aanjaneya could sell 40 per cent of the APIs into formulations and formulation sales would be three times the API sales.

Aanjaneya has a strong presence in API and formulation business and has bulk drug manufacturing facility at Mahad and a finished dosage forms unit near Pune. It is one of the largest contract manufacturers of codeine-based cough syrups in India and exclusively makes Codorex brand of Zydus Cadilla and Codilite tablets among others.

It recently raised around Rs 117 crore through an initial public offering (IPO). Kannan Vishwanath, Vice-Chairman and Managing Director, Aanjaneya Lifecare, said the acquisition “will reduce the company's dependence on third parties for pricing and supply to a large extent. Going further, the company also plans to enter into lifestyle segment.''