Daijiworld Media Network - Mumbai
Mumbai, Aug 1: RPG Life Sciences Ltd. has announced the restructuring of its active pharmaceutical ingredients (API) business by transferring it into a wholly owned subsidiary, securing investments of up to Rs 700 crore and acquiring Visakhapatnam-based Actis Generics Pvt Ltd to strengthen its manufacturing capabilities.
The company has incorporated RPG Active Pharma Ltd (RPGAP) as a wholly owned subsidiary to house its API business, which generated revenue of Rs 95.06 crore in FY26, accounting for 13.54 per cent of RPG Life Sciences' total turnover. The API business has been transferred to the new subsidiary through a slump sale.
As part of the transaction, healthcare-focused private equity firm InvAscent will invest Rs 243 crore in the first tranche for a 40 per cent stake in RPG Active Pharma. The company said investments of up to Rs 700 crore have been committed and will be infused in phases based on agreed milestones, growth opportunities and capital deployment plans.
RPG Active Pharma has also acquired Actis Generics Pvt Ltd for Rs 80 crore. Established in 2014, the Visakhapatnam-based company manufactures bulk drug intermediates used in complex APIs such as Rivaroxaban, Sitagliptin and Apixaban, supplying several Indian API manufacturers.
The acquisition expands RPG Life Sciences' manufacturing footprint from Navi Mumbai to Visakhapatnam and is expected to strengthen its production capacity while broadening its product portfolio.
Managing Director Ashok Nair said establishing a scalable presence in the API segment has been a strategic priority for the company.
He said the partnership with InvAscent would provide long-term financial backing and industry expertise, while the acquisition of Actis Generics would enhance manufacturing capabilities and support the company's ambition to build a high-quality API business with sustainable long-term growth.
Nair added that the company has appointed a chief executive officer to lead RPG Active Pharma. While the subsidiary will be headquartered in Mumbai, the addition of the Visakhapatnam facility provides it with dual manufacturing locations.
The company's existing API business derives nearly 85 per cent of its revenue from exports, whereas Actis Generics has a predominantly domestic customer base, offering RPG Active Pharma an opportunity to diversify its market presence as it expands operations.