Piramal-Bain investment arm acquires API biz of Ind-Swift for Rs 1,650 cr

India Resurgence Fund (IRF), an investment platform promoted by Piramal Enterprises and Bain Capital, will acquire the active pharmaceutical ingredients (APIs) and contract research and manufacturing services (CRAMS) business of Ind-Swift Laboratories through its portfolio company Synthimed Labs for Rs 1,650 crore.

The board of Ind-Swift Lab approved the sale on 6 September. Ind-Swift reported a consolidated revenue of Rs 1,207 crore and consolidated Ebitda of Rs 256 crore in FY23.

Ind-Swift is among the top ten independent merchant API businesses in India in size, with two manufacturing sites in Punjab and Jammu, and a combined reactor capacity of around 700 KL catering to both regulated and unregulated markets. The API business has a presence across the US, Japan, Korea, EU, Brazil, and India. Shareholder and regulatory approvals are required for the completion of the transaction.

Synthimed will also acquire an intermediate manufacturing facility from the promoter group. Shantanu Nalavadi, Managing Director of IndiaRF, said, "We believe the business needs the necessary capital infusion for it to acquire scale and move upwards in the growth trajectory. We are committed to investing further primary capital into the businesses to expand capacity on the back of growth from newer geographies and investment in new product development across both API and CRAMS, to provide a larger portfolio of products to its customers."

PwC acted as the exclusive financial advisor to Ind-Swift on this transaction.