Laurus Labs to acquire 26% stakes in Kurnool Renewables for Rs 35 cr

Laurus Labs has announced that its board has approved the acquisition of up to 26% of the share capital in Kurnool Renewables, a special purpose vehicle (SPV) and subsidiary of Ecoren Energy India (Ecoren), with an investment of up to Rs 35 crore.

The strategic move will enable Laurus Labs to access 25.53 MW of renewable wind and solar energy, which aligns with regulatory requirements under Indian Electricity Laws and government policies for captive consumption of power. The investment is aimed at reducing electricity costs, ensuring a reliable green power supply, and obtaining carbon credits, thus contributing to the company's environmental, social, and governance (ESG) objectives.

Kurnool Renewables is engaged in the production of renewable energy, primarily from solar and wind sources. Laurus Labs' investment will support the development of the renewable power project, which will be used for captive consumption. This acquisition is expected to provide benefits such as reduced energy costs, enhanced energy security, and increased operational stability along with potential environmental advantages.

The equity shares will be subscribed at an issue price determined by Kurnool Renewables, with a total investment of up to Rs 35 crore. The payment will be made in cash in three stages: 30% within 30 days from the execution of agreements, 40% upon placing orders for major equipment, and the remaining 30% upon receipt of major equipment at the project site.

The acquisition does not fall within the purview of a related party transaction.

In addition, Laurus Labs' board has approved the re-appointment of V.V. Ravi Kumar as the Executive Director and Chief Financial Officer (CFO) of the company for a period of two years, effective from 1 April 2025, subject to shareholder approval.

V. V. Ravi Kumar is the executive director and chief financial officer of Laurus Labs Limited, bringing over three decades of rich experience, and especially two decades in Laurus itself, in finance, strategy, and corporate leadership. A qualified cost accountant from the Institute of Cost and Works Accountants of India, he plays a pivotal role in steering Laurus Labs toward sustainable growth and excellence. As a key leader at Laurus Labs, Mr. Ravi Kumar oversees critical business functions, including finance, information technology, mergers & acquisitions, strategic alliances, human resources, etc. He does not have any inter-se relationship with other directors of the company.

The board also approved the re-appointment of Dr. Satyanarayana Chava as executive director and CEO for five years, starting 1, April 2025, subject to shareholder approval.

Dr. Chava, the founder and CEO of Laurus Labs, has more than 30 years of experience in the pharmaceutical industry, with around 20 years at Laurus Labs. He holds a Ph.D. in chemistry from Andhra University and has been instrumental in positioning the company as a leader in both domestic and international markets.

Dr. Satyanarayana Chava is the father of Mr. Krishna Chaitanya Chava and Mrs. Soumya Chava, executive directors of the company.

Laurus Labs is a fully integrated pharmaceutical and biotechnology company with a leadership position in generic active pharmaceutical ingredients (APIs) and a major focus on anti-retroviral and oncology drugs, cardiovascular, gastro, and hepatitis C therapeutics. The company also develops and manufactures oral solid formulations and provides contract research and manufacturing services (CRAMS) to global pharma companies.

The companys consolidated net profit soared 298.9% to Rs 92.30 crore in Q3 FY25 as against Rs 23.14 crore posted in Q3 FY24. Net sales jumped 18.4% YoY to Rs 1,415.05 crore in the quarter ended 31 December.

The counter shed 0.76% to Rs 613.50 on the BSE.

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