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Cipla is taking the acquisition and product in-licensing route to consolidate its business in Africa, the company’s second-largest market after India.
Africa contributed 22 per cent to Cipla’s consolidated revenue in 2017-18. Also, Ebitda margin in South Africa is higher than the company’s consolidated margin of 18.6 per cent in 2017-18.
The company is looking at inorganic growth opportunities to offset delays in product approvals and decline in the institutional tender business.
Last week Cipla acquired Mirren, a South African over-the-counter (OTC) medicine manufacturer and distributor for Rs 2.28 billion.
The acquisition adds cold, flu and pain relief brands to Cipla’s kitty, and is
