“We have capital of ₹500 crore-plus with us and are actively evaluating opportunities to strengthen our API business,” Managing Director Ashok Nair told Business Standard. It is particularly evaluating businesses that can add differentiated chemistry, regulatory access and US Food and Drug Administration (USFDA) approved capabilities, he said.
The timing of further deals would depend on strategic fit, valuation, integration readiness and returns, rather than a predetermined acquisition count, Nair said.
RPG Active Pharma (RPGAP), a wholly owned subsidiary of RPG Life Sciences, last week agreed to acquire the API and intermediates business of Raghava Life Sciences for up to ₹135 crore. This followed its July 29 acquisition of Actis Generics for ₹80 crore, taking the combined consideration to ₹215 crore. RPG has described the Raghava transaction as part of a “buy-and-build” strategy to create a scaled, integrated API business.
The two deals have substantially changed the scale of the business. RPGAP's manufacturing capacity has increased from 110 kilolitres (kl) to 505 kl, its product portfolio from 14 to 45, and its customer base from 123 to more than 250. Employee strength has risen from 217 to over 500, while its research and development pipeline has expanded from 12 products to 28, according to Nair.
The expansion comes as global drugmakers seek to diversify pharmaceutical supply chains and reduce excessive dependence on China. RPG's strategy goes beyond adding capacity to acquiring products, complex chemistry capabilities, customers and regulatory approvals that can support exports.
Raghava added about 300 kl of installed capacity at its facility near Hyderabad. The plant is European Union Good Manufacturing Practice (EU-GMP) and World Health Organization Good Manufacturing Practices (WHO-GMP) approved. The business has regulatory credentials including Certificate of Suitability, EU Written Confirmation and Korean Drug Master File approvals.
While USFDA-approved manufacturing capability is part of RPG's longer-term strategy, Nair said it would not acquire a facility merely for the approval. “The chemistry, product basket, customers, utilisation potential and economics must also be compelling,” he said, adding that its export strategy was broader than the US.
Actis and Raghava together generated about ₹70 crore in revenue in 2025-26 (FY26), but RPG sees significant scope to scale this as it integrates the businesses and raises capacity utilisation.
Raghava's 300 kl plant is substantially underutilised and its existing infrastructure could support around ₹200 crore of annual revenue at fuller utilisation without significant incremental capex, Nair said. RPG plans to achieve this through new customers, geographic expansion and integration with Actis and its existing API operations.
RPGAP is being developed primarily as an independent merchant API and advanced-intermediates business, rather than a captive supplier to RPG Life Sciences' formulations business. Third-party customers, exports and selected contract development and manufacturing organisation (CDMO) opportunities would constitute the larger growth opportunity, Nair said.
The company remains debt-free and plans to deploy capital towards further acquisitions, manufacturing expansion, product development and regulatory access.
- ₹215 crore spent on two API acquisitions in five weeks
- API manufacturing capacity jumps nearly 5x — from 110 KL to 505 KL
- Actis and Raghava clocked ₹70 crore FY26 revenue
- Raghava facility alone has potential for ₹200 crore revenue at fuller utilisation
- ₹500 crore-plus capital available as RPG scouts for larger API assets and builds its export business
 "Ashok Nair, Managing Director, RPG Life Sciences")