Synthimed Labs to acquire Ind-Swift’s API and CRAMS business in Rs 1,650-crore deal

Synthimed Labs Private Limited—a portfolio company of India Resurgence Fund (IndiaRF), an India-focused investment platform backed by Piramal Enterprises Limited and Bain Capital—is set to acquire the active pharmaceutical ingredients (API) and contract research and manufacturing services (CRAMS) business from Ind-Swift Laboratories Limited in a deal valued at Rs 1,650 crore.

Ind-Swift on Wednesday said it has received unanimous approval from its board to transfer its API and CRAMS business to Synthimed Labs Private Limited.

Ind-Swift currently ranks among the top 10 independent merchant API businesses in India. It has two state-of-the-art manufacturing facilities located in Punjab and Jammu, with a combined reactor capacity exceeding 700 KL. These facilities cater to a diverse range of markets, including both regulated and unregulated sectors.

The company’s API business has earned a market presence and a competitive cost advantage, with a wide therapeutic footprint extending across the United States, Japan, Korea, the European Union, Brazil, and India. In financial year 2022-23, Ind-Swift reported consolidated revenue of Rs 1,207 crore, accompanied by consolidated EBITDA of Rs 256 crore.

“Ind-Swift has a strong market presence and competitive cost position. The business needs the necessary capital infusion for it to acquire scale and move upwards in the growth trajectory. We are committed to invest further primary capital into the businesses to expand capacity on 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,” said Shantanu Nalavadi, MD of India Resurgence Fund.

The completion of this transformative transaction remains contingent on securing approvals from shareholders and regulatory authorities. As part of the deal, Synthimed will also acquire an intermediate manufacturing facility from Ind-Swift’s promoter group, the company said.

“Ind-Swift is amongst the largest independent API players in India and has had the track recording of developing API molecules with customer centric approach and has created high quality facilities. IndiaRF, which has a pedigree and track record in transforming businesses across varied sectors, will support and invest in the growth of the business,” said N R Munjal, Chairman and Managing Director of Ind-Swift.

The transaction has been facilitated by PwC, who served as the exclusive financial advisor to Ind-Swift, ensuring the strategic execution of this deal.