Tuesday, November 5, 2013


Granules India to buy Auctus Pharma for Rs 120 crore


Tablet maker Granules India has entered into an agreement to acquire Auctus Pharma, a manufacturer of Active Pharmaceutical Ingredients (APIs), for Rs 120 crore."The acquisition of Auctus fits into our strategy of being a fully integrated manufacturer, while diversifying our product portfolio by adding high-value products with significant market demand. Auctus provides Granules with a meaningful API platform with a US FDA approved site to strengthen our finished dosage division,’ Krishna Prasad, Managing Director of Granules India, said in a release issued on Monday.
Auctus manufacturing units
Hyderabad-based Auctus has two manufacturing facilities, an API facility at Pharmacity in Visakhapatnam and an Intermediate facility in Hyderabad. The API facility has approvals from leading regulatory agencies, including the US FDA.Auctus’ product portfolio includes 12 APIs as well as key intermediates of those APIs.
Auctus product portfolio
The portfolio includes APIs in several therapeutic categories such as Antihistaminic, Antihypertensive, Antithrombotic and Anticonvulsant as well as other therapeutic categories.Auctus currently sells its APIs and intermediates to customers in 50 countries. The team and assets from the acquisition will initially operate as a separate division with Granules.The acquisition process would be completed in the next three to six months, the Hyderabad-based company said in the release.
R&D unit in Hyderabad
Granules also announced the opening of a 10,000 sq. ft. R&D facility in Hyderabad.
The new R&D unit will focus on full-scale generic API development and will supplement the company’s existing R&D facility in Pune which currently focuses on sustainable technology development.

 Link to Auctus Pharma HERE

Courtesy : The Hindu Business Line.



  1. Dear Valuepick ,
    How are they planning to fund this acquisition of auctus pharma?

    1. http://www.moneycontrol.com/news/business/will-reap-benefitsauctus-deal34-yrs-granules_983266.html

    2. Dear VP,
      I found the MD answers very evasive. He did not answer what is the quantum of additional debt that will be taken by the company but just gave the current debt outstanding of 140 crore. What are your views on the same?

    3. He mentioned it in an 80:20 ratio

  2. Hello VP,

    What's your take on the infrastructure space? Is IRB Infra on your radar? Also, would love to know about NMDC. Picture getting rosy for NMDC? I has gained 3%.


    1. Investors expecting some revival in Infra space post election.Stock price may discount part of that before election itself. IRB infra is one of the best pick from this space.

  3. VP,
    how's HDIL for long term investment or IRB is better bet?

    Sona, UP

    1. Both cos are exactly not in same segment.HDIL is mainly in real estate development where IRBL is in infrastructure development and toll based civil construction .



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