RPG Life Sciences Ltd (RPGLS) has announced a strategic restructuring of its Active Pharmaceutical Ingredients (API) business by transferring it to its wholly owned subsidiary, RPG Active Pharma Ltd (RPGAP). Simultaneously, the company has signed an agreement to acquire Actis Generics Private Ltd, an API manufacturing company based in Visakhapatnam, as part of its long-term growth strategy. The move is aimed at building a focused, scalable and globally competitive API business while strengthening the company’s position in India’s rapidly expanding pharmaceutical manufacturing sector.
API Business to Operate Through Dedicated Subsidiary
RPG Life Sciences has executed a Business Transfer Agreement to transfer its API business to RPG Active Pharma Ltd on a slump sale basis as a going concern. According to the company, the restructuring will enable dedicated capital allocation, sharper management focus and greater strategic flexibility for the API business, while allowing RPG Life Sciences to continue expanding its formulations business independently. The initiative also comes at a time when global pharmaceutical supply chains are undergoing structural changes, with India emerging as a preferred destination for reliable and high-quality API manufacturing.
InvAscent to Invest Up to ₹700 Crore
To support the expansion of its API business, RPG Active Pharma has entered into an investment agreement with InvAscent, a healthcare-focused private equity investor. Funds managed by InvAscent will make an initial investment of up to ₹243 crore in RPG Active Pharma. The agreement further provides for investments of up to ₹700 crore, jointly by RPG Life Sciences and InvAscent, in multiple phases. The capital infusion will be utilised to strengthen manufacturing infrastructure, expand the API product portfolio, enhance process development capabilities and pursue both organic and inorganic growth opportunities.
Actis Generics Acquisition to Expand Manufacturing Capacity
As part of its growth strategy, RPG Active Pharma has also signed a Share Purchase Agreement to acquire 100% equity in Actis Generics Private Ltd. The acquisition will significantly enhance RPG Active Pharma’s manufacturing capabilities while broadening its API portfolio and strengthening its ability to serve both domestic and international pharmaceutical customers. The company also indicated that it has been exploring opportunities to acquire additional manufacturing facilities for APIs or formulations, reflecting its continued focus on capacity expansion. The proposed transactions remain subject to customary regulatory approvals and the fulfilment of pre-closing conditions.
Management Confident About API Growth Strategy
Ashok Nair, Managing Director, RPG Life Sciences, said building a meaningful and scalable API business has been a strategic priority for the company. He noted that the creation of RPG Active Pharma provides a dedicated platform to accelerate growth with greater speed, operational discipline and scale. He added that the proposed acquisition of Actis Generics will further strengthen manufacturing capabilities, diversify the product portfolio and support the company’s objective of creating a high-quality API business that delivers long-term value to all stakeholders.
InvAscent Sees Strong Long-Term Potential
Dr. Jeevak Gupta, Managing Director, InvAscent, said RPG Active Pharma is well-positioned to capitalise on the growing global demand for high-quality API manufacturing. He expressed confidence that the partnership would help build a strong and competitive API platform capable of serving global pharmaceutical markets.
Strategic Move to Strengthen India’s API Manufacturing Ecosystem
As reported by thehindubusinessline.com, through the creation of RPG Active Pharma, the acquisition of Actis Generics and a planned investment of up to ₹700 crore, RPG Life Sciences is positioning itself for the next phase of growth in the API sector. The strategic initiatives are expected to strengthen manufacturing capabilities, expand product offerings and reinforce the company’s role in India’s evolving pharmaceutical supply chain.
