Chennai: In a bid to expand its formulations business, the cephalosporin bulk drug major Orchid Chemicals and Pharmaceuticals will be acquiring the city-based pharma company Mano Pharmaceuticals and its sister concern Sali Healthcare for Rs 26 crore.
In the last fiscal, the combined turnover of Mano Pharma and Sali Healthcare was Rs 20.24 crore. The companies' 12-month turnover (December 2001-November 2002) has been Rs 28 crore.
In a cash deal, Orchid will acquire the assets (including the plant and machinery), brands and the business of the two companies. The deal will be effected this month-end after completing the necessary formalities. For a long time Orchid was looking out for these acquisitions but was not able to succeed.
''These acquisitions fit well into our strategic plan as it enables a ready operating base in high-growth segments. We are confident of leveraging this acquisition for a greater growth in the formulations business - both in domestic and international markets,'' says Orchid managing director K Raghavendra Rao.