RPG Life Sciences on Friday announced the restructuring of its active pharmaceutical ingredients (API) business by hiving it off into a wholly owned subsidiary, securing up to Rs 700 crore in investments, and acquiring Visakhapatnam-based Actis Generics Pvt Ltd to strengthen its manufacturing footprint.
The company said it has incorporated RPG Active Pharma Ltd (RPGAP) as a wholly owned subsidiary to house its API business, which generated revenue of Rs 95.06 crore in FY26, accounting for 13.54 per cent of RPG Life Sciences' total turnover. The business has been transferred to the subsidiary on a slump sale basis.
As part of the transaction, healthcare-focused private equity firm InvAscent will invest Rs 243 crore in the first tranche for a 40 per cent stake in RPG Active Pharma. The company said total investments of up to Rs 700 crore have been committed and will be infused in phases, linked to agreed milestones, growth opportunities and capital deployment plans.
RPG Active Pharma has also acquired Actis Generics Pvt Ltd, a Visakhapatnam-based bulk drug intermediates manufacturer, for Rs 80 crore. Established in 2014, Actis supplies intermediates used in complex APIs such as Rivaroxaban, Sitagliptin and Apixaban and serves several Indian API manufacturers.
The acquisition expands RPG Life Sciences' manufacturing presence beyond Navi Mumbai to Visakhapatnam and is expected to provide the business with a broader product portfolio and enhanced production capabilities.
"Building a meaningful and scalable presence in APIs has been a strategic priority for RPG Life Sciences. RPG Active Pharma gives us a focused business to pursue this opportunity with greater speed, discipline and scale," said Ashok Nair, Managing Director, RPG Life Sciences.
"We are pleased to partner with InvAscent, whose pharma investing experience and long-term partnership approach complements our vision for the business. The proposed acquisition of Actis Generics further strengthens this business and supports our ambition to build a high-quality API business with expanded manufacturing capabilities, a broader product portfolio and the ability to create sustainable value for all stakeholders," he added.
Nair said the company is betting big on the API segment and has appointed a chief executive officer to lead the business. While RPG Active Pharma will be headquartered in Mumbai, the addition of Actis gives it a dual manufacturing base in Navi Mumbai and Visakhapatnam.
The company's existing API business derives nearly 85 per cent of its revenues from exports, while Actis has a predominantly domestic customer base, offering RPG Active Pharma an opportunity to diversify its market mix as it scales up operations.