RL Fine Chem has divested its majority stake to Chandrapore Estates and MAPE Advisory Group. The share holding pattern is now 40 percent with Chandrapore Estates, 30 percent each held by MAPE Advisory Group and the promoter of RL Fine Chem. The company is now eyeing for potential acquisitions of pharma companies to chalk out its inorganic growth path.
Following the restructuring of the company, Jacob Mathew, managing director and co-founder, MAPE Advisory Group takes over as the chairman of RL Fine Chem. “The key reason for our divesture is that it is becoming extremely difficult for a small and medium pharma enterprise to sustain operations in a volatile industrial environment. This is despite our company being a profitable venture and confident to touch INR 230 crore turnover in fiscal 2017-18”, Anjan K Roy, founder and former managing director, RL Chem told Pharmabiz in an interaction.
The company had also gone on to acquire a 42.5 percent in the Hyderabad-based Lee Pharma which has its advanced manufacturing facilities in API, pellets-granules and formulations. “Our strategy here is to embark on forward integration”, said Roy who now prefers to play an advisory role in the operations.
The Bengaluru-based RL Fine Chem is a much-sought after exporter of APIs in the area of antidepressant, antihistaminic, antipsychotic and anti spasmodic drugs among others. It exports 75 percent of its APIs to 60 countries and 39 percent of its international revenues come in from the regulated regions of North America, European Union and Japan besides Latin America. While the remaining earnings come from the non-regulated and domestic markets.
“On similar lines is Lee Pharma’s performance in the global regions and we intend to jointly increase our regulated market presence. Globally, there is an increasing demand for generics. Therefore, we a see promising opportunities to spur export earnings”, said Roy.
The 34 year-old company has approved facilities by US FDA, Japan Govt, AFMC, COFEPERIS and CEP. Of the four units, two plants are in the Yelahanka Industrial Area in the outskirt of Bengaluru one each at Hindupur in Anantapur district , Andhra Pradesh and Gauribidanur in Kolar district in Karnataka.
The key intent of the company is to focus on the vertical growth of the company. This according to Roy is possible only if RL Fine Chem enhances its competitive position in the global market. “We need to sustain the growth momentum driven by global market orientation for our products by devising dynamic strategies. This could happen only by acquiring companies with new product portfolios, technology and skills that can enable reinstate our global presence.”