Aurobindo Pharma Ltd proposes to transfer its domestic branded generic formulations business to its wholly owned subsidiary, Auropharm Ltd, through a slump sale on a going concern basis for a consideration of ₹143.21 crore.
The transaction will include the transfer of all related assets and liabilities associated with the business.
Alignment with group’s consolidation strategy
The proposed slump sale is aligned with the Group’s broader strategy to consolidate its domestic pharmaceutical operations under Auropharm. The subsidiary currently handles the non-oncology formulations business acquired from Khandelwal Laboratories Ltd, and the move is expected to streamline operations under a unified structure.
Focus on operational efficiency and growth
The restructuring is aimed at enhancing operational efficiency and focused business execution in the domestic market. By consolidating its branded generics portfolio within Auropharm, the company expects to drive improved scalability and a more agile approach to market opportunities.
Transaction value and structure
The transfer of the domestic branded generic formulations business will be executed for a lump sum consideration of ₹143.21 crore. As the transaction is between the holding company and its wholly owned subsidiary, it will not have any impact on a consolidated financial basis.
Company profiles
Aurobindo Pharma Ltd is engaged in the development, manufacturing, and marketing of a wide range of pharmaceutical products, including APIs, injectables, and formulations, with a strong global presence and diversified product portfolio.
Auropharm Ltd operates in India’s domestic market, focusing on the trade of branded generic formulations and pharmaceutical products.