Piramal Enterprise Ltd commonly known as PEL has said that they are looking to multiply their acquisition opportunities across the pharma business, including the re entry in domestic formulation, which they had exited back in 2010.
In its FY21 annual reports, the company said that it is looking at acquisition of very niche manufacturing capability for the Contract Development and Manufacturing Organisation (CDMO).
CDMO is a company which serves other businesses and companies specifically in pharmaceutical industry through contract basis which helps them provide with a comprehensive service from drug development to manufacturing processes.
Ajay Piramal, the chairman of Piramal Enterprise Ltd in their annual report said that, “the Carlyle Group’s recent strategies in investment confirms that the business is underlying strength and can provide with war chest for the upcoming phases on the company growth.”
Piramal added that each of the pharma businesses always have a compelling planning for their organic growth including multiple acquisition opportunities. They believe to continue to deliver in this line with a long term growth record through sustainable initiatives.
Last year Piramal had raised 3,523 cr from Carlyle in one of the largest PE deals in the Indian pharmaceutical sector. This deal was structured in a manner that the pharma business was clubbed with a subsidiary enterprise under the company itself. In this deal 20 per cent equity wad given to Carlyle.
Almost 63 per cent of the revenues of the whole pharma businesses come from CDMO business, under which the company typically provides with manufacturing services and development for generic companies and also innovators.
