Akums to Acquire Oriflame India Manufacturing Business for ₹56 Cr

Nikunj Parikh - Mumbai Bureau Jul 23, 2026 2,000 Views

Akums Drugs and Pharmaceuticals has agreed to acquire Oriflame India's manufacturing business for ₹56 crore in cash via its subsidiary Pure and Cure Healthcare. The deal includes two manufacturing plants in Roorkee and Noida, marking Akums' strategic expansion into colour cosmetics, skincare, and personal care contract manufacturing.

NEW DELHI — Akums Drugs and Pharmaceuticals Limited announced on Thursday, July 23, 2026, that it will acquire the manufacturing business of Oriflame India Private Limited for a total cash consideration of ₹56 crore. The transaction, executed through Akums' wholly-owned subsidiary Pure and Cure Healthcare Private Limited, marks a strategic expansion for India’s largest contract development and manufacturing organization (CDMO) as it enters the colour cosmetics and personal care category.

The agreement covers two manufacturing facilities located in Roorkee, Uttarakhand, and Noida, Uttar Pradesh, along with a leased warehouse in Noida. By acquiring the manufacturing assets of the Swedish direct-selling cosmetics major's Indian entity, Akums gains immediate production capacity across skincare, hair care, wellness, and colour cosmetics, accelerating its diversification beyond core pharmaceutical formulations.

Transaction Details and Asset Breakdown

According to regulatory disclosures submitted to Indian stock exchanges, the board of directors of Pure and Cure Healthcare Private Limited approved the acquisition following final negotiations. The deal is structured as an all-cash asset purchase valued at ₹56 crore.

┌─────────────────────────────────────────────────────────────────┐
│               AKUMS - ORIFLAME DEAL AT A GLANCE                 │
├───────────────────────────────┬─────────────────────────────────┤
│ Transaction Value             │ ₹56 Crore (All-Cash Basis)      │
├───────────────────────────────┼─────────────────────────────────┤
│ Acquiring Entity              │ Pure and Cure Healthcare Pvt Ltd│
├───────────────────────────────┼─────────────────────────────────┤
│ Target Assets                 │ 2 Production Plants & Warehouse │
├───────────────────────────────┼─────────────────────────────────┤
│ Key Locations                 │ Roorkee (UK) & Noida (UP)       │
├───────────────────────────────┼─────────────────────────────────┤
│ Target Closing Date           │ August 31, 2026                 │
└───────────────────────────────┴─────────────────────────────────┘

The transaction is expected to close by August 31, 2026, subject to customary closing conditions and regulatory approvals. Under the terms of the agreement, Akums will take operational control of both production plants. The facilities are fully equipped to manufacture a broad spectrum of personal care products, enabling Akums to scale up contract manufacturing contracts for both domestic and international personal care brands.

Strategic Rationale and Market Context

The move by Akums to acquire Oriflame India's manufacturing business aligns with a broader trend among pharmaceutical CDMOs seeking high-margin adjacent consumer markets. While Akums already maintains a significant presence in oral solids, injectables, nutraceuticals, and dermatological products, entering colour cosmetics opens access to one of the fastest-expanding consumer segments in South Asia.

India's beauty and personal care market has experienced double-digit annual growth, driven by rising disposable incomes, urbanization, and increased demand for premium cosmetic formulations. By leveraging Oriflame's existing, regulatory-compliant infrastructure, Akums avoids the lead time required to build greenfield cosmetic facilities.

Industry analysts note that for Oriflame India, outsourcing manufacturing allows the direct-selling brand to adopt an asset-light model in India, focusing its capital on marketing, distributor networks, and digital sales channels.

Official Statements and Executive Commentary

In an official press release, senior leadership at Akums highlighted the strategic importance of the acquisition in accelerating the company's multi-category growth roadmap.

"This acquisition is a significant step in Akums' strategy to diversify beyond pharmaceuticals into high-growth adjacent categories," said Sanjeev Jain, Managing Director of Akums Drugs and Pharmaceuticals Limited. "Cosmetics, colour cosmetics in particular, represent one of the fastest-growing consumption stories in India today. Acquiring these two well-established manufacturing facilities gives us immediate, high-quality capacity and capability, and strengthens our ability to serve both Indian and global brands."

Official regulatory filings confirm that the acquisition will be funded through internal accruals without requiring external debt financing.

Impact on Consumers, Industry, and Investors

For consumer brands and personal care companies operating in India, the consolidation provides access to institutional-grade contract manufacturing capabilities backed by pharmaceutical-quality compliance standards.

For investors, the decision of Akums to acquire Oriflame India's manufacturing business demonstrates disciplined capital allocation aimed at enhancing revenue diversity. The addition of colour cosmetics manufacturing complements Akums' existing portfolio of over 4,000 commercialized formulations and expands its addressable market among fast-moving consumer goods (FMCG) clients.

Why It Matters

The acquisition establishes an immediate footprint for Akums in the specialized colour cosmetics manufacturing space without operational disruption. By integrating two operational plants in North India, Akums can offer turn-key contract manufacturing services to domestic D2C beauty brands and multinational cosmetics firms seeking localized production under strict quality controls.

Key Facts at a Glance

Deal Valuation: All-cash acquisition valued at ₹56 crore.
Acquirer: Pure and Cure Healthcare Private Limited, a wholly-owned subsidiary of Akums Drugs and Pharmaceuticals.
Acquired Assets: Two manufacturing units in Roorkee (Uttarakhand) and Noida (Uttar Pradesh), plus a leased warehouse in Noida.
Product Scope: Expands capacity across colour cosmetics, skincare, hair care, and wellness formulations.
Completion Timeline: Targeted for completion by August 31, 2026.

Frequently Asked Questions

Why is Akums acquiring Oriflame India's manufacturing business?

Akums is acquiring the manufacturing assets to diversify its contract development and manufacturing (CDMO) operations beyond pharmaceuticals into high-growth consumer categories, specifically colour cosmetics, skincare, and hair care.

What specific assets are included in the transaction?

The ₹56 crore cash deal includes two production facilities located in Roorkee, Uttarakhand, and Noida, Uttar Pradesh, along with a leased warehouse facility in Noida.

When is the acquisition expected to close?

According to official company announcements, the transaction is expected to be completed by August 31, 2026, subject to standard regulatory approvals and closing conditions.