Sudarshan Pharma Industries Ltd has announced the acquisition of 100% equity in Cibachem General Trading L.L.C., Dubai, in a deal valued at ₹2.5 million (₹25 lakh). The move is set to make Cibachem a wholly owned subsidiary of Sudarshan Pharma, marking a strategic step to broaden its customer base and strengthen its presence in the Middle East.
Key Highlights:
-
Acquisition Details: The board approved the purchase of 300 shares of Cibachem General Trading L.L.C., each with a face value of AED 1,000, representing the entire paid-up capital of the Dubai-based company. The acquisition cost is ₹25 lakh, or its equivalent in UAE Dirhams, with completion targeted by March 31, 2025.
-
Strategic Rationale: Cibachem, established in 2013, is engaged in general trading activities in the UAE. This acquisition is expected to help Sudarshan Pharma tap into new markets, enhance its customer base in the Middle East, and support its global expansion plans.
-
Regulatory Process: The transaction is not a related party deal and is subject to approval from the Reserve Bank of India under the Foreign Exchange Management Act, 1999. Upon completion, Cibachem will become a wholly owned subsidiary.
-
Growth Ambitions: Sudarshan Pharma, a Mumbai-based contract manufacturer of generic formulations and specialty chemicals, continues to expand internationally, recently incorporating subsidiaries in Singapore and Poland, and investing in new R&D infrastructure in India.
This acquisition underlines Sudarshan Pharma’s commitment to international growth and its ambition to become a key player in the global pharmaceutical and chemicals market.
Sources: MoneyWorks4Me, Economic Times, DSIJ, MarketScreener