Asahi Songwon Colors Limited acquires a 100% stake in Atlas Life Sciences Pvt. Ltd. to diversify into the Active Pharmaceutical Ingredients market, enhancing growth potential and synergies.

Information on the Target

Asahi Songwon Colors Limited (“Asahi”), a prominent figure in the Indian pigments industry, has announced the acquisition of Atlas Life Sciences Pvt. Ltd. (“Atlas”), a manufacturer specializing in Active Pharmaceutical Ingredients (APIs). Asahi has signed a definitive agreement to acquire a 100% equity stake in Atlas, with the initial 78% stake transaction completed on April 18, 2022, for an all-cash consideration of Rs. 48 Crores. The agreement outlines provisions for the acquisition of the remaining 22% stake through two tranches of 11% each, expected to be finalized before March 2025, with the consideration tied to performance metrics.

This deal encompasses the acquisition of a fully operational manufacturing facility certified by WHO GMP located in Odhav, Ahmedabad, alongside a research and development facility, a corporate office, and a 15,000 square meter land parcel in Chhatral, which holds Environmental Clearance (EC) for the production of 32 products, paving the way for future expansion.

Industry Overview in India

The Indian API market has recently emerged as a lucrative sector, driven by the rising global demand for pharmaceuticals. Historically, Chinese manufacturers have dominated this space due to competitive pricing; however, increasing environmental regulatio