OSCL enters into API segment with the acquisition of LASA Lab Pharmabiz (11/04/2012)
Omkar Speciality Chemicals Limited (OSCL) manufacturers of speciality chemicals like derivatives of selenium, iodine, molybdenum, cobalt, bismuth and pharma intermediates for life-saving drugs recently entered into the API segment with the acquisition of LASA Laboratory. The acquired company is located at Mahad in Raigad district and is an established player in the anthelmintic or de-worming agents for veterinary API segment with API manufacturing facility.
The deal was sealed by the company at an attractive rate of approximately Rs.6 crore. OSCL informed that the acquired API division is already in operation, and will be focusing on continuing the existing API business of LASA Laboratory. With this acquisition the company has not only forayed into the API's but has also expressed their intention in strengthening their hold in the niche veterinary segment which is a growing market in the country.
Pravin Herlekar, chairman and managing director, OSCL informed, “We are very happy with the investment that we have made in LASA as the company already has an established presence in the market which we can further explore for our benefit. Most importantly, this acquisition also gives us direct access to the veterinary segment which is fast catching up in the country due to various reasons. It was a strategically thoughtout decision which clearly shows our long time objective of strengthening our position in the market.”
OSCL is at present reported to be growing at a rate of 40 to 50 per cent, however the company reported that with this acquisition the company is expected to grow almost 50 to 60 per cent.
The company also informed about its investment of Rs.100 crore to set up a new facility for speciality chemicals at its Chiplun plant. Herlekar informed that they are in the end stage of commissioning the capacity increase to meet the hight demand from their customers. The upcoming unit for speciality chemicals is reported to be in the last stage of development and is expected to be ready for production by September this year.
The company also expressed its intention to manufacture APIs with foreword integration of some of the key intermediates which are currently being manufactured by OSCL. The Companies product portfolio comprises of 10 products in the veterinary anthelmentic segment, mainly benzimidazoles and other active pharma ingredients.