Aurobindo Pharma Arm Seals Rs 3,250 Cr Deal to Acquire Khandelwal Labs' Non-Oncology Brands
Hyderabad: Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Auro Pharma Limited, has approved the acquisition of the non-oncology prescription formulations business of Khandelwal Laboratories Private Limited on a going concern basis, through a Business Transfer Agreement (BTA).
In a regulatory disclosure, Aurobindo Pharma informed stock exchanges that the transaction has been approved and completed on the same day.
“This is to inform you that Auro Pharma Limited (“Auro Pharma”), a wholly owned subsidiary of Aurobindo Pharma Limited (the “Company”) at its meeting held today i.e. January 1, 2026 has approved the acquisition of non-oncology prescription formulations business (the “Business”) of Khandelwal Laboratories Private Limited on a going concern basis through a Business Transfer Agreement (“BTA”),” the company stated.
As per the disclosure, the acquisition involves the branded non-oncology prescription formulations business of Khandelwal Laboratories Private Limited, including “inventory, intellectual property, employees, contracts etc. on a slump sale basis.”
Khandelwal Laboratories operates in the Indian pharmaceutical market with both oncology and non-oncology prescription products. Auro Pharma is acquiring only the non-oncology prescription formulations business, which comprises 23 brands marketed across 67 SKUs, along with nine pipeline products. The key therapeutic portfolios include anti-infective and pain management.
Financially, the acquired business reported a turnover of INR 1,135.3 million in FY 2024–25, with an EBITDA of INR 289.9 million. The business is supported by a field force of around 470 personnel and a distribution network of over 1,600 stockists across India.
The company disclosed that the acquisition does not qualify as a related party transaction, and that neither the promoter nor the promoter group has any interest in the target business. No governmental or regulatory approvals are required for the transaction.
The consideration for the acquisition is entirely in cash. “Cash consideration of INR 3,250 million subject to true up adjustments for the working capital as provided for in the definitive agreements,” the filing noted.
Explaining the strategic rationale, Aurobindo Pharma stated that the acquisition will strengthen its domestic formulations portfolio.
“The acquisition of the aforesaid Business shall add further brands in pain management and anti-infective which shall complement the existing product portfolios of the Company and help in expanding its business in domestic market,” the company said.
The business being acquired has a long operating history in India, having been active since 1973–74. Its turnover over the last three financial years stood at INR 1,049.8 million in FY 2022–23, INR 1,146.9 million in FY 2023–24, and INR 1,135.3 million in FY 2024–25.
Aurobindo Pharma clarified that no shares or control of Khandelwal Laboratories are being acquired, and that the transaction strictly involves the transfer of the identified business on a slump sale basis.
