RPG Life Sciences steps up API expansion after ₹215 crore acquisition spree

RPG Life Sciences is significantly scaling up its active pharmaceutical ingredients (API) business after completing two acquisitions worth a combined ₹215 crore in just five weeks. The company is now preparing for another phase of expansion, with plans to invest as much as ₹500-700 crore over the next 12 months through a mix of acquisitions and organic growth.

The drugmaker is pursuing a buy-and-build strategy designed to increase manufacturing capacity, strengthen its capabilities in complex chemistry and expand its presence in international markets.

RPG Life Sciences is gearing up to enter the rapidly expanding GLP-1 market, with the company targeting an October launch.

The acquisitions of Actis Generics and Raghava Life Sciences have transformed the scale of RPG Life Sciences' API operations. Manufacturing capacity has increased from 110 KL to 505 KL, while the company's API customer base has more than doubled, rising from 123 to over 250.

Its product portfolio has also expanded from 14 to 45 products, while the R&D pipeline has grown from 12 to 28 candidates. At the same time, the API workforce has increased from 217 employees to more than 500.

Building a larger API platform

RPG Life Sciences Managing Director Ashok Nair told Business Today that the company began preparing for the expansion by separating its API operations into RPG Active Pharma and bringing a healthcare-focused private equity investor into the business.

The transaction raised ₹243 crore and helped establish a dedicated funding pool of around ₹700 crore for the API expansion programme.

The company subsequently acquired Actis Generics for ₹85 crore. The deal added manufacturing capacity as well as backward-integration capabilities to the business. This was followed by the acquisition of Raghava Life Sciences.

Raghava added roughly 300 KL of manufacturing capacity, along with 22 commercialised products, international regulatory approvals and an established customer base.

Together, the deals have moved RPG Life Sciences beyond an API-only model toward a more integrated platform covering APIs and advanced intermediates.

More acquisitions under consideration

The company is not stopping with the two recent deals. RPG Life Sciences is evaluating additional acquisition targets as well as internal expansion projects and expects to deploy another ₹500-700 crore during the next year.

The focus is expected to remain on assets that can strengthen the company's manufacturing network, broaden its product range or add specialised technical capabilities.

Among the opportunities being considered is a large manufacturing facility, ideally one with USFDA approvals and a product portfolio that complements RPG Life Sciences' existing business.

Focus remains on specialised APIs

Rather than competing heavily in commoditised API segments, RPG Life Sciences intends to concentrate on niche products that involve complex chemistry and multi-step manufacturing processes.

According to Nair, these products can offer higher barriers to entry, stronger customer relationships and comparatively lower exposure to pricing pressure.

The newly acquired capacity also provides substantial room for growth.

RPG Life Sciences' Navi Mumbai facility is currently operating at about 60% utilisation, while Actis is close to full capacity. Raghava, by contrast, is running at only around 20%.

The company estimates that Raghava could generate approximately ₹200 crore in revenue once utilisation rises to 70-80%. Across its three API facilities, RPG Life Sciences is targeting overall capacity utilisation of 75-80% as it works to capture operational synergies from the acquisitions.

API business to support ₹2,500-crore target

The API strategy is part of RPG Life Sciences' broader plan to reach approximately ₹2,500 crore in revenue by 2030.

The company expects domestic formulations to contribute around ₹1,200 crore, compared with approximately ₹700 crore currently. Its API business is projected to generate ₹500-700 crore, with international formulations accounting for the remaining revenue.

The 2030 target already incorporates the recent acquisitions and around ₹500 crore from the existing acquisition pool. Potential future acquisitions in the formulations business have not been included in the calculation.

International expansion gathers pace

Alongside its API strategy, RPG Life Sciences is also expanding its international formulations business, which currently represents roughly 15% of the company's operations.

The company has a presence in more than 60 countries and is targeting additional growth in regions including Africa, Canada, Saudi Arabia and Latin America.

In Canada, the company expects to commercialise naproxen by February 2027 following approval for an over-the-counter formulation.

RPG Life Sciences prepares for GLP-1 entry

The company is also preparing to enter the rapidly expanding GLP-1 market, with a launch planned for October.

RPG Life Sciences has partnered with a research innovator for the product and believes its established presence in specialised therapeutic areas could provide an opportunity to build a position in the category.

Nair estimates that India's GLP-1 market could reach approximately ₹4,000 crore over the next three to four years.

With a stronger balance sheet and improved financial performance, RPG Life Sciences is now using acquisitions alongside organic investments to accelerate growth. The API business is expected to remain a key part of that strategy as the company seeks to increase scale while maintaining its focus on specialised products and profitability.