On March 28, 2025, Ipca Laboratories Ltd. (the Company) informed the stock exchanges about significant corporate developments. The Company’s Board of Directors, in their meeting, approved two key initiatives: the sale of its formulations manufacturing facility in Tarapur and the acquisition of Unichem Ireland.

1. Sale of Tarapur Manufacturing Facility
Ipca Laboratories has decided to sell its formulations manufacturing facility located at T-139, MIDC, Tarapur, Palghar, on a slump sale basis to M/s. V. S. International Pvt. Ltd. for Rs. 36.90 crores. The decision comes as part of the Company’s operational strategy to reduce its number of manufacturing units and minimize operational costs. The manufacturing facility, which was acquired by the Company in 2014 for Rs. 38.61 crores, has a net written down value of Rs. 37.31 crores as per the Company's books.

This sale, however, will not affect the Company's business as the products currently manufactured at the Tarapur facility will be shifted to other manufacturing plants owned by Ipca. The completion of the transaction is expected to occur on or before June 30, 2025.

2. Acquisition of Unichem Ireland
In a move to strengthen its position in the European market, Ipca Laboratories has agreed to acquire 100% of the share capital of Unichem Laboratories Ltd., Ireland (Unichem Ireland) from Unichem Laboratories Ltd., India (Unichem India) for Rs. 4 crores in cash. Unichem Ireland, which was incorporated in 2011, holds registration for pharmaceutical product dossiers in Europe and currently markets and distributes formulations manufactured by Unichem India.

The acquisition is part of Ipca’s strategy to make Unichem Ireland its front-end company in Europe, handling formulation dossier registrations, sales, and distribution of pharmaceuticals in the region. The acquisition is expected to close by April 30, 2025, subject to necessary consents.

Unichem Ireland’s recent financial performance indicates a turnover of Rs. 810.57 lakhs in FY 2025 (till February), with a profit after tax of Rs. 108.60 lakhs.

Conclusion
These strategic decisions by Ipca Laboratories are aimed at optimizing its manufacturing operations and expanding its European market presence. The sale of the Tarapur manufacturing facility will streamline operations, while the acquisition of Unichem Ireland enhances the Company’s ability to cater to European markets. Both transactions are aligned with Ipca’s long-term growth objectives in the pharmaceutical industry.

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