RPG Life Sciences Splits API Arm; InvAscent Invests Rs.243 Crore
RPG Life Sciences is establishing its active pharmaceutical ingredient (API) division as an independent subsidiary and partnering with healthcare-oriented private equity firm InvAscent to expand its API platform through acquisitions, increased capacity, and global expansion.
The API business will be shifted on a slump-sale basis to RPG Active Pharma, which is currently a wholly owned subsidiary of RPG Life Sciences. InvAscent-managed funds will invest an initial amount of up to Rs.243 crore in the subsidiary.
The pact anticipates investments of as much as Rs.700 crore by RPG Life Sciences and InvAscent in phases. The funds will be utilized to enhance manufacturing infrastructure, broaden the product range, advance process-development abilities, and seek both organic and inorganic growth.
RPG Active Pharma has entered into a deal to purchase the complete equity share capital of Actis Generics, an API manufacturer located in Visakhapatnam. The details regarding the acquisition were not revealed. The transactions are contingent upon regulatory approvals and standard closing conditions.
The API division, which accounted for 13.5 percent of the company’s revenue in 2025-26 (FY26), experienced a year-on-year growth of 35.6 percent in the April-June quarter of FY27 as the unit resumed operations following a fire interruption last year.
Exports represent approximately 85 percent of the API industry, while domestic sales comprise the rest. The company operates in Mexico and Canada but currently does not offer APIs in the US.
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In addition to Mexico and Canada, RPG Life Sciences delivers APIs to Japan, the UK, Vietnam, and the Philippines, and is entering several African markets. The company was assessing acquisitions, mainly FDA-approved assets in India, while also considering opportunities in other nations.
The company anticipates that APIs will expand more rapidly and contribute additional percentage points to its total revenue mix in the next two years. RPG Life Sciences strives to create a minimum of five APIs each year and has established a three-year product plan.
Domestic products boost revenue goals.
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Domestic formulations, accounting for 68.9 percent of FY26 sales, increased by 14.8 percent in the first quarter, in contrast to the 11.6 percent growth observed in the Indian pharmaceutical market. Naprosyn, a significant brand for the company, increased by 16 percent in the quarter and aims to reach a Rs.100-crore brand status by FY27.
RPG Life Sciences has recently introduced the line extension Naprosyn ES in India and is set to launch an over-the-counter version of Naprosyn in Canada through Walmart. Its global formulations division has partnered with a UK-based firm to create three products through a contract development and manufacturing organization agreement. The start of commercialization is anticipated to occur in six months.
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Total revenue grew by 15.8 percent to Rs.195.7 crore in the first quarter, while earnings before interest, tax, depreciation, and amortization increased by 17.9 percent to Rs.48 crore. The EBITDA margin grew by 40 basis points to reach 24.5 percent.