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Lasa Supergenerics buys Harishree Aromatics to boost vet bulk drug biz
Photo Credit: VCCircle

Lasa Supergenerics Ltd said it has acquired Harishree Aromatics and Chemicals Pvt. Ltd that will help the Mumbai-listed firm to boost its veterinary active pharmaceutical ingredients (APIs) business.

The transaction involves the takeover of Harishree's manufacturing plant along with all its other assets and liabilities, Lasa said in a stock market disclosure. Harishree is a debt-free company, it added.

The financial details of the transaction were not revealed.

Omkar Herlekar, chairman at Lasa, said the acquisition will result in better financial and operational efficiencies and shareholder value for the company.

Lasa's total income fell to Rs 173.68 crore in the fiscal year ended 31 March 2019 as compared with Rs 249.25 crore in the previous financial year. It had swung to a net loss of Rs 12.04 crore during the period as compared with a net profit of Rs 12.32 crore.

The company is working towards bringing down the finance costs and the working capital cycle, it said in the disclosure.

Lasa Supergenerics, which was incorporated in 2011, manufactures veterinary APIs. It has manufacturing facilities located at Mahad and Chiplun in Maharashtra state. It exports to countries such as Australia, Bangladesh, the Middle East, China, Turkey, Egypt, Jordan, Korea, Brazil, and Uruguay.

Shares of Lasa Supergenerics were trading at Rs 45.15 apiece, down 4.95%, on the BSE on Friday. The company's shares have hit a low of 9.48 apiece and a high of 49.7 in the last one year.

Herlekar, in the annual report, attributed the pressure on its stocks to the subdued economy, raw material pricing and banking stress among others.

There have only been a few deals in the broader animal health business involving Indian companies.

In 2018, SeQuent Scientific Ltd, through its subsidiary Alivira Animal Health Ltd, had acquired a 100% stake in Cadila Healthcare's animal health business in Germany in a cash deal.

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