Senores Pharma Acquires Apnar Pharma for ₹91 Cr to Boost API Production

Introduction to the Acquisition

Senores Pharmaceuticals has announced a definitive agreement to acquire Apnar Pharma for an enterprise value of ₹91 crore. This strategic move is designed to significantly bolster Senores' manufacturing capabilities, particularly in the active pharmaceutical ingredients (API) segment. The acquisition enhances the company's backward integration, providing greater control over its supply chain and supporting its expansion plans across regulated international markets.

Deal Structure and Financial Breakdown

The transaction, valued at approximately ₹91 crore, is structured to be completed in two tranches. The deal includes Senores taking over ₹76 crore in outstanding debt and expected liabilities associated with Apnar Pharma's manufacturing facility. The remaining consideration of about ₹15 crore will be paid in cash. This cash component is scheduled to be paid in two stages: 75% in the first tranche and the final 25% in the second. This financial arrangement allows for a structured integration of the new assets into Senores' operations.

Timeline for Completion

The acquisition process is phased to ensure a smooth transition. The first tranche is expected to be completed by the end of the current financial year, March 2026. The second and final tranche is scheduled for completion by the second quarter of the financial year 2027. Upon the completion of both tranches, Apnar Pharma Private Ltd will become a wholly-owned subsidiary of Senores Pharmaceuticals.

Strategic Rationale and Synergies

The primary driver for this acquisition is Senores' long-term vision of building a vertically integrated pharmaceutical platform. By acquiring Apnar Pharma, Senores gains access to established API manufacturing infrastructure and technical expertise. This move is expected to improve supply chain reliability, generate cost efficiencies, and accelerate product development, especially for complex and high-value APIs. Keyur Parikh, Founder and Managing Director of Senores Pharmaceuticals, stated that Apnar's manufacturing strengths will accelerate the company's ability to scale API production and support its formulation pipeline for regulated markets.

A Closer Look at Apnar Pharma

Apnar Pharma, incorporated in Gujarat on December 12, 2014, is a manufacturer of generic pharmaceutical formulations. The company operates a state-of-the-art manufacturing facility near Vadodara, Gujarat. This facility holds critical regulatory approvals from the US Food and Drug Administration (USFDA), the UK Medicines and Healthcare products Regulatory Agency (UK-MHRA), and Health Canada. This pre-approved status provides Senores with immediate access to these highly regulated and lucrative markets.

Apnar Pharma's financial performance has shown variability, reporting a turnover of ₹15.75 crore in March 2023, which increased to ₹27.56 crore in March 2024, and was recorded at ₹14.21 crore for the financial year ending March 2025.

Enhanced Manufacturing Capabilities

The acquired facility in Jambusar, Gujarat, is a significant asset. It has a total land area of 49,250 square meters and a current construction area of 40,000 square feet. The plant has substantial production capacity with room for expansion.

This capacity will support Senores' existing product lines and its contract development and manufacturing organization (CDMO) and contract manufacturing organization (CMO) services, strengthening customer relationships and opening new revenue streams.

Market Impact and Industry Trends

This acquisition comes at a time when consolidation in the API sector is increasing. Pharmaceutical companies globally are seeking greater control over their supply chains to mitigate risks from geopolitical disruptions. The move by Senores positions it to capitalize on this trend, reinforcing India's standing as a major global pharmaceutical manufacturing hub. By reducing dependency on third-party suppliers, Senores aims to improve its time-to-market for new products and ensure consistent quality and supply.

Future Outlook and Revenue Projections

Looking ahead, Senores' management is optimistic about the financial impact of its expanded manufacturing base. During a recent conference call, the company projected that its new manufacturing plant, bolstered by the Apnar acquisition, is expected to contribute ₹100-120 crore in revenue during its first full year of operation (FY26-27). Furthermore, management anticipates achieving an impressive 30% EBITDA margin from this new capacity. They also clarified that no significant increase in operational costs is expected from the Apnar plant integration, highlighting a focus on operational efficiency.

Conclusion

The acquisition of Apnar Pharma for ₹91 crore is a calculated and strategic step for Senores Pharmaceuticals. It directly addresses the company's goals of vertical integration, supply chain security, and expansion into regulated markets. With access to a USFDA-approved facility and a clear path to increased revenue and profitability, Senores is well-positioned to strengthen its competitive standing in the global pharmaceutical industry.