Soap and detergent maker Nirma is reportedly looking at options to raise up to Rs 7,000 crore for acquisition and expansion of its existing plans, according to a report by Business Standard.
The unlisted company posted a revenue of Rs 11,403 crore in the fiscal year ended March 31, 2023 FY23. As per the BS report, Glenmark Life Sciences is in the list of shortlisted companies for financial bids.
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Incepted in 1969, the Nirma Group is a leading chemical, cement and detergent manufacturer.
"They want to make an aggressive bid for Glenmark Life Sciences as they are targeting healthcare as the next big focus area," a banker was quoted as saying by BS. The acquisition of Glenmark Life Sciences will fulfill the group's ambitions in the health-care segment. The group already sells medical devices under Nirlife Healthcare.
The soap and detergent maker will use the funds to make large acquisitions in the domestic or overseas market to the tune of Rs 5,000-7,000 crore as part of its diversification plan.
The source further highlighted that if the acquisition doesn’t materialise, then the company may look to boost its existing businesses aggressively and plan capital expenditure of a similar size.
In April this year, the Nirma group acquired Stericon Pharma, an eye drops and contact lens maker, for around Rs 350 crore. In 2016, it acquired Lafarge India cement assets with 11 million tonnes capacity for Rs 9,400 crore, which was its first major acquisition. The company funded this acquisition with a mix of debt from foreign banks and equity.