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RPG Active Pharma Has Acquired Raghava Life Sciences' API Business for Rs 135 Crore — India's API Sector Consolidation Gets a Buy-and-Build Playbook

By Mustafa Shariff, Editor in Chief · September 07,2026 · 2 mins read

Mustafa Shariff, Editor in Chief — RPG Active Pharma Has Acquired Raghava Life Sciences' API Business for Rs 135 Crore — India's API Sector Consolidation Gets a Buy-and-Build Playbook

Summary

  • RPG Active Pharma Acquires Raghava Life Sciences' API Business for Rs 135 Crore — WHO-GMP and EU-GMP Facility, 29 Molecules, 300 KL Capacity
  • RPG Active Pharma (RPG Life Sciences subsidiary) acquired Raghava Life Sciences' API and intermediates business for Rs 135 crore — adding WHO-GMP/EU-GMP certified Hyderabad facility with 300 KL capacity, 29 API molecules (22 commercial), and R&D centre.

"This acquisition of Raghava Life Sciences' API and intermediates business is the next step in RPG Active Pharma's consolidation strategy — a deliberate buy-and-build approach aimed at strengthening organic growth and creating an integrated, scaled API-focused organisation. Raghava brings WHO-GMP and EU-GMP certified manufacturing capacity, a portfolio of 29 API molecules across multiple therapeutic areas, and an R&D centre — all of which complement and extend RPG Active Pharma's existing capabilities. The regulatory approvals, the manufacturing infrastructure, and the molecule portfolio all take years to build from scratch. Acquiring them accelerates our pathway to scale significantly."

RPG Life Sciences Limited announced on September 3, 2026 that its wholly-owned subsidiary RPG Active Pharma Limited (RPGAP) has entered into a Business Transfer Agreement to acquire the API and intermediates business undertaking of Raghava Life Sciences Private Limited — for a consideration of up to Rs 135 crore, executed as a slump sale on a going-concern basis. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to complete within approximately 30 days.
What RPGAP Is Acquiring
Raghava Life Sciences' API and intermediates business sits on a 9-acre facility near Hyderabad with approximately 300 kilolitres of installed reactor capacity. The facility holds WHO-GMP and EU-GMP certifications — regulatory approvals that typically take years and significant capital to establish from scratch — and an R&D centre. The API molecule portfolio comprises 29 molecules: 22 that are fully commercialised and generating revenue, and 7 that are in various stages of development.
The facility generated approximately Rs 19 crore in unaudited revenue in FY26 — small relative to the Rs 135 crore acquisition price, but the strategic value lies in the validated infrastructure, the regulatory approvals, and the molecule portfolio rather than the current revenue run-rate. At full utilisation, the facility is estimated to have a revenue potential of approximately Rs 200 crore.
RPGAP's Buy-and-Build Strategy
The Raghava Life Sciences acquisition is RPGAP's second strategic acquisition in 2026. Earlier in the year, RPGAP acquired Actis Generics for Rs 80 crore. Together, the two acquisitions reflect a systematic buy-and-build consolidation strategy: acquiring established API facilities with regulatory approvals rather than waiting on the 3-5 year timeline for building and validating new greenfield capacity.
BHC Media covered RPG Life Sciences' API business restructuring in the August 3 edition — noting that the company transferred its API business to RPG Active Pharma as a wholly owned subsidiary, with InvAscent acquiring a 40% stake for up to Rs 243.33 crore as part of a broader Rs 700 crore investment plan. The Actis Generics acquisition and the Raghava acquisition are the first visible commercial deployments of this investment plan.
BHC Perspective
At Bengaluru Health Community, RPG Active Pharma's acquisition of Raghava Life Sciences is the API sector consolidation story that most clearly defines what the buy-and-build API platform strategy looks like in execution: two acquisitions in one year, regulatory-ready facilities, clear molecule portfolios, and PE backing providing the capital to accelerate. For BHC founders in API manufacturing, pharmaceutical outsourcing, or specialty chemistry — the RPGAP model is the commercial case study for how mid-sized API platforms scale in India.
Frequently Asked Questions
Q: What did RPGAP acquire?
A: API and intermediates business of Raghava Life Sciences for Rs 135 crore via slump sale. Hyderabad facility, 9 acres, WHO-GMP + EU-GMP certified, 300 KL capacity, 29 API molecules (22 commercial, 7 in development), R&D centre. FY26 revenue ~Rs 19 crore; potential at full utilisation ~Rs 200 crore.
Q: What is RPG Active Pharma's strategy?
A: A buy-and-build consolidation approach: acquiring established API facilities with regulatory approvals (WHO-GMP, EU-GMP, CEP, EU Written Confirmation, KDMF) and existing molecule portfolios rather than building greenfield capacity — with InvAscent as PE backer (40% stake, up to Rs 243.33 crore) as part of a Rs 700 crore investment plan.
Q: What was the first RPGAP acquisition?
A: Actis Generics for Rs 80 crore — giving RPGAP backward-integrated intermediates manufacturing out of Vizag. Raghava Life Sciences adds scale, wider commercial product basket, and multiple international regulatory approvals.