Kilitch Drugs’ Khopoli Unit in Maharashtra
Kilitch Drugs (India) has announced plans to divest its entire stake in its Ethiopian subsidiary, Kilitch Estro Biotech PLC (KEB), to HarmeeCare Pharmaceuticals, an Ethiopian state-owned enterprise, in a transaction valued at USD 14 million.
The proposed transaction, approved by the company’s Board of Directors, forms part of its broader strategy to optimise its business portfolio, strengthen financial flexibility and accelerate investment in its pharmaceutical manufacturing operations in India.
The divestment is expected to free up capital for higher-growth opportunities in India, debt repayment and expansion of the company’s core pharmaceutical business.
Kilitch Drugs intends to use the net proceeds to reduce existing borrowings, lower finance costs and support the phased expansion of its new manufacturing facility at Pen, Maharashtra. The company plans to manufacture liquid injectable vials, lyophilised (freeze-dried) injectable vials and ophthalmic eye drops at the facility.
The company also plans to develop and manufacture glucagon-like peptide-1 (GLP-1) therapies to tap into the growing GLP-1 market as patents on key molecules expire across various international markets.
In addition, Kilitch Drugs intends to pursue European Union Good Manufacturing Practice (EU GMP) and Pharmaceutical Inspection Co-operation Scheme (PIC/S) accreditations to strengthen its presence in regulated export markets. These plans are subject to applicable regulatory approvals.
Commenting on the proposed transaction, Bhavin Mehta, whole-time director of Kilitch Drugs (India), said, “Our focus is on building the next phase of Kilitch Drugs’ growth by strengthening our manufacturing capabilities and expanding our presence in high-potential pharmaceutical segments.”
“The strategic divestment of our Ethiopian subsidiary will enable us to unlock capital, strengthen our balance sheet and accelerate our expansion plans in India,” he added.
To maintain its commercial presence in Ethiopia, Kilitch Drugs also proposes to enter into a long-term supply and technical services agreement with HarmeeCare Pharmaceuticals. The arrangement is expected to support the continued operations of the Ethiopian manufacturing facility while enabling an ongoing commercial relationship in the region.
The divestment is expected to be completed by January 31, 2027, subject to shareholder approval, applicable regulatory requirements and completion of the necessary transaction documentation.
Kilitch Drugs’ Ethiopia Plant
