New Delhi: Mukesh Ambani’s Reliance Group is understood to be interested in acquiring pharmaceutical firm Cipla as part of its expansion in the life sciences space.

Group company Reliance Life Sciences (RLS) is believed to be negotiating a deal but officials of both the companies have dubbed these reports as “speculation”.

“It is totally baseless,” Cipla Joint Managing Director Amar Lulla said when asked about the matter.

Yet, industry sources said negotiations between the two parties were in a fairly advanced stage and the possibility of making an announcement in the next few weeks could not be ruled out.

RLS had announced its intention to get into generics space and planned to invest about Rs 1,000 crore on expanding capacities and foray into contract manufacturing.

It had outlined inorganic as one of the paths for growth and earlier this year picked up 74 per cent stake in UK-based biotech firm GeneMedix. It had also formed a partnership with US-based fund MPM Capital.

On the other hand, Cipla has been one of leading Indian pharmaceutical companies with exports to over 160 countries. Last fiscal, the company recorded a turnover of Rs 3,667 crore with a new profit of Rs 661 crore. It has seven manufacturing at Baddi, Goa, Kurkumbh, Patalganga, Vikhroli, Bangalore and Mumbai.