IndiaRF begins stake sale process in Synthimed Labs, appoints Rothschild & Co
India Resurgence Fund has appointed Rothschild to sell a minority stake in API and CRAMS firm Synthimed Labs, seeking a $1 billion valuation a little over two years after acquiring the asset.
MUMBAI : India Resurgence Fund (IndiaRF), a joint venture between the Piramal Group and Bain Capital, has initiated a process to sell part of its stake in Synthimed Labs Pvt Ltd (SLPL) and has appointed Rothschild & Co as advisor to scout for buyers for the portfolio company, two people familiar with the matter said.
“The investment firm is looking to sell a minority stake valued at $250–300 million," one of the people cited above said. The person added that the deal was launched two to three weeks ago and several private equity firms have been sounded out. “The investment firm is seeking a valuation of about $1 billion for the overall asset," a second person said.
IndiaRF and Rothschild & Co declined to comment, while Synthimed did not respond to queries until the time of publishing.
Recent acquisition
The move comes less than two years after IndiaRF acquired the carved-out generic active pharmaceutical ingredients (API) and contract research and manufacturing services (CRAMS) business of Ind-Swift Laboratories Ltd in March 2024 for a total consideration of ₹1,650 crore. The operations were subsequently housed under its portfolio company, SLPL.
IndiaRF, founded nearly a decade ago, invested in the company through its first fund, which had a corpus of $629 million. Its other investments include multi-speciality hospital chain Ivy Group, hospitality chain Impresario Entertainment, auto components maker Setco Automotive, and the Thrissur Expressway road infrastructure project.
The investment firm is currently in the process of raising its second fund, from which it has already made an investment in Anthea Aromatics, a specialty aroma chemicals manufacturer.
API focus
Incorporated on 25 July 2023, SLPL is a special purpose vehicle promoted by IndiaRF. The company manufactures APIs, advanced intermediates and offers CRAMS services to several domestic pharmaceutical companies. It claims to be among the top standalone merchants in the API segment, a critical component of India’s pharmaceutical industry.
As of May 2025, India remains the world’s largest supplier of generic medicines, accounting for 20% of global supply, according to a report by the India Brand Equity Foundation (IBEF).
The report added that India also plays a key role in affordable vaccine supply, providing 55–60% of UNICEF’s vaccines, 99% of the World Health Organization’s DPT vaccine demand, 52% of BCG vaccines and 45% of measles vaccines. This growth has also created significant employment opportunities across manufacturing and research.
These factors are expected to enable India’s pharmaceutical exports to grow 10–15 times to nearly $350 billion by 2047, Bain & Co said in a separate report.
Based in Chandigarh, SLPL operates manufacturing blocks with a total reactor capacity of over 700 kilolitres, spread across three locations—Derabassi in Punjab and Samba in Jammu—along with an R&D centre in Mohali, Punjab.
The company has an established presence in manufacturing APIs related to cardiovascular health, antihistamines, antidiabetics, antipsychotics, antimigraine drugs, Parkinson’s disease, antineoplastics, ADHD symptoms, analgesics, alcohol abstinence therapies and bone resorption inhibitors.
Export-heavy mix
SLPL caters to more than 1,000 customers across over 70 countries globally. Around 86% of its turnover comes from exports, with the remainder from the domestic market, resulting in a well-diversified geographical mix. Its operations span both regulated and semi-regulated markets.
In FY25, the company reported revenue of ₹1,452 crore, up from ₹1,197 crore a year earlier. Ebitda improved to ₹469 crore from ₹305 crore in FY24, according to a rating report by India Ratings.
Europe was the largest region, contributing 24% of total revenue in FY25. Regulated markets such as the US, Japan and South Korea contributed around 4%, 8% and 10%, respectively. The company also exports to Latin America, Brazil, Turkey, Southeast Asia and several African countries.
Growth drivers
Revenue growth was driven by healthy demand for key molecules, higher revenue share from existing customers and the addition of new clients. Management expects revenue to increase further, aided by growth in the US API segment, which is expected to contribute around 6–7% of revenue in FY26, supported by a healthy order pipeline as of end-July 2025.
The company’s bottom line also improved as it increased its focus on high-margin products.
India Ratings noted that Synthimed has maintained a competitive cost position across key molecules and has built strategic relationships with customers. “The focus will continue to be on regulated markets with entry barriers or with moderate competition from countries such as Korea and Latin America," the August 2025 report said.
However, the company faces intense competition for some products from large pharmaceutical players including Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla, Zydus Lifesciences and Torrent Pharmaceuticals, according to reports.
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