RIL arm acquires Strand Life Sciences for ₹393 crore

Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has acquired about 22.8 million equity shares of ₹10 each of Strand Life Sciences Pvt. Ltd for a cash consideration of ₹393 crore, it said on Friday. The company is expected to make a further investment of ₹160 crore by March 2023, to take its holding in Strand to 80.3% of equity share capital on a fully diluted basis, RIL said in an exchange filing.

Strand, incorporated in India on 6 October 2000, is engaged in genomic testing in India with bioinformatics software and provision of clinical research solutions to healthcare providers, including clinicians, hospitals, medical devices manufacturers and pharmaceutical companies.

Strand had a turnover of ₹88.70 crore, ₹109.84 crore, and ₹96.60 crore in the previous three financial years. It reported a net profit of ₹8.48 core in FY2021 and net loss of ₹25.04 crore and ₹21.66 crore in the preceding two financial years.

The investment in Strand is part of the Reliance group’s digital health initiatives to foster affordable access to world class technology and innovation-led healthcare ecosystem in India.

“No governmental or regulatory approvals were required” for the investment as it does not fall within related-party transactions and none of RIL’s promoter, promoter group, or group companies “have any interest in the transaction”, RIL said.

Last September, RIL acquired a 60% stake in online pharmacy Netmeds for ₹620 crore not only to strengthen its e-commerce play but also to add to its healthcare portfolio that it is building on the back of Jio. RIL has been building the pharma and healthcare portfolio over the past few years through a series of acquisitions in the healthcare space, including Netmeds, Karexpert, and C-Square.

The company plans to integrate its brick-and-mortar presence in the segment through its digital arm Jio Platforms Ltd by creating a bouquet of services that can be monetized through delivery, transaction-based services and subscription services. Netmeds has been integrated with Reliance Retail’s online grocery platform, JioMart.

During the first quarter of this fiscal, RIL had operationalized 114 pharmacies and had begun hyperlocal delivery with a pilot project in Bengaluru. Its pharmacy sections are embedded within its Smart Points stores that serve as the last-mile delivery hub for all digital orders. The company has been holding camps, society interactions, and door-to-door marketing to further its reach.