Arch Pharmalabs acquires  42 percent stake in Avon Organics for Rs 20 crore

Arch Pharmalabs acquires  42 percent stake in Avon Organics for Rs 20 crore. The company plans to buy another 20 percent more stake through an open offer to the public shareholders of Hyderabad-based Avon Organics.  Avon Organics would allot equity shares on a preferential basis to Arch at a price of Rs 20 per share.

Arch Pharmalabs Chairman and Managing Director Ajit Kamath the USFDA status of Avon Organics will help Arch to fast forward a few product launches in the US.  Avon would be a standalone listed-subsidiary of Arch. It has two manufacturing facilities. With Avon in its bag, Arch would get access to Diketene Chemistry, an intermediate, which is not made by any other Indian company.

Avon last year reported a loss of Rs 15 crore against a turnover of Rs 80 crore. For the half-yearly ended September, it reported a loss of Rs 7 crore, Kamath.