Dormant Pharmaceutical Formulations Facility For Sale

About Business

Established in 1992, the company operates in the pharmaceutical manufacturing sector and provides contract manufacturing services for a range of pharmaceutical formulations. Over the years, it has developed capabilities in the production of tablets, liquid oral formulations, and alcohol-based external liquid preparations, serving both domestic and international clients.

The company offers manufacturing solutions across multiple dosage forms, including antacid products and other pharmaceutical formulations. Its operations include production, quality control, and regulatory compliance processes designed to meet applicable industry standards and customer requirements.

Historically, the business has undertaken contract manufacturing assignments for multinational and Indian pharmaceutical companies. It is also exploring opportunities to expand its presence in domestic and export markets through the development and marketing of its own product portfolio. The company has additionally completed registration requirements for pharmaceutical business activities in select international markets, including Sri Lanka.

The manufacturing facility is equipped with production infrastructure, water purification systems, HVAC systems, and quality testing laboratories. These facilities support product manufacturing, quality assurance, and compliance with applicable Good Manufacturing Practice (GMP) requirements.

The company currently has approximately 35 formulations available for commercialization, with additional products under development. Its manufacturing operations are supported by dedicated quality assurance and quality control functions, utilizing laboratory equipment and standardized testing procedures.

The business is seeking strategic partnerships, contract manufacturing opportunities, and collaborations with organizations operating within the pharmaceutical and healthcare sectors.

Clientele type

They have served Burroughs Wellcome, Glaxo, Glaxo Wellcome, Glaxo Smithkline, Dr Reddy's, Bayer Healthcare, Johnson & Johnson, and Pfizer

Premises

OWNED

Premise Size: 23000 Sq Ft Built up Area

Market Value (in INR): 33.00 Cr

The total land area is 800.00 sq. mtrs for the first facility and 1,000.00 sq. mtrs for the second. The total built-up area is 2,200.00 sq. mtrs and 986.08 sq. mtrs respectively. Both facilities are fully covered, with no undeveloped areas, and neither has a green belt.

The first facility has 1 liquid oral line and 2 tablet lines, while the second has 2 liquid oral lines. The first facility employs 25 persons and the second employs 10 persons.
In terms of area breakdown, the first facility has a total manufacturing area of 264.98 sq. mtrs compared to 435.45 sq. mtrs in the second. Raw material storage area is 317.54 sq. mtrs in the first and 78.35 sq. mtrs in the second. The packaging area measures 120.39 sq. mtrs and 41.46 sq. mtrs respectively. Both facilities share the same finished goods storage area of 42.62 sq. mtrs and QA/QC lab area of 126.00 sq. mtrs.

Regarding location advantage, Makjai's competitive advantage stems from its high-tech manufacturing facilities. They have established technically sound manufacturing facilities by leveraging state-of-the-art technology, incorporating best practices, and adhering to stringent regulatory compliance. They manufacture products of consistent quality, with GMP compliance, on-time deliveries, best quality, world-class manufacturing systems, cost efficiency, and a docile environment.

Asking Price Includes

The asking price of INR 33 crores includes the complete sale of the facility and the business. They are also open to onboarding a partner for a majority stake to restart the business.

Asking Price

INR 33.00 Cr

Minimum ticket size

INR 17.00 Cr

Reason

The promoters are looking to retire, and the next generation is settled abroad.