Pune, India | January 02, 2026
Hyderabad-based Aurobindo Pharma has finalized a ₹325 crore deal to acquire Khandelwal Laboratories’ non-oncology prescription business. The acquisition, executed through its wholly owned subsidiary Auro Pharma Limited, marks a strategic step to strengthen domestic formulations and expand Aurobindo’s branded drug portfolio nationwide.
The deal includes 23 well-established brands across 67 stock-keeping units (SKUs) and nine pipeline products primarily focused on anti-infective and pain management therapies. By acquiring these products, Aurobindo gains immediate market scale and strengthened therapeutic offerings in key growth segments.
Although the transaction excludes equity shares and intellectual property of Khandelwal Laboratories. It comes with approximately 470 field sales personnel and a distribution network of over 1,600 stockists. Consequently, Aurobindo can leverage existing operational capabilities to reach urban, semi-urban, and rural markets effectively.
Khandelwal’s non-oncology operations reported ₹113.5 crore in turnover for fiscal 2024–25, reflecting consistent revenue and operational stability. Such performance underscores the strategic value of the ₹325 crore deal and highlights the profitability of the acquired portfolio.
Moreover, regulatory approvals were not required for the ₹325 crore deal, and the transaction does not constitute a related-party deal under corporate governance norms. Therefore, this streamlined approach enables Aurobindo to integrate the business efficiently and capture market benefits immediately.
Analysts suggest that the ₹325 crore deal will reinforce Aurobindo Pharma’s competitive positioning in India’s domestic formulations segment. By adding Khandelwal’s established brands, the company is expected to increase prescription penetration. It also strengthens its presence in anti-infective and pain management markets.
The acquisition, structured as a slump sale, includes customary working capital adjustments. This financial arrangement provides clarity for both parties and ensures a smooth operational transition while preserving business continuity.
Founded in the 1970s, Khandelwal Laboratories has developed strong brand equity and loyal customer bases across India. Consequently, its sustained revenue growth and market recognition support the ₹325 crore deal valuation and the long-term strategic rationale for the acquisition.
Following the announcement, Aurobindo Pharma shares experienced a positive market response, reflecting investor confidence in the company’s ability to expand its domestic formulation portfolio successfully. Additionally, experts highlight that the ₹325 crore deal aligns with broader industry trends of consolidation in the non-oncology segment.
The company expects that integrating the acquired business will create operational synergies. That will improve sales efficiency and reduce time-to-market for new product introductions. Moreover, leveraging Khandelwal’s field force and distribution network will help Aurobindo expand reach into semi-urban and rural healthcare markets.
Senior management emphasized that the ₹325 crore deal strengthens the company’s long-term strategy. To grow its branded prescription business in India. By consolidating key products and expanding its distribution infrastructure, Aurobindo aims to deliver enhanced value to healthcare providers, patients, and stakeholders.
Industry observers note that the ₹325 crore deal may trigger further consolidation within India’s non-oncology pharmaceutical market. As a result, competitors could explore similar acquisitions to maintain market share, prompting strategic adjustments across the sector.
In summary, the ₹325 crore deal represents a critical strategic initiative for Aurobindo Pharma, enhancing its branded prescription offerings, strengthening operational capabilities, and positioning the company for sustainable growth in India’s competitive pharmaceutical landscape.
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