Kilitch Drugs sells Ethiopian unit for $14 million, redirects funds to Indian expansion

Deal Details

Kilitch Drugs (India) will sell its 100% stake in Ethiopian subsidiary Kilitch Estro Biotech PLC to state‑owned HarmeeCare Pharmaceuticals for $14 million. The transaction is expected to finish by 31 January 2027. The move forms part of Kilitch’s broader strategy to optimise its business portfolio and boost financial flexibility. The sale will free up capital for higher‑growth opportunities in India, including debt repayment and core business expansion.

Future Plans

The cash will be used to cut debt, lower finance costs and fund the phased expansion of a new manufacturing complex in Pen, Maharashtra. The plant will make liquid injectable vials, freeze‑dried injectable vials, ophthalmic eye drops and will develop GLP‑1 therapies. The plant aims to raise capacity for injectable medicines and eye‑care drops while entering the fast‑growing GLP‑1 market for diabetes treatment. Kilitch will also keep a commercial foothold in Ethiopia through a long‑term supply and technical‑services agreement with HarmeeCare.

Reaction

Bhavin Mehta, whole‑time director of Kilitch Drugs, said the divestment will unlock capital, strengthen the balance sheet and speed up Indian expansion.

Context

Divesting non‑core overseas units is a common way for Indian pharma firms to raise funds for domestic capacity growth and debt reduction. Such shifts reflect a wider trend of Indian pharma groups refocusing on domestic manufacturing to meet rising local demand.