Eurolife buys Teva's Hungarian unit; eyes Rs 1000cr in topline

Specialty pharma player Eurolife Healthcare, which has acquired a Hungarian plant of the Israeli drug major Teva, has set of target of becoming a Rs 1,000-crore company in the next three years. The company Thursday announced buyout of the intravenous infusions plant of the Israeli pharmaceutical major Teva in Hungary for an undisclosed amount. The company also said it will invest 50 million euros in the plant over the next three years.

The deal makes Eurolife the first domestic pharma company in the intravenous infusions business to have manufacturing abroad. "We had Rs 240 crore revenue in 2018. Over the next three years we are targeting revenue of Rs 1,000 crore, as we hope our revenue to swell from our Hungarian operations," Eurolife chief executive Sandeep Toshniwal told PTI.

He also said the company will invest 50 million euros over the next three years to build one of the single largest intravenous infusions plants in the world in Hungary. "The Hungarian deal gives us a distinct competitive advantage and will help us emerge as a leading player in the intravenous infusions category. The acquisition will also help us service the European and American markets better," he said.

"This is a 100 percent acquisition. The deal size is confidential due to non-disclosure agreement," he added. The city-based company has four manufacturing units and serves Asian, African, Latin American and the Gulf markets apart from the domestic markets.

"In addition to the capacity that we are acquiring at this site, we will be expanding even further, which will soon take us to having the largest capacity globally in intravenous infusions," he said. The current revenue mix between domestic and overseas is 80:20, which after this acquisition is expected to change to 50:50 in the near future.

The company had in 2017 taken over American healthcare company axter's India operations. In domestic market the company is looking at tripling the capacities next year, he said..