• Asahi Songwon Colors Limited (“Asahi”), a market leader in the Indian pigments industry, announced the acquisition of Atlas Life Sciences Pvt. Ltd. (“Atlas”), a manufacturer of Active pharmaceutical ingredients (APIs).
  • Asahi signed definitive agreement to acquire 100% equity stake in Atlas. The acquisition of shares under first tranche i.e. 78% stake in Atlas is completed on April 18, 2022 for an all-cash consideration of Rs. 48 Crores.
  • Balance 22% stake in ALSPL will be acquired in two tranches (11% each) before March, 2025 with Consideration based on performance.
  • The acquisition includes a fully operational WHO GMP certified manufacturing facility in Odhav, Ahmedabad, a R&D facility, a corporate office, and a 15,000 Sq. Mt. land parcel in Chhatral with EC permission for 32 products, for future expansion.
  • Vora Corporate Finance along with its associate Crystal Path Capital Advisors acted as financial advisors to Atlas Life science Pvt. Ltd. and Asahi Songwon Colors Ltd. in this transaction.


About Atlas Life Science:

  • Incorporated in 2004, Atlas is a manufacturer of API and Bulk Drugs. API are the substances in drugs that are responsible for the beneficial health effects experienced by consumers.
  • Atlas is a leading manufacturer of Anti-convulsant, Anti-psychotic and Anti-diabetic APIs. Atlas is market leader in India in Pregabalin drug.
  • Atlas has 80 member team and a strong focus on R&D with 10 products in pipeline. It has a WHO GMP certified manufacturing facility in Odhav, running at optimum capacity.
  • Atlas’s turnover in FY22 was Rs. 120 Crore with EBITDA of Rs. 8.64 Crore and Profit of Rs. 4.34 Crore.


About Asahi Songwon Colors Ltd.:

  • Asahi is a leading manufacturer in the Indian Pigment industry.
  • The company manufactures full range of blue pigments including blue crude. Recently, the company has also ventured into manufacturing yellow and red (AZO) pigments. More than 70% of business of company is from exports to global MNC’s.
  • The company operates via its two manufacturing facilities at Vadodara and Bharuch, Gujarat.
  • Asahi Songwon is listed on BSE exchange. Company’s turnover in FY22 was Rs. 405 Crore with EBITDA of Rs. 41 Crore and Profit of Rs. 24 Crore.



  • Gokul Jaykrishna, CEO of Asahi, said that the acquisition is to add a new growth lever and create significant value by leveraging combined capabilities and unlock synergies in API and Bulk drug business.
  • Jagdish Sheth, MD of Atlas, was looking to pass the business to a capable hands as he is over 75 years of age and did not have succession planning.
  • The deal includes a 15,000 Sq. Mt. land parcel in Chhatral, Ahmedabad with EC permission for 32 products. Asahi plans to establish a new plant with European accreditation on the vacant land parcel in order to backward integrate the existing products and introduce newer high-value products.
  • Asahi hopes to more than double the existing EBITDA margins by backward integration.
  • Asahi had been looking for potential inorganic growth from last two to three years as it had been financially a very strong company with blue pigment being a good cash cow. However pigments is a stable business and for a 10 to 15 year horizon, Asahi saw fit to diversify into API segment.

API segment:

  • API segment has become exciting in the deals space lately, as against generics.
  • While earlier Chinese players dominated API markets with price competition, many environmental curbs are placed on them due to their wide spread pollution. At the same time global players are de-risking their supply chains with china plus one strategy. Indian Government has also started Atmanirbhar initiative to reduce outside dependence.
  • API sector has seen number of M&A and PE deals in last couple of years like Advent PE fund acquiring Zandu Chemicals & RA Chem pharma, Rossary Biotech acquiring Tristar and Unitop, PAG and CX partners acquiring majority in Anjan Drugs, to name a few.

M&A Strategy:

  • In M&A, companies need to think in terms of long term strategic goals. Promoters need to ask where they see their company 15 or 25 years down the line and weather the acquisition is part of company’s long term vision.
  • Time and again capital markets have also demonstrated that they are less concerned with the valuations of the acquisition, or whether the valuation multiple was one or two points north or south, rather investors have rewarded long term strategic actions.

Asahi Songwon’s stock price jumped 5% on the announcement of the deal.



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This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction. 

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