Investment to Drive Expansion and Strategic Growth in India’s Booming API Industry
Mumbai-based MO Alternate Investment Advisors Pvt. Ltd. (MO Alts), the private equity arm of Motilal Oswal Financial Services Ltd., has announced a ₹460 crore investment to acquire a majority stake in Megafine Pharma Pvt. Ltd. The deal signifies MO Alts’ strategic push into India’s rapidly growing Active Pharmaceutical Ingredients (API) industry, which is witnessing double-digit growth due to increasing global demand, supply chain diversification, and rising exports.
The transaction also saw participation from the Sanghvi Family, one of Megafine’s founding-promoter groups, increasing their stake in the company.
Megafine Pharma: A Leading API Manufacturer with Global Approvals
Established in 1995, Megafine Pharma has emerged as a key player in the API segment, specializing in high-value, low-volume niche APIs for chronic therapies such as cardiovascular, central nervous system (CNS), and oncology treatments. The company operates two world-class manufacturing facilities located in Nashik, Maharashtra, and Vapi, Gujarat—both of which are approved by major global regulatory authorities, including the U.S. Food and Drug Administration (USFDA) and European Medicines Agency (EMA).
Megafine is also backward integrated, enabling it to manufacture its own intermediates, ensuring better control over quality, cost, and supply chain efficiency. In addition to its API production, the company provides contract manufacturing services to global pharmaceutical companies.
MO Alts to Fuel Expansion and Innovation in API Manufacturing
MO Alts’ ₹460 crore investment will play a pivotal role in expanding Megafine’s manufacturing capabilities, research & development (R&D) efforts, and inorganic growth opportunities through acquisitions. This move aligns with India’s strategic goal of reducing dependency on Chinese API imports and bolstering domestic pharmaceutical manufacturing.
Shailesh Sanghvi, Managing Director of Megafine Pharma, welcomed the investment, stating:
“With our state-of-the-art facilities approved by global regulatory agencies, this partnership with MO Alts will propel us into our next growth phase, helping us scale operations and meet the evolving needs of the global pharmaceutical industry.”
India’s API Industry Poised for Robust Growth
The Indian API market is expanding at a CAGR of over 18%, fueled by:
- Global supply chain diversification as pharmaceutical companies look to reduce dependency on China.
- Government incentives, such as the Production Linked Incentive (PLI) scheme, which promotes domestic API production.
- Rising demand for chronic disease treatments, where niche APIs play a critical role.
Rohit Mantri, Managing Director and Co-Head of Private Equity at MO Alts, emphasized the growth potential, stating:
“India’s API industry is undergoing a transformation, driven by increasing outsourcing, competitive manufacturing costs, and supply chain de-risking strategies. Our investment in Megafine aligns with our vision to build world-class pharmaceutical platforms.”
Strategic Transaction Advisory and Future Outlook
The transaction was facilitated by leading financial and legal advisors:
- Deloitte (Financial Advisor)
- JSA & Pioneer (Legal Advisors for Megafine)
- Quillon Partners, Alvarez & Marsal, PWC & MP Advisors (Advisors for MO Alts)
With this investment, MO Alts strengthens its position as a key investor in the pharmaceutical sector, paving the way for scalability, innovation, and strategic partnerships in the API industry. The deal also reaffirms India’s growing significance in the global pharmaceutical supply chain, making it a critical player in the post-pandemic healthcare landscape.
