Vivimed Labs closes in on $50-m European buy

Vivimed Labs, a specialty chemical company, is close to acquiring a European company in a deal estimated at $50 million (Rs 225 crore). The targeted Spain-based specialty chemical company commands a topline of $100 million. Vivimed plans to fund the deal through private placement worth $20 million, internal accruals and debt.

The company has drawn plans to invest Rs 58 crore in the upcoming plant in Visakhapatnam and existing plant for sunscreens at Bidar in Karnataka. The capacity of two plants in Hyderabad is also being augmented. The total investment in Visakhapatnam plant (for bulk chemicals) in the first phase will be Rs 75 crore. The plant is slated to be operational by next December. The capacity addition in Bidar plant will take care of expanding the portfolio of sunscreen products.

Vivimed has set a revenue target of Rs 900 crore by FY13 end. This year, we will achieve revenue of about Rs 450 crore with profit margin at about 10 per cent. We are confident of doubling this in the next two years with organic and inorganic expansion and new product launch.