This FMCG company embarks on global expansion with acquisitions in healthcare

FMCG company Evexia Lifecare is planning global expansion with the acquisition of a 51 per cent stake in a diagnostics company Vittal's MediCare Private Limited of the United Arab Emirates. The acquisition is valued at Rs 35 crores, post- effect it will result in Vittal's MediCare becoming a subsidiary of Evexia Lifecare. 

"The move aligns with the company's strategic vision to strengthen its position in diagnostics, which complements its core operations in manufacturing and trading of pharmaceuticals, chemicals, and lifecare products," the company said in a release.

Meanwhile, Vittal's MediCare Private Limited recorded revenues of Rs 25.7 crores in FY 2020-21, Rs 66.3 crores in FY 2021-22, and Rs 38.5 crores in FY 2022-23.  

Simultaneously, Evexia Lifecare's wholly-owned subsidiary, Evexia Lifecare Africa Limited, has signed a historic agreement to invest in 10 UAE-based Limited Liability Companies (LLCs). These LLCs have a combined sales of Rs 278.8 crores for the fiscal year 2022-2023, and they specialize in medical diagnostics and healthcare services.

The investment amounting to Rs 190 crores (AED 8.3 crores), will allow Evexia Lifecare Africa to acquire a 51 per cent stake in a newly formed Special Purpose Vehicle (SPV). This SPV will consolidate the operations of the ten LLCs, giving Evexia control over a major healthcare group in the UAE. The remaining 49 per cent will be held by the existing partners of the LLCs.