NATCO Pharma to Invest ₹41 Billion in South Africa Expansion

NATCO Pharma Ltd. on Wednesday said its board has approved a ₹41 billion investment in South Africa through two initiatives: a strategic stake buy in Adcock Ingram Holdings Ltd. and the creation of a new wholly owned subsidiary.

The company plans to invest ₹20 billion to raise its stake in Adcock Ingram to 35.75%, from the current 0.8%. NATCO has made a cash offer of $4.27 per share to minority shareholders, valuing the deal at $226 million. If accepted, the transaction is expected to close before 31 December.

Adcock Ingram, among the largest healthcare companies in Africa, reported $536 million in revenue in 2023–24 (July–June) and $262 million in the first half of 2024–25. Post-acquisition, the company will remain private, with Bidvest Group holding 64.25% and NATCO Pharma the remaining 35.75%. NATCO will consolidate its proportionate share of Adcock’s net profit.

In addition, NATCO’s board cleared the formation of NATCO Pharma South Africa Proprietary Ltd., with an investment of up to ₹21 billion. The new unit will oversee investment holdings and pharmaceutical operations in the region.

Separately, the board approved the winding up of Time Cap Overseas Ltd., NATCO’s wholly owned subsidiary in Brazil. Post-liquidation, the parent will directly own NatcoFarma do Brasil Ltd.