Press release for Acquisition of 51% in SSM Formulations Private Limited
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Eiko Lifesciences has signed a definitive agreement to acquire a 51% controlling stake in SSM Formulations, a WHO-GMP accredited pharmaceutical formulations company based in Hinganghat Wardha. SSM operates a manufacturing facility spread over 16,400 sq. meters with 80,000 sq. ft. built-up area on the Nagpur–Hyderabad National Highway, capable of producing 300 crore tablets and 90 crore capsules annually. The deal is being executed in a phased manner, aligned with Eiko's ongoing warrant fundraising. SSM holds a Narcotics License with Tramadol registrations, has presence in 5+ international markets (Ghana, Nigeria, Uzbekistan, Yemen, Cameroon), and is shifting from job work to government tenders (TNMSC, UPMSCL) and MNC contract manufacturing, with EU-GMP accreditation in process.
This is a transformative move for Eiko, taking it from a specialty chemicals and API supplier into a fully integrated pharmaceutical player with a finished dosage forms business. If the company succeeds in raising capacity utilization from ~58% to 90%+ for tablets, this acquisition could significantly boost revenue and margins for shareholders, though execution risk and warrant dilution remain factors to watch.